Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Profitability and Income
- The net income (loss) of the company shows significant volatility over the analyzed period. There were substantial losses in 2019 (-$51.1 million), 2020 (-$65.7 million), and 2021 (-$9.1 million). However, a marked turnaround is observed in 2022 with a net income of $216.0 million, followed by a considerable profit of $147.3 million in 2023. This shift indicates a successful transition to profitability starting in 2022.
- Non-Cash Expenses and Adjustments
- Depreciation and amortization increased steadily from $1.3 million in 2019 to $10.4 million in 2023, reflecting growing investment in assets. Stock-based compensation expenses rose sharply from $3.6 million in 2019 to $73.2 million in 2023, suggesting increased granting of equity incentives. Non-cash lease expenses also rose over the years, indicating growing lease obligations. Loss from equity method investment peaked at $6.3 million in 2021 and then declined.
- Asset and Liability Changes
- Accounts receivable and inventory consistently increased in absolute negative changes, indicating growing working capital needs or slower collections and accumulation of inventory. Accounts payable showed small fluctuations, ending with a negligible change in 2023. Accrued liabilities witnessed a rise to $32.9 million in 2023, possibly reflecting increased operational accruals. Lease liabilities shifted to a positive change in 2023, contrasting prior years’ decreases.
- Cash Flow Trends
- Operating cash flows recovered strongly from negative values of -$48.1 million in 2019 and -$71.2 million in 2020 to positive $15.0 million in 2021, $117.7 million in 2022, and $196.1 million in 2023. This recovery aligns with improved profitability. Investing cash flows were negative in 2019, 2020, 2022, and 2023, with a significant outflow of -$625.7 million in 2023 related largely to a $94.4 million business combination and heavy investing activities, including securities purchases. Financing cash flows fluctuated substantially, with inflows driven by stock issuances early on, significant debt proceeds in recent years, and the issuance of convertible debt in 2023 amounting to $730.5 million.
- Capital Raising and Debt
- Proceeds from common stock issuances were strong in earlier years but ceased after 2020. In 2023, the company raised significant capital via convertible debt issuance totaling over $730 million, which profoundly increased financing cash inflows. Concurrently, principal debt repayments increased, reaching $105 million in 2023, showing active management of debt maturity. Related derivative and warrant payments associated with convertible debt also impacted financing activities.
- Liquidity Position
- Cash and equivalents grew steadily, from $14.0 million at the end of 2019 to $329.8 million at the end of 2023. This reflects improved cash generation and capital-raising efforts, markedly strengthening liquidity. The net increase in cash was particularly strong in 2023 with a $171.5 million rise.
- Other Observations
- Deferred income tax liabilities fluctuated, with a notable $97.3 million reduction in 2022 followed by a positive reversal in 2023. The company’s non-cash lease expenses and amortization of debt issuance and securities-related items highlight ongoing financing and lease arrangements complexities. Negative changes in prepaid expenses and other assets likely reflect operational adjustments affecting working capital.