Sharp Revenue ContractionA ~53% revenue decline signals severe demand, sales execution, or market penetration issues. Sustained top-line shrinkage undermines scale economics, reduces installed-base growth for aftermarket sales, and makes margin recovery and cash self-sufficiency much harder.
Negative Gross Profit And Heavy Net LossesNegative gross profit indicates core product economics are currently unprofitable—likely due to high unit costs, pricing pressure, or low volume. Persistent deep losses erode equity, hinder reinvestment, and require structural changes to restore sustainable margins.
Significant Operating Cash BurnMaterial negative operating and free cash flow relative to a small revenue base creates ongoing funding needs. Continued cash burn forces reliance on external financing or dilutive measures, constraining R&D, sales investment, and the ability to scale the business sustainably.