Persistent Negative Operating And Free Cash FlowChronic negative OCF and sharply deteriorating free cash flow undermine self-funding capacity, forcing reliance on external capital. Over the medium term, continued cash burn constrains investment, increases refinancing risk, and limits strategic flexibility absent sustained cash-generation improvement.
Elevated Leverage And Eroded Equity BaseHigher debt relative to a shrunken equity base and very negative ROE reduce balance-sheet resilience. Elevated leverage increases interest and refinancing burdens, narrows unsecured financing options, and magnifies downside risk to equity holders if operating performance does not stabilize.
Dependence On Secured Convertible-note FinancingThe recent senior secured convertible notes provide immediate liquidity but create structural constraints: senior claims, conversion mechanics, participation rights and issuance limits can dilute equity, restrict future financing flexibility, and reflect ongoing dependence on external funding if cash flows remain weak.