Revenue Collapsed To Near-zeroRevenue falling to essentially zero removes a durable commercial foundation, extending reliance on external funding. Without recurring sales, the company faces a longer timeline to monetize its pipeline, increasing execution risk and the probability of dilution or strategic pivots to remain solvent.
Persistent Cash BurnSustained negative OCF and FCF across multiple years indicate ongoing cash consumption that outpaces internal generation. Persistent burn necessitates recurrent fundraising, which can dilute shareholders, distract management, and constrain long-term R&D investments unless a durable improvement in cash generation occurs.
Eroding Equity / Shrinking Net WorthMaterial declines in shareholders' equity reflect cumulative operating losses and weaken the balance sheet's capacity to absorb setbacks. A shrinking net worth limits borrowing capacity, reduces strategic optionality, and signals that continued losses could undermine long-term solvency without external capital.