Negligible Revenue BaseAlmost no sales activity means the company lacks a revenue engine to support operations or fund growth. Over months, absence of recurring revenue forces reliance on external financing, preventing reinvestment, hindering scale, and raising structural sustainability concerns.
Consistent Negative Cash GenerationPersistent negative operating and free cash flow shows the business cannot self‑fund operations or development. This structural cash deficit necessitates recurring capital raises, dilutes existing holders, and constrains long‑term project execution and investment capacity.
Shrinking Equity Base / Going‑concern PressureA materially reduced equity buffer reflects accumulated losses and/or dilution, leaving limited capital to absorb setbacks. This heightens going‑concern risk, narrows funding options, and increases the probability that future financing will be costly or materially dilutive.