Persistent Net LossesChronic losses and an extremely negative 2025 net margin undermine retained earnings and prevent the business from self-funding growth. Continued unprofitability raises long-term solvency risk, pressures investor support, and forces reliance on external capital or restructuring to reach durable profitability.
Elevated Leverage, Fragile EquityHigh leverage and prior negative equity materially reduce financial flexibility. Large debt loads increase fixed servicing costs and constrain the company's ability to weather downturns or invest opportunistically, raising the risk of distress or dilutive recapitalizations if operating improvements falter.
Sustained Cash Burn (-$23.5M CFO/FCF)Persistent negative operating and free cash flow indicate operations do not generate internal funding, forcing ongoing external financing. This cash burn raises dilution and refinancing risk, limits investment in R&D or commercialization, and makes long-term execution contingent on capital markets access.