Deep And Persistent LossesVery large negative margins and ongoing net losses indicate the core business is not yet profitable and is unlikely to self-fund growth. Persistent losses erode flexibility, necessitate frequent capital raises, and constrain long-term strategic options absent structural margin improvement.
Negative Shareholders' Equity And Rising LeverageNegative equity and debt exceeding assets signal a weakened balance sheet that heightens refinancing and covenant risk. This structurally limits the company’s ability to borrow, pursue M&A, or withstand shocks, increasing dependence on external financing or dilutive capital raises.
Consistent Negative Operating Cash FlowRecurrent negative operating and free cash flows show the business consumes cash to operate, creating ongoing funding needs. Over the medium term this raises dilution and liquidity risk, restricting the firm's ability to invest in product, sales, and sustainable growth initiatives.