No Reported RevenueA trailing‑twelve‑month revenue of zero is a fundamental constraint: it prevents internal funding of operations, leaves product‑market fit unproven at scale, and forces continual external financing. Absent sustained revenue, strategic plans cannot be validated over months.
Deeply Negative EquitySubstantially negative equity signals solvency stress and limited balance‑sheet flexibility. It elevates refinancing and counterparty risk, constrains borrowing capacity, and increases the probability of dilutive capital raises or creditor actions that would materially affect long‑term ownership and operations.
Ongoing Negative Cash Flow & LossesPersistent negative operating and free cash flow alongside recurring losses necessitate external funding to sustain operations and invest in growth. Continued cash burn limits flexibility for marketing, distribution expansion, or product development over the next several months without new capital.