BakBone Software is a provider of data protection, retention and availability technologies that reduce storage management complexity. At the beginning of the year, the company traded much higher, while presently its trading range varies between $0.31 - $0.32 per share.
According to its quarterly report, revenues of BKBO have decreased and the company's liabilities are about 4 times higher than its total assets. As of June 30, BakBone had $4.9 million of cash and cash equivalents and $40.6 million in negative working capital. As the company has incurred substantial net losses since inception, the management is afraid that, "we may not be able to achieve or maintain profitability or positive cash flow".
The team believes the existing cash and anticipated net cash flows will be sufficient to meet its capital requirements for at least the next 12 months, however, if BakBone doesn't get profitable in the future, this would have a material adverse effect on its business.