Sharp Revenue DeclineTwo consecutive ~26% annual revenue drops materially weaken scale economics and market position. Persistent top-line shrinkage reduces ability to cover fixed costs, undermines pricing power, and makes investment in product development or sales capacity harder to sustain.
Negative Free Cash FlowSustained negative free cash flow and no operating cash inflow in 2024 constrain internal financing for capex, R&D, or working capital. Over months this increases reliance on external funding, heightening refinancing risk and limiting strategic flexibility to execute a turnaround.
Very High Leverage And Eroded EquityAn extreme debt-to-equity ratio and shrinking equity reduce financial resilience. High leverage raises interest burdens, increases default/covenant risk, and limits capacity to borrow for restructuring, making sustained recovery and investment more difficult over the medium term.