Severe Revenue CollapseA ~98% decline in revenue is a structural red flag: it undermines ability to cover fixed costs, sustain R&D, or validate commercial product-market fit. Recovering from near-zero sales typically requires new contracts or product launches and creates prolonged execution risk over months.
Deep And Persistent LossesVery large negative margins reflect structural inability to convert even strong gross economics into operating profits. Persistent negative EBIT/EBITDA implies high overheads, low operating leverage or pricing issues that must be addressed to achieve sustainable earnings over a multi-month horizon.
Negative Operating And Free Cash FlowOngoing negative operating and free cash flow depletes liquidity and forces reliance on external funding. This constrains investment in scaling, slows commercialization, and elevates refinancing risk; absent clear near-term revenue improvements, cash burn is a lasting structural vulnerability.