Buzzfeed Says Anticipate We Will Not Have Sufficient Resources To Fund Cash Obligations For Next 12 Months

Liquidity and Going Concern

There is substantial doubt about the Company's ability to continue as a going concern. Based on the Company's liquidity position as of December 31, 2025 and our current forecast of operating results and cash flows, in the absence of any of the Company's plans to address our capital needs, we anticipate that we will not have sufficient resources to fund our cash obligations for the next 12 months following the date of our Annual Report on Form 10-K with the Securities and Exchange Commission, which we anticipate filing on March 16, 2026.

The Company's principal sources of liquidity are our cash and cash equivalents and cash generated from continuing operations. Our cash and cash equivalents consist of demand deposits with financial institutions and investments in money market funds.

Our financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

Since its inception, the Company has generally incurred significant losses and used net cash flows from operations to grow its owned and operated properties and its iconic brands. During the year ended December 31, 2025, the Company incurred a net loss of $57.3 million and used net cash flows from operations of $18.7 million. Additionally, as of December 31, 2025, the Company had unrestricted cash and cash equivalents of $8.5 million and an accumulated deficit of $679.6 million.

The Company's current restricted cash balance of $15.8 million relates to funds held in Company-owned deposit accounts that are pledged as collateral for the Company's existing letters of credit and, upon the expiration of certain of these letters of credit, approximately $15.0 million is required to be paid to its lenders under the Credit Agreement, dated as of May 23, 2025 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), which also includes a $5.0 million minimum cash covenant.

Under the Credit Agreement, the Company secured a $40.0 million asset-backed loan and, in a subsequent amendment, borrowed an incremental $5.0 million, and therefore $45.0 million of aggregate principal amount of indebtedness associated with the Credit Agreement remains outstanding as of today, March 12, 2026.  $5.0 million was due under the Credit Agreement on February 20, 2026 (a due date that has been further extended through April 30, 2026, as will be further described in our Annual Report on Form 10-K to be filed with the Securities and Exchange Commission).