Pre-revenue OperationsAbsence of revenue means the company has not yet proven commercial product-market fit, making future cash generation uncertain. Over a 2–6 month horizon this structural condition leaves the firm dependent on external financing, increasing execution risk and making long-term project viability contingent on capital access and successful development.
Sizable Net LossMaterial net losses erode shareholder equity and indicate that core operations are not yet self-sustaining. Continued losses constrain reinvestment in exploration or development, elevate the probability of dilution via equity raises, and weaken the company’s ability to contract financing on favorable terms absent concrete operational progress.
Persistent Negative Cash FlowSustained negative operating and free cash flow is a structural weakness that shortens runway and forces reliance on external capital. Over months this creates funding risk, likely dilution, and restricts ability to scale activities. Without revenue or reduced spending, cash burn undermines long-term funding flexibility.