Persistent Negative Cash FlowConsistent operating and free cash flow deficits indicate the business consumes cash to sustain operations. Over 2–6 months this materially depletes reserves, increases reliance on equity raises or asset disposals, and constrains the company’s ability to fund growth or respond to structural opportunities without dilution.
Widening Net LossesSustained and growing net losses erode shareholder value and equity over time. Negative profitability and reported ROE in the -24% to -37% range limit reinvestment capacity, signal a structural cost-to-revenue mismatch, and make multi‑month recovery dependent on meaningful operational changes.
Minimal, Uneven Revenue BaseA very small and volatile revenue base undermines scalability and operating leverage. With revenues near zero, fixed costs quickly overwhelm receipts; absent clear and sustained top-line growth, achieving break‑even or absorbing SG&A is structurally difficult over the medium term.