Red Flags Detected

• ⚠ Going Concern Doubt (new) — The Company now discloses substantial doubt about its ability to continue as a going concern, a significant deterioration from the prior period's no substantial doubt conclusion.
• ⚠ Debt Default (worsened) — The Company explicitly states that the Term Note, Seller Notes and Earnout Notes are currently in default, expanding the scope of disclosed defaults.
• ⚠ Covenant Breach / Default Allegations By Spp (new) — SPP alleged events of default under the Financing Agreement and Credit Agreement, which the Company disputes and is contesting in litigation.
• ⚠ Nasdaq Deficiency Notice (new) — The Company faces delisting risk if it cannot regain compliance with the minimum bid price requirement within the allowed period.
• ⚠ Default Under Factoring Agreements (new) — The Company is in default under its factoring agreements and other short-term debt, which could lead to acceleration or legal action.
• ⚠ Peo Default Notice (new) — The PEO alleged material default, though the notice was withdrawn after a term sheet was signed; the agreement still permits termination or modification of services.
• ⚠ Material Weakness (worsened) — The company continues to report material weaknesses in internal control over financial reporting, and the current filing adds a new material weakness and a significant deficiency.