No Recorded RevenueThe absence of recorded revenue is a fundamental business-model risk: without sales the company remains wholly dependent on financing. This undermines long-term viability, limits operating leverage, and makes future profitability contingent on establishing sustainable revenue streams.
Negative Free Cash FlowPersistent negative free cash flow and prior cash burn indicate structural funding needs. Continued FCF deficits force reliance on equity or debt raises, increasing dilution or leverage, and constrain capital allocation to growth or R&D, raising execution risk over the medium term.
Rising LeverageAn increase in debt and higher debt-to-equity raises leverage-related risk: interest obligations and covenant pressure reduce flexibility. Combined with negative ROE, higher leverage amplifies downside if revenue doesn't materialize, increasing bankruptcy or restructuring risk over months.