Declining Revenues And Negative MarginsSustained revenue decline and persistently negative margins indicate weak commercial traction and poor operational scalability. Over time this undermines ability to fund trials, attract partners on favorable terms, and makes reaching sustained profitability a material structural challenge.
Persistent Negative Operating Cash FlowOngoing negative operating and free cash flow forces reliance on external funding and increases execution risk. Structurally, this limits discretionary R&D spending, heightens dilution or financing needs, and can delay clinical programs absent durable funding sources.
Erosion Of Equity And Asset BaseA shrinking equity and asset base reduces the firm's financial cushion and borrowing capacity. Over a multi-month horizon this weakens resilience to development setbacks, constrains strategic options, and increases the likelihood of dilutive financings if improvements aren't realized.