LIENHIGH SIGNALFINANCIAL10-K

LIEN experienced a dramatic cash burn (87.7% decline to $2.9M) while simultaneously increasing liabilities by 360% to $38.6M, creating a potential liquidity crisis despite strong net income growth.

The massive cash depletion combined with a four-fold increase in liabilities suggests significant financial stress or major operational changes that could threaten business continuity. While net income appears strong at $33.3M, the severe deterioration in operating cash flow to -$20.5M indicates potential earnings quality issues or timing mismatches that warrant immediate investor attention.

Comparing 2026-03-19 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

LIEN's financial profile shows alarming liquidity deterioration with cash falling 87.7% to just $2.9M while liabilities exploded 360% to $38.6M, creating a dangerous mismatch. Despite reported net income growth to $33.3M, the company burned through $20.5M in operating cash flow, suggesting significant earnings quality concerns or major working capital issues. The combination of severe cash depletion, massive liability increases, and negative operating cash flow creates substantial near-term financial risk despite the positive headline earnings number.

FINANCIAL STATEMENT CHANGES
Total Liabilities
Balance Sheet
+359.5%
$8.4M$38.6M

Liabilities grew 359.5% — significant increase in debt or obligations, assess impact on financial flexibility.

Operating Cash Flow
Cash Flow
-306.7%
-$5.0M-$20.5M

Operating cash flow fell 306.7% — earnings quality concerns; investigate working capital changes and non-cash items.

Net Income
P&L
+245.8%
$9.6M$33.3M

Net income grew 245.8% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-87.7%
$23.9M$2.9M

Cash declined 87.7% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Assets
Balance Sheet
+10.5%
$309.6M$342.0M

Asset base grew 10.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-03-19
PRIOR — 2025-03-31
ADDED
Warrants Real Estate and Rental and Leasing Workbox Holdings Inc.
Debt Cannabis Wellgreens 2.0, LLC Facility Type Term Loan All in Rate 14.00% Benchmark P Spread 6.50% PIK 0.00% Floor 7.50% Initial Acquisition Date 7/24/2025 Maturity 7/31/2029 2025-01-01 2025-12-31 0001843162 lien:SecondLienSeniorSecuredLoansMember 2024-12-31 0001843162 lien:LoanPortfolioAcquisitionAgreementMember 2025-12-31 0001843162 First Lien Senior Secured Canadian Debt Information Tulip.io Inc.
Facility Type Term Loan All in Rate 15.00% Benchmark P Spread 4.00% PIK 3.00% Floor 8.00% Initial Acquisition Date 11/4/2024 Maturity 11/4/2028 2025-12-31 0001843162 lien:SecondLienSeniorSecuredUSDebtMember us-gaap:InvestmentUnaffiliatedIssuerMember 2025-12-31 0001843162 us-gaap:NortheastRegionMember 2024-12-31 0001843162 lien:LoanPortfolioAcquisitionAgreementMember 2024-10-01 2024-10-01 0001843162 US Corporate Debt First Lien Senior Secured U.S.
Facility Type Term Loan All in Rate 14.00% Benchmark P Spread 6.50% PIK 0.00% Floor 6.25% Initial Acquisition Date 10/27/2024 Maturity 10/30/2026 2024-01-01 2024-12-31 0001843162 US Corporate Debt First Lien Senior Secured U.S.
Debt Information Protect Animals With Satellites LLC (Halo Collar) - Facility Type Incremental Term Loan All in Rate 13.25% Benchmark P Spread 1.75% PIK 3.00% Floor 8.50% Initial Acquisition Date 10/1/2024 Maturity 11/1/2026 2025-12-31 0001843162 lien:FirstLienSeniorSecuredLoansMember 2025-12-31 0001843162 Senior Secured U.S.
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REMOVED
Delayed Draw Term Loan All in Rate 16.00% Spread Rate 11.00% PIK 5.00% Floor Rate 0.00% Due 12/31/2025 2024-01-01 2024-12-31 0001843162 Deep Roots Harvest, Inc.
Delayed Draw Term Loan All in Rate 14.00% Spread Rate 6.50% PIK 0.00% Floor Rate 8.00% Due 8/15/2027 2024-01-01 2024-12-31 0001843162 Verano Holdings Corp.
Term Loan All in Rate 14.00% Spread Rate 6.50% PIK 0.00% Floor Rate 6.25% Due 10/30/2026 2024-01-01 2024-12-31 0001843162 Cannabis Senior Secured U.S.
Delayed Draw Term Loan All in Rate 17.25% Spread Rate 8.75% PIK 0.00% Floor Rate 7.50% Due 5/3/2026 2023-01-01 2023-12-31 0001843162 State Street Institutional U.S.
Government Money Market Fund 2023-01-01 2023-12-31 0001843162 Subsero Holdings - Illinois, Inc Delayed Draw Term Loan All in Rate 16.50% Spread Rate 7.00% PIK 2.00% Floor Rate 7.00% Due 7/29/2026 2024-01-01 2024-12-31 0001843162 Verano Holdings Corp.
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