Negative Equity / High LeverageNegative shareholders' equity signals that liabilities exceed assets, creating elevated solvency and refinancing risk. This structural balance-sheet weakness limits access to capital, constrains strategic flexibility, and raises the probability of distress if operating performance does not materially improve.
Declining Revenue And Weak MarginsA falling top line combined with very low gross margins and negative operating profits point to persistent operational inefficiency. Continued revenue contraction and unprofitability undermine reinvestment capacity, impair competitiveness and raise long-term execution risk for recovery.
Persistent Negative Free Cash FlowSustained negative free cash flow, despite operating improvements, indicates ongoing cash shortfalls. Persistent FCF deficits force dependence on external financing or asset dispositions, increasing funding costs and constraining capital expenditures and growth initiatives over the medium term.