Zero Revenue And Widening Net LossesAbsence of revenue combined with materially larger net losses indicates the business is not yet self-sustaining. Persistent losses erode equity, limit reinvestment capacity, and increase reliance on external capital, making long-term R&D plans contingent on successful fundraising or partnering.
Persistent Negative Operating Cash Flow (cash Burn)Consistent negative operating cash flow and negative free cash flow show the company is consuming cash to fund operations. This structural cash burn shortens runway for preclinical work, raises financing and dilution risk, and constrains the ability to progress clinical programs without external funding.
Material Balance Sheet ContractionSignificant declines in equity and assets reflect value erosion from operating losses and weaken the company’s financial buffer. A smaller asset base reduces collateral capacity and may impair access to non-dilutive financing, increasing medium-term financial vulnerability if losses persist.