High Leverage & Negative EquityNegative equity and extreme leverage constrain strategic flexibility, increase covenant and solvency risk, and elevate financing costs. This structural balance-sheet weakness limits the company's ability to absorb shocks, invest for growth, or withstand prolonged demand weakness.
Declining Revenue And Persistent LossesOngoing top-line decline and deep negative net margins indicate structural demand weakness and insufficient gross margin coverage of fixed costs. Persistent revenue erosion undermines sustainable profitability and makes it harder to generate cash to reduce leverage over the medium term.
Negative Operating Cash FlowNegative operating cash flow signals that core operations are not consistently converting sales into cash, creating reliance on financing or one-off items. This unstable cash profile hampers investment, debt reduction, and resilience to cyclical downturns without continued structural improvement.