Declining Revenue And Large LossesRevenues are declining materially while net margins are deeply negative, indicating the business is shrinking while losing cash on sales. Sustained top-line contraction combined with heavy losses undermines scale economics, limits reinvestment capacity, and makes achieving a durable turnaround more difficult without clear demand or margin recovery.
Negative Equity And Solvency RiskNegative shareholder equity and an extreme debt-to-equity ratio signal structural balance-sheet weakness and potential solvency stress. This reduces financial flexibility, increases refinancing risk, and can constrain investment or growth initiatives, forcing management to prioritize capital restructuring over strategic opportunities.
Persistent Negative Operating And Free Cash FlowOngoing negative operating and free cash flows show the company is burning cash from core operations. Persistent cash deficits limit the ability to fund working capital, R&D, or capex internally and increase dependence on external financing, which may be costly or unavailable given the weak balance sheet and operating losses.