No Product RevenueAbsence of product revenue means the business cannot self-fund development; persistent operating losses force reliance on external capital or partnerships. This structural lack of internal cash generation increases execution risk and makes long-term viability contingent on financing outcomes.
Severe Equity ErosionDramatic depletion of equity materially weakens the company’s capital cushion, reducing its ability to absorb further losses or fund trials internally. This elevates refinancing and dilution risk, constrains borrowing capacity, and increases the probability of distressed transactions over the coming months.
Financing & Listing RiskActive efforts to raise capital, hire new auditors, and engage bankers represent a structural shift toward funding-dependent restructuring. This heightens dilution, potential divestitures, and continuity/listing risk, creating strategic uncertainty that can delay R&D timelines and partner negotiations.