High Leverage / Negative EquityNegative stockholders' equity and high leverage create structural solvency and refinancing risk. This constrains strategic options, increases interest burden, and limits access to low-cost capital, making it harder to invest in growth or absorb shocks during the next several months without material balance sheet action.
Persistent Negative ProfitabilityOngoing net losses and negative operating margins erode retained capital and necessitate external financing or cost cuts. Over the medium term this weakens reinvestment capacity, pressures staffing and R&D, and makes it difficult to convert revenue gains into sustainable profits.
Erratic And Declining Revenue TrendsVolatile and recently declining revenues undermine predictability and delay scale benefits. This makes forecasting, inventory and workforce planning difficult, reduces operating leverage, and hampers margin improvement efforts, increasing the risk of continued cash flow volatility in the coming months.