No RevenueAbsence of revenue is a structural weakness: without operating inflows the company cannot self-fund operations or demonstrate product-market fit. Over months this forces continual reliance on external capital, limits scalability prospects, and makes durable profitability highly uncertain.
Negative Equity & Rising DebtNegative equity combined with increasing debt signals deteriorating capitalization and elevated solvency risk. This constrains financial flexibility, raises refinancing and covenant risks, and can force dilution or restructuring that materially impairs long-term strategic options.
Persistent Cash BurnSustained negative operating and free cash flows indicate ongoing cash burn that necessitates repeated financing. Over months this erodes liquidity, increases dependency on external capital, and limits the company's ability to invest in growth or meaningfully de-risk the business model.