Zero Reported RevenueNo top-line across multiple years is a fundamental red flag: it implies absent product-market fit or inactive operations, preventing operating leverage and sustainable margins. Over 2–6 months this severely limits organic recovery and forces reliance on external capital.
Persistent Negative Cash FlowConsistently negative operating and free cash flow, including re-accelerated burn in 2025, erodes runway and requires recurrent financing. This reduces strategic optionality, increases dilution risk, and constrains the ability to invest in growth or close transactions sustainably.
Equity Erosion And Declining AssetsMaterial equity decline and shrinking assets indicate capital erosion and a weakening balance-sheet buffer. Over the medium term this limits the company's capacity to withstand shocks, reduces borrowing collateral, and raises solvency concerns if losses persist or funding dries up.