Funko, recognized for its beloved collectibles that became iconic in mid-2010s geek culture, is facing serious financial challenges, as revealed in its recent SEC filings.

In documents released on Nov. 6, Funko conveyed “significant doubt” regarding its capacity to sustain operations in the coming year. The report, detailing the third quarter ending Sept. 30, underscores rising debt, which the company attributes to a “difficult retail landscape” — a result of U.S. tariffs on imports from several nations.

While Funko has secured some relief from loans, it remains uncertain whether it can meet the stipulations of its loan agreements. To stay operational, the company may need to obtain further funding, renegotiate its loans, or risk default.

In spite of a 14.3 percent drop in global sales and a 20.1 percent decline in domestic sales year-over-year for the third quarter, there are some encouraging signs. Funko reports robust sales for its Bitty POP! line, intends to broaden its blind box offerings, and is set to be among the few businesses selling KPop Demon Hunters merchandise this holiday season.

However, the general outlook is grim. Numerous challenges faced by Funko in the filings are associated with the ongoing U.S. tariffs — currently being challenged in the Supreme Court — which have placed pressure on retailers. With stores cutting back or halting restocks amidst a faltering economy, Funko’s future continues to be in jeopardy.