Persistent Negative Operating Cash FlowConsistent multi‑year cash burn undermines self‑funding ability and forces reliance on external capital. Over months this raises dilution and execution risk, constrains investment in development/commercialization, and shortens runway absent financing or material revenue improvement.
Shrinking Equity BaseA materially eroded equity cushion reflects accumulated losses and weak capital resilience. This structural weakening reduces ability to absorb setbacks, increases probability and cost of future financings, and limits strategic flexibility over the medium term.
Very Small, Volatile Revenue And Deep LossesTiny and volatile top line with large recurring losses signals unproven product‑market fit and poor operating leverage. Without durable revenue growth, losses will persist, making sustainable margins and long‑term commercialization challenging absent clear revenue inflection or non‑dilutive funding.