Severe Revenue DeclineA near-100% revenue collapse shows the business is effectively pre-revenue or has lost operating sales. Sustained absence of meaningful revenues increases reliance on external capital, raises dilution risk, and makes long-term project execution contingent on successful financing or partnership outcomes.
Deep Negative MarginsExtremely negative net margins reflect substantial losses, likely from write-downs, exploration/development costs, or one-off charges. Persistent deep losses erode shareholder equity, weaken negotiating leverage with lenders or offtakers, and complicate the path to creditworthy project financing without material remedial actions.
Weak Cash GenerationMaterial negative free cash flow and negative operating cash flow relative to net income indicate the company cannot self-fund development. Poor cash generation increases dependency on equity issuance or costly debt, heightening execution and dilution risk during the multi-year development cycle.