Declining Revenue And Persistent LossesSustained revenue decline combined with recurring net losses indicates the core business is failing to grow or monetize services. Over months this erodes retained earnings, constrains reinvestment, and increases the likelihood of needing external capital or strategic restructuring to remain viable.
Negative Operating Cash FlowPersistent negative operating cash flow shows the company is not converting operations into cash, creating structural funding pressure. This undermines ability to service debt, invest in operations, or weather shocks, making recovery dependent on external financing or rapid operational turnaround.
Negative ROE And Falling EquityA negative ROE indicates the company is destroying shareholder capital rather than creating it. Coupled with declining stockholders' equity, this erodes the balance-sheet buffer for creditors, hampers fundraising prospects, and signals persistent structural profitability issues that threaten long-term sustainability.