Red Flags Detected

• ⚠ Debt Default (new) — Company disclosed it is in default on $6M Senior Secured Notes due to covenant breaches, triggering potential redemption at 120% of principal, ~$400K in penalties, and a lower conversion price during default.
• ⚠ Going Concern (unchanged) — Auditors continue to express substantial doubt about the company's ability to continue operations for the next twelve months; going-concern opinion persists in both periods.
• ⚠ Asset Impairment (new) — Company recorded $734K in impairments across four assets in FY2025, including two full write-offs of JV investments and performance-driven write-downs of allthingsdogs.com and DDS Rank.
• ✓ Material Weakness (improved) — Company remediated the impairment-testing material weakness during FY2025 but two other material weaknesses (segregation of duties, revenue accounting) remain unresolved.