Minimal Commercial RevenueNear‑zero revenues mean the business is not yet product‑commercial and lacks sustainable internal cash generation. Over the medium term this forces reliance on external financing or licensing for R&D and operations, increasing dilution and execution risk until commercial or partner revenue materializes.
Material Erosion Of EquityA sharply reduced equity cushion weakens the company’s ability to absorb continued losses and increases the probability of dilutive capital raises. Over months this constrains strategic optionality, heightens investor sensitivity to funding events, and may complicate partnering or credit discussions.
Persistent Negative Operating Cash FlowSustained negative operating and free cash flow means the company cannot self‑fund development activities. Structurally, this creates ongoing dependence on external financing, which can delay trials, limit investments, and increase execution risk if capital markets or partner options become constrained.