Significant Revenue DeclineA steep decline in revenue materially reduces operational scale and bargaining power with suppliers and clients. Over several months this can compress margins, limit investment in product and service improvements, and heighten the risk that fixed costs outpace recoveries, impairing medium-term competitiveness.
Persistent Net Losses And Negative MarginsOngoing net losses and negative operating margins erode retained capital and restrict the company's ability to self-fund growth or absorb shocks. Without a clear path to sustained profitability, management may need to rely on external funding, which can dilute returns and constrain long-term strategic flexibility.
Negative Operating And Free Cash FlowContinued negative operating and free cash flow undermines SMIT's capacity to fund operations, capital expenditures and repay debt from internal resources. Over months this raises refinancing risk, may force asset sales or costly financing, and limits ability to invest in competitive capabilities and client delivery.