One of the world's most iconic photography industry Eastman Kodak (KODK) is at a crossroads!
A 133-year-old photography company has recently told investors in its earning report that it may not be able to continue operating for much longer.
Kodak reported a loss for the second quarter and lower sales compared to the same time last year.
As per CNN, Kodak said it doesn't have secured funding or enough cash to cover about $500 million in upcoming debt payments.
Kodak also plans to raise cash by stopping contributions to its US Kodak Retirement Income Plan.
As per the outlet, Kodak's stock price fell by over 7% during premarket trading on Tuesday.
Kodak was hugely successful for a century and popular worldwide, dominating the US market in the 1970s with 90% of film sales and 85% of camera sales.
But the Kodak's strong market dominance faded eventually after the rise of digital technology.
In 2020, Kodak got a temporary boost when the US government chose it to start making pharmaceutical ingredients.
Kodak's Rochester pharmaceutical plant is now FDA-registered and approved to produce and sell regulated products.
Despite recent losses, Kodak plans to expand its pharmaceutical operations and several reports suggested that it will first make phosphate buffered saline (PBS) for labs, with plans to later produce more advanced items like injectable IV saline.
Not only this, to increase its available cash, Kodak has made an agreement with BofA Securities to sell up to $100 million worth of stock through at-the-market (ATM) offering.
Along with this, the company also continues producing films and chemicals for industries like filmaking.
