Persistent Negative Cash FlowSustained negative operating and free cash flow across reporting periods implies ongoing cash burn and reliance on external funding. Over months this constrains strategic options, increases dilution or refinancing risk, and limits reinvestment into growth or product development.
Minimal, Irregular RevenueMostly zero and sporadic revenue prevents reliable demand validation and makes unit economics and margin sustainability unclear. Without consistent top-line traction, operational improvements may not scale, leaving profitability dependent on uncertain commercial progress.
Eroding Equity & Negative ReturnsDeclining shareholder equity and negative ROE reflect cumulative losses that erode the capital base. This weakens the company's ability to absorb shocks, raises the likelihood of future capital raises at dilutive terms, and signals the business is not yet generating acceptable returns.