Zero Revenue In 2024–2025The company reported zero revenue in 2024–2025 and shifted from profitable 2023 to large operating and net losses. Persistent absence of revenue removes margin generation and forces reliance on external financing or partnerships to fund development, raising execution risk and making medium-term sustainability contingent on successful funding or commercial milestones.
Sustained Negative Operating And Free Cash FlowOperating and free cash flow were negative (~-¥0.98B to -¥0.92B annually) in 2024–2025, indicating sustained cash burn. Continued annual outflows at this scale will deplete reserves quickly relative to the reduced equity base, increasing the probability of dilutive capital raises, curtailed R&D programs, or unfavorable financing terms in the medium term.
Rising Leverage And Eroding EquityEquity declined from ¥3.10B to ¥1.27B while total debt rose to ¥1.5B, pushing debt/equity to ~1.19x. This combination erodes financial flexibility, raises financing costs and solvency risk, and limits the company's ability to absorb shocks or secure attractive financing, which can constrain long-term development and strategic options.