Persistent Negative Cash FlowChronic negative operating and free cash flow forces continued reliance on balance-sheet resources or external financing. Even with improved quarterly burn, sustained cash deficits erode capital over time, limit strategic flexibility, and raise dilution or refinancing risk until profitable operations are achieved.
Ongoing Net LossesDespite strong gross margins, the company remains unprofitable, indicating operating expenses and scale gaps persist. Continued losses undermine returns on equity, restrict self-funded growth, and mean that achieving durable profitability requires sustained revenue scale or further structural cost reductions.
Legal Judgment Realization RiskA favorable patent award could materially extend runway via damages and royalties, yet appeals and parallel reexaminations create timing and realization uncertainty. Relying on contingent legal proceeds for financial stability is structurally risky for planning and capital allocation decisions.