Low LeverageA very low debt-to-equity ratio materially reduces financial risk and preserves flexibility while the company repairs profitability. Over a 2–6 month horizon this balance sheet strength lowers short-term default risk and gives management optionality on financing and restructuring choices.
Return To RevenueResumption of meaningful revenue and near-total gross profit indicates the business can generate sales with acceptable unit economics. This provides a credible base for scaling revenue, improving operating leverage, and narrowing losses if management sustains growth and controls overhead.
Improving Cash Flow TrendA year-over-year improvement in free cash flow, even from negative levels, signals progress reducing cash burn. If sustained, this trend increases the likelihood of reaching cash neutrality without excessive external funding and supports longer-term operational survivability.