Negative Gross MarginA swing to roughly -34% gross margin is structurally concerning: it suggests product costs, pricing, or mix issues that undercut the unit economics. Unless addressed through cost reduction, pricing power, or product mix improvement, negative gross margins undermine sustainable profitability.
Persistent Cash BurnConsistent negative operating cash flow (about -6.4M in 2025) indicates the business still consumes cash to fund operations. This increases dependency on the balance sheet or external capital and constrains reinvestment in supply chain, sales, or margin-improvement initiatives over the medium term.
Ongoing Net LossesSizable net losses and historically negative ROE indicate the business has not yet converted revenue growth into shareholder returns. Persistent unprofitability limits retained earnings accumulation and increases execution risk if growth fails to translate into positive operating leverage.