No Revenue / Non‑producingAbsence of revenue means the business lacks operating cash generation and must depend on financing to fund activity. This structural lack of a producing asset raises execution and commercial risks, lengthens path to profitability, and makes future performance contingent on successful project monetization.
Persistent Negative Cash FlowOngoing negative operating and free cash flow implies continuous cash burn and a structural funding gap. Reliance on external capital creates dilution and execution risk; if funding conditions tighten, required growth or development plans could be delayed or cut, harming long-term value.
Negative Returns On Equity / ProfitabilityConsistent negative ROE shows capital employed has not generated returns and equity value is under pressure. Prolonged unprofitability can erode the equity base, limit reinvestment capacity, and raise the probability of equity raises or asset sales, increasing strategic and financial risk.