Persistent LossesSustained negative EBIT and net losses mean the business model has not yet converted revenue into profit. Over 2–6 months this limits internal capital formation, constrains reinvestment, and forces reliance on cash reserves or external funding until operating margins improve materially.
Unproven TurnaroundFY2025’s cash-flow improvement follows several years of large negative free cash flow, creating execution risk that the improvement is temporary. If cash generation reverts, the company could face renewed liquidity stress and higher funding costs, undermining medium-term viability.
Small Revenue Base And Negative ReturnsRevenue remains tiny (~0.45M) while costs produce a deeply negative margin, and FY2025 ROE is negative, reflecting poor capital efficiency. Without meaningful scale or cost rebalancing, returns on invested capital will remain weak, limiting durable profit generation and investment appeal.