Negative Operating Cash Flow & High Cash BurnPersistent negative operating and free cash flow indicate the business is not self-funding and is burning cash. Continued outflows over the next several months raise the probability of dilutive capital raises, constrain R&D and sales investment, and limit execution flexibility.
Ongoing Operating LossesRecurring operating losses mean the company is not converting revenue into sustainable profits. Without structural margin improvement or meaningful scale, the firm will struggle to rebuild equity or generate internal funding, impairing long-term viability and reinvestment.
Eroding Equity & Historical Balance Sheet StressMaterially falling equity and prior negative equity reflect accumulated losses that weaken the capital base. A reduced equity cushion limits financial flexibility, makes future financing more dilutive or difficult, and constrains the company's ability to absorb shocks while scaling.