Deeply Negative ProfitabilityConsistent negative gross and net margins indicate the business currently cannot cover production and overhead costs. Sustained losses erode capital, limit reinvestment, and force dependence on external funding, undermining long-term viability unless margins structurally improve.
Highly Leveraged Balance SheetVery high leverage and negative equity materially increase solvency and refinancing risk. Elevated debt service constrains capital allocation, reduces strategic optionality, and makes the company vulnerable to commodity price or operating shocks over the medium term.
Negative Operating Cash FlowOngoing negative operating cash flow shows core operations are not generating sufficient cash. Even with improved free cash flow growth, persistent negative OCF signals structural conversion issues and forces reliance on financing to cover capex and debt, stressing long-term sustainability.