Negative Equity And LeverageNegative shareholders' equity and an inverted debt-to-equity ratio indicate capital erosion and precarious leverage. This structural weakness limits access to low-cost financing, increases refinancing and insolvency risk, and constrains strategic flexibility over the coming months.
Severely Negative MarginsExtremely negative gross and net margins reflect unsustainable unit economics and high operating losses. Without fundamental changes to pricing, cost structure, or product mix, these margins will prevent progress toward profitability and strain cash needs over a 2–6 month horizon.
Negative Cash FlowsPersistent negative operating and free cash flows erode liquidity and create ongoing funding needs. This structural cash drain forces reliance on external capital or painful cost cuts, increasing execution risk and potentially hindering investment in product development and commercial expansion.