MoviePass Losses Confirm Customers Exiting

Moviepass Losses Confirm Customers Exiting

Losses by MoviePass’ parent company Helios & Matheson Analytics have grown in Q3 2018 to $137.2 million.

Based on what is said to be a significant decline in MoviePass subscribers by the end of September, a decline which took place after the film ticket subscription service cut back from one free movie daily to just three per month, the company took a ‘goodwill-impairment charge’ of $38.5 million.

As of this week, Helios & Matheson reported $6.2 million in cash on hand and approximately $23.3 million on deposit held by credit-card processors, for a total of approximately $29.5 million. The company says in its filing: “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.”

Helios & Matheson said it will try to continue funding operations by raising additional capital from sources such as sales of the company’s debt or equity securities, but says there’s no assurance it will be successful.

Still pending is the company’s proposal to create a new subsidiary to spin off their shares of MoviePass and its other film-related assets (including Moviefone). Also pending are several investor lawsuits, likely to be consolidated, alleging deception of investors along with a fraud investigation by the New York Attorney General.

Source: Variety