No Revenue / Unproven Business ModelZero reported revenue is a structural weakness: the core business model is unproven and there is no demonstrated product-market fit. Without recurring revenues, long-term profitability and margin sustainability cannot be assessed, forcing reliance on financing or asset sales to continue operations.
Persistent Negative Cash FlowConsistent negative operating and free cash flow signals structural cash burn that requires external funding. Over months this increases dilution or financing cost risk, constrains investment in commercialization, and limits the firm's ability to scale once revenues are targeted.
Declining Shareholder EquityMaterial equity erosion over multiple years reflects cumulative losses and reduces the balance sheet's shock-absorbing capacity. This weakens long-term financial resilience, narrows strategic options, and can impede future capital raises or credit access even though leverage is currently low.