Karacahisar Sdn Bhd is a retailer that sells books and magazines, partly funded with a government fund on educational learning materials. Due to the increase on e-book and e-magazines, Karacahisar has experienced a decline in demand and the government has stopped providing its fund. Karacahisars board of directors had negotiated an increase in their overdraft facility and obtained a bank loan, secured on Karacahisar's only premises, to meet the shortfall in funds and enable the company to continue its activities. However, the draft statement of financial activities for the year ended 30 June 2021 shows that expenditure exceeded income for the year and the draft balance sheet at 30 June 2021 shows a net liability position. As a result of that, three directors had resigned from their position.

Identify the factors which give rise to an uncertainty about the going concern status of Karacahisar.