High LeverageMaterial debt levels and a substantial debt-to-equity ratio constrain financial flexibility, increase interest and refinancing risk, and limit capacity for strategic investments. In a downturn or rising-rate environment, high leverage can materially impair the firm's ability to execute long-term plans.
Volatile Profitability And Inconsistent Net MarginsOscillating net income and prior negative EBIT margins signal weak cost control and unpredictable operating performance. Such volatility undermines free cash flow predictability and makes it harder to plan capital allocation, hampering sustainable scaling and investor confidence over the medium term.
Small Employee Base Limits ScalabilityA very small headcount (17 employees) can constrain product development, enterprise sales, and operational support as demand scales. Reliance on a compact team raises execution risk, increases key-person dependency, and may slow time-to-market for new features or large client implementations.