Weak Balance SheetNegative shareholders' equity and high leverage materially constrain financing flexibility and increase bankruptcy risk. Structural balance-sheet weakness limits ability to fund product development or pursue partnerships without dilutive or expensive financing, impairing long-term competitiveness.
Consistent Negative Operating Cash FlowPersistent operating cash burn requires repeated external funding and undermines the firm's ability to self-fund growth. Over months, this erodes strategic optionality, forces cost cuts or dilution, and makes sustained investment in sales and product development difficult.
Unprofitable Operations & Revenue PressureNegative gross profit and ongoing net losses indicate structural issues in monetization or unit economics. Declining revenue over multiple years shows demand or execution problems; without structural changes to pricing, product-market fit, or cost base, margins are unlikely to sustainably improve.