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Learning Tree Audit Concern

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In Form 10-K filed on December 15, 2017, for the fiscal year ended September 29, 2017, Learning Tree International, Inc.’s auditor, BDO USA, LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to BDO USA, the Company’s existing cash resources, recurring operating losses, negative cash flows from operations and negative working capital raise substantial doubt about its ability to continue as a going concern. As of and for the fiscal year ended September 29, 2017, the Company has reported an accumulated stockholders’ deficit of $11.8 million and has also reported negative cash flow from continuing operations in fiscal year 2017 and for the previous five years as revenues have declined each year during this period. At September 29, 2017, capital resources consisted of cash and cash equivalents of $5.1 million. Read more on distressed companies.