Going concern
In the 10-Q for the quarter ended Jun 30, 2026, filed Aug 11, 2026, management concluded:
These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these consolidated financial statements are issued. 10-Q, Note 3
The note cites recurring losses and negative cash flows from operations since inception, with an accumulated deficit of $421.1M, and says “management’s current forecasts indicate it is probable that the Company will not achieve the minimum revenue threshold required under the Credit Agreement during the twelve-month period following the issuance of these consolidated financial statements.” It adds that “projected compliance with the liquidity covenant is sensitive to changes in the assumptions of our operating forecast.” The 10-Q says the company was in compliance with its covenants at Jun 30, 2026, and that if it failed to meet them without a waiver or amendment, the lender “could declare an event of default and accelerate repayment,” which the company “does not expect to have sufficient liquidity” to repay. 10-Q, Note 3
Management’s stated plans are to seek a waiver or amendment, to pursue initiatives to increase revenue and to reduce operating expenses. The note says such actions “would not eliminate the risk of noncompliance with the revenue covenant,” and Item 1A adds that “there can be no assurances” a waiver or amendment will be obtained on acceptable terms, or at all. 10-Q, Note 3 10-Q, Item 1A
The 10-K for 2025 contained no going-concern conclusion. No filing since the 10-Q has updated this one; the Sep 14 proxy statement says only that if the company cannot raise sufficient additional capital it “may not be able to continue as a going concern.” DEF 14A, Sep 14, 2026 On Sep 28 the lenders agreed the minimum revenue covenant would not be tested for the quarters ending on or about Sep 30 and Dec 31, 2026, two of the quarters in the twelve-month period the 10-Q assessed; the consent’s full text is to be filed with the 10-Q for the quarter ended Sep 30, 2026. 8-K, Sep 29, 2026
The same 10-Q’s liquidity overview states that, on the current business plan, the company believes its existing cash resources “will be sufficient to meet our capital requirements and fund our operations for at least the next 12 months.” Both statements are in the report. 10-Q, Liquidity