Persistent Losses & Thin MarginsMulti-year net losses and razor-thin gross margins are structural weaknesses that limit the company’s ability to absorb SG&A, invest in product development, or scale profitably. Without sustained margin expansion, the business will struggle to generate earnings or free cash flow over the medium term.
Severely Stressed Balance SheetNegative equity and debt exceeding assets create chronic solvency and refinancing risk. This structural balance-sheet impairment reduces financial flexibility, increases cost of capital, and constrains the company’s ability to invest in its NEV pivot or absorb further operational setbacks.
Governance & Control WeaknessesDocumented internal-control deficiencies, an auditor change and senior finance turnover suggest persistent governance and reporting risk. These structural issues increase remediation costs, raise audit and compliance scrutiny, and can delay reliable financial reporting and investor confidence over time.