Cash BurnPersistent negative operating and free cash flow indicate ongoing cash burn and likely reliance on external financing. Over the medium term this increases dilution risk, limits self-funded growth initiatives, and constrains the company's ability to invest in commercialization or weather setbacks.
Sustained LossesMaterial and continued operating losses show the business remains unprofitable and must progress to breakeven to be self-sustaining. Over 2–6 months persistent losses will pressure cash reserves, strategic choices and could delay or force concessions in commercial expansion.
Eroding Equity BaseDeclining shareholders' equity and negative ROE signal capital erosion from losses, reducing the balance sheet buffer. This weaker equity base limits resilience to shocks, narrows financing alternatives, and increases the urgency of external funding or rapid margin improvement.