Consistent Operating Cash BurnPersistent negative operating and free cash flows indicate the company cannot self-fund operations or growth. Continued cash burn forces reliance on external financing or asset sales, increasing dilution or constraint risk. Over 2–6 months, funding needs could limit strategic options and impair execution of any recovery plans.
Absent Recurring RevenueA reported drop to zero revenue in the latest annual period demonstrates lack of stable sales or product-market traction. Without recurring revenue, margin recovery and scale are unlikely, and the firm remains dependent on financing rather than operating cash generation to sustain activity over the medium term.
Structural UnprofitabilityOngoing net losses and intermittent negative gross profit point to deep cost or revenue-model problems, not temporary fluctuations. Structural unprofitability will erode equity if unresolved and constrain investment in growth or operations, necessitating strategic fixes or capital infusions within a 2–6 month window to avoid balance sheet deterioration.