Weak Capital StructureNegative equity combined with substantial debt materially reduces financial flexibility and raises refinancing and covenant risk. Over months this constrains capital allocation, increases the probability of dilutive financing under stress, and limits ability to invest in manufacturing or large-scale growth initiatives.
Negative Operating And Free Cash FlowPersistently negative operating and free cash flow despite accounting profits indicates the business is not yet self-funding. In a 2–6 month horizon this forces reliance on external capital or equity lines, increases execution risk for growth plans, and elevates dilution and liquidity sensitivity.
Integration, Reporting & Governance RisksComplex M&A integrations and inconsistent financial systems have already caused reporting delays and required external consultants. Over the medium term, weak financial controls and an open CFO role raise execution risk, complicate timely decision-making, and could hinder realizing projected M&A synergies.