Pre-revenue CompanyThe absence of any reported revenue leaves the firm without proof of demand, pricing power, or operating leverage. Long-term sustainability depends on moving to commercial revenue; until then, forecasting cash generation and profitability is highly uncertain and project risk remains elevated.
Ongoing Negative Cash GenerationPersistent negative operating and free cash flow creates a structural need for external financing. Even with improvement, continued negative cash generation increases dilution risk, constrains strategic optionality, and may force suboptimal financing under adverse conditions if revenues do not materialize.
Shrinking Equity CushionA rapid decline in shareholders' equity erodes the company's financial buffer against losses and shocks. The reduced cushion increases the likelihood and potential size of future capital raises, heightening dilution risk and weakening bargaining power with lenders or partners over the medium term.