Liquidity And Leverage PressuresModest cash on hand combined with draws on the revolving credit facility, outstanding acquisition payables, and deferred payment arrangements on a royalty purchase highlight near-term liquidity constraints that could raise financing costs or delay strategic initiatives.
Rising General And Administrative ExpensesHigher general and administrative expenses, driven mainly by compensation and benefits, reduced adjusted earnings per share and may continue to pressure profitability until cost controls are implemented.
Weak Operating Cash FlowOperating cash flow before working capital and derivative royalty payments was weaker than expected, limiting internal funding for operations and capital needs and increasing dependence on external financing.