Going concern warning

A going concern warning is a red flag auditors (independent accountants who review company finances) include in SEC filings when they doubt a company can stay in business for at least the next 12 months. You'll see this in annual reports and quarterly filings, and it matters because it signals serious financial trouble—think cash running out, massive losses, or major lawsuits. It doesn't mean the company will definitely fail, but it means investors should be very cautious. For example, if TechStartup Inc. burned through cash faster than expected and had no clear path to profitability, their auditors might add a going concern warning to warn shareholders about the risk.