Ugh, this is just getting exhausting.
If you’ve been following the saga that is MoviePass’ inevitable doom, then you are probably on the edge of your seat waiting for the company to implode in fantastic fashion. Unfortunately, what we’ve been getting is the continuous drawn out beating of a company that just won’t quit. MoviePas is a boxer getting pummeled round after round, but never giving up, even though his face is mush and he’s almost certainly got irreparable brain damage. But yet, he persists, even with the outcome already known.
READ MORE: MoviePass Has Lied, Misled, Cheated, & Failed Customers Repeatedly And F*ck It, I’m Out
In the latest development, which you probably saw coming, but never to this degree, MoviePass presented a government filing that showed exactly how bad the company’s financial situation is, and to no one’s surprise, it’s devastating.
According to the filing, courtesy of CNN, MoviePass posted a loss of $126.6 million in the second quarter. This is compared to the previous year’s second quarter loss of only $2.7 million. Ouch. And to fully put this all into perspective the filing confirms that the company has burned through more than $219 million in cash since the beginning of 2018, with $150 million of that total being spent last quarter.
As for cash on hand, the company reports they only have $15.5 million on its balance sheet, plus another $28.7 million held by payment processors. Helios and Matheson (the MoviePass parent company) said “without raising additional capital, there is substantial doubt about the company’s ability to continue as a going concern.”
This might actually be the first bit of honest financial statements given by the company that has previously stuck to the line that its going through a “rough patch.” Well, it appears this rough patch is now a ticking clock that is soon to expire, and we might actually have a doomsday date.
According to the filing, Helios and Matheson says it has until December 18 to become compliant with NASDAQ listing rules. This is the rule that states that all companies that trade on the NASDAQ must have a stock price above $1. Currently, as of Wednesday morning (Aug 15), Helios and Matheson stock is trading at $0.04 per share. They have a long way to go.
And to further rub salt in MoviePass’ gaping wounds, it is also reported that multiple lawsuits have been filed against Helios and Matheson from its own stockholders, claiming that the company has been making “materially false or misleading” statements. Again, not a shock, considering it appears Helios and Matheson/MoviePass has been doing exactly that for the better part of 2018.
READ MORE: MoviePass Reinstating Canceled Accounts Without Permission Ahead Of New Plan Rollout
Today also marks the day that MoviePass begins its new reboot that is supposed to help slow down the losses and make the company viable. Of course, at this point, it appears the damage is done and it might be too little, too late. But we shall see. If that stock doesn’t get closer to $1, the folks at MoviePass could be looking at a rough Christmas.