Pre-revenue With Widening LossesPersistent zero revenue alongside growing losses indicates the company remains pre-revenue and burning cash, prolonging the timeline to self-sufficiency. Continued losses erode capital and increase reliance on external funding, raising execution and dilution risk over months.
Negative Operating And Free Cash FlowLarge negative operating and free cash flows demonstrate ongoing cash burn from development activities. This creates near-term funding need, can delay project milestones if financing gaps emerge, and elevates dependency on capital markets or partners for sustained progress.
Equity Erosion Risk (Negative ROE)A sharply negative ROE signals the equity base is being consumed by losses, weakening the company’s capital buffer. Over several months, continued negative returns can force dilutive raises or asset disposals and impair ability to fund development without strategic partnerships.