Severe Negative ProfitabilityA net margin worse than -100% reflects heavy losses relative to sales, indicating current operations destroy value. Persistent deep unprofitability undermines internal funding, pressures balance sheet reserves, and forces reliance on external capital until operations become profitable.
Negative Operating Cash FlowContinued negative operating cash flow means core operations consume cash, creating ongoing burn even as free cash flow metrics improve. This structural cash shortfall requires recurring financing or dilutive raises until operating activities generate positive cash.
Pre-commercial / Scale-up RiskRemaining at pilot-scale implies execution and scale-up risk: process validation, capex requirements and customer qualification are unresolved. Commercializing HPA at industrial scale is technically and operationally challenging and may delay profitable, repeatable revenue streams.