Earlier quoted context omitted.
Spending money while building out your main product pipeline is perfectly acceptable to me. How many quarters of runway would you want them to hold on hand? If in six months when their cash on hand gets low they can issue a new round of funding and investors can decide if its worth pumping more money into the company or if they won't be able to turn a profit. This would be the exact behavior you get from any company…
That's kind of the point though - it's much more acceptable (to the markets) for a private company to be doing crazy things, low runway, etc, because if the company goes broke, the damage is limited to 'skilled' investors (those with enough means and know-how to get in on the investment). If a public company goes bust (which is the risk here) the damage is much more widespread, and will undoubtedly hit retail investo…
Based on their valuation being too high for where they are, I'm guessing they'll do a share offering to get cash. This could cause they're shares to tumble and I'll make 400-1200% or not. I'm ok with writing off such a small bet, but wow what a fun ride it'll be to see how this all turns out.