Negative Equity And Rising LeverageThe company’s negative equity and meaningful increase in debt materially weaken financial resilience. This structure raises refinancing risk and the likelihood of dilution, constraining strategic flexibility and increasing cost of capital for investments over the medium term.
Persistent Negative Free Cash FlowOngoing negative FCF signals continued cash burn and dependence on external funding to sustain operations. This persistent outflow limits the firm's ability to self-fund growth, increases refinancing and dilution risk, and pressures long-term viability without structural margin recovery or financing.
Severely Compressed Gross Margin And Large LossesSharp margin compression and deep net losses indicate the business is not yet converting sales into sustainable profits. Structural cost or pricing issues may exist; without margin recovery, profitability will remain elusive and equity will continue to erode over time.