Negative EquityPersistent negative equity reflects accumulated losses that materially weaken the balance sheet. This structural capital shortfall restricts borrowing capacity, increases refinancing and solvency risk, and may force dilution or restructuring to regain financial flexibility.
Debt Exceeds AssetsDebt materially exceeding assets creates acute creditor priority and solvency pressure. This capital-structure imbalance raises refinancing risk, could trigger covenants or creditor actions, and limits ability to invest or scale even if operational recovery begins.
Multi-year Cash Burn & Revenue CollapseSustained negative cash flow and a steep revenue drop indicate structural demand, execution, or market issues. Ongoing cash burn erodes liquidity, prevents reinvestment, and increases reliance on external funding which may be costly or unavailable, hindering long-term recovery.