Negative Gross MarginGross profit deterioration to negative territory shows the core product mix and pricing do not yet cover direct costs. Structural negative margins undermine path to profitability and require substantive changes to pricing, cost base, or product mix to sustain the business long-term.
Persistent Cash BurnConsistent negative operating and free cash flows mean the company consumes capital to run its business. Even with improved burn, sustained cash deficits force reliance on equity or external financing, limiting reinvestment and increasing dilution or liquidity risk over the medium term.
Limited Internal Scale/CapacityA very small headcount indicates constrained internal engineering, project delivery and service capacity. This magnifies execution risk, increases dependence on contractors or partners, and could create delivery bottlenecks as revenue grows, challenging scalable margin improvement.