Persistent Net LossesRecurring net losses and negative operating margins mean the business has not yet reached sustainable profitability. Persistent losses erode shareholder equity, increase dependence on external funding, and raise execution risk until the company secures consistent positive operating income.
Negative Operating Cash FlowMaterially negative operating cash flow indicates the core business does not generate sufficient cash, forcing reliance on financing activities. This constrains reinvestment in commercialization and R&D and creates structural funding risk if capital markets tighten.
Declining / Historical Negative EquityA shrinking equity base and past negative equity reduce balance-sheet resilience and borrowing capacity. This structural weakness limits strategic flexibility, increases vulnerability to shocks, and can hinder long-term partnerships or regulatory initiatives that require financial stability.