No Revenue BaseAbsence of operating revenue is a material structural weakness: the company lacks internally generated sales to fund operations, meaning long-term viability depends on external financing or a clear pathway to commercial production. This undermines self-sustaining growth and increases execution risk.
Persistent Cash BurnContinuous negative operating and free cash flow forces repeated capital raises or asset sales, diluting shareholders and consuming management bandwidth. Over the medium term, persistent cash deficits constrain investment, slow project development, and heighten the probability of funding-driven operational disruption.
Shrinking Equity BaseA rapid decline in shareholders' equity signals accumulated losses and a smaller capital cushion to absorb shocks. Reduced equity increases vulnerability to funding shortfalls, amplifies dilution risk from future raises, and limits strategic flexibility for longer-term investments or exploration spending.