WeWork has officially filed paperwork detailing its finances ahead of its initial public offering, which is rumored to take place next month.
In it, the public learned that the company had experienced $900 million in losses in the first six months of 2019. So where exactly is the money going?
The company, recently dubbed The We Company, claims that it subtracts interest, taxes, marketing expenses, and other administrative costs from its losses.
Even more puzzling and troubling to some is that CEO Adam Neumann recently cashed out upwards of $700 million, something founders typically wait to do until after an IPO.
Another head-scratching worthy pre-IPO moment includes the reorganized IPO structure that gives tax benefits to WeWork’s founders and early investors.
Despite the company losing big bucks, some investors are still confident that the company will do well in its debut.