Zero Operating And Free Cash FlowThe absence of operating and free cash flow is a material liquidity concern: the company cannot self-fund operations, capex, or debt servicing. This structural cash shortfall increases reliance on external financing and elevates refinancing and survival risk over the medium term.
Negative Margins And Sustained LossesNegative gross and net margins reflect deeper operational and pricing issues that are not cyclical alone. Sustained unprofitability erodes equity, limits reinvestment ability, and requires fundamental business changes to restore margin sustainability and return to positive earnings.
High Leverage And Weakening Balance SheetSignificant leverage combined with a declining equity ratio materially reduces financial flexibility. Elevated debt burdens increase default and refinancing risk, constrain strategic investments, and make any recovery contingent on successful deleveraging or external capital injections.