Persistent Cash BurnSustained negative operating and free cash flow (multi-year, accelerating) erodes equity and forces external financing or delayed projects. Over months this increases dilution risk, restricts ability to self-fund commercial rollouts, and raises execution risk for scaling technology deployments.
Weak Operating ProfitabilityDespite high gross margins, fixed operating costs overwhelm revenue and keep EBIT/EBITDA deeply negative. Structural inability to cover overhead without meaningful revenue scale prolongs dependence on capital markets and risks delaying the path to sustained profitability absent step-change commercial wins.
Very Small, Declining Revenue BaseA very small and declining revenue run-rate signals commercialization is still unproven and product-market fit is not firmly established. With minimal internal headcount and low sales scale, the firm remains highly dependent on partners and external capital to execute projects and generate durable revenues.