Digital Brands Group, Inc. disclosed substantial doubt about its ability to continue as a going concern
No going-concern disclosure → Substantial doubt about ability to continue as a going concern
The conditions described above — including the Company’s recurring losses, negative operating cash flows, working capital deficit, the matured Bailey sellers’ promissory note and the monthly payment obligations under the RallyTown secured note (see Note 7) — raise substantial doubt about the Company’s ability to continue as a going concern, and the Company’s plans depend in significant part on its ability to sell equity securities under the at-the-market facility and the equity line of credit and to realize expected revenues from its collegiate apparel program, which are subject to market…
Evidence
- Blank check
- No
- Comparable
- Yes
- Current state
- substantial_doubt
- Current state label
- Substantial doubt about ability to continue as a going concern
- Direction
- escalated
- Located in
- filing body
- Prior filed
- 2026-05-20
- Prior form
- 10-Q
- Prior state
- none
- Prior state label
- No going-concern disclosure
- Source
- ASC 205-40 going-concern note comparison
- Why
- Disclosure about the company's ability to continue as a going concern changed compared with its previous report.