No Revenue / Pre-revenue ProfileAbsence of revenue signals a pre-revenue, non-producing business model that cannot self-fund operations. Over months this forces reliance on external financing, increases execution risk for projects, and makes long-term viability contingent on successful capital raises or a commercial transition.
Materially Shrinking Equity BaseStockholders' equity contraction alongside persistent losses erodes the capital cushion and raises dilution risk. A smaller equity base weakens negotiation leverage with lenders/investors, constrains strategic options, and magnifies the impact of further losses on solvency and funding costs.
Persistent Negative Cash GenerationConsistent negative operating and free cash flow demonstrates ongoing cash burn that requires external funding to sustain activity. Without revenue or a clear path to self-funding, persistent negative cash generation limits investment capacity and heightens the risk of frequent financing and dilution.