High LeverageVery high leverage and a negative equity balance materially raise refinancing and solvency risk. Interest and principal obligations limit financial flexibility, constrain strategic investments, and amplify downside in revenue shocks. Deleveraging or equity restoration is needed for durable balance‑sheet health.
Revenue ContractionTop‑line decline after prior expansion weakens the growth thesis for a software/consulting business that relies on scale. Falling revenue reduces operating leverage, makes margin improvement harder, and prolongs reliance on external financing unless customer acquisition or retention trends reverse.
Persistent Net LossesContinued net losses, despite positive EBITDA, indicate non‑operating costs or structural items are eroding bottom‑line profits. Persistent losses impair equity rebuilding, limit retained capital for growth, and prolong dependence on debt or equity raises, increasing execution risk until sustained net profitability is achieved.