Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Axon Enterprise Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss)	147,139)	(60,018)	(1,724)	882)	29,205)
Depreciation and amortization	24,381)	18,694)	12,475)	11,361)	10,615)
Amortization of issuance cost	198)	—)	—)	—)	—)
Coupon interest expense	211)	—)	—)	—)	—)
Purchase accounting adjustments to goodwill	58)	—)	—)	—)	—)
Loss on disposal and abandonment of intangible assets	110)	146)	320)	67)	2,117)
Loss on disposal and impairment of property, equipment, and other assets, net	5,452)	92)	1,722)	2,542)	303)
Realized and unrealized gains on strategic investments and marketable securities, net	(98,943)	(23,035)	—)	—)	—)
Stock-based compensation	106,176)	303,331)	133,572)	78,495)	21,879)
Deferred income taxes	22,090)	(81,303)	(16,528)	(7,987)	(3,592)
Unrecognized tax benefits	3,475)	(706)	671)	983)	1,144)
Bond amortization	(1,463)	5,217)	3,345)	361)	34)
Noncash lease expense	6,725)	5,573)	4,104)	3,567)	—)
Provision for expected credit losses	699)	(214)	1,302)	—)	—)
Accounts and notes receivable and contract assets	(73,228)	(205,769)	(107,762)	(38,830)	(67,643)
Inventory	(95,987)	(18,272)	(52,156)	(4,903)	14,804)
Prepaid expenses and other assets	(52,207)	(40,158)	(14,885)	(9,845)	(12,739)
Accounts payable, accrued and other liabilities	80,757)	45,301)	8,886)	4,967)	13,506)
Deferred revenue	159,718)	175,615)	65,139)	24,013)	54,242)
Change in assets and liabilities	19,053)	(43,283)	(100,778)	(24,598)	2,170)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	88,222)	184,512)	40,205)	64,791)	34,670)
Net cash provided by operating activities	235,361)	124,494)	38,481)	65,673)	63,875)
Purchases of investments	(764,374)	(362,479)	(656,522)	(354,477)	(4,331)
Proceeds from call/maturity of investments	72,138)	718,617)	379,839)	130,083)	11,158)
Exercise of warrants of strategic investments	(6,555)	—)	—)	—)	—)
Proceeds from sale of strategic investments	—)	14,546)	—)	—)	—)
Purchases of property and equipment	(55,802)	(49,886)	(72,629)	(15,939)	(11,139)
Proceeds from disposal of property and equipment	287)	43)	95)	—)	—)
Purchases of intangible assets	(307)	(392)	(241)	(404)	(558)
Strategic investments	(74,250)	(45,500)	(7,068)	—)	—)
Business acquisition, net of cash acquired	(2,104)	(22,393)	—)	—)	(4,990)
Net cash (used in) provided by investing activities	(830,967)	252,556)	(356,526)	(240,737)	(9,860)
Net proceeds from equity offering	(74)	105,514)	306,779)	—)	233,993)
Proceeds from options exercised	—)	51,614)	295)	114)	1,757)
Income and payroll tax payments for net-settled stock awards	(4,870)	(331,309)	(7,809)	(4,051)	(14,127)
Net proceeds from issuance of convertible senior notes	673,769)	—)	—)	—)	—)
Proceeds from issuance of warrants	124,269)	—)	—)	—)	—)
Purchase of convertible note hedge	(194,994)	—)	—)	—)	—)
Payment of contingent consideration for business acquisitions	—)	—)	—)	—)	(2,275)
Net cash provided by (used in) financing activities	598,100)	(174,181)	299,265)	(3,937)	219,348)
Effect of exchange rate changes on cash and cash equivalents	(3,380)	(1,982)	1,976)	329)	(774)
Net increase (decrease) in cash and cash equivalents	(886)	200,887)	(16,804)	(178,672)	272,589)
Cash and cash equivalents and restricted cash, beginning of period	356,438)	155,551)	172,355)	351,027)	78,438)
Cash and cash equivalents and restricted cash, end of period	355,552)	356,438)	155,551)	172,355)	351,027)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Axon Enterprise Inc. net cash provided by operating activities increased from 2020 to 2021 and from 2021 to 2022.
Net cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Axon Enterprise Inc. net cash (used in) provided by investing activities increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Axon Enterprise Inc. net cash provided by (used in) financing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Axon Enterprise Inc. (NASDAQ:AXON)

Cash Flow Statement