Persistent Negative Operating Cash FlowSustained operating cash deficits and accelerating free‑cash‑flow burn materially increase reliance on external capital. Over a multi‑month horizon this raises the probability of equity dilution or costly debt, potentially delaying project milestones and increasing execution risk during development.
Pre-revenue Developer Reliant On FinancingBeing pre‑revenue means the company must secure substantial development capital before generating operating cash. This structural funding dependence creates financing and timing risk, increases dilution risk for shareholders and makes project delivery contingent on successful capital markets or partner agreements.
Consistent Operating Losses; Weak Earnings QualityOngoing operating losses and negligible, erratic revenues indicate the business has not yet proven earnings sustainability. Without scalable production, margins remain undefined and internal cash generation is insufficient, limiting the firm’s ability to self‑fund expansion or absorb cost overruns.