Persistent Operating Cash BurnContinued negative operating and free cash flow signals ongoing cash burn and inability to self-fund operations. Over months this necessitates external financing, increasing dilution or covenant risk, and constrains R&D or commercialization investments absent clear funding plans.
Eroded Equity CushionA sharply reduced equity base weakens the company's capital buffer to absorb losses or fund growth. This erosion magnifies funding vulnerability and raises dilution risk when new capital is required, limiting strategic optionality and resilience against adverse shocks.
Minimal And Declining Revenue With Large LossesVery low, volatile revenue alongside sizable recurring losses shows weak commercial traction and poor operating leverage. Without meaningful revenue growth, the company cannot cover fixed costs, prolonging reliance on financing and undermining a credible path to sustainable profitability.