Very High Financial LeverageDebt-to-equity above 85 indicates substantial leverage and elevated refinancing and interest-rate risk. High leverage constrains capital allocation, increases default risk under stress and limits ability to invest or absorb revenue volatility, undermining long-term stability.
No Operating Cash Flow In 2024A complete absence of operating cash flow is a critical structural weakness: it forces reliance on external financing, reduces ability to service debt or fund working capital, and makes sustaining operations, capex or turnaround plans difficult without restructuring or new capital.
Persistent Losses And Shrinking EquityOngoing net losses that shrink shareholders' equity erode the company's capital buffer and creditworthiness. Persistent negative profitability limits reinvestment, raises going-concern risk, and may force dilutive financing or asset sales to restore balance sheet strength over the medium term.