Negative Shareholders' Equity / Weakened Balance SheetNegative equity shrinks financial flexibility and makes leverage metrics effectively unstable. This structural weakness limits access to unsecured financing, raises creditor risk, and reduces the company's cushion against operational setbacks over the medium term.
Persistently Unprofitable Operating And Net MarginsDespite revenue gains, gross margins remain low (~16%–20%) and operating/net margins are negative, indicating underlying unit economics issues. Without sustained margin improvement, revenue growth alone may not produce durable profitability or self‑funding capability.
Reliance On Dilutive, Costly FinancingRecent convertible notes (interest, conversion floors, warrants) provide liquidity but create potential equity dilution and future share overhang. Structurally, repeated reliance on such financing raises cost of capital and can impair long‑term shareholder value and capital structure stability.