Revenue CollapseEffectively zero revenue across recent annual reports is a fundamental weakness that removes operating leverage and endangers the core business model. Without meaningful revenue, the company cannot cover fixed costs, invest in product, or build customer momentum, limiting recovery prospects.
Persistent Cash BurnContinuous negative operating and free cash flow depletes liquidity and forces reliance on external financing. This structural cash-burn dynamic increases refinancing and dilution risk, constrains strategic investments, and can curtail operations absent a durable shift to positive cash generation.
High Leverage & Prior Negative EquityElevated debt relative to equity and historical negative equity raise refinancing and covenant risk. High leverage increases fixed obligations and reduces flexibility to invest or absorb shocks, making it harder to fund a recovery or sustain operations without new capital injections.