Eroding Equity / Weak Balance SheetMaterial erosion of equity to a low capital base limits the firm's capacity to absorb further losses, finance growth or secure favorable credit. A weakened balance sheet reduces strategic optionality and raises the risk that further shocks force restructuring or dilutive financing.
Sustained Cash BurnConsistent negative operating and free cash flow signifies ongoing cash burn that will deplete liquidity and equity over multiple quarters. This increases reliance on external funding, heightens dilution risk, and constrains the company's ability to invest in recovery initiatives.
Collapse To Near‑Zero RevenueRevenue has collapsed to essentially zero while losses remain large, a structural mismatch that cannot sustain fixed costs. Without durable revenue recovery or new business lines, the company faces persistent operating deficits that undermine long‑term viability.