Negative Shareholders' Equity And High LeverageNegative equity and elevated leverage create persistent solvency and refinancing risk. Over months this constrains strategic flexibility, increases funding costs, and heightens regulatory and counterparty scrutiny, limiting the firm's ability to invest or absorb further operational setbacks.
Negative Operating And Free Cash FlowsSustained negative operating and free cash flows erode reserves and force reliance on external financing or asset sales. This structural liquidity weakness impairs the company's capacity to fund operations, retain talent, or pursue growth initiatives without altering its capital structure.
Ongoing Losses And Weak Profitability MarginsPersistent negative net profit, EBIT and EBITDA margins indicate the core business is loss-making. Over months this undermines capital formation, reduces retained earnings, limits reinvestment, and raises the risk that structural cost or business-model changes are required to restore sustainable profitability.