Very High LeverageAn extremely high debt-to-equity ratio severely limits financial flexibility, raises refinancing and covenant risk, and increases interest burdens. Over months this constrains investment in project development and elevates the likelihood of distress or dilutive recapitalisations.
Steep Revenue DeclineA very large drop in revenue alongside negative margins signals loss of scale and weak commercial traction. Persisting revenue contraction undermines the company’s ability to cover fixed costs, finance development internally, and sustain long-term project advancement.
Negative Cash FlowsOngoing negative operating and free cash flows deplete liquidity and force reliance on external financing. Structurally negative cash generation increases the probability of repeated equity raises or debt restructuring, disrupting project timelines and shareholder value over the medium term.