The Software/Media sector credit metrics are worrisome.  The 14 companies have a median current ratio of only .3x and a free cash flow adjusted current ratio of only .01x, indicating an urgent need for new capital.  Leverage on a market cap basis is not extreme at only .48x total liability to market cap. However, a quick review of the cash flow-based leverage indicator funds from operation to total liabilities reveals the issue.  Even the highest quartile of companies has negative funds from operation/ assets, indicating severely challenged profitability.  The median company only has total assets of $1.68M and a market cap of $6.8M, indicating a low ability to sell ancillary assets to buffer the negative cash flow.  The sector’s key customers in the cultivation and retail sector have been in a fat-trimming mode for the last 18 months, and it will take an upside catalyst to propel the sector towards better numbers.  Rescheduling should unlock cultivators’ ability and desire to invest in better software systems.