No Operating Or Free Cash FlowAbsence of operating and free cash flow is a material durability risk: it limits reinvestment capacity, forces reliance on external financing, and constrains the firm's ability to sustain operations or scale product initiatives without diluting or increasing leverage.
Significant Net Loss & Falling MarginsMaterial net losses and compressing gross and net margins reduce internal funding for R&D and marketing, weaken pricing flexibility, and heighten the risk that competitive investments are underfunded, impairing medium-term growth prospects.
Declining Shareholders' Equity And Rising LiabilitiesErosion of equity and rising liabilities diminish the balance sheet buffer against shocks, increase refinancing risk, and may require dilutive or costly financing. Over months this can constrain strategic options and elevate credit or supplier pressures.