No Operating RevenueAbsence of any operating revenue is a fundamental weakness: without recurring sales the firm cannot internally fund operating costs or investments. Over months this forces continual external financing, raises dilution risk, and undermines sustainable business model viability.
Persistent Negative Cash FlowConsistent negative operating and free cash flow indicate ongoing cash burn and inability to self-fund operations. This structurally increases reliance on external capital, heightens liquidity risk, and constrains the company's capacity to execute long-term projects without dilutive or costly financing.
Weak Earnings QualityAccounting profits driven by non-operating items, while cash flows remain negative, erode earnings reliability. Over a sustained horizon this disconnect risks earnings volatility, investor scepticism, and reduced access to credit unless operating cash conversion improves materially.