Declining Revenue & Negative MarginsSustained revenue decline and a negative gross margin indicate the company's core product economics are currently unprofitable. Without structural changes to pricing, costs, or product mix, these trends threaten long‑term viability and require strategic fixes.
Negative Equity / High LeverageNegative shareholders' equity and elevated leverage create solvency and refinancing risk, limiting strategic flexibility. Over months this constrains investment, can force covenant breaches, and likely necessitates equity infusion or debt restructuring.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow erode liquidity and increase dependence on external funding. This structural cash shortfall impairs the company's ability to execute turnaround plans without new capital or material operational improvement.