Kodak (NYSE:KODK) has issued a “going concern’ warning alongside its second quarter results, signalling doubt about the film and commercial printing company’s ability to continue operations.
Kodak posted a $26 million net loss and a 1% year-over-year decline in revenue to $263 million for the second quarter.
Meanwhile, short-term debt and obligations, including the upcoming maturity of Series B preferred stock and term loans, present high liquidity risk.
Kodak plans to generate liquidity by terminating its US Kodak Retirement Income Plan, aiming to reclaim $500 million by December 2025 to pay down debt and refinance obligations.
The company is also strategically pivoting into pharmaceutical manufacturing, seeing this as a long-term growth opportunity.
“In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,” Kodak CEO Jim Continenza said in a statement.
“For the balance of the year, we plan to focus on serving our customers, strengthening our balance sheet and developing growth businesses for our future.”
Shares of Kodak plunged 26% to about $5 following the update.