It’s a bit of a broken record at this point, but yet again, as Helios & Matheson continues to release financial data, it’s even more apparent that the grand experiment that was MoviePass is about to hit an iceberg and sink to the bottom of the sea. It appears that hiring a dog as an executive probably isn’t going to cure all the company’s ills.
According to a third-quarter earnings report (via Variety), the losses suffered by Helios & Matheson (parent company to MoviePass) has grown to $137.2 million. So, for those sadists that like to follow the slow death of the company, that leaves the company with only $6.2 million in cash on hand, with another $23.3 million currently on deposit held by credit card processors. So, as of today, Helios & Matheson, and thus MoviePass, currently has $29.5 million. Ouch.
And making matters worse, the company is no longer sugar-coating earnings and admits that finding additional financing to keep the lights on is becoming difficult. “Our cash and cash equivalents may not be sufficient to fund our operations for the near future and we may not be able to obtain additional financing,” the company noted in the earnings report.
It continued, “Without raising additional capital, there is substantial doubt about the company’s ability to continue as a going concern through November 15, 2019.”
The report also highlighted that two more members of the Helios & Matheson board quit, effective October 24. Chris Kelly, MoviePass chairman of the board, and Maria Stipp both left the company late last month. With a current stock price of 1.7 cents, the valuation of Helios & Matheson currently sits at $25 million, which is yet another shocking number relating to the company.
All that being said, it appears that the chickens are coming home to roost, so to speak, for Helios & Matheson, and thus MoviePass. After months of deception, quick changes of course, and laughable marketing strategies, the movie ticket subscription service seems destined to fail, perhaps before the end of 2018.
READ MORE: MoviePass Exec Gloats Paying Subscribers Are Only Using The Service 1 Time Per Month
This comes on the heels of a recent email that MoviePass subscribers were sent (including lapsed subscribers like myself), announcing that the company hired a “Director of Barketing.” That’s right, if the pun wasn’t apparent enough, MoviePass sent an email from a dog named Chloe, including an adorable picture, effectively apologizing for being a shitty company over the last year.
The Director of Barketing says, in the email, “I’d like to explain why from time to time you may have had a ‘ruff’ experience with us but it turns out that I’m a dog and I can’t talk. What I do know is that I see these humans working like crazy to make MoviePass better and better for you as fast as possible. They are so grateful for your membership and support while they work it out.”
The email ends with the promise “We’re listening. We’re learning. We’re changing.” Apparently, not fast enough.