Debt-free Balance SheetMaintaining no debt materially reduces liquidity pressure and interest expense risk, giving management strategic flexibility. Over the next 2-6 months this debt-free position supports survival through cash burn, easier operational restructuring, and cleaner options for equity or strategic financing if needed.
High Gross MarginsA very high reported gross margin indicates the core product or inventory generates unit-level profit, so profitability shortfalls largely stem from overhead and operating costs. If revenue stabilises or operating costs are reined in, gross-margin strength can translate into lasting operating leverage and faster recovery.
Evidence Of Cash-burn ControlDemonstrated improvement in cash outflows shows management can reduce cash burn when decisive actions are taken. This track record, even if not yet sustained, is a durable operational capability that can be redeployed to extend runway and prioritize investments if revenue conditions improve.