Sharp Revenue DeclineA large, multi-year revenue drop sharply reduces scale and erodes margin buffers. Sustained lower top-line constrains internal funding for projects, increases per-project fixed cost absorption, and lengthens the timeline to restore profitable operations absent substantive strategic changes.
Negative Equity And Rising DebtNegative equity signals a depleted capital base and makes leverage metrics unhelpful. Combined with rising debt, this elevates solvency and covenant risk, limits access to non-dilutive financing, and reduces flexibility to fund or scale development activity over the medium term.
Persistent Negative Cash FlowOngoing negative operating and free cash flow indicate chronic cash-generation failure. This creates structural liquidity pressure, necessitates asset disposals or dilutive financing, increases refinancing risk, and undermines the firm's ability to sustain project pipelines and operations.