Sharp Revenue DeclineA ~26% revenue contraction meaningfully weakens leverage on fixed costs and signals deteriorating demand or sales execution. Over 2–6 months this reduces margin absorption, slows any operating deleveraging, and makes reaching cash-flow break-even more difficult without material changes to commercial performance.
Persistent Negative Cash FlowConsistent negative operating and free cash flow (-2.8m latest) forces reliance on reserves or external financing, limiting the firm's ability to invest in sales, product or support. Continued cash burn is a durable constraint on scaling and increases the probability of dilutive or costly funding over the medium term.
Eroding Equity BaseA shrinking equity base from accumulated losses reduces the capital cushion and weakens financial flexibility. Persistently negative ROE and capital erosion raise the odds of future fundraising, potential dilution, and constrained ability to absorb shocks or invest for growth in the coming months.