Persistent UnprofitabilityConsistent negative net income and negative EBIT/EBITDA margins show the company is not generating operating profits. Over months this reduces retained earnings, limits reinvestment capacity, and increases reliance on external funding unless operating efficiency materially improves.
High LeverageA debt-to-equity ratio around 1.20 and falling equity indicate meaningful leverage, which raises interest and refinancing risk. High leverage constrains financial flexibility, can amplify earnings volatility, and may limit the company's ability to invest in capex or scale manufacturing.
Negative Cash FlowPersistent negative operating and free cash flow means the business does not self-fund growth and likely needs ongoing external financing. Over a multi-month horizon this increases liquidity risk, may dilute shareholders, and constrains timely R&D or commercial expansion.