Negative Cash GenerationConsistent negative operating and free cash flow forces reliance on external financing for operations and growth. Until OCF turns sustainably positive, the company faces funding risk that can constrain commercialization, delay R&D or dilute shareholders if new capital is required.
High Leverage And Thin EquityA capital structure with elevated debt and minimal equity offers little cushion for ongoing losses. High leverage reduces financial flexibility, raises refinancing risk, and could limit investment in sales or R&D if lenders or markets tighten, impairing long-term strategic options.
Persistent Loss-MakingDespite revenue and margin gains, deep negative net margins indicate the business has not yet reached structural profitability. Continued losses may necessitate sustained capital raises and indicate that fixed and SG&A costs still outpace core profitability during scale-up.