We're Hopeful That Anterogen.Co.Ltd (KOSDAQ:065660) Will Use Its Cash Wisely

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. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

So should Anterogen.Co.Ltd (KOSDAQ:065660) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.

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How Long Is Anterogen.Co.Ltd's Cash Runway?

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 September 2025, Anterogen.Co.Ltd had cash of ₩44b and no debt. Importantly, its cash burn was ₩1.2b over the trailing twelve months. So it had a very long cash runway of many years from September 2025. While this is only one measure of its cash burn situation, it certainly gives us the impression that holders have nothing to worry about. Depicted below, you can see how its cash holdings have changed over time.

View our latest analysis for Anterogen.Co.Ltd

How Well Is Anterogen.Co.Ltd Growing?

Anterogen.Co.Ltd boosted investment sharply in the last year, with cash burn ramping by 83%. That does give us pause, and we can't take much solace in the operating revenue growth of 5.3% in the same time frame. Considering both these metrics, we're a little concerned about how the company is developing. 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 Anterogen.Co.Ltd is building its business over time.

How Hard Would It Be For Anterogen.Co.Ltd To Raise More Cash For Growth?

Even though it seems like Anterogen.Co.Ltd is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

Anterogen.Co.Ltd has a market capitalisation of ₩258b and burnt through ₩1.2b last year, which is 0.4% of the company's market value. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.

So, Should We Worry About Anterogen.Co.Ltd's Cash Burn?

As you can probably tell by now, we're not too worried about Anterogen.Co.Ltd's cash burn. In particular, we think its cash runway stands out as evidence that the company is well on top of its spending. While we must concede that its increasing cash burn is a bit worrying, the other factors mentioned in this article provide great comfort when it comes to the cash burn. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term. Taking an in-depth view of risks, we've identified 1 warning sign for Anterogen.Co.Ltd that you should be aware of before investing.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.