Pre-revenue Development ProfileSernova remains pre-revenue, meaning it lacks product-derived cash flow and must fund operations via capital markets or partners. Over a multi-month horizon this structurally elevates financing and execution risk: until commercial sales or licensing occur, the business depends on external funding, which can dilute shareholders and constrain long-term planning.
Deteriorated Balance Sheet And Negative EquityThe shift to materially negative equity, higher debt and very low reported assets signals weakened financial resilience. Structurally this restricts borrowing capacity, raises refinancing and covenant risk, and increases the likelihood of future dilutive financings or asset sales to fund trials, which can impede steady clinical development and strategic independence.
Persistent Negative Free Cash FlowDespite burn improvement, free cash flow remains negative and worsened year-over-year, indicating structural inability to self-fund. Over the next several months this necessitates continued external financing or partnerships, raising dilution risk and potentially forcing prioritization of programs, which could delay development timelines and reduce optionality.