Persistent LossesDespite revenue and margin improvements, the company continues to generate sizable operating and net losses. Persistent negative profitability undermines retained earnings and ROE, meaning the business must materially improve operating performance to become self-sustaining and justify reinvestment.
Chronic Negative Cash FlowConsistent negative operating and free cash flow signals the company cannot self-fund growth or cover capex from operations. Ongoing cash burn increases refinancing needs and narrows strategic options, elevating the risk that growth initiatives are contingent on external capital rather than internal cash generation.
Reliance On External FinancingThe March 2026 offshore private placement provided critical liquidity but highlights dependence on equity financing to sustain operations. Reliance on external raises creates dilution risk, can be constrained by market conditions, and signals that the company has not yet achieved durable self-financing.