Effectively No RevenueSustained absence of meaningful revenue undermines the core business model: without sales there is no confirmation of market demand, no scalable margin base, and limited ability to convert cost reductions into profitable operations. This structural gap heightens dependency on external funding.
Consistent Negative Operating And Free Cash FlowPersistent negative OCF and FCF indicate material cash burn and limited self-funding capacity. Over 2-6 months this constrains investment, hiring, and R&D, forces financing decisions, and increases dilution or execution risk if the company cannot quickly convert operations to cash-generative.
Persistent Net Losses And Negative ROERepeated net losses and negative ROE show the company is destroying shareholder value rather than creating it. This structural profitability gap impairs ability to build retained earnings, weakens investor confidence in long-term returns, and requires consistent external capital to sustain operations.