Effectively No RevenueLack of meaningful recurring revenue makes the business dependent on external capital rather than operating cash generation. Over the medium term this increases dilution and financing risk, constrains reinvestment in trials and commercialization, and weakens self-sustainability.
Persistent Negative Cash FlowConsistent operating and free cash outflows indicate structural cash burn and an inability to self-fund development or scaling. This persistent deficit necessitates continued fundraising, which can dilute shareholders and distract management from long-term strategic execution.
Declining Equity And Shrinking AssetsErosion of equity and material declines in assets reduce the company’s financial buffer and operational flexibility. Over a multi-month horizon this weakens capacity to absorb trial setbacks, secure partnerships, or invest in commercialization without dilutive financing or asset sales.