Pre-revenue Business ModelBeing pre-revenue over multiple years is a core structural risk: the company lacks commercial cash inflows and must rely on financing until product sales begin. This elevates execution risk and makes long-term viability contingent on successful commercialization rather than operational optimization alone.
Stressed Balance SheetRising debt and negative equity materially weaken financial flexibility. Negative shareholders' equity and higher leverage increase refinancing, covenant, and dilution risks, constrain access to low‑cost capital, and limit the firm's ability to fund development or respond to market opportunities without diluting existing holders.
Continued Negative Cash GenerationDespite improvement, operating and free cash flow remain negative, signalling ongoing reliance on external funding. This persistent cash deficit undermines self-sufficiency, raises probability of additional equity or debt issuance, and makes long-term execution contingent on successful capital raises rather than internal cash generation.