Need help to add financial numbers up

Seeking Help with Financial Numbers

Hey everyone! I’m currently delving into financial reports, and I could use some assistance understanding the numbers for BLDP from Q3 ’24 and Q4 ’24. Here’s a link to the financials for reference: TradingView – BLDP Financials.

Here are the key figures I’ve gathered:

Cash and Short-Term Investments:
– Q3: $860.86 million
– Q4: $871.62 million

Free Cash Flow:
– Q3: -$53.93 million
– Q4: -$42.25 million

Net Income:
– Q3: -$279.64 million
– Q4: -$64.99 million

I’m puzzled as to how their cash balance could increase despite negative cash flow. Furthermore, even with significant losses in both net income and free cash flow over the years, their total debt seems surprisingly low at just $34 million, and the number of outstanding shares has remained fairly stable, indicating minimal dilution. You can check that here: TradingView – BLDP Shares Outstanding.

Can anyone help me figure out where this additional cash could be coming from based on these financial statements? Thanks in advance!

It sounds like you’re trying to reconcile some of the numbers around BLDP’s financials and make sense of their cash flow situation despite ongoing losses. Let’s break it down.

Negative Free Cash Flow but Increased Cash Balance:
While the free cash flow is negative for both quarters (indicating that the company is spending more cash than it’s generating from operations), the increase in cash and short-term investments might come from other sources. These could include:
- Financing Activities: They might be raising capital through debt or equity, which would increase cash despite negative cash flow.
- Operating Activities: Look for any changes in working capital. For instance, if they have reduced inventory or accounts receivable, it can free up cash.
- Investing Activities: If they sold assets or investments, this could also contribute to cash inflow.
Low Debt Levels:
A low debt reading suggests that the company is not relying heavily on borrowing, which is typical if they are utilizing equity financing or internal funds. Low debt also indicates that their financial health could be stable despite losses, as lower financial leverage tends to reduce risk.
Lack of Significant Dilution:
If the number of outstanding shares remains stable, this indicates that they have either not issued new shares or have done so at a minimal level. It is common for companies to raise funds through debt to avoid diluting existing shareholders.
Investigating Cash Sources:
To figure out where the extra cash is coming from, you may want to look at the cash flow statement, which breaks down cash flows from operating, investing, and financing activities. This will provide you insight into specific sources or uses of cash not immediately obvious from just income statements.
Other Factors:
Consider external factors such as grants, government subsidies, or strategic partnerships that could lead to cash inflows. Also, monitor investor confidence as a potential driver of stock price and funding opportunities.

In essence, you’ll need to look beyond just the income statement. A thorough examination of the cash flow statement and any accompanying notes in the financial reports can shed light on how they are managing their finances in light of negative cash flow and losses. If you have access to the full financial statements, do review these sections for a clearer picture!

One response

APAdmin

31 March 2025 at 6:23 AM
It sounds like you’re trying to reconcile some of the numbers around BLDP’s financials and make sense of their cash flow situation despite ongoing losses. Let’s break it down.
1. Negative Free Cash Flow but Increased Cash Balance:
2. While the free cash flow is negative for both quarters (indicating that the company is spending more cash than it’s generating from operations), the increase in cash and short-term investments might come from other sources. These could include:
  - Financing Activities: They might be raising capital through debt or equity, which would increase cash despite negative cash flow.
  - Operating Activities: Look for any changes in working capital. For instance, if they have reduced inventory or accounts receivable, it can free up cash.
  - Investing Activities: If they sold assets or investments, this could also contribute to cash inflow.
3. Low Debt Levels:
4. A low debt reading suggests that the company is not relying heavily on borrowing, which is typical if they are utilizing equity financing or internal funds. Low debt also indicates that their financial health could be stable despite losses, as lower financial leverage tends to reduce risk.
5. Lack of Significant Dilution:
6. If the number of outstanding shares remains stable, this indicates that they have either not issued new shares or have done so at a minimal level. It is common for companies to raise funds through debt to avoid diluting existing shareholders.
7. Investigating Cash Sources:
8. To figure out where the extra cash is coming from, you may want to look at the cash flow statement, which breaks down cash flows from operating, investing, and financing activities. This will provide you insight into specific sources or uses of cash not immediately obvious from just income statements.
9. Other Factors:
10. Consider external factors such as grants, government subsidies, or strategic partnerships that could lead to cash inflows. Also, monitor investor confidence as a potential driver of stock price and funding opportunities.
In essence, you’ll need to look beyond just the income statement. A thorough examination of the cash flow statement and any accompanying notes in the financial reports can shed light on how they are managing their finances in light of negative cash flow and losses. If you have access to the full financial statements, do review these sections for a clearer picture!
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