Sustained Negative Operating And Free Cash FlowPersistent negative operating and free cash flows indicate the business consumes cash to run and grow. Over the next 2–6 months this constrains reinvestment, limits ability to fund working capital or new system rollouts internally, and increases dependence on external financing.
Severe Net And EBIT Margin DeficitsMargins show operating expenses far exceed gross profit, implying structural cost or scale inefficiencies. Without sustained revenue scale or meaningful cost base reductions, converting strong gross margins into positive operating profit will be difficult, pressuring long‑term viability.
Revenue Volatility And Recent Material DeclineA sharp recent revenue decline and historical volatility undermine planning and the ability to absorb fixed costs. For capital‑intensive manufacturing, inconsistent demand hampers utilization of WAM® assets, delays margin recovery and complicates multi‑period investment or customer qualification cycles.