Financial DistressPersistent financial distress, including declining revenues and negative cash flows, poses a risk to the company's long-term viability and requires strategic intervention.
High LeverageHigh leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.
Negative Profit MarginsNegative profit margins indicate ongoing operational challenges, which could hinder profitability and require strategic adjustments to improve cost efficiency.