Negative Stockholders' EquityNegative equity indicates accumulated losses have eroded capital, creating structural solvency risk. This limits borrowing capacity, stresses supplier and lender confidence, and constrains the company's ability to invest or withstand prolonged weak operating performance.
Persistent Losses And Declining SalesThe income statement shows ongoing net losses and materially negative revenue growth (~-34.5%), signaling erosion of market position or demand. Sustained top-line decline undermines scale, pressures margins and makes durable profitability recovery more difficult.
Negative Operating And Free Cash FlowNegative operating and free cash flows indicate the business is not generating internal cash to fund operations. This forces reliance on external financing or asset sales, increasing dilution or leverage and limiting strategic investments needed for a durable turnaround.