Persistent Cash BurnConsistent negative operating and free cash flow (~-$25.9M TTM) creates structural liquidity pressure and forces reliance on external capital. Over months this elevates refinancing, dilution, or covenant risk, limiting the company’s ability to fund operations, capex, or strategic initiatives without outside support.
Sharp Rise In LeverageA material jump in total debt from ~$11.0M to ~$90.6M dramatically increases fixed financial obligations and interest exposure. High leverage reduces strategic flexibility, raises default and covenant risks, and amplifies downside if operating losses persist over the medium term.
Sustained UnprofitabilityPersistent net losses and a negative TTM gross margin reflect structural cost or pricing issues rather than cyclical weakness. Without meaningful margin recovery, the business lacks self-sustaining profitability, threatening long-term viability and requiring fundamental operational or strategic change to restore profitability.