EMAT posts first revenue ($1.9M) after merger, but discloses going concern and control failures

Filed May 22, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read

Key Changes

• high

  Company disclosed substantial doubt about ability to continue as going concern, citing $5.4M cash and $81.8M working capital deficit. Secured $100M Yorkville convertible facility post-quarter (first $20M drawn) to address liquidity.

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

  Management reversed internal controls conclusion from effective to ineffective, disclosing material weaknesses across acquired Korean subsidiaries: insufficient accounting resources, lack of segregation of duties, missing IT general controls, and inadequate documentation.

  Controls & Procedures verify on EDGAR →
• high

  Company faces $46.2M liability to dissenting Korean shareholders who exercised appraisal rights, accruing 6% interest until paid. Separately, law firm Jones Day sued for $3.9M in unpaid Business Combination legal fees.

  MD&A: Appraisal Rights & Legal Proceedings verify on EDGAR →