Very Small Revenue BaseRevenue is immaterial for an asset manager, limiting scalability and the ability to cover fixed costs. Structural growth is required to reach sustainable economics; until AUM or fee revenue meaningfully increases, margin expansion and reinvestment will remain constrained.
Persistent Cash BurnConsistent negative operating and free cash flow means the business is not self-funding and must access external capital to operate. Over the medium term this raises dilution and financing risk, constrains investment in growth, and limits the company's ability to respond to competitive pressures.
Eroding Equity And Negative ReturnsDeclining equity and sustained negative ROE reflect capital erosion from continued losses. This structural deterioration undermines investor confidence, reduces strategic optionality, and increases the likelihood of future capital raises or restructurings if profitable operations are not restored.