Red Flags Detected

• ⚠ Debt Default (new) — Company failed to make $2.139M interest payment on convertible notes and negotiated grace period extension to May 29, 2026.
• ⚠ Covenant Violation (new) — Lenders excluded Q1 2026 leverage ratio testing and suspended liquidity covenant through June 29, indicating potential breach risk.
• ⚠ Bankruptcy (new) — Executive retention plan explicitly contemplates Chapter 11 bankruptcy filing as potential outcome of strategic alternatives exploration.