Sharp Revenue ContractionA near-50% revenue decline is a structural concern: it reduces scale, weakens pricing leverage, and raises unit cost. Sustained shrinkage undermines the company’s ability to fund R&D and commercial efforts, hampering recovery prospects and the path to durable profitability.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow erode liquidity and force reliance on external capital. Over the medium term this increases financing costs, dilutes shareholders or constrains operations, and limits the company’s ability to invest in growth or clinical/commercial programs.
Distressed Balance Sheet (negative Equity)Negative shareholders' equity indicates liabilities exceed assets, signalling solvency and leverage stress. This structural weakness constrains borrowing, raises counterparty and investor risk perceptions, and makes strategic options (M&A, partnerships, financing) more costly and difficult.