expansion is always expensive, that is why a company goes public, many of the biggest companies out there were not profitable for years, even some NASDAQ companies have a negative cash flow. Only the uneducated would see a 25% reduction in losses and call it a red flag, it is always in the posting history what level of market education people achieve in life.
That being said I think some baggy holders will head for the exit on the way up, give this a year and we should see triple digit returns.