Severe Revenue ContractionA 65.88% revenue drop signals a material loss of scale and customer traction. Persistently lower top-line reduces operating leverage, increases unit costs, strains supplier relationships and weakens the company’s ability to invest in product development or commercial expansion without external funding.
Persistently Negative MarginsSustained negative gross and operating margins show structural profitability issues, implying product or cost disadvantages. Without clear margin improvement through pricing, mix shift, or cost reduction, losses will continue to erode equity and limit reinvestment capacity over the medium term.
Negative Operating And Free Cash FlowContinued negative operating and free cash flow means core operations do not self-fund growth or capex. The firm will likely rely on external financing, increasing dilution or leverage risk, and limiting its ability to fulfill contracts, scale production, or invest in margin recovery initiatives.