Deep, Persistent LossesA net margin near -85% reflects structural inability so far to convert gross profit into operating profitability. Persistent large losses erode equity, constrain strategic options, and mean sustained reliance on external funding, raising long-term dilution and viability risk without a clear path to breakeven.
Negative Operating & Free Cash FlowConsistent negative operating and free cash flow indicate the business cannot self-fund growth or investment. Ongoing cash burn elevates financing risk, increases probability of dilution or costly debt, and limits capacity to invest in growth or product development sustainably over the medium term.
Rising LeverageMaterial increase in debt and debt-to-equity to ~2.22x reduces financial flexibility while earnings remain negative. Higher leverage raises fixed servicing costs and refinancing risk, constraining the firm's ability to weather prolonged losses and invest in scaling without worsening solvency metrics.