Pre-revenue ModelWith no revenue history, the company’s business viability depends entirely on future product commercialization and trial success. This raises structural execution risk, limits internal funding capacity, and keeps the company reliant on external capital and binary clinical/regulatory outcomes for long-term sustainability.
Negative Equity And Rising LeverageNegative shareholders' equity combined with higher debt materially weakens the capital structure and reduces financial flexibility. This raises refinancing and covenant risks, increases the likelihood of dilution or expensive funding, and constrains the ability to invest in growth or weather program setbacks.
Persistent Negative Free Cash FlowOngoing negative free cash flow means the business must continually access external capital to fund operations. Structurally, this increases dilution risk, ties program timelines to fundraising cycles, and can force prioritization of short-term survival over longer-term R&D investments and strategic optionality.