Negative Cash FlowPersistent negative operating and free cash flow and a steep FCF decline signal structural cash burn. Over months this erodes runway, forces reliance on external financing, and constrains the company's ability to advance trials independently without dilutive raises or restrictive partnership deals.
Ongoing UnprofitabilityNegative operating and net margins alongside a deeply negative ROE reflect the company's inability to convert revenue into sustainable profits. Structurally, continued unprofitability reduces internal funding capacity, weakens balance sheet resilience, and increases dependence on capital markets until clinical success.
Dependence On External FundingAs a pre-commercial biotech, Alterity's structural reliance on equity raises, grants and licensing creates dilution and funding-timing risk. This dependence can delay programs, force unfavorable deal terms, and make long-term progress contingent on successful capital raises or partner commitments.