Zero RevenueSustained absence of revenue is a fundamental impairment: core operations are not producing operating cash inflows, forcing reliance on financing or asset sales. Without revenue generation, profit recovery and sustainable margins cannot be achieved, raising long-term viability risks.
Severe Cash Burn & Negative FCFDeep negative free cash flow and recurring negative operating cash flow indicate persistent cash consumption. This structural cash burn exhausts reserves, increases refinancing needs, and limits capacity to fund exploration or capex organically, elevating dilution or distress risk over months.
Deteriorated Balance SheetLiabilities exceeding book equity and a meaningful rise in debt materially weaken solvency and creditor cushions. Negative equity constrains borrowing capacity, increases refinancing difficulty, and can force asset sales or dilutive capital raises, posing lasting solvency and governance challenges.