Steep Revenue DeclineA multi-year drop from $7.6M to $1.29M materially reduces scale and operating leverage. Lower top-line volumes weaken pricing power and margins, constrain R&D and sales investment, and make it difficult to rebuild commercial momentum without new products or sizable new contracts.
Persistent Negative Cash FlowOngoing negative operating and free cash flow signals the company cannot self-fund growth or cover recurring costs. Persistent cash burn increases dependence on external financing, elevates dilution or debt risk, and limits capacity to invest in product development required to reverse declines.
Negative Profitability & Margin ErosionNegative EBIT and shrinking gross margins indicate structural profitability issues. Without margin recovery or sustained revenue growth, losses will likely persist, eroding retained capital and forcing strategic trade-offs between investment, pricing and cost-cutting that impair long-term competitiveness.