Negative Cash FlowPersistent negative operating and free cash flow undermines internal funding for working capital, capex, and debt service. Over months this heightens refinancing and liquidity risk, forcing reliance on external capital or asset sales, constraining strategic flexibility.
High LeverageA high debt-to-equity ratio and shrinking equity base materially raise default and covenant risk. Leverage amplifies earnings volatility and interest burden, limiting investment capacity and making operational turnarounds harder without meaningful deleveraging or fresh capital.
Negative Margins & Declining RevenueNegative gross and net margins plus declining revenue indicate structural unprofitability and potential cost-structure or pricing issues. Without margin recovery or revenue stabilization, the business cannot self-fund growth or debt obligations, pressuring long-term viability.