Deeply Negative EquityConsistently negative shareholders' equity is a structural solvency concern that constrains access to capital, increases refinancing and covenant risk, and limits ability to invest in growth. Persistent negative equity makes long-term recovery dependent on recapitalization or creditor concessions.
Revenue CollapseSustained collapse of top-line revenue undermines core business viability: client relationships, pricing power and scale economics are impaired. Without durable revenue restoration, margins and cash generation cannot normalize, forcing reliance on external financing or asset sales.
Persistent Operating LossesOngoing negative EBIT and volatile net income indicate structural profitability issues and poor earnings quality. Continued operating losses erode liquidity, require repeated financing, and limit reinvestment, making long-term recovery contingent on a clear, executable turnaround plan.