Persistent Operating Losses And Cash BurnChronic negative OCF and FCF mean the business relies on external financing to operate, reducing strategic flexibility. Over the medium term this elevates dilution or default risk, constrains reinvestment, and makes sustainable recovery dependent on successful capital raises or dramatic margin improvements.
Negative Equity And Very Thin Asset BaseNegative shareholders' equity and negligible assets weaken funding options: lenders and investors face limited collateral and higher risk, covenants become harder to meet, and capital raising is more expensive or dilutive, impairing the firm's ability to execute multi‑month recovery plans.
Earnings Volatility With Sharp 2025 DeteriorationA steep one‑year deterioration in net income signals operational or nonrecurring shocks and suggests earnings are unstable. That volatility hampers strategic planning, raises refinancing risk, and increases the likelihood that shortfalls persist absent clear corrective actions or reliable revenue scaling.