Item 1A. Risk Factors
Item 1A. Risk Factors
As a smaller reporting company, we are not required
to provide the information required by this item. However, the Company is including the following risk factor to update the disclosures
previously provided in its Annual Report on Form 10-K for the fiscal year ended June 30, 2025:
There is substantial doubt about our ability
to continue as a going concern, and if we are unable to obtain additional financing, we may be unable to continue our operations.
For the six months ended December 31, 2025, we
incurred a net loss of $10.4 million and, as of that date, we had a net current liability of $15.8 million. These conditions may cast
significant doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability
to generate sufficient cash flow from operations and to raise additional capital through equity or debt financings. While management is
currently executing a cost optimization plan and is in discussions with several financial institutions to secure additional credit facilities,
there is no assurance that these plans will be successful or that additional financing will be available on favorable terms, or at all.
If we are unable to raise sufficient working capital,
we may be required to significantly curtail our operations, delay capital expenditures, or even cease operations entirely. Furthermore,
our financial statements do not include any adjustments that might result from the outcome of this uncertainty, such as adjustments to
the recoverability or classification of recorded asset amounts or the amounts and classification of liabilities. If we are unable to continue
as a going concern, investors may lose the entire value of their investment in our securities
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