Pre-revenue Business ModelBeing pre‑revenue leaves the company dependent on successful asset development or commodity sales conversion. Without operating revenue, there's limited validation of the business model and no internal cash generation, which prolongs reliance on external capital and raises execution risk.
Negative Operating And Free Cash FlowPersistently negative OCF and FCF mean the company cannot self‑fund operations or growth, forcing repeated financing or asset sales. Over months this increases dilution risk, ties strategy to capital markets, and leaves execution vulnerable to tighter funding conditions.
Deeply Negative Returns On EquityA sharply negative ROE signals poor capital efficiency and erosion of shareholder value. Structurally this undermines investor confidence and can raise the cost of capital, making future fundraising more expensive or dilutive and constraining longer‑term growth options.