Dealership advertising firm AutoWeb says its board will discover strategic options for the corporate, together with a possible sale or restructuring, as “substantial doubt” exists about its means to proceed as a going concern.

The Tampa, Fla.-based firm mentioned Monday {that a} particular board committee will consider strategic options, together with acquiring new debt or fairness funding; promoting the corporate or property; and restructuring, together with by federal chapter safety.

AutoWeb mentioned in an announcement that its present money and liquidity state of affairs led administration to find out “that it has substantial doubt in regards to the firm’s means to proceed as a going concern for a interval of 1 12 months” after its first-quarter monetary statements have been issued.

“The corporate’s means to proceed as a going concern is contingent upon the profitable execution of strategic options and administration’s near-term working plans,” in keeping with the discharge. “There might be no assurance that the corporate shall be profitable in attaining any strategic various or administration’s near-term working plans.”

No timeline or choices have been made on strategic options, the corporate mentioned.

CEO Jared Rowe mentioned in an announcement that AutoWeb is suspending its CarZeus used-vehicle acquisition enterprise and furloughing staff inside that enterprise, citing the corporate’s monetary constraints. AutoWeb acquired property of the CarZeus enterprise, which buys automobiles from customers after which resells them within the wholesale market, in July 2021.

On a first-quarter earnings name Monday, Rowe cited macroeconomic headwinds, together with rising rates of interest, inflationary strain and declining client sentiment.

“Sadly, there are not any present indicators signaling a restoration in automotive market situations any time quickly,” Rowe advised analysts on the decision. “We’ve skilled continued losses and work by our money provide at a quicker fee than, fairly frankly, we anticipated.”

Rowe mentioned CarZeus purchased greater than 110 vehicles from customers in April, the most effective month it has had, and was on an analogous path in Might. However the enterprise has excessive money wants, he added, and firm executives hope to reestablish operations pending a optimistic consequence of the board’s assessment.

He added of CarZeus: “This isn’t a choice we made flippantly. I stay steadfast in my perception that AutoWeb has the potential to drive long-term worth as an automotive matchmaking platform, however suspending CarZeus operations was essential to assist the viability of our core lead and click on operations.”

AutoWeb mentioned it swung to a internet lack of $4.3 million within the first quarter from internet revenue of $310,000 in the identical quarter a 12 months earlier. The corporate mentioned the web loss within the quarter ended March 31 was the results of a drop in gross revenue and better working prices, and the year-earlier quarter additionally benefited from a federal Paycheck Safety Program mortgage.

Income rose 7 p.c within the quarter to $19.1 million, boosted by the addition of the CarZeus used-vehicle acquisition enterprise. Lead site visitors and quantity each have been beneath first-quarter 2021 ranges, AutoWeb reported.

AutoWeb mentioned it had $3.8 million in money and equivalents and $4.3 million in restricted money as of March 31.

The corporate mentioned in a federal regulatory submitting Monday that it had an accrued deficit of $359.7 million as of March 31 and present forecasts point out that “the Firm doesn’t consider that it presently has adequate money to maintain operations by your complete the rest of 2022.”