Net loss triples to $30.7M on $14.5M non-operating drag; lender dispute threatens Lyneer control

Filed June 22, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 14, 2025 · ~2 min read

Key Changes

• high

  Net loss widened 186% to $30.7M vs operating loss up 58% to $14.9M — the bottom-line deterioration came from $14.5M in non-operating/other expenses and income tax, not operations. Net income remains below operating income (a larger net deduction, not a gain).

  MD&A: Earnings Quality verify on EDGAR →
• high

  SPP Credit Advisors asserted covenant defaults and claims rights to accelerate debt, exercise pledges over Lyneer subsidiaries, and replace management. Atlantic disputes the defaults and filed suit alleging SPP received $77M+ in stock collateral exceeding the <$50M debt owed. Competing lawsuits in NY and DE courts; trial set June 23, 2026.

  Legal Proceedings: SPP Lender Dispute verify on EDGAR →
• high

  Circle8 acquisition (closed Jan 23, 2026) contributed $145.2M of the $147.1M revenue increase but compressed gross margin 230bp to 8.6% due to lower-margin European operations. Circle8 represents 88% of consolidated assets and 58% of revenues but is excluded from internal control assessment under SEC guidance for recent acquisitions.

  MD&A: Circle8 Acquisition & Controls verify on EDGAR →