Pre-revenue StatusBeing pre-revenue means no proven commercial demand or revenue diversification, leaving the company reliant on future project commercialization. Without recurring sales, margin durability is untested and long-term profitability depends on successful scale-up and market acceptance.
Persistent Negative Free Cash FlowConsistent negative FCF indicates ongoing consumption of capital to fund operations and development. This structural cash deficit requires continual financing, constrains reinvestment capacity, and raises execution risk if funding conditions tighten before revenue generation.
Reliance On External FundingDependence on outside capital leaves the company exposed to dilution and market funding cycles. Strategic plans and project timelines can be disrupted if new financing is delayed or costly, creating a sustained governance and execution risk until self-funding is achieved.