Negative Equity And Rising DebtSustained negative equity and increasing debt materially weaken the capital base, constraining the company’s ability to absorb shocks, secure non-dilutive financing, or support growth. This structural balance-sheet weakness raises insolvency and partner risk over the medium term.
Consistent Negative Operating Cash FlowPersistent negative operating and free cash flow means the business cannot self-fund operations or commercialization. Over months, this necessitates external financing or asset sales, increasing dilution or leverage risk and limiting ability to invest in durable commercial growth.
Minimal Revenue And Negative Gross ProfitLack of meaningful revenue and negative gross margins indicate the core offering is not covering direct costs. Without validated, repeatable sales or improved unit economics, the company faces a durable uphill path to profitability and scale absent new commercial wins.