High LeverageElevated debt-to-equity raises interest and refinancing risk, reducing financial flexibility. Over 2–6 months higher leverage can constrain capital deployment, increase vulnerability to rate moves, and pressure liquidity if operating volatility emerges.
Low Equity Ratio / Reliance On Debt FinancingA low equity ratio reduces the balance-sheet cushion available to absorb shocks and limits capacity for opportunistic investments or M&A. Structurally, this elevates solvency concerns and could raise borrowing costs or restrict strategic options in stressed scenarios.
Project-based Revenue ConcentrationDependence on project-based contracts makes revenue lumpy and timing-dependent, increasing forecast uncertainty and working-capital swings. While subscriptions exist, primary project reliance can amplify volatility in orders and cash flow over the medium term.