Persistent Negative Cash GenerationConsistent negative operating and free cash flow erodes runway and forces repeated external financing. Over months, this limits ability to fund R&D, scale commercialization, or withstand setbacks without dilutive equity raises, constraining long-term strategic options and investor returns.
Eroding Equity Cushion / Capital BaseA steep decline in shareholders' equity reflects cumulative losses and weak capital retention, leaving a thin buffer for operational shocks. This degradation increases the probability of future dilution, reduces credibility with lenders/partners, and impairs the firm's ability to pursue sustained growth investments.
Minimal, Declining And Volatile RevenueExtremely small and falling revenue undermines scale economies and market validation. With limited sales, fixed operating costs dominate, making margin improvement difficult and heightening reliance on financing. Persistent top-line weakness challenges long-term viability absent clear commercial traction.