Ongoing UnprofitabilityPersistent negative EBIT and net margins show the core business is not yet profitable, limiting retained-earnings funding for growth and increasing reliance on external capital. Continued losses over months raise dilution and execution risk before structural profitability is achieved.
Negative Operating Cash FlowNegative operating cash flow means core operations are consuming cash, creating ongoing funding needs. In a capital-intensive manufacturing context this elevates refinancing and liquidity risk, and constrains the company's ability to sustainably scale production without external financing.
Rising LeverageA higher debt-to-equity ratio near 0.9 increases financial risk and interest obligations for a still-loss-making company. Leverage reduces balance-sheet flexibility for capex and R&D spending in industrial machinery, raising the chance of covenant or refinancing pressure in adverse conditions.