Sustained LossesOngoing net losses and negative cash generation erode equity and limit reinvestment capacity. Persisting unprofitability undermines return metrics and can force operational cuts or dilution to access capital, threatening long-term competitiveness if not reversed within several quarters.
Negative Operating Cash FlowPersistent negative operating cash flow means the core business does not self-fund growth or maintenance. Reliance on external financing increases vulnerability to funding constraints and can restrict R&D, service delivery, and sales expansion critical to regain scale and margins.
Sharp Revenue ContractionA roughly 44% revenue decline signals loss of customer demand, pricing pressure, or execution issues. Combined with negative gross and net margins, this indicates fragile market fit or competitive displacement, making sustainable recovery contingent on structural fixes or new market traction.