Cosmos Health flags going-concern doubt as loss widens despite 31% revenue growth

Filed May 20, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read

Key Changes

• high

  Management now discloses substantial doubt about ability to continue as a going concern within one year, elevating the warning to the opening of MD&A. Unrestricted cash fell to $515k (total cash $2.2M, but $1.6M restricted for crypto purchases).

  MD&A: Going Concern & Liquidity verify on EDGAR →
• high

  Gross margin collapsed to 7.7% from 15.0% despite 31% revenue growth, driven by shift to lower-margin wholesale distribution and a $375k revenue reversal for a customer with collection issues. Net loss widened to $2.8M from $818k.

  MD&A: Gross Margin & Profitability verify on EDGAR →
• high

  Operating cash outflow widened to $1.1M from $186k, reversing prior-year improvement trend. Company deployed $1.1M to purchase crypto assets (ETH and BTC), then recognized $442k mark-to-market loss on those holdings in the same quarter.

  MD&A: Cash Flow & Digital Assets verify on EDGAR →