Persistent Cash BurnConsistent negative operating and free cash flow indicate structural cash burn to fund R&D and operations. Over 2–6 months this necessitates financing or partner income; absent reliable inflows, cash depletion threatens continuity or forces dilutive funding.
Deep Sustained UnprofitabilityLarge recurring operating and net losses show margins are structurally negative versus the current revenue base. Without clear cost reductions or material revenue scaling, profitability appears distant, constraining ability to self-fund development long term.
Eroding Equity BaseDeclining equity despite zero debt reduces the capital cushion available for shocks and investment. Continued erosion limits non-dilutive options and increases reliance on external financing, which can be dilutive or costly and impair long-term shareholder value.