Pre-revenue With Sizable LossesPersistent, sizable operating and net losses without revenue mean the business model has yet to prove cash generation. Over 2-6 months this structural deficit necessitates external funding and raises execution risk until projects can meaningfully generate revenue or be monetized.
Negative Cash GenerationMeaningful negative OCF and FCF indicate losses are translating into real cash burn, not just accounting items. This persistent cash outflow forces repeated financing, dilutes shareholders over time, and constrains the company’s ability to fund development or respond to delays.
Eroding Returns On EquityA sustained negative ROE shows the equity base is not generating returns and can be eroded by continued losses. Structurally, this weakens investor confidence, raises the cost of capital, and limits ability to attract strategic equity partners or favorable financing terms long-term.