Declining Revenue & LossesSustained revenue declines and ongoing losses undermine scale economics and margin recovery. Persistent unprofitability increases dependence on external capital, constrains R&D and market expansion, and creates long-term execution risk unless top-line trends reverse materially.
High Leverage & Negative EquityNegative equity and worsening debt-to-equity indicate weakened solvency and limited balance-sheet resilience. High leverage raises interest burden, reduces borrowing capacity, and increases covenant/default risk, restricting the company's ability to invest in growth or absorb shocks.
Negative Operating & Free Cash FlowOngoing negative operating and free cash flows erode financial runway and force reliance on external financing. Even with some efficiency signals, persistent cash outflows impede self-funding of product development, heighten dilution risk, and threaten the sustainability of strategic initiatives.