Negative Gross ProfitReversion to negative gross profit signals deteriorating unit economics and weak pricing or rising direct costs. If sustained, this undermines the ability to scale commercial supply profitably and requires cost restructuring or higher pricing to restore sustainable margins.
Persistent Negative Cash FlowConsistently negative operating and free cash flow forces reliance on external financing to sustain R&D and production. Over multiple quarters this can dilute shareholders, constrain discretionary investment, and raise execution risk for clinical supply and commercialization plans.
Ongoing Net Losses Eroding EquitySustained net losses reduce retained capital and the equity cushion that currently offsets zero debt. Continued erosion of equity limits strategic options, reduces financial resilience to unexpected costs, and may force equity raises or operational retrenchment.