Persistent Cash Burn And Negative Operating Cash FlowConsistent negative operating and free cash flow indicate the business is not self-funding and will rely on balance sheet or external capital to sustain operations and progress project milestones. Over months, this elevates funding risk and can force dilutive financing or slower execution.
Material Recurring Net LossesSubstantial net losses and negative operating profitability reflect weak operating leverage and ongoing cost base despite limited revenue. Over a multi-month horizon, continued losses erode equity, increase the need for external capital, and raise the likelihood of operational cutbacks or project delays.
Extremely Small, Volatile Revenue BaseA tiny and inconsistent revenue stream prevents establishment of reliable margins and scaling benefits, leaving project economics unproven. Structurally, until predictable production and sales occur, the firm faces execution and commercialization risk that can persist across quarters.