Ongoing UnprofitabilityPersistent negative net income undermines return generation for shareholders and limits internal funding for growth. Without a durable shift to operating profitability, the firm faces ongoing dilution of equity value, constrained reinvestment capacity, and greater reliance on external capital.
Negative Free Cash FlowNegative free cash flow signals the business is not yet self-funding; it must rely on external financing to support capex and operations. Over the medium term this raises refinancing and liquidity risk, limits strategic flexibility, and increases sensitivity to tighter credit conditions.
Elevated LeverageA debt-to-equity ratio near 1.0 is meaningful given the current loss-making profile; interest and principal obligations constrain cash available for growth. Until consistent profits and cash flow emerge, leverage amplifies financial risk and may limit M&A or incremental R&D spending.