Multi-year Revenue Decline And Persistent LossesSustained revenue declines and ongoing net losses weaken competitive position and erode margins, limiting resources for R&D or sales investment. Without durable top-line recovery, profitability is unlikely to return in 2-6 months, constraining strategic options and growth prospects.
High Leverage And Declining Equity RatioElevated leverage and a falling equity ratio raise refinancing and solvency risks, reducing financial flexibility. With limited internal cash generation, debt-servicing pressure could force asset sales, cost cuts, or expensive external funding within a medium-term window, hindering recovery plans.
Weak And Volatile Cash GenerationZero or negative operating and free cash flow undermines the firm's ability to fund operations, capex, or service debt without external financing. This structural cash shortfall threatens liquidity and the sustainability of operations over the next several months absent capital injections.