Negative Stockholders' EquityNegative equity is a structural solvency weakness: liabilities exceed assets, limiting borrowing capacity and raising refinancing risk. It constrains strategic options, increases creditor scrutiny, and materially raises the bar for sustained recovery absent fresh capital or asset restructuring.
Persistent Negative Cash FlowOngoing negative operating and free cash flow erodes liquidity and forces reliance on external financing or asset sales. This structural cash-generation shortfall undermines the firm's ability to fund operations, invest in product or sales channels, and weather multi‑month stress without dilution.
Declining Revenue And MarginsMulti‑year revenue declines and falling gross margins indicate weakening market position or pricing power. Structurally, this reduces scale benefits, compresses operating leverage, and makes restoring sustainable profitability harder without product, pricing, or distribution fixes.