Negative Shareholders' EquityNegative shareholders' equity is a significant structural weakness: liabilities exceed assets, limiting capacity to raise conventional debt or equity and increasing default risk. Over months this constrains bidding on new projects, reduces financial flexibility and elevates refinancing or recapitalization need.
Persistent Net LossesOngoing net losses and negative operating margins signal structural operating inefficiencies or insufficient pricing power. Over a multi-month horizon, continued losses erode reserves, limit reinvestment, and necessitate external funding or cost restructuring to restore sustainable profitability.
Declining Revenue & Inconsistent FCFDeclining revenue combined with inconsistent free cash flow growth undermines recovery prospects: lower top-line reduces operating leverage and makes cash generation unpredictable. This increases execution risk for turnaround plans and heightens reliance on external financing over the medium term.