Negative Shareholders' Equity And Rising DebtShareholders' equity turned negative in 2024 and stayed negative in 2025 while total debt rose sharply. This impaired capital base reduces financial flexibility, raises refinancing and covenant risks, and makes equity dilution or external recapitalization likely to secure operations.
Severe Profitability DeteriorationRevenue has fallen materially and gross margins compressed sharply, producing very large net losses (~-141% net margin in 2025). Such structural profitability deterioration undermines sustained operating performance and limits ability to rebuild equity or fund capex from internally generated profits.
Material Negative Cash Flow In 2025Operating cash flow swung to materially negative in 2025 and free cash flow was also negative, creating immediate liquidity and funding pressure. Given the weak balance sheet and rising debt, negative cash conversion increases the near-term need for external financing or asset disposals, raising execution risk.