Collapsed RevenueA precipitous drop to a very small revenue base undermines scale economics and product-market fit, making it harder to cover fixed R&D and commercial costs. Persistent minimal revenue limits ability to demonstrate sustainable growth and weakens leverage for partnerships or commercialization.
Negative Equity & Shrinking Asset BaseNegative equity and a collapsed asset base materially weaken the balance sheet, increasing going-concern and refinancing risk. With limited tangible assets or equity cushion, the company has less capacity to secure non-dilutive financing and faces higher cost or constraints for strategic investments.
Persistent Cash BurnSustained negative operating cash flow means the business continues to rely on external funding or asset sales to operate. Over the medium term this elevates dilution or debt risk, constrains reinvestment in commercial scale-up, and raises probability of liquidity-driven restructuring if improvements stall.