GoPro Refiles Financials and Engages Advisers After Revenue Drop, Continues Product and Sector Expansion

GoPro refiled its financial statements after auditors at PricewaterhouseCoopers warned that the company has incurred operating losses and negative operating cash flows. The firm added that failure to meet commitments under financing arrangements will raise substantial doubt about GoPro’s ability to continue as a going concern.

The company said creditors may assert an event of default under its financing agreements.

GoPro stated it is in active discussions with lenders including Farallon Capital Management and Wells Fargo. GoPro also announced it has engaged a financial advisory firm to evaluate strategic alternatives that could include a sale of the company or merger. The engagement was disclosed in May, and no buyer has emerged since then.

The San Mateo, California-based company launched in 2002 when founder Nick Woodman sought to capture images from his surfing ventures. It went public in 2014, and Woodman rang the Nasdaq opening bell that year. 5 million, down about 44 percent from four years earlier.

1 million, a 26 percent decline from the same period a year earlier. In April the company hired management consulting firm Oliver Wyman to pursue opportunities for its technology in the defense and aerospace sectors. On May 28 it introduced the Mission 1 line of 8K and 4K cinema cameras, which it described as the world’s smallest, lightest and most rugged models.

GoPro also announced in April that it was cutting 23 percent of its staff from a prior headcount of 631. Woodman said in a May conference call that the company had received several inbound merger-and-acquisition inquiries and that he supported evaluating strategic opportunities to unlock shareholder value.