Persistent UnprofitabilityConsistent negative profitability limits the company’s ability to self-fund growth, erodes retained capital, and impedes returns on invested capital. Ongoing losses raise the likelihood of future equity raises, dilute existing holders, and constrain long-term ability to scale manufacturing or commercial programs.
Revenue Collapse / Weak Commercial TractionA fall to zero reported revenue is a structural red flag for commercialization and market adoption. Without consistent sales, scaling production, securing brand partnerships, and forecasting cash flow are highly uncertain, undermining the path to sustainable margins and long-term viability.
Consistent Negative Cash GenerationPersistent negative operating cash flow forces dependency on external financing, increasing execution and dilution risk. This constrains the company’s ability to invest in scale-up, quality control, and go-to-market activities, making durable commercial progress contingent on continued funding access.