Negative Cash FlowConsistent negative operating and free cash flow, with worsening FCF, creates structural dependence on external capital. Over 2–6 months this increases fundraising risk, potential dilution, and constrains discretionary R&D or commercialization spends, making long-term program continuity contingent on successful financing.
Persistent LossesSustained operating losses and negative net income indicate the business has not reached profitability or break-even, limiting retained-earnings funding for growth. This persistent unprofitability pressures returns on capital and increases reliance on equity or partner funding, a durable headwind until commercial scale or positive operating leverage occurs.
Tiny Employee BaseA three-person headcount signals limited internal capacity to manage complex clinical programs, regulatory filings, and commercialization tasks. This structural constraint elevates execution risk, increases dependence on CROs/partners, and can slow program timelines or governance oversight over multi-year development cycles.