Persistent, Large Operating LossesSustained operating losses erode equity and require ongoing external funding to sustain operations and trials. Over a 2-6 month horizon, continued negative margins increase dilution risk and constrain ability to invest selectively in programs or scale successful candidates without securing new capital.
Consistently Negative Operating And Free Cash FlowOngoing negative cash generation creates structural financing dependency. Even with low debt, persistent cash burn forces repeated capital raises or partnerships, which can dilute shareholders and divert management focus away from science toward fundraising over the coming months.
Highly Volatile, Minimal Revenue BaseA tiny, unstable revenue base prevents self-funding and undermines margin scalability; sharp year-over-year declines amplify reliance on external capital and partners. Structural dependence on financing increases execution risk if markets or partner interest weaken.