No Revenue / Unproven Business ModelAbsence of any recorded revenue over multiple years signals an unproven commercial model and high execution risk. Over a 2–6 month horizon this structural deficiency limits prospects for margin realization, makes forecasting cash flow speculative, and heightens dependency on external funding to reach commercialization.
Persistent Cash Burn And Negative Free Cash FlowSustained negative operating and free cash flows are a durable drain on liquidity, increasing funding risk. Without a path to positive cash generation, the company will likely need recurring capital raises or asset sales, which can dilute shareholders and constrain long-term investment in value-creating projects.
Widening Losses And Negative Returns On EquityExpanding net losses and strongly negative ROE reflect poor capital efficiency and deteriorating profitability metrics. Over the medium term this undermines investor confidence, makes it harder to attract non-dilutive capital, and signals structural issues in converting invested equity into positive returns.