FMHS

Substantial doubt about the company's ability to continue as a going concern.

“These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the condensed consolidated financial statements are issued. The Company continues to have limited access to capital and expects additional financing will be necessary to fund operations. Market conditions for microcap companies remain challenging, making it difficult to secure financing on favorable terms. The Company’s capital structure includes convertible debt instruments, certain of which are in default and certain of which contain embedded derivative features that may result in additional non-cash expense and potential dilution. Management’s plans to address liquidity needs include pursuing additional capital through equity and debt financings, including potential draws under the GHS equity financing agreement, continued financial support from related parties, renegotiating or restructuring certain debt obligations, and continuing efforts to manage operating expenditures while evaluating strategic opportunities, including its digital asset treasury initiative and other potential business opportunities. Subsequent to March 31, 2026, the Company completed a financing transaction resulting in gross proceeds of $2.0 million, which management believes provides additional liquidity to support operations and strategic initiatives in the near term. However, these plans are not entirely within the Company’s control, and there can be no assurance that additional financing will be available on acceptable terms, if at all. Accordingly, substantial doubt about the Company’s ability to continue as a going concern remains.”

View the 10-Q filed May 20, 2026