Declining Revenue TrendMaterial multi-year revenue decline erodes scale, reduces pricing leverage and increases unit costs, making margin recovery harder. Sustained top-line contraction weakens competitive position and limits reinvestment capacity for R&D or commercial expansion.
Negative Shareholders' EquityNegative shareholders' equity signals accumulated losses and elevated solvency risk, constraining borrowing capacity and restricting strategic flexibility. Over months this limits ability to raise debt or equity on favorable terms and increases restructuring risk.
Consistent Negative Free Cash FlowPersistent negative free cash flow indicates operations consume cash rather than generate it, forcing reliance on external funding. This undermines sustainable investment in products or commercialization and raises long-term liquidity and survival concerns.