ATER - Aterian: Persistent Business Headwinds And Outside Capital Needs Result In Going Concern Warning

• Company reports fourth quarter results largely in line with expectations. Contribution margin continues to deteriorate.
• On the conference call, management issued disappointing Q1 guidance as the business continues to be impacted by rising inflation and supply chain disruptions.
• Aterian's annual report includes a going concern warning given persistent business headwinds and the requirement to raise additional capital.
• Discussing terms of recent private placement. Ongoing dilution has resulted in outstanding shares increasing by almost 140% since the end of 2020.
• Even with the stock price hovering near all-time lows, investors should abstain from chasing the shares and rather wait for the current overhang to lift. Raising rating from "sell" to "hold" after the 80%+ decline in the shares over the past six months.

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