Ballard Power Systems (TSE:NASDAQ:BLDP), a company in the unprofitable sector, is facing concerns due to its increasing cash burn rate and a significant decrease in operating revenue. Despite these challenges, investors continue to show interest in such firms, following the trend set by companies like Pets.com.
In the past year, Ballard's cash burn rate has escalated by 12%, causing concern among stakeholders. Additionally, the company has seen a substantial 32% decrease in its operating revenue over the last year. These factors combined have led to some apprehension about the company's financial health.
Despite these financial hurdles, Ballard has a considerable cash reserve of US$817 million, which it is currently using to fund its growth. This cash reserve was US$164 million in the past year, providing the company with a cash runway of approximately five years.
Given Ballard's market capitalization of US$1.1 billion, it should be able to raise additional funds for growth without much difficulty. This is a common trait among unprofitable companies like biotech or mining exploration firms that continue to attract investors despite high failure rates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.