Persistent UnprofitabilitySustained net losses and negative operating cash flow erode equity and limit internal funding for growth. Over months this forces reliance on external capital, increasing dilution or financing costs, and constrains the company’s ability to scale commercial operations and R&D sustainably.
Very Low Gross MarginAn exceptionally low gross margin implies structural cost or pricing pressure in core assay lines, limiting operating leverage. Persistently thin margins hamper ability to fund SG&A and innovation from operations, making long-term profitability dependent on meaningful margin improvement.
Eroding Balance-sheet BaseDeclining assets and shareholders' equity signal capital erosion from losses or write-downs. This reduces the company’s buffer against shocks, may constrain borrowing capacity, and increases the probability of future equity raises, affecting strategic optionality over the medium term.