Negative Cash GenerationPersistent negative operating and free cash flow means the business consumes cash to run current operations, increasing reliance on external funding or asset sales. Over a multi-month horizon this constrains R&D, mining capex and market expansion, elevating liquidity and dilution risk if not reversed.
Operating Profitability DeficitNegative EBIT and net margins, despite strong gross margin, point to structural operating-cost or overhead issues. Without durable cost control or material revenue scale, the company will struggle to achieve sustainable profitability and produce returns to reinvest in strategic initiatives.
Very Small Operating TeamA headcount of eight concentrates execution and key-person risk, limiting capacity to run multiple blockchain projects, maintain infrastructure and meet regulatory/compliance demands. This small scale can slow product development, hamper institutional partnerships, and constrain reliable operational scaling.