Deeply Negative Gross MarginsA gross margin around -270% indicates unit economics currently destroy value: production or cost recognition exceeds product revenue. This structural deficit means scaling sales without fixing costs or pricing will accelerate losses, undermining any pathway to sustainable profitability.
Sustained Cash Burn & Negative EquityLarge ongoing cash losses paired with negative shareholders' equity show accumulated deficits have eroded the capital base. This weak balance sheet increases reliance on dilutive financing, constrains strategic choices, and raises the probability of further equity raises to maintain operations.
Major Dilution And Control Shift From MergerThe merger results in Corvex owning ~96.2% of the combined company, effectively ceding control and heavily diluting Movano shareholders. While it supplies capital and scale, this structural ownership shift creates governance, integration and strategic-priority risks that can sideline Movano's original business focus.