Persistent Cash BurnOperating cash flow is persistently negative and worsened to about -¥507M in 2025, with free cash flow about -¥674M. Continued cash burn creates a durable funding risk: the company may need external capital (dilution or debt) to sustain R&D and production, constraining strategic optionality.
Ongoing Structural LossesDespite improving margins, the business remains structurally loss‑making with operating and net losses each year and a net margin near -34% in 2025. Persistent losses limit internal reinvestment, impede accumulated retained earnings, and prolong dependence on external funding until sustainable profitability.
Negative Returns On EquityROE of roughly -9% in 2025 shows equity capital is not producing returns. Even with an equity cushion, sustained negative ROE erodes shareholder value over time, increases pressure for strategic change or further capital raises, and undermines the ability to finance growth from internal resources.