Balance Sheet WeaknessNegative equity and a structurally adverse leverage metric constrain financial flexibility, raising refinancing and covenant risks. Over the medium term this limits investment in sales or product scale, increases dependency on external funding, and weakens counterparties' confidence.
Persistent UnprofitabilityVery negative gross and net margins indicate the core offering currently loses money at the unit level, requiring fundamental changes to pricing, costs, or product mix. Without margin recovery, profitability is unlikely in the 2–6 month window, pressuring strategy and capital needs.
Negative Cash Flow And Funding RiskOngoing negative operating and free cash flows create an urgent need for external capital or significant margin improvement. This elevates dilution or financing risk and can constrain selling to larger institutional customers who require financially stable vendors over the medium term.