Zero Revenue ProfileBeing pre-revenue means no proven product-market fit or recurring sales, raising execution and commercial risk. Without demonstrated revenue streams, forecasts rely on future commercialization and capital raises, increasing uncertainty about sustainable long-term viability.
Persistent Negative Cash FlowConsistent negative operating and free cash flow implies ongoing cash burn and dependence on external funding. Over months, this limits strategic flexibility, risks dilutive financing or expensive debt, and constrains the company’s ability to invest in commercialization or scale.
Rising Leverage And Weakening Balance SheetRapidly rising debt-to-equity materially reduces financial flexibility and increases fixed obligations. Higher leverage elevates solvency risk, raises financing costs, and limits ability to withstand shocks or fund growth organically, pressuring long-term stability absent revenue.