Declining Revenue TrendSustained revenue decline reduces scale economies and weakens customer momentum. Falling top-line constrains the company’s ability to invest in R&D, sales, and platform improvements, making it harder to retain customers and compete against better-funded IoT vendors over the medium term.
Persistent Negative MarginsDeep negative gross and net margins indicate the core business is loss-making and not yet economically scalable. Persistent margin deficits will erode capital, force cost-cutting, and likely require external financing or strategic shifts, undermining long-term viability unless margins structurally improve.
Weak Balance Sheet And Cash GenerationNegative equity, high leverage and recurring negative operating/free cash flows constrain liquidity and financing options. This raises refinancing and solvency risk, limits strategic flexibility, and increases likelihood of dilution or asset sales to fund operations over the next several quarters.