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    Companies Like Innometry (KOSDAQ:302430) Are In A Position To Invest In Growth

    Simply Wall St·09/09/2026 23:04:56
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    There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

    So should Innometry (KOSDAQ:302430) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let's start with an examination of the business' cash, relative to its cash burn.

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    When Might Innometry Run Out Of Money?

    A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at June 2026, Innometry had cash of ₩21b and no debt. Looking at the last year, the company burnt through ₩9.5b. Therefore, from June 2026 it had 2.2 years of cash runway. That's decent, giving the company a couple years to develop its business. You can see how its cash balance has changed over time in the image below.

    debt-equity-history-analysis
    KOSDAQ:A302430 Debt to Equity History September 9th 2026

    Check out our latest analysis for Innometry

    Is Innometry's Revenue Growing?

    We're hesitant to extrapolate on the recent trend to assess its cash burn, because Innometry actually had positive free cash flow last year, so operating revenue growth is probably our best bet to measure, right now. It's nice to see that operating revenue was up 23% in the last year. Of course, we've only taken a quick look at the stock's growth metrics, here. This graph of historic earnings and revenue shows how Innometry is building its business over time.

    Can Innometry Raise More Cash Easily?

    Notwithstanding Innometry's revenue growth, it is still important to consider how it could raise more money, if it needs to. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

    Innometry has a market capitalisation of ₩86b and burnt through ₩9.5b last year, which is 11% of the company's market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution.

    So, Should We Worry About Innometry's Cash Burn?

    As you can probably tell by now, we're not too worried about Innometry's cash burn. For example, we think its cash runway suggests that the company is on a good path. And even though its cash burn relative to its market cap wasn't quite as impressive, it was still a positive. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for Innometry (1 doesn't sit too well with us!) that you should be aware of before investing here.

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