Pre-revenue With Widening LossesSustained zero revenue and rapidly widening losses indicate the business remains pre-commercial and unable to demonstrate product-market returns. Over months this raises execution risk, consumes equity, and undermines ability to reach sustainable profitability without material operational or strategic change.
Consistent Negative Cash Flow And Accelerating BurnPersistent negative operating and free cash flow, with increasing outflows in the latest year, erodes liquidity and shortens runway. This structural cash consumption raises the probability of near-term fundraising, which can be dilutive or costly and constrains execution of long-term projects.
Eroding Shareholder EquityMaterial decline in equity reflects cumulative losses and reduces the balance-sheet cushion against future shocks. Over 2–6 months this limits flexibility to absorb further losses, weakens borrowing capacity, and increases dependence on external financing under potentially adverse terms.