Minimal Revenue BaseA structurally negligible revenue base undermines the firm's ability to cover fixed costs and achieve operating leverage. Without material sales, profitability and margin improvements are speculative, making sustainable recovery dependent on achieving durable revenue growth rather than cost fixes alone.
Persistent Cash BurnConsistent negative operating cash flow shows the business consumes cash to sustain operations, requiring external funding to continue. This structural cash burn constrains strategic options, risks dilution or asset sales, and makes the company vulnerable if capital markets tighten over the next several months.
Sustained Losses And Negative ROERepeated net losses and negative returns on equity indicate capital is not generating value and are eroding shareholder equity. This persistent underperformance reduces investor confidence, increases the likelihood of future dilution, and limits reinvestment capacity needed to rebuild a profitable growth model.