Negative Equity / Weak Balance SheetNegative equity reflects accumulated losses and a fragile capital base. High debt relative to small assets elevates insolvency and refinancing risk, constrains strategic flexibility, and raises the cost or scarcity of additional capital until equity is rebuilt or debt materially reduced.
Persistent Negative Cash FlowSustained negative operating and free cash flow forces ongoing external financing, increasing dilution or leverage. This structural cash shortfall limits capacity to invest in growth, maintain facilities, or weather regulatory and market volatility without securing fresh capital.
Declining Revenue And Deep LossesA meaningful revenue decline combined with extreme negative net margins signals the core business remains unprofitable at scale. Without persistent revenue recovery or significant cost restructuring, operating losses will continue to erode liquidity and shareholder value.