Severe Revenue DeclineA material TTM revenue collapse signals weak demand or loss of customers, undermining scale economics and long-term growth prospects. With revenue contracting dramatically, operating fixed costs become harder to absorb, hampering sustainable margin improvement and strategic investment.
Sustained Cash BurnConsistent negative operating and free cash flow of roughly -$6.2M TTM drains reserves and forces reliance on external funding. Persistent cash burn increases dilution risk, limits reinvestment in sales and R&D, and constrains the company's ability to execute a multi-quarter recovery plan without capital raises.
Negative Shareholders' EquityNegative shareholders' equity reflects accumulated losses and leaves little balance-sheet cushion. This weak capital structure restricts borrowing capacity, may deter strategic partners or large customers, and elevates insolvency and covenant risk if losses persist.