Weak Cash GenerationPersistent negative operating and free cash flow erodes the company's ability to self-fund growth and meet obligations. Even with reported profits, weak cash conversion increases reliance on external financing, elevating long-term funding and execution risk for strategic projects.
Stagnant Revenue TrendA marginally negative top-line indicates limited demand expansion. With margins improving but sales flat, sustainable profit growth depends on scaling volume or new product lines; prolonged stagnation can limit operating leverage and constrain return on invested capital.
Listing Compliance RiskA formal Nasdaq deficiency notice creates structural governance and funding risks: management may need reverse splits or other measures to maintain listing. Such actions can be dilutive, distract management, and restrict access to capital if unresolved over several months.