Negative Cash FlowPersistent negative operating and free cash flows drain liquidity and force reliance on external funding. Over a multi-month horizon this constrains investment in manufacturing, marketing and R&D, increases dilution or debt need, and limits the company's ability to convert revenue growth into sustainable profits.
Unprofitable OperationsOngoing negative net income and EBIT margins show the business has not yet achieved unit-level profitability. Without durable margin improvement or scale benefits, sustained losses will pressure returns, impede reinvestment capacity, and make the business dependent on external capital to reach break-even.
Execution / Scaling RiskThe business model depends on translating R&D into commercial products and scaling supply chains while securing partners. With a small team (15 employees), execution complexity and partner/regulatory delays are structural risks that can slow revenue conversion and prolong cash-burn cycles.