Negative Operating Cash FlowPersistent negative operating cash flow undermines the company’s ability to self-fund operations and capital needs. Reliance on non-operational sources and external financing increases dilution or interest burdens, raising long-term funding risk during project ramp and beyond.
Negative Margins / UnprofitableNegative gross and net margins indicate the current cost base and pricing are insufficient to generate profit. Unless fixed costs, production efficiency, or product pricing improve materially, margins will continue to erode equity and limit the firm's ability to reinvest for durable growth.
Rising Leverage With Negative ROEAn increased debt-to-equity ratio alongside negative ROE signals capital is not generating returns and raises financial risk. Higher leverage can amplify cash-flow stress, increase financing costs for future projects, and constrain strategic flexibility during multi-year development.