Sustained Revenue DeclineA multiyear revenue decline (129.67m to 58.81m) erodes scale, reduces bargaining power and raises per-unit fixed costs. Loss of top-line scale makes investment in sales, R&D and client retention harder, lengthening the path to sustainable recovery over months rather than weeks.
Persistent UnprofitabilityDeep negative margins and ROE indicate the company is destroying shareholder value and cannot self-fund growth. Persistent losses limit reinvestment, constrain access to non-dilutive financing and increase the likelihood of covenant breaches, creating structural obstacles to medium-term stability.
High Leverage & Weak Cash FlowElevated leverage (D/E ~1.6) combined with negative operating and free cash flows raises refinancing and liquidity risk. Interest and principal demands limit strategic flexibility, may force dilution or asset sales, and constrain the company’s ability to execute long-term recovery plans.