Negative Equity And Elevated LeveragePersistent negative shareholders' equity and high, unchanged debt create structural leverage that constrains financial flexibility. This elevates refinancing and solvency risk, limits ability to absorb shocks, and restricts strategic options such as scaling lending or absorbing credit losses without external recapitalization.
Negative Operating And Free Cash FlowConsecutive years of negative operating and free cash flow indicate the business is not self-funding its operations. Reliance on external funding raises liquidity and execution risk, and the divergence between reported earnings and cash generation casts doubt on earnings quality and sustainability of reported profits.
Earnings Volatility And Small ScaleHistoric swings from losses to profits reflect unstable earnings power and susceptibility to business-cycle or credit shocks. Combined with an extremely small headcount, this suggests limited operational scale and resilience, making consistent execution and risk management more challenging over the medium term.