Severe Cash BurnDeep, sustained negative operating and free cash flow (~-$29M in 2025) consumes capital and forces reliance on external funding. This persistent burn constrains runway, limits ability to invest in commercialization, and heightens the risk of dilutive financing or operational retrenchment.
Shrinking, Very Small Revenue BaseA tiny, declining revenue base (down ~25% to ~$1M) undermines operating leverage and makes fixed R&D and SG&A costs harder to absorb. Without scale, margins cannot normalize and the path to profitability remains uncertain, weakening the durability of any go-to-market investments.
Rising Leverage And Funding RiskMaterial increase in debt alongside multi-year deficits reduces financial flexibility and increases servicing and covenant risk. Combined with shrinking equity and ongoing losses, the company faces heightened dilution and refinancing risk, which can hamper long-term strategic execution.