Declining RevenueA sustained revenue decline reduces scale benefits and weakens the company’s ability to absorb fixed costs. Over several quarters this pressures investment in R&D and commercialization, eroding competitiveness and making recovery more dependent on new product traction.
Persistent Losses And Negative MarginsRepeated operating losses and negative EBIT/EBITDA indicate structural profitability issues, whether pricing, mix, or cost base. These losses constrain cash generation and reinvestment, increasing reliance on external funding and raising execution risk for strategic initiatives.
Balance Sheet WeaknessNegative shareholders' equity means liabilities exceed assets, signaling high leverage and limited financial flexibility. This elevates refinancing and covenant risk, potentially restricting capital for product development, clinical trials, or sales expansion over the medium term.