Negative Equity And High LeverageNegative equity and debt exceeding assets materially constrain financial flexibility. Over months this raises insolvency risk, limits ability to raise low-cost capital, and can force dilutive financings or costly refinancing, impeding investment in growth and long-term strategic initiatives.
Negative Operating & Free Cash FlowPersistent negative operating and free cash flow indicate the business is not self-funding and relies on external capital. Continued cash burn over the coming months pressures liquidity, constrains ATM expansion and product investment, and increases dependence on debt or equity raises.
Low Gross Margin And Ongoing LossesVery low gross margins limit the portion of revenue available to cover overhead and invest. Combined with persistent operating losses, this structural margin pressure makes sustainable profitability challenging without pricing power, cost reduction or materially higher transaction volumes.