DD Support Board and Research Team

[Voices of Reason]

I am following OWOO and they have stated in their latest financials the following concerning their Working Capital Deficit:

"The working capital deficit, accumulated deficit and total stockholders’ deficit resulted primarily from the significant derivative liability and debt recorded at June 30, 2015"

Question - is it customary to have a derivative liability (due to a change in valuation of convertible debt notes that have a variable conversion rate) be attributed to the Working Capital Deficit? It is my understanding that Working Capital is the actual immediate cash needs to run the business - this type of derivative liability seems unusual to me to be shown under this category since it is a paper re-valuation - not an actual cash need (unless converted).