Negative Gross MarginsPersistent negative gross profit means unit economics are structurally unproven: production and feedstock costs exceed revenues. Until gross margins turn positive through cost reductions, scale efficiencies or higher realized prices, the company cannot generate sustainable operating profits and will remain funding‑dependent.
Weak And Shrinking Revenue BaseA small, uneven top line that declined materially in 2025 limits the firm's ability to absorb fixed costs and achieve scale economics. Without consistent revenue growth, margin improvement and payback on capital investments remain uncertain, prolonging reliance on external capital.
Elevated Leverage And Debt LevelMeaningful debt and high leverage constrain financial flexibility while cash flows are negative. Elevated debt increases refinancing and interest burden risks, reducing ability to fund commercialization internally and raising the chance of dilutive or costly capital solutions if operating performance doesn’t improve.