Minimal Revenue GenerationNear-zero product or commercial revenue demonstrates the company remains pre-commercial and unproven at scale. Without recurring revenue, long-term sustainability depends on successful R&D outcomes or continual external financing, increasing dilution and execution risk versus firms with established sales or licensing cash flows.
Large Losses And Negative Gross ProfitSubstantial cumulative losses and a negative equity position indicate capital erosion from operations. Negative gross profit and a multi-million net loss constrain strategic choices, reduce creditor confidence, and make financing terms harder, elevating insolvency risk if R&D fails to produce near-term milestones or partner support.
Fragile Cash GenerationThe TTM cash flow improvement is extremely small and not yet supported by sustained revenue or operating leverage. This fragility means any adverse expense shock or delayed milestone could quickly reverse cash gains, forcing rapid capital raises under unfavorable terms and threatening long-term program continuity.