GoPro Files Statement on Ability to Continue Operations

GoPro filed an 8-K notice with regulators on Monday stating substantial doubt about its ability to continue as a going concern. The company also said it expects to file an update to its financial statements. The filing follows a 26 percent drop in first-quarter revenue. GoPro has already received lender waivers after breaching loan covenants and does not expect to meet several future covenants.

GoPro stated last month that memory component costs had shown an unprecedented increase and volatility. One supplier planned to reduce memory supply in April, according to the filing. The company has explored aerospace and defense markets as potential new product categories.

Its market capitalization stood at approximately $190 million as of late Monday afternoon. GoPro shares have declined since last fall when memory prices began to rise.