Very High LeverageA debt-to-equity ratio near 7.5 creates structural financial fragility: high interest and principal obligations limit flexibility to fund receivables, make investments, or absorb credit losses. In a working-capital lending model, excessive leverage raises refinancing and solvency risk over quarters.
Severe Revenue Decline And Persistent LossesA near-100% revenue drop alongside ongoing negative net margins undermines the company’s scale economics and raises questions about customer volume or pricing. Restoring durable top-line momentum is essential; prolonged decline can permanently damage client relationships and future profitability.
Very Weak Operating Cash Flow QualityAn OC-to-net income ratio of 0.018 means earnings barely convert to cash, forcing dependence on external financing to fund advances. For an invoice-financing lender, poor cash conversion is a structural constraint that raises liquidity risk and increases funding costs across multiple quarters.