Persistent Negative Cash FlowChronic operating and free-cash-flow deficits create ongoing reliance on external financing and raise dilution risk for shareholders. Large, volatile cash burn limits runway, stresses capital-allocation choices, and forces frequent equity raises unless commercial cash generation or partner funding is secured.
Large Operating And Net LossesOperating and net losses far exceed revenues, indicating the cost structure is distant from breakeven. Sustained negative profitability reduces returns on invested capital and requires repeated financing or strategic exits; it also constrains investment pace in development without diluting stakeholders.
Regulatory Risk To BayMedica BusinessLegislative action that threatens a subsidiary's commercial model is a structural business risk: loss of BayMedica revenue and potential asset impairments would reduce diversification, cut near-term cash contributions, and increase strategic uncertainty for a company already dependent on external funding.