It was a busy week for companies that would prefer you didn't look too closely at their balance sheets. We have auditors running for the exits, lenders dictating management compensation, and a masterclass in how not to account for warrants. Here is what you missed while you were reading profitable companies' earnings reports.
The Inevitable OTC Migration: NUSATRIP Inc (NUTR)
NUSATRIP finally got its eviction notice from Nasdaq, and frankly, it's a miracle it took this long. The company hasn't filed a 10-K for 2025 or a 10-Q for early 2026. If that wasn't enough, their 78% majority shareholder, Society Pass, filed for Chapter 11 bankruptcy in May. Oh, and the SEC suspended trading last October over potential market manipulation. Nasdaq plans to suspend trading on August 12. Management has publicly thrown in the towel, confirming they won't appeal the decision and will simply let the stock drift down to the OTC markets. When your controlling shareholder is bankrupt and the SEC is already mad at you, paying Nasdaq listing fees is just throwing good money after bad.
The Warrants Are Always Liabilities: Canopy Growth Corp (CGC)
Canopy Growth is replacing its auditor, PKF O'Connor Davies, with MNP LLP. The official line is that PKFOD is pivoting away from the cannabis sector. The subtext is that Canopy is restating its FY24 and FY25 financials because they messed up the accounting on share-settled warrants. If there is one ironclad rule in micro-cap accounting, it is that complex equity-linked instruments will eventually trigger a material weakness in internal controls, and Canopy just proved it. Following the filing, the company dropped its proxy statement, asking shareholders to approve a reverse split of up to 1-for-15 at the September 25 meeting. Because when the accounting is broken and the going-concern warnings are flashing, you might as well shrink the share count to keep the stock price artificially afloat.
A Very Expensive Fresh Start: Old QVC Group, Inc. (QVCGA)
Old QVC Group just emerged from a prepackaged Chapter 11 bankruptcy on August 6. The reorganization cleared the immediate deck, but the hangover is going to be brutal. They are stepping out of bankruptcy immediately shackled to roughly $1.34 billion in new senior secured notes and term loans, both carrying interest rates around 10%. To make matters tighter, their exit asset-based lending facility comes with strict borrowing base limitations tied directly to receivables and inventory. This isn't a clean slate; it's a high-interest payday loan wrapped in a restructuring agreement. If they miss a step on inventory turnover, the lenders will be right back at the table.
Zero Revenue, Big Dreams: Securetech Innovations, Inc. (SCTH)
SecureTech Innovations fired Gary Cheng CPA and hired Marcum Asia, supposedly because they are scaling operations and preparing for a Nasdaq listing. Concurrently, they had to restate prior financials to reclassify some receivables and fix a mezzanine equity error. It is a nice narrative, but the amended Q1 2026 10-Q filed on August 6 tells the real story: zero revenue for the six months ended June 30, and a glaring going-concern warning. They are sitting on roughly $407,000 in cash against current liabilities. Changing auditors to prepare for a major exchange listing while you generate no sales and can barely keep the lights on is the kind of aggressive optimism that makes micro-cap markets so entertaining.
Oaktree Is In Charge Now: BioXcel Therapeutics, Inc. (BTAI)
BioXcel Therapeutics just signed the Eleventh Amendment to its credit agreement with Oaktree. If you are on your eleventh amendment, you are no longer running your own company. The lenders graciously agreed to defer a $9 million principal and interest payment to August 31, and dropped the minimum liquidity covenant to $6.25 million. In exchange, BioXcel must find a permanent capital solution or agree to full repayment by tomorrow, August 10. Oaktree also explicitly prohibited the company from modifying any management compensation arrangements. The lenders are watching the bank accounts in real-time, and equity holders should assume they are at the very back of a fast-moving line.
What to Watch
Keep an eye on BioXcel's August 10 deadline—if they don't announce a miraculous capital injection or a sale by Monday morning, Oaktree will likely force their hand. Meanwhile, watch for Canopy Growth's proxy vote in September; the reverse split is coming, and it will be messy.