Item 1A. Risk Factors
Item 1A. Risk Factors.
Our business, financial condition and operating results can be affected by a number of factors, whether currently known or unknown, including but not limited to those described as risk factors, any one or more of which could, directly or indirectly, cause our actual operating results and financial condition to vary materially from past, or anticipated future, operating results and financial condition. For a discussion of these potential risks and uncertainties, see Part I, Item 1A. “Risk Factors” of our Annual Report. Any of these factors, in whole or in part, could materially and adversely affect our
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business, financial condition, operating results and the price of our common stock. Except as set forth below, there have been no material changes in our risk factors to those included in our Annual Report.
We have identified conditions and events that raise substantial doubt regarding our ability to continue as a going concern.
As of March 31, 2022, we had $22.2 million in cash and restricted cash. Based on our existing cash, availability under our Revolving Credit Facility and cash generated from expected future sales, we believe that we do not have sufficient cash on hand to support current operations and our payment obligations under our Term Loan Facility, Revolving Credit Facility and Revenue Interest Obligation for at least one year from the date of issuance of the unaudited condensed consolidated financial statements appearing within this Quarterly Report on Form 10-Q. This condition raises substantial doubt about our ability to continue as a going concern for at least one year from the date that our unaudited condensed consolidated financial statements for the period ended March 31, 2022 were issued.
In order to mitigate the current and potential future liquidity issues, we may seek to raise capital through the issuance of common stock, either refinance or restructure our Term Loan Facility and Revolving Credit Facility, restructure our Revenue Interest Obligation or pursue asset sale transactions. However, such transactions may not be successful and we may not be able to raise additional equity, refinance our Term Loan Facility and Revolving Credit Facility, or sell assets on acceptable terms, or at all. As such, there can be no assurance that we will be able to continue as a going concern.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
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