MoviePass’ parent company Helios & Matheson has been forced to revise its financial disclosures and to acknowledge its losses were more significant than initially reported.
The company says it now had net losses of $146.7 million over the quarter ending in September of 2018 as opposed to the previously reported $137.2 million for that period. Operations losses were $93 million rather than $86.4 million.
The company also revised its losses for the first three fiscal quarters of 2018, saying they are now $256.4 million as opposed to the previously reported $246.9 million. Total revenues were restated as $74.7 million for the quarter ending in September, rather than the originally reported $81.3 million.
The misstatements were said to be the result of “the erroneous recognition of up to approximately $5.9 million of revenue from certain MoviePass subscriptions that were in a suspended state due to changes made to the MoviePass subscription service that had not yet been consented to by the applicable subscribers.”.
There was also $700,000 in subscription sales by Costco which were refunded which MoviePass failed to factor into its earnings. The company is trying to move past the headlines with a new marketing campaign and a new suite of services, but the company remains under investigation for fraud by the New York attorney general and was de-listed from the Nasdaq last month.