Persistent Cash BurnMaterial negative operating and free cash flows (≈-$5.6M TTM) show the business consumes cash every period, forcing dependence on external funding. Over a 2–6 month timeframe, continued cash burn constrains investment in growth, increases dilution risk if equity is issued, and limits flexibility to respond to competitive or operational setbacks.
Negative Gross Profit & MarginsNegative gross profit and a deeply negative net margin (~-39% TTM) indicate the core business is not covering direct costs and operating losses are large relative to revenue. Structurally, this challenges scalability: until unit economics improve, sustained profitability is unlikely and margin recovery will require product, pricing, or cost-structure changes.
Historic Negative Equity / Financing RiskA history of negative equity in FY2023–FY2024 reflects accumulated losses and past recapitalization, signaling recurring financing needs. Combined with ongoing cash burn, this raises durable dilution and governance risks: future capital raises could materially affect shareholders and constrain strategic autonomy over the coming months.