No Revenue Across Reporting YearsAbsent any revenue, the firm lacks validation of a commercial business model and must rely on financing or a corporate transaction to create value. Over months this raises execution risk and undermines prospects for sustainable profitability without a clear revenue path.
Negative And Rising Cash BurnIncreasing operating cash outflows accelerate depletion of liquid resources and shorten runway, forcing dilutive financing or urgent strategic moves. Persistently negative cash generation constrains ability to invest in growth or complete a value-accretive transaction over the medium term.
Material Decline In Equity And AssetsA shrinking capital base signals ongoing erosion of shareholder value and reduces the company’s financial cushion against shocks. This structural deterioration heightens solvency and execution risk, complicating fundraising, partner negotiations, or completing strategic transactions.