Deep Persistent LossesNet margin around -85% reflects persistent heavy losses that erode equity and limit reinvestment. Over the medium term, sustained negative profitability undermines financial resilience, forces reliance on external capital, and makes achieving durable operating self-sufficiency more challenging without structural cost or revenue changes.
Consistent Negative Cash FlowPersistent negative OCF and FCF mean the business burns cash and depends on financing to operate. Even with some improvement, ongoing outflows constrain strategic investment, increase refinancing risk over months, and limit the company's ability to self-fund growth until cash generation turns positive.
Rising Leverage & Weaker Balance SheetDebt rising to ~¥606m and a debt-to-equity of ~2.22x materially increases financial risk and interest burden. Over a multi-month horizon higher leverage reduces flexibility, raises refinancing and covenant risks, and makes additional capital raises more costly or dilutive while losses persist.