Sustained High Cash BurnPersistent annual operating cash outflows near ¥1.0B create a structural financing requirement. Over months this ongoing burn erodes flexibility, forces recurrent capital raises or cost cuts, and increases dilution or refinancing risk if revenue inflection does not materialize, pressuring long-term viability.
Minimal, Volatile Revenue BaseRevenue that is negligible and inconsistent prevents the company from leveraging fixed costs or building scale. Structurally, this undermines path to sustainable margins and heightens dependence on external funding; without durable commercial traction, profitability remains unlikely in the medium term.
Deep And Widening Operating LossesLarge, recurring net losses have materially eroded equity over time, halving reported shareholders' capital. This structural capital depletion limits investment capacity, raises dilution risk from future financings, and constrains the firm’s ability to fund R&D or commercialization without significant external capital.