Material Cash Burn And Negative Cash GenerationSustained negative operating and free cash flow means the business is consuming capital rather than self-funding growth. Over months this forces reliance on external financing, compresses runway, limits ability to invest in commercialization, and raises dilution or refinancing risk under strained terms.
Tight Structured Financing With Onerous CovenantsThe structured financing provides near-term liquidity but embeds major operational constraints: broad collateral, tight SEC/listing/capital covenants, triggers that can accelerate balances or raise rates up to 18%. These clauses reduce strategic flexibility and raise downside risk if performance or reporting slips.
Finance Leadership Turnover / Concentrated Management RolesThe CFO resignation and interim appointment of the Co-CEO as finance lead concentrates strategic and financial control. While experienced, this consolidates responsibilities during a critical commercialization and covenant period, increasing execution and governance risk and potentially straining financial oversight.