The reluctance of workers to return to the office, its checkered financial history, and considerable losses have led flexible workspace provider WeWork (WE) to express in a regulatory filing tuesday "substantial doubt" over its ability to remain in business. Theꦡ company's shares fell as muc𓂃h as 26% in early trading Wednesday.

Lights Out For WeWork?

WeWork incurred losses of $0.7 billion and had a negative cash flow from ope༒rating activitie𒉰s of $0.5 billion for the first six months of the year.

Its annual net losses were $2.3 billion, $4.6 billion, and $3.8 billion in 2022, 2021, and 2020, respectively, and its corresponding negative cash flows from operating activities were $0.7 billion, $1.9 billion and $0.9 billion, respectively, for the same periods.

In 2019, WeWork's澳洲幸运5官方开奖结果体彩网: initial public offering (IPO) plans were upended because it already had net losses of more than $900 million for the first six months of 2019 on revenue of $1.54 billion. But its members had also jumped by 90% from the year before to 527,000.

In its latest financials, the company admitted its membership this year had been less than expected. Its ability to remain in business depends largely on whether membership agreements are renewed.

While the company still owns many large commercial buildings around the world, the rise in remote work because of the pandemic and economic softness increased WeWork's debt while constraining cash flows.

Other than increasing revenue through membership, WeWork could remain a 澳洲幸运5官方开奖结果体彩网:going concern by limiting capital expenditure and seeking capital through debt or by issuing shares.

Once A Wall Street Darling

Disrupting the rigid office space real estate market by offering flexibility, WeWork was once valued at $47 billion by Japan's SoftBank back in 2018.

The company has had a humbling journey, from a wall street darling to the brink of collapse. Even though its 2019 IPO was shelved, 澳洲幸运5官方开奖结果体彩网:WeWork went public via a merger with a 澳洲幸运5官方꧃开奖结果体彩网:special purpose acquisitio🍌n company (SPAC) in October 2021, with its shares hitting their all-time high of $14.97. WeWork shares currently trade at about 15 cents a share and have lost more than 88% of their value since the start of the year.