Consistent Net Losses And Negative Cash FlowPersistent operating losses and negative operating/free cash flow mean the business relies on external financing to survive. Over months, this limits flexibility to invest in sales or manufacturing, raises dilution risk, and makes the company vulnerable if capital markets tighten.
High Leverage And LiabilitiesA high debt-to-equity ratio increases interest and refinancing risk, constraining capex and commercialization spending. Over a multi-month horizon, leverage can force prioritization of debt service over growth, slowing adoption and elevating bankruptcy or restructuring risk if cash flow doesn't improve.
Declining Revenue TrendA sustained decline in revenue undermines economies of scale and makes fixed-cost absorption harder. Without revenue stabilization or growth, margin gains are insufficient to reach profitability, making long-term commercial viability dependent on reversing top-line trends.