Severe Negative MarginsDeep and persistent negative gross and net margins indicate structural unit-economics problems: revenue does not cover direct costs. This undermines free cash generation, requires corrective pricing or cost redesign, and makes sustainable scaling unlikely without fundamental operational changes.
Negative Shareholders' EquityNegative equity reflects liabilities exceeding assets and signals solvency stress. It constrains access to non-dilutive funding, weakens creditor confidence, and increases the probability of dilutive capital raises or restricted financing terms, limiting strategic flexibility over months ahead.
Sustained Cash Burn And Negative Free Cash FlowLarge and ongoing operating cash deficits force reliance on financing inflows to fund operations. Persistent cash burn shortens runway for commercialization and R&D, pressures management to seek dilutive capital or curtail investments, and raises execution risk during scaling.