Negative Shareholders' EquityNegative equity signals structural solvency stress and constrains financial flexibility. Over the medium term this can limit access to cheaper financing, heighten creditor scrutiny, and force dilutive or disruptive recapitalization actions that undermine strategic execution and supplier/customer confidence.
Weak Cash GenerationPersistent negative operating and free cash flows indicate the business struggles to convert earnings into cash. Reliance on financing to fund operations raises liquidity risk and makes capital expenditure, working capital cycles, and debt servicing vulnerable during downturns or tighter credit conditions.
Sustained Losses And Margin PressureDespite revenue gains, falling gross margins and ongoing net losses reflect structural cost or pricing challenges. Without sustained margin recovery, profitability remains elusive, eroding reserves and complicating long‑term plans for investment, debt reduction, or expansion over the next several quarters.