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  5. EXRO: This stock hit hard today down 12%,I am down 50% in one year is this worth holding for say 6 months to a year. [Exro Technologies Inc.]
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Q: This stock hit hard today down 12%,I am down 50% in one year is this worth holding for say 6 months to a year.Today’s news was on lifting a NDA ban on a deal with Brazil I think,could you give me your thoughts on this company in regards to management,products and burn rate and is it a BSH Thanks
Asked by Greg on November 23, 2023
5i Research Answer:

Cash flow was negative $31M last year, and negative $13M in the recent 3Q alone. The balance sheet is OK, with cash offsetting debt and leases. We would consider management competent, but the company has such a tiny revenue base it is hard to analyze. Management has gotten it to this point and revenue is expected to ramp quickly next year. It only had $2M in sales in the quarter, and lost $11M. It is going to need more capital. The technology looks fine, but we would prefer more sales just to get third-party validation. We are not experts in the field and sales go a long way in such confirmations. Any small cap needs patience, but we think buyers have lots of time here. With minimal sales and a $225M market cap, a lot is priced in. We would be comfortable exiting, with a view to reexamine on the next capital raise by the company.