Negative Profitability And MarginsConsistent negative gross and net margins indicate the business is not generating sustainable operating profitability. Over months this undermines internal capital generation, forces reliance on external funding, and necessitates material cost or revenue improvements to reach self-sustaining operations.
High Leverage / Debt-to-equity ConcernsElevated leverage reduces financial flexibility and raises refinancing risk, especially given negative earnings and cash flow. Structurally, high debt burdens constrain investment in growth projects like Vidalia, increase interest costs, and heighten vulnerability to commodity or demand shocks over the medium term.
Negative Free Cash Flow And Heavy Capex NeedsPersistent negative free cash flow and significant capex requirements mean the company must rely on external financing to sustain operations and scale downstream capacity. Over 2-6 months this pressures liquidity, elevates refinancing and execution risk, and can delay profitable ramp of new assets.