Negative Shareholders' EquityNegative equity signals solvency stress and that liabilities exceed assets, limiting capacity to absorb losses or raise new capital. This structural balance-sheet weakness raises default, covenant and refinancing risks and constrains strategic options over the medium term.
Material Revenue DeclineA steep year-over-year revenue decline reduces scale economies and client diversification, pressuring margins and fixed-cost coverage. Persistent top-line erosion is a structural concern that undermines recovery prospects and can necessitate painful cost cuts or strategic pivots over the coming months.
Profitability Deterioration And Margin PressureNegative EBIT, recurring net losses, and declining gross margins point to structural profitability issues—either pricing, cost control, or mix problems. Sustained margin deterioration erodes free cash flow, constrains reinvestment, and increases dependence on external financing over a multi-month horizon.