Exro Technologies Inc. Stock

The financial statements and ratios of Exro Technologies Inc., a company within an unspecified industry and holding an undefined US symbol, provide a comprehensive overview of its financial standing over the recent fiscal years. At an initial glance, the company's ability to raise and manage capital is evident, which is crucial for funding its operations and growth. However, the deep negative figures in income statements and certain financial ratios signal concerns that warrant a closer examination.

Delving further into the pros of Exro Technologies Inc.'s financials, one notable aspect is the company's robust efforts to fund its operations. A sizeable increase in total assets from 2020 to 2022—jumping from roughly CAD 50.17 million to CAD 60.87 million—demonstrates growth. Raising capital through financing activities, especially in 2022 with CAD 43.6 million, has been substantial, and the cash reserves have remained healthy, ending at CAD 17.44 million in 2022 up from the beginning of 2020's balance of CAD 482,988. The balance sheet points towards an aggressive strategy in increasing net working capital and total current assets, enhancing the company's ability to cover short-term obligations. Common stock shares outstanding have seen a considerable rise, indicating successful equity financing, which could be appealing to investors looking for a company actively pursuing expansion.

On the con side, Net Income figures paint a troubling picture. The company has consistently recorded substantial losses, with net income hitting negatives in the tens of millions of CAD from 2020 to 2022. This trajectory of mounting losses may raise concerns about the company's profitability and the sustainability of its business model. Furthermore, a glaring inconsistency is visible when looking at the cash flow statements. Despite increases in assets, cash flows from operating activities have been deeply negative, suggesting that the company's core business is consuming more cash than it generates—a worrying sign for long-term stability. Capital expenditures remain high, and free cash flow is significantly negative, indicating that the company is investing heavily, possibly in research and development or new facilities, which could explain the losses.