Answer
The $1.97 million cash balance only guarantees a runway through March 2026 – that is exactly what the company disclosed in its Q2‑2025 release. By the time the runway expires, the firm will have exhausted its existing cash reserves unless it can generate additional cash flow or raise external capital. Given the ongoing supply‑chain constraints that already trimmed revenue, the cash‑burn rate is likely to stay elevated, meaning the balance is not sufficient for operational needs beyond March 2026 without a financing event.
From a trading perspective, the market will price‑in the near‑term cash‑flow risk. If management signals a clear financing plan (e.g., a private placement, debt facility, or strategic partnership) before the runway ends, the stock could see a short‑term rally as the dilution or dilution‑risk premium is removed. Conversely, any indication that the company will miss the March 2026 deadline – such as delayed financing talks or worsening supply issues – will likely trigger downward pressure, with the stock breaking below key technical support (e.g., the March‑2025 low‑volume zone around $0.45) and attracting short‑covering or stop‑loss selling.
Actionable take‑away: Keep the position tight‑‑‑ monitor upcoming cash‑flow updates and financing disclosures (e.g., 8‑K filings, press releases) in the next 4–6 weeks. If the company confirms a credible capital‑raising plan before the runway ends, consider a long‑biased entry on a bounce from the March‑2025 support. If no financing materializes, a defensive exit or short‑bias is warranted as the cash‑runway risk becomes a primary downside catalyst.