No RevenueThe absence of any revenue is a fundamental structural weakness: there is no validated product or recurring customer base, making the business model speculative. Until revenue is established, the company must rely on financing, raising execution and long‑term viability risks.
Persistent Cash BurnSustained negative operating and free cash flow create ongoing financing needs. This structural cash burn increases dilution or debt risk, constrains investment capacity, and leaves the company exposed if capital markets tighten or investors become less willing to fund continued losses.
Equity Erosion & Negative ReturnsMaterial decline in shareholders' equity and deeply negative returns on equity signal capital destruction. Persistent negative ROE implies poor capital allocation or lack of profitable operations, raising the probability of future dilution, restructurings, or write‑downs that harm long‑term shareholder value.