Liquidity is under extreme pressure, as evidenced by a negative -17.7% FCF margin and a capital expenditure-to-revenue ratio that spiked to 58.4% in the most recent quarter.
| Cash from Operations | -1.06M | -599.37K | -1.59M | -334.28K | -598.13K | -1.5K | -643.5K | 1.31M | 498.3K |
| Operating CF Growth % | -76.97% | 62.24% | -374.79% | 44.11% | -39748.97% | 99.77% | -148.99% | 163.59% | - |
| Operating CF / Revenue % | -2192.7% | -413.75% | -352.2% | -7.48% | -10.19% | -0.03% | -26.72% | 23.74% | 9.4% |
| Net Income | -3.19M | -1.16M | -2.15M | -2.25M | 253.89K | 299.36K | -537.81K | 1.17M | 996.55K |
| Depreciation & Amortization | 75.5K | 76.25K | 36.24K | 24.91K | 22K | 15.18K | 12.57K | 7.23K | 5.59K |
| Stock-Based Compensation | 1.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 534.6K | -264.17K | 372.63K | 191.16K | 121.59K | 35.97K | -146.17K | 195.36K | 0 |
| Working Capital Changes | 24.97K | 738.17K | 155.07K | 1.69M | -1.01M | -453.18K | 27.91K | -56.14K | -503.84K |
| Cash from Investing | -35.75K | -38.78K | -3.11M | -53.91K | 1.08K | -190.83K | -1.22K | -19.66K | -18.28K |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | -127.8K | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 67.76K | -3.06M | -47.31K | 14.49K | 3.33K | 0 | 0 | 0 |
| Cash from Financing | 2.43M | -363.09K | 381.75K | 0 | 110.75K | 70.41K | 4.1M | 0 | 27.69K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -363.09K | 381.75K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -23.54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 1.32M | -929.65K | -4.31M | -365.97K | -441.98K | -139.88K | 3.57M | 1.46M | 402.51K |
| Exchange Rate Effect | -6.67K | 71.58K | 4.29K | 22.22K | 44.33K | -17.96K | 116.06K | 161.59K | -105.2K |
| Cash at Beginning | 503.5K | 1.43M | 5.74M | 6.11M | 6.55M | 6.69M | 3.12M | 1.66M | 1.26M |
| Cash at End | 1.83M | 503.5K | 1.43M | 5.74M | 6.11M | 6.55M | 6.69M | 3.12M | 1.66M |
| Free Cash Flow | -1.1M | -705.91K | -1.63M | -340.88K | -611.55K | -67.86K | -644.72K | 1.29M | 480.02K |
| FCF Growth % | -55.33% | 56.76% | -378.94% | 44.26% | -801.26% | 89.48% | -149.83% | 169.53% | - |
| FCF / Revenue % | -2266.59% | -487.29% | -362.29% | -7.63% | -10.42% | -1.19% | -26.77% | 23.39% | 9.05% |
Rapid cash reserve depletion
As reported in recent financial statements, MDJM Ltd's operating cash flow consistently trails net income, with the most recent quarter showing an OCF/NI ratio of 0.35, suggesting that reported losses are not fully capturing the actual cash outflows required to sustain the company's current operational footprint.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses may understate the severity of its cash burn. Investors should monitor this divergence, as it suggests that non-cash items or accrual adjustments are failing to mask the underlying reality of a business that is consuming liquidity at a rate faster than its income statement implies.
Based on the company's reported figures, free cash flow has remained negative for nine of the last ten quarters, with the most recent period reflecting a -17.7% FCF margin, highlighting a structural inability to generate self-sustaining cash from its core real estate service operations.
The consistent negative free cash flow trajectory suggests that the company is not merely in a temporary investment phase but is instead struggling with a business model that lacks the scale to cover its fixed costs. This trend warrants further investigation into how long the current cash reserves can support operations before external financing or further asset liquidation becomes necessary.
According to historical data, MDJM Ltd's capital expenditure relative to revenue has spiked to 58.4% in the most recent quarter, an alarming figure that indicates the company is deploying significant capital despite a near-total collapse in its primary revenue-generating activities.
High capital intensity during a period of revenue contraction suggests that the company may be attempting to pivot or maintain infrastructure that is no longer aligned with its current market reality. This level of spending appears disproportionate to the company's output and may indicate that capital is being allocated toward speculative projects rather than core business maintenance.
As indicated by quarterly filings, working capital changes have been highly erratic, swinging from a $612.3K inflow in 2023Q2 to a $111.4K outflow in 2024Q4, which suggests significant instability in the company's ability to manage its receivables and payables effectively.
The volatility in working capital movements appears to reflect the unpredictable nature of the company's project-based revenue and the potential difficulty in collecting fees from distressed developers. Such fluctuations may indicate that the company is struggling to normalize its cash conversion cycle, further complicating the assessment of its true liquidity position.
Quick answers to the most common questions about buying UOKA stock.
MDJM Ltd (UOKA) generated $-1.1M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
MDJM Ltd (UOKA) reported negative free cash flow of $1.1M in 2024, indicating capital requirements exceeded cash from operations.
MDJM Ltd (UOKA) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.