Insolvency Risks - current liability of $4.5m with no right to defer

Hi all, I noticed that in the latest half-year report in regards to Note 11 (page 13):

During the period a continuing review event under the terms of the Facility Agreement with Pure Asset Management
(“Lender”) occurred as a result of the Group’s trailing six months gross profit falling below US$2,000,000. A continuing
review event provides the Lender with a right to notify the Company of an event of default. During the half year ended 31
December 2020 and up to the date of this report, the Lender or its agent has not notified the Company an event of default.
The Lender has continued to be supportive to the Company and there is no indication an event of default will be
made. However, the loan has been classified as current as at 31 December 2020 as while the continuing review event
persists, the Company does not have the unconditional right to defer settlement of the liability for at least twelve months
after the reporting period.

Interested to hear what everyone thinks.

To me this is quite a worrying situation since the company is not cash flow generating/positive (refer to their cash flow statement). I'm probably biased as I have just gone through Dick Smith threads; it was suspended from trading at a share price of 30ish cents for Voluntary Administration.