LQR House discloses going concern, ineffective controls; recovers $21.8M from terminated deals

Filed May 15, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Management concluded disclosure controls are ineffective and identified material weaknesses in internal controls due to insufficient qualified accounting staff and lack of segregation of duties, resulting in audit adjustments during 2025.

  Controls and Procedures verify on EDGAR →
• high

  Company disclosed substantial doubt about ability to continue as going concern, citing $68.7M accumulated deficit and $1.5M quarterly operating cash burn, up from general risk language in prior year.

  MD&A: Liquidity verify on EDGAR →
• high

  Terminated all four joint ventures and two distribution agreements established in 2025, recovering $21.8M in cash post-quarter; committed to $127M acquisition of New Zealand securities firm payable in Tether, with $99M contingent on financing company lacks.

  MD&A: Subsequent Events verify on EDGAR →