Negative Equity And High LeverageNegative shareholders' equity and high leverage signal deep solvency stress, reducing access to capital markets and increasing refinancing or covenant risks. Over months this limits strategic options, may force dilutive financing or restructuring, and undermines creditor confidence.
Persistent Negative Operating And Free Cash FlowSustained lack of operating cash generation erodes liquidity and forces reliance on external funding to support operations and capex. Over the medium term this constrains reinvestment in product development and service delivery, increasing execution risk and potential solvency pressure.
Declining Revenue And Weak MarginsA halving of revenue over a multi-year period combined with low, volatile gross margins and persistent net losses undermines scale economics. Without revenue stabilization, durable margin improvement is unlikely, making sustained profitability and self-funded growth difficult.