Chronic Cash BurnPersistent negative operating and free cash flows indicate the company cannot self-fund operations or growth. Over several months this elevates funding risk, increases likelihood of dilutive capital raises, and constrains investment in commercialization or capacity expansion.
Structural UnprofitabilityDeep and persistent net losses show the business is not yet converting revenue into sustainable profit. This undermines long-term return generation, limits reinvestment from earnings, and means management must alter cost structure or materially grow revenue to reach durable profitability.
Negative ROE And Eroding EquityConsistently negative ROE and falling equity reflect capital destruction and weak value creation for shareholders. Over a 2–6 month horizon this trend limits credibility with investors and can increase the cost or reduce availability of new capital when funding is required.