DBGI reports $3.5M debt default, 30% revenue drop, and $11.4M loss driven by NIL charges

Filed May 20, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~1 min read

Key Changes

• high

  Bailey acquisition note ($3.5M) matured December 2025 and remains in default; management negotiating repayment or extension with lender.

  MD&A: Debt Default verify on EDGAR →
• high

  Net loss widened to $11.4M from $2.1M year-over-year, driven by $3.9M non-cash fair-value charge on NIL agreement make-whole provisions and higher marketing amortization.

  MD&A: Net Loss verify on EDGAR →
• high

  Revenue declined 30% to $1.3M; gross margin collapsed from 47% to 3% due to lower revenue base relative to cost of goods sold.

  MD&A: Revenue & Margins verify on EDGAR →