Persistent UnprofitabilityConsistent net losses across reporting periods indicate the core business is not generating sustainable returns. Over 2–6 months this undermines internal reinvestment capacity, increases dependence on financing, and raises fundamental execution risk for reaching profitable scale.
Weak Cash GenerationChronic negative operating and free cash flow means the business cannot self-fund operations or growth and will likely need external capital repeatedly. This structural cash burn elevates dilution and refinancing risk and constrains strategic investments over the medium term.
Tiny, Volatile Revenue BaseExtremely small and erratic revenue makes margins unreliable and the business model unproven. With negligible top-line scale, fixed costs drive persistent losses and forecasting becomes difficult, limiting the company's ability to demonstrate sustainable economics over coming quarters.