Negative Equity / Insolvency RiskNegative shareholders' equity of -$5.3M signals insolvency risk and materially constrains access to unsecured financing. Persisting negative equity over months can force dilutive recapitalization, asset sales, or creditor negotiations, limiting strategic flexibility and increasing execution risk.
Cash BurnSustained negative operating cash flow (-$32.5M) erodes liquidity and increases reliance on external financing. Continued cash burn reduces runway for operational fixes or growth investments, raises the likelihood of urgent financing needs, and amplifies vulnerability to adverse market conditions.
Revenue Decline & LossesA sharp revenue drop with a -41.56% net margin indicates demand shortfalls or execution issues that impair scale economics. Continued top-line contraction makes it harder to cover fixed costs, lengthens the path to profitability, and raises the risk that margin improvements alone won't restore sustainable cash generation.