Standing Risk Factors

• • Going Concern (unchanged) — Company disclosed substantial doubt about ability to continue as going concern due to operating losses, cash outflows, covenant violations, and inability to repay debt within 180 days; management's mitigation plans not deemed probable.
• • Covenant Violation (unchanged) — Company violated financial covenants under both credit agreements as of June 30, 2026; received waivers on July 9, 2026, but expects future non-compliance at next measurement date.
• • Debt Default (unchanged) — Company expects to be unable to repay the 2021 Credit Agreement's $24.4M balance within the required 180-day period (by January 2027) based on current financial forecast.
• • Nasdaq Delisting Risk (unchanged) — Received Nasdaq deficiency notice on July 21, 2026 for failing to maintain $1.00 minimum bid price; has 180 days to cure or face delisting, which would trigger defaults under credit agreements and convertible debentures.
• ✓ Goodwill Impairment (removed) — The $18.6M goodwill impairment charge recorded in Q1 2025 is no longer a current-period event; Q1 2026 interim test concluded no impairment required despite going-concern doubt.