By their very nature companies that are losing money are more risky than those with a long history of profitability. And we do note that EyePoint Pharmaceuticals had an earnings before interest and tax (EBIT) loss, over the last year. Indeed, in that time it burnt through US$55m of cash and made a loss of US$67m. Given it only has net cash of US$151.2m, the company may need to raise more capital if it doesn't reach break-even soon. Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn't produce free cash flow regularly. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 2 warning signs for EyePoint Pharmaceuticals that you should be aware of.