Negative Gross MarginsConsistently negative gross margins indicate unit economics where direct costs exceed revenue, making scaling risky. Without sustained margin improvement, revenue growth cannot translate into profitability, forcing reliance on external capital and limiting long-term financial sustainability.
Severe Operating LossesAn EBIT margin around -125% reflects structural operating cost intensity relative to sales. Persisting high operating losses undermine cash runway and signal the need for significant cost reduction or meaningful revenue scale to reach break-even, posing medium-term execution risk.
Persistent Cash BurnNegative operating and free cash flow (~-$2.52M) shows losses are converting into real cash outflows, shrinking runway and forcing financing if trends continue. Although cash burn improved vs earlier years, deterioration versus 2024 indicates unstable cash control and financing dependency risk.