Negative Shareholders' EquityNegative equity is a structural solvency concern: liabilities exceed assets, making leverage metrics meaningless and constraining financing. This condition raises covenant and creditor‑action risks, limiting strategic options and increasing probability of forced restructuring absent sustained profit improvement.
Severe Revenue DeclineRevenue has contracted dramatically, reflecting a severe top‑line shrinkage that erodes scale and fixed‑cost coverage. Sustained steep declines reduce pricing power and distribution leverage, making margin recovery and long‑term competitiveness much harder without new products or market expansion.
Persistent Unprofitability And Negative Cash GenerationThe firm reports persistent negative margins alongside negative operating and free cash flow, indicating poor cash conversion and operational inefficiency. This structural lack of self‑funding forces reliance on external financing, which may be constrained given the weak balance sheet and hinders long‑term reinvestment.