Persistent Net LossesAlthough losses narrowed materially, Anaergia remains unprofitable on a GAAP basis. Continued reliance on operating improvements to flip to consistent net income creates execution risk; failure to sustain margin and revenue momentum could require further capital or cost cuts, affecting long‑term stability.
Weak Balance SheetNegative equity and elevated leverage constrain financial flexibility, increase refinancing and covenant risk, and raise effective funding costs. For a capital-intensive project business, a fragile balance sheet can limit bidding capacity, slow project awards, and necessitate dilutive or costly financing to fund growth.
Operating Cash Flow WeaknessHistoric negative operating cash flow means the company may rely on external financing to fund working capital and project execution. Even with improving free cash flow, inconsistent cash generation increases execution and funding risk for multi‑stage projects and could impair the ability to invest in growth without new capital.