Persistent LossesLarge recurring operating and net losses indicate the core asset base is not yet generating sustainable earnings. Persistent losses erode equity, limit retained-capital for development, increase reliance on external funding, and make it harder to demonstrate durable profitability to lenders and stakeholders.
Rapidly Rising LeverageMaterial increase in debt relative to equity raises structural financial risk: higher interest and covenant sensitivity can constrain development activity, elevate refinancing risk in tighter credit markets, and reduce strategic flexibility if cash flows weaken or projects underperform.
Earnings And Cash VolatilityHistoric volatility in cash generation and earnings undermines predictability of project funding and profitability. For a development-heavy model, inconsistent cash flows complicate capital planning, increase financing costs, and make it harder to demonstrate repeatable returns to investors and lenders over a multi-quarter horizon.