Declining RevenueA 32% year-over-year quarterly revenue decline signals weakening demand in core telecom offerings and loss of operating scale. Sustained top-line contraction undermines operating leverage, makes margin improvement harder, and raises execution risk for any pivot unless new revenue streams ramp materially.
Very Low Gross Margins And Ongoing LossesA ~5% gross margin leaves little room to cover fixed operating costs and invest in growth. Combined with persistent net losses, this indicates the current business lacks pricing or cost advantages; structurally improving profitability will require meaningful product mix change or cost transformation.
Negative Cash Generation / Tight LiquiditySustained negative OCF/FCF (~-$7.2M) and negligible cash reserves create a structural funding risk. Even with equity and working capital cushions, ongoing cash burn forces near-term financing or asset sales, constraining strategic options and increasing dilution or execution risk over the next several months.