Severe Revenue DeclineA ~98% revenue collapse is a structural red flag: it erodes economies of scale, disrupts customer relationships, and undermines forecasting and supplier terms. Recovering topline to sustainable levels will require new contracts or product launches; absent that, fixed costs and investment capacity remain constrained over the medium term.
Persistent Negative Cash FlowConsistent negative operating and free cash flow indicates ongoing cash burn that weakens liquidity and forces reliance on financing or equity issuance. This constrains R&D, production scaling, and commercialization efforts; over months this undermines the company’s ability to execute strategic initiatives without dilutive or costly capital.
Deep Losses And Weak ReturnsA near‑80% negative net margin and negative return on equity signal the business currently destroys shareholder value and cannot cover operating or capital costs. Structural profitability must be restored via revenue recovery and cost discipline; until then, investment risk is high and capital allocation credibility is limited.