Weak Operating Cash FlowNegative operating cash flow and declining free cash flow signal the company is not yet self-funding its operations. Persistent cash burn forces reliance on external financing or equity raises, which can dilute holders or limit the firm's ability to invest in capacity, regulatory filings, or commercialization sustainably.
Low Net ProfitabilityDespite healthy gross margins, a net margin near zero and negative EBIT indicate operating expenses or SG&A and R&D are eroding returns. Prolonged low profitability reduces the firm's capacity to build reserves, fund long development cycles, or deliver shareholder returns absent structural cost improvement or higher-margin revenue mix.
Limited Scale & Operating ResourcesA small workforce (40 employees) constrains in-house capabilities across manufacturing scale-up, regulatory affairs, and global commercial operations—critical in medical devices and biomaterials. Scaling will likely require outsized hiring, partnerships, or acquisitions, increasing execution complexity and operational risk over months.