BOOMBOOM A lot of net losses here Boomboom. $ 86,000,000 is quite a substantial loss. Hopefully they can improve by next quarter. Their quarterly financial statements will of course let everyone know.
We are still building out our current business. In 2006, our core business and business model evolved from providing professional information technology services and international programming to providing customized, end-to-end, interactive video services for a wide range of professional and collegiate sports properties, cable networks and operators, content owners and distributors, and telecommunication companies. From our inception, we have incurred substantial net losses and have an accumulated deficit of $86.0 million; however, our non-GAAP Adjusted EBITDA (as previously defined) has continuously improved period-overperiod and management expects this trend to continue. We continue to review our operating structure in an attempt to maximize revenue opportunities, further reduce costs and achieve profitability. Based on our current business plan and internal forecasts, we believe that our cash on hand will be sufficient to meet our working capital and operating cash requirements for the next twelve months. However, we will require expenditures of significant funds for research and development, maintaining adequate video streaming and database software, and the construction and maintenance of our delivery infrastructure and office facilities. Cash from operations could be affected by various risks and uncertainties, including, but not limited to, the risks detailed in this Quarterly Report on Form 10-Q. If our actual cash needs are greater than forecasted and if cash on hand is insufficient to meet our working capital and cash requirements for the next twelve months, we will require outside capital in addition to cash flow from operations in order to fund our business. Our short operating history and our historical losses could each or all be factors that might negatively impact our ability to obtain outside capital on reasonable terms, or at all. If we were ever unable to obtain needed capital, we would reevaluate and reprioritize our planned capital expenditures and operating activities. We cannot assure you that we will ultimately be able to generate sufficient revenue or reduce our costs in the anticipated time frame to become profitable and have sustainable net positive cash flows.
Working Capital Requirements
Our net working capital at June 30, 2014 was $4.6 million, an improvement of $4.7 million from our net working capital of $(0.1) million at December 31, 2013.
Our working capital ratios at June 30, 2014 and December 31, 2013 were 1.27 and 1.00, respectively. Included in current liabilities at June 30, 2014 and December 31,
2013 is approximately $5.6 million and $8.9 million, respectively, of deferred revenue that we do not anticipate settling in cash.
The change in working capital was primarily due to a decrease in current assets of $5.2 million and a decrease in current liabilities of $9.9 million.
Current assets at June 30, 2014 were $21.9 million, a decrease of $5.2 million from the December 31, 2013 balance of $27.1 million. The change was primarily due to a decrease of $5.1 million in cash and cash equivalents.
Current liabilities at June 30, 2014 were $17.3 million, a decrease of $9.9 million from the December 31, 2013 balance of $27.2 million. The decrease was primarily due to decreases in accounts payable of $6.0 million, accrued liabilities of $0.6 million and deferred revenue of $3.3 million.