Negative Shareholders' EquityNegative equity is a structural solvency flag that constrains capital-raising options, creditor confidence and strategic flexibility. Persistent negative equity increases insolvency risk over months and can limit ability to fund R&D, operations, or absorb shocks without dilutive financing.
Sustained Losses And Revenue DeclineOngoing net losses and falling revenue undermine internal financing capacity and long-term profitability. Without a clear path to consistent positive EBIT, the firm may struggle to invest in growth, retain talent, or compete effectively, impairing durable business prospects.
Erratic Operating Cash FlowInconsistent operational cash generation and a sharp free cash flow decline create recurring liquidity pressure, forcing reliance on external funding. Over several months this raises refinancing and covenant risks, restricting strategic options and threatening continuity of R&D and commercialization.