Negative Equity And High LeverageNegative equity and elevated leverage are structural constraints: they restrict access to credit, increase refinancing risk, and weaken resilience to demand shocks. Over months, this limits strategic flexibility and elevates the risk of covenant breaches or forced capital actions.
Erratic Operating Cash FlowsUnstable operating cash generation and no sustained free cash flow undermine liquidity and the ability to self-fund growth or capex. Structurally, this raises reliance on external financing, increasing dilution or solvency risk if market access tightens over the medium term.
Ongoing Losses And Low MarginsPersistent negative EBIT and thin gross margins indicate the business has not yet reached sustainable profitability. Over time, continued losses erode capital, constrain reinvestment in product and operations, and impair competitiveness unless margins materially improve.