Negative Shareholders' EquityThe balance sheet’s negative equity and high leverage indicate a fragile capital structure. This limits financing flexibility, heightens refinancing and covenant risks, and constrains the company’s ability to invest or absorb shocks without external recapitalization over the medium term.
Cash Flow DeficitsPersistent negative operating and free cash flows reduce internal funding for projects, capex, and debt service. Continued cash burn forces reliance on external financing, which may be costly or unavailable given leverage, impairing strategic flexibility for months ahead.
Margin And Profitability PressureDeclining gross margins and ongoing negative net margins point to structural cost or pricing pressure and volatile operating leverage. Margin erosion undermines profitability resilience, limits cash accumulation, and worsens vulnerability to market slowdowns over the medium term.