Negative Shareholders' EquityNegative equity means liabilities exceed assets, signalling solvency strain and limited buffer against shocks. This structural weakness restricts access to capital, may trigger covenant breaches, and forces higher-cost financing or asset sales, undermining the company's ability to execute strategy over months.
Negative Operating & Free Cash FlowPersistent negative operating and free cash flows indicate the core business cannot self-fund operations or investments. Over a 2-6 month horizon this raises refinancing and liquidity risk, limits reinvestment in maintenance or R&D, and increases dependence on external funding to sustain contracts.
Steep Revenue & EPS DeclinesSharp declines in revenue and EPS reflect loss of scale and pricing or demand pressure, eroding margins and operational leverage. Structurally, recoveries from such declines take time; reduced scale makes cost absorption harder and slows margin recovery even if product or contract wins resume.