High LeverageA debt-to-equity ratio above 1 indicates material leverage that limits financial flexibility. Over a multi-month horizon, servicing debt can crowd out reinvestment, increase vulnerability to revenue shocks, and impede the company’s ability to fund strategic initiatives without raising costly capital.
Negative Net ProfitabilityDespite high gross margins, a -34.14% net margin shows persistent operating losses driven by elevated opex or structural cost issues. Sustained negative profitability erodes equity, restricts reinvestment capacity and may require either margin fixes or external capital to reach durable breakeven.
Poor Return On EquityAn ROE of -84.08% signals severe capital inefficiency and shareholder value destruction. Over time this undermines confidence from investors and creditors, making future equity raises more dilutive or debt more expensive until profitability and capital returns materially improve.