Balance Sheet: Negative Equity And High LeverageNegative equity and heavy leverage are structural weaknesses: they constrain access to capital, increase refinancing and covenant risk, and limit strategic flexibility. Over months this elevates default probability and can force asset sales or dilutive financings to restore solvency.
Declining Revenue And Persistent Net LossesSustained revenue decline and recurring losses erode retained earnings and reduce reinvestment capacity. This pattern undermines long-term growth prospects, increases dependence on external funding, and makes it harder to capitalize on operational efficiencies without a clear recovery in top-line volumes or prices.
Absent 2024 Free Cash Flow And Cash-flow UncertaintyMissing FCF in 2024 signals structural cash-generation stress. Even with prior positive OCF, absent FCF raises questions about the company’s ability to fund capex, service debt, or withstand commodity downturns, increasing refinancing risk and the likelihood of restrictive financing terms.