Minimal RevenueSustained near-zero top-line prevents absorption of fixed R&D and G&A costs, making profitability dependent on successful commercialization or recurrent financing. Over 2-6 months this constraint limits reinvestment capacity and prolongs reliance on external capital.
Negative Free Cash FlowAccelerating negative free cash flow indicates increasing cash burn and shortens the time to next meaningful financing. Persistent negative FCF constrains organic growth, risks program delays, and raises dilution or financing cost risk over the medium term.
Shrinking Equity BufferA declining equity base reflects repeated losses and capital raises, reducing the balance-sheet cushion for unforeseen setbacks. Continued erosion increases the probability of further fundraising, which can dilute current holders and complicate long-term funding plans.