Absent Recurring RevenueA near-zero revenue base removes any recurring cash cushion and makes the company wholly dependent on milestone, partner payments or financings. This structurally limits self‑funding capacity and increases execution risk if anticipated transactions or partnerships do not materialize.
Negative Shareholders' EquityNegative equity signals accumulated losses and a weakened balance sheet, reducing borrowing capacity and counterparties' confidence. Over months this can constrain strategic options, increase cost of capital, and force more dilutive financings to sustain R&D and operations.
Persistent Cash BurnConsistent negative operating and free cash flow requires external funding to continue development programs. Structurally, ongoing burn increases dilution risk, can delay or curtail trials if funding gaps occur, and places pressure on management to secure partnerships or financing on favorable terms.