Persistent Negative Cash GenerationRepeated negative operating and free cash flow indicates ongoing cash burn that must be covered by external financing. Over 2-6 months this constrains strategic choices, increases dilution risk from equity raises, and makes execution of growth or permitting milestones contingent on securing capital.
Multi-year Operating LossesSustained operating losses reflect a lack of durable margin economics. Persistent deficits erode return on equity and the balance-sheet buffer over time, reducing flexibility to invest in scale or technology and making long-term recovery dependent on meaningful revenue expansion or cost restructuring.
Very Small Revenue BaseRevenue is minimal relative to expense levels, indicating limited commercial traction. A tiny revenue base lengthens the path to self-sufficiency, makes margins highly sensitive to any adverse variance, and heightens the company's dependence on external funding to sustain operations and development.