Sharp 2024 Revenue Collapse And Negative Gross ProfitA ~74% revenue drop paired with negative gross profit indicates unit economics are broken and costs exceed sales. Structurally, this undermines margin sustainability and means simple volume recovery alone won’t restore profitability; durable remediation requires major cost or business-model changes.
Persistent Negative Operating And Free Cash FlowConsistent negative OCF and FCF show the business systematically consumes cash, necessitating ongoing funding or dilution. This pattern constrains strategic flexibility, increases refinancing and equity-issuance risk, and poses a sustained threat to continuity absent durable cash-generation improvements.
Equity Erosion And Deeply Negative ReturnsSignificant equity contraction and deeply negative ROE reflect cumulative losses that deplete the capital base. This structural deterioration heightens dilution risk, weakens creditor and investor confidence, and makes raising capital on reasonable terms harder, impairing long-term viability.