Persistent UnprofitabilitySustained large operating and net losses indicate the current revenue base cannot cover fixed and development costs. This structural unprofitability risks further equity erosion and makes the company dependent on external funding until operating margins meaningfully improve.
Negative Operating & Free Cash FlowConsistent negative operating and free cash flow mean the company must rely on financing or partners to fund operations and development. Even with improvement, ongoing cash burn creates refinancing risk and constrains strategic flexibility over the medium term.
Declining Gross Margin & High Cost BaseA material drop in gross margin plus a cost base that outpaces revenue growth undermines sustainable profitability. Unless margins recover or costs are restructured, the company will struggle to convert revenue growth into durable operating profits.