Minimal, Volatile RevenueVery low and inconsistent revenue prevents coverage of fixed costs and blocks scale economics. Structural reliance on irregular receipts undermines reproducible growth, forcing continued reliance on external funding and making sustainable margin expansion unlikely without clear commercialization progress.
Large Persistent Cash BurnSustained billion-yen cash outflows erode reserves and create recurring financing needs. Persistently negative operating and free cash flow constrains strategic choices, risks dilution from future capital raises, and threatens continuity unless revenue materially improves or expense structure is permanently reduced.
Declining Equity / Capital ErosionHalving of shareholders' equity over several years signals accumulation of losses and possible dilution, weakening the balance sheet buffer. Reduced equity lowers resilience to setbacks and increases dependence on external funding, limiting the firm’s ability to invest or absorb operational shocks.