Remarkable is facing a heightened risk of violating its loan terms after a component failure in May hit sales hard. The decline in revenue prompted the company to seek and obtain a dispensation from Danske Bank to remain in compliance with its financing arrangements.
KPMG, in its audit work, added a clarification to the audit report about the company’s situation. The combination of the sales setback, the bank waiver and the auditor’s note has underlined the financial strain on the business and the need for management to address both operational performance and covenant compliance going forward.