Persistent Negative Cash Flow / Rising BurnSustained negative operating and free cash flow mean the business is not self-funding and will likely need external capital. This structural cash burn increases fundraising frequency, dilutive risk and constrains investment in sales or R&D needed to scale the business and achieve profitability.
Ongoing Operating And Net LossesRecurring operating and net losses indicate the company has not yet converted revenue into sustainable profits. Over months, continued losses pressure returns on equity and delay capital rebuilding; persistent unprofitability undermines the long-term viability without meaningful margin improvement or scale.
Erosion Of Equity / Historical Balance-sheet StressMaterial decline in equity and prior periods of negative equity reflect accumulated losses and capital depletion. This structural weakness reduces financial flexibility, increases reliance on external funding, and will require sustained profitability to rebuild capital and support growth initiatives.