Pre-revenue StatusHaving no recorded revenue means the business is pre-commercial and cannot self-finance growth. Long-term value creation depends on successful productisation and market adoption; until revenue emerges, operational viability remains contingent on external funding and execution risk.
Persistent Negative Free Cash FlowConsistent negative operating and free cash flow demonstrates a structural inability to generate internal cash. This forces repeated reliance on external financing, increases dilution risk, and constrains investments needed to reach commercial scale over the medium term.
Widening LossesA sharp increase in reported losses signals rising cost intensity or unsuccessful scaling efforts. Escalating losses deplete reserves, weaken returns on equity, and raise the likelihood of additional capital raises, lengthening the timeline to profitability and increasing investor risk.