Negative Shareholders' EquityNegative equity reflects accumulated losses and creates solvency risk over the medium term. It constrains access to traditional debt/equity financing, increases refinancing risk, and may force dilutive capital raises or restructuring that limit strategic flexibility.
Declining Revenue TrendContinued revenue decline erodes scale and weakens the leverage of high gross margins. Structurally falling top-line makes it harder to cover fixed costs, invest in product and sales capacity, and regain growth momentum without clear customer win-back or market-share gains.
Persistent Net Losses And Negative MarginsOngoing negative EBIT and net margins indicate the business has not reached operating profitability. Continued losses deplete capital, deepen negative equity, and raise the likelihood of future external funding needs that could be dilutive or restrictive to strategic choices.