Severe Revenue Decline & VolatilityAn acute, persistent revenue drop reduces the company’s ability to demonstrate commercial traction and fund ongoing development. Over 2–6 months this undermines partner confidence, slows licensing deals and can delay project milestones essential for durable commercialization.
Persistent UnprofitabilityOngoing negative profitability indicates the business has yet to convert technology into sustainable earnings. Continued losses constrain reinvestment, make long-term planning harder, and increase reliance on external financing or dilution to execute commercialization strategies.
Weak Cash GenerationNegative operating and free cash flow demonstrate cash burn that can limit progress on pilot and commercial projects. Over several months this creates funding pressure, raising the need for fresh capital and potentially delaying commercial rollouts or licensing execution.