Pre-revenue OperationsA multi-year pre‑revenue profile means the business lacks tested commercial economics and is dependent on financing to progress. Without production or sales, investors and lenders have limited visibility into long-term margins, pricing power, and sustainable cash generation.
Widening Net LossesMaterially higher annual losses indicate rising development spend and an increasing run-rate. Persistently widening losses accelerate equity erosion, elevate funding needs, and raise dilution risk, stressing the company's ability to self-fund later-stage milestones without external capital.
Negative Operating And Free Cash FlowSustained negative operating and free cash flow creates a structural reliance on external capital to advance development. Ongoing cash burn increases financing frequency and cost, risks project delays if funding is constrained, and can pressure long-term shareholder value through dilution.