Persistent Negative Cash FlowOperating cash flow has been negative each year from 2022–2025 (about -$1.7M in 2025) and free cash flow negative since 2022. Ongoing cash burn forces repeated external financing, increasing dilution risk and limiting capacity to self‑fund growth or absorb shocks.
Rising Leverage And Shrinking AssetsDebt nearly doubled to ~$4.7M in 2025 from ~$2.4M in 2024, lifting debt/equity to ~0.68 while total assets fell. Rapid leverage growth reduces balance‑sheet flexibility, raises refinancing and interest risks, and constrains strategic options if revenue or margins stumble.
Deteriorating Profitability And MarginsThe company moved from positive earnings in earlier years to materially larger losses in 2024–2025, with net margin around -23.6% in 2025. Structural margin deterioration suggests cost, pricing, or mix issues that must be corrected to reach sustainable, self‑funding economics.