No Revenue And Persistent LossesLack of revenue and sustained net losses mean the business cannot self-fund development. Over the medium term this structural reliance on external capital increases execution risk, potential dilution, and puts pressure on management to secure financing before key milestones.
Significant Negative Cash Flow And BurnMaterial negative operating and free cash flow that is worsening creates a persistent funding gap. This structural cash burn necessitates repeated financing rounds, limiting strategic flexibility, increasing dilution over time, and elevating risk if capital markets tighten.
Warrant Overhang And Dilution RiskThe inducement deal issues new multi-year warrants and extends expirations, creating prolonged potential equity dilution and overhang. This structural cap table pressure can impair future financing terms, complicate valuation negotiations, and reduce per-share upside for existing holders.