Widening And Persistent LossesLosses have deepened materially year-over-year, indicating weak earnings power and margin deterioration. Persistent and widening operating deficits undermine retained earnings, limit reinvestment capacity, and raise the risk that core operations are not sustainable without structural changes.
Negative Free Cash Flow / Cash BurnConsecutive years of negative operating and free cash flow show the business is not self-funding and is burning cash. Over the medium term this increases reliance on external financing, constrains strategic investment, and elevates refinancing and liquidity risk.
Sharp Rise In Debt With Thin EquityA sudden jump in leverage combined with a very small equity base raises solvency and capital adequacy concerns. Higher interest and principal obligations reduce financial flexibility, increase default risk during stress, and limit the company's ability to fund growth organically.