Negative Shareholders' EquityNegative shareholders' equity signals solvency stress and sharply reduces financial flexibility. With liabilities exceeding assets the company faces heightened refinancing and covenant risk, constraining capital allocation and making investment or recovery initiatives more difficult over the medium term.
Declining Revenue And Deep LossesA ~30% top-line decline combined with very low gross margins and deeply negative net margins undermines scale economics. Sustained revenue shrinkage and large losses erode reinvestment capacity, damage negotiating leverage with partners, and threaten long-term viability without structural change.
Negative Operating Cash FlowNegative operating cash flow shows the core business currently fails to generate required cash, forcing reliance on financing or asset adjustments. Persistent operating cash deficits strain working capital, supplier terms, and the ability to sustain operations across several quarters.