Reviewing the Statement of Cashflows for Hydrogenics Corp, each section of the cash flow statement can be discussed. It can be stated that Hydrogenics Corp’s net loss for the year has reduced from 2012 to 2013, generating loss from -$12,797 to -$8,908, which is a good sign. It is coupled with the amount of restricted cash that has increased from -$1,607 to $1,758. However, the “other financial losses” is presented a growth from $438 to $2,065 that shows a negative issue for the company.
Simultaneously, the general amount of cash used in operating activities has dramatically increased from -$1,163 in 2012 to -$9,197. The amount of needed cash was primarily justified by the change in net change in non-cash working capital that grew from $11,631 to -$8,879. This result in cash used in operating activities was also affected by the increased liabilities for compensation indexed to share price from $768 to $4,223. Talking about investing activities, it can be observed that the company has spent in the purchases of property, plant, and equipment; thus, this resulted in a loss in this section from -$424 to -$939. The same trend was also seen in cash used in investing activities that grew from -$400 to -$971.
Hydrogenics Corp’s cash provided by financial activities has risen from $6,491 to $8,669, mainly because of the cash inflow coming from common shares issued and warrants exercised from $5,178 to $7,280 in 2013. Other financial activities remained almost stable without significant changes. Cash and cash equivalents to the end of the year have decreased from $13,020 to $11,823 due to a decrease in cash during the year. Looking at Consolidated Statement, the most drastic change can be noticed in deferred revenue from $15,138 in 2012 to -$6,629 in 2013, suggesting that the corporation is losing money.
To conclude, it can be said that despite the company is now funding its operations, property, and non-cash working capital, the situation with cash inflow remains unstable in 2013. Therefore, Hydrogenics Corp should find ways to change the cash and cash equivalents flow to be positive primarily in operating activities in order not to depend on the common shares and warrants exercised segment.