Consistent Negative Cash GenerationPersistent negative operating and free cash flow forces ongoing reliance on external financing and asset disposals. This structural cash burn erodes the balance sheet, limits reinvestment capacity, and raises execution risk if revenue recovery and margin improvement are delayed.
Severely Negative Gross Margins From Inventory ChargesDeeply negative gross margins driven by large inventory write-downs indicate structural cost or pricing mismatches. Until core production costs or product mix issues are fixed, recovering sustainable gross profit is unlikely, hampering path to durable operating profitability.
Dramatic Revenue Collapse And SKU DiscontinuationsA multi-quarter, steep revenue decline and discontinued SKUs reduce scale benefits and weaken customer relationships. Lower volumes increase per-unit costs and make fixed-cost absorption harder, extending the timeline and difficulty of returning to consistent positive margins.