Red Flags Detected

• ⚠ Going Concern (new) — Company disclosed substantial doubt about ability to continue as going concern due to declining cash, sales, recurring losses, and negative cash flows; management believes mitigation plan alleviates doubt.
• ⚠ Goodwill Impairment (new) — Company recorded full goodwill impairment of $26.7M in Q1 FY2026 following quantitative test triggered by revenue declines and stock-price deterioration.
• ⚠ Material Weakness (worsened) — Material weaknesses now span three consecutive fiscal years (2024, 2025, 2026); three of six weaknesses remediated, three remain unremediated despite ongoing efforts.
• ⚠ Auditor Change (new) — Baker Tilly replaced RSM US LLP as auditor for FY2026; RSM served from 2007 to 2025.