Ongoing Cash BurnSustained negative operating and free cash flows show the business consumes cash to operate and commercialize. This creates structural dependency on external financing, risks dilution or onerous funding terms, and constrains the firm's ability to invest without new capital.
Deeply Negative ProfitabilityHeavily negative margins indicate operating costs and below-the-line items greatly exceed revenue today. Without durable revenue growth or major cost rebalancing, losses will persist, undermining sustainable earnings generation and investor returns over the medium term.
Restrictive Financing CovenantsThe structured financing provides liquidity but creates structural constraints: broad security interests, triggers that can accelerate debt or raise rates, and limits on capital structure and exchange activity. These covenants reduce strategic flexibility and raise refinancing risk.