Aduro's Pre-scale up Cash Flow Statement

Looking at Aduro's Cash Flow Statement...

Green Flags:

• Liquidity-- $6.96M in Cash is a good short term cushion

• Financing Activities-- ~$15M in capital raised, which shows strong investor support

• Losses are accleerating ($7.4M -> $12M) this makes sense as they are getting ready to scale up their commercial application.

Yellow Flags:

• Mild CapEx increase (Plant & Property acquired)-- mild increase, expected.

• Share-based compensation (non-cash)-- more than doubled...while it conserves cash, it dilutes shareholders.

  • This is normal for a growth-stage company, but if it becomes excessive, it will be a red flag

Red Flags:

• Operations remain deeply negative-- no sign of self-sustaining cash flow.

Overall, my style of investing doesn't like seeing this negative of Core Operations. But given the context (still looking for a commercial application), it makes sense.