Can Canoo Keep Going? Only With a Lot of Outside Help.
Bankruptcy is a word no investor wants to hear, with shareholders generally wiped out in the restructuring process. No public company is really looking to go down the Bankruptcy path, which is why it is so important for investors to pay attention when one warns that Bankruptcy is a very real possibility. That's exactly what Canoo (NASDAQ: GOEV) has had to do in its Securities and Exchange Commission (SEC) filings. The outlook doesn't look good.
The SEC requires the leaders of public companies to realistically examine their businesses and make an assessment about their potential future. More often than not, these reviews are positive and a company doesn't have to say anything about them. However, by law, a company must disclose if management believes there is a very real risk that it cannot continue operating. These are known as going concern notices.
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Source Fool.com
