Negative Operating Cash FlowOngoing negative operating cash flow means the core business does not generate sufficient cash to cover expenses. Persisting cash burn threatens liquidity, may force dilutive financing or higher leverage, and constrains investment needed to scale or fix structural issues.
Negative Margins Across The Income StatementNegative gross margin shows COGS exceed sales, a structural profitability problem. Without margin recovery, scale won't translate into profits; pricing, cost structure or manufacturing efficiency must materially improve to enable sustainable earnings generation.
Declining Revenue TrendA nearly 20% revenue decline signals weakening demand or lost market share. Declining top line erodes operating leverage and makes fixed-cost absorption harder, prolonging the path to break-even and increasing reliance on external funding or structural business changes.