Declining, Small Revenue BaseA shrinking and still small revenue base limits scale benefits and makes fixed costs burdensome, delaying operating leverage. Persisting revenue declines over several quarters hinder the firm's ability to fund trials, expand sales channels, and achieve self-sustaining growth without external financing.
Negative Operating And Free Cash FlowSustained negative operating and free cash flow forces reliance on external capital and increases dilution risk. Even with some improvement versus prior years, continued cash burn constrains investment in sales, clinical validation and regulatory work, slowing market penetration and long-term viability.
Eroding Equity And Heavy LossesOperating losses that materially erode equity reflect weak profitability and weaken the firm's financial resilience. Persistent steep net margins and declining equity limit capacity to invest organically, increase the likelihood of dilutive raises or restructuring, and impair long-term stakeholder confidence.