Red Flags Detected

• ⚠ Debt Default (new) — Revolving loan matured Jan 2026; lender issued formal demand for $1.01M including 20% default penalty.
• ⚠ Material Weakness (new) — Internal controls deemed ineffective due to insufficient accounting resources for Grid AI integration; remediation incomplete.
• ⚠ Going Concern (worsened) — Management explicitly concluded substantial doubt exists about ability to continue as going concern, up from conditional language in prior year.