Persistent Negative Operating Cash FlowConsistent negative operating and free cash flow means the business consumes cash to operate and explore. Over months, this requires fresh capital or asset sales, raising dilution or execution risk and limiting ability to scale programs without external funding.
Consistent Operating Losses And Negative MarginsRepeated negative gross profit and sizable operating losses indicate the core activities are not yet value-accretive. Without a clear commercial pathway, persistent losses erode returns potential and make long-term project financing and partner interest harder to secure.
Eroding Shareholder EquityMaterial decline in shareholder equity over several years shows cumulative losses are depleting the capital base. This reduces balance-sheet cushions, narrows financing options, and increases the likelihood that future capital needs will be met with dilutive equity or onerous terms.