MoviePass Running Out Of Money Fast?

A new report at Bloomberg indicates that MoviePass’ parent company Helios & Matheson reported in a Tuesday filing that it is down to just $15.5 million in cash as of the end of April. They also have $27.9 million more on deposit with merchant processors.

That may sound like a lot, but this comes at a time when the company is burning through around $21.7 million a month and investors have become seriously spooked as shares of the company have crashed a further 32%.

That gives the company two months before it starts going into the red without raising additional funding, something that’s getting much harder for them to do as questions about the long-term viability of the service continue to linger.

The company was seemingly hoping to hold on long enough, and get popular enough, to cut revenue-sharing deals with theater chains as well as potentially sell users data to advertisers. However recent attempts to slim expenses, including restrictions on repeat viewings and anti-fraud measurements, have been met with some pushback.

It now must raise funds by either selling stock, which has dwindled in value, or borrow from lenders even as the company itself says in the filing its own business model is “highly uncertain” and they are “unable to estimate the actual funds we will require.”

Come the July 4th holiday weekend, we’ll probably have an idea one way or another if MoviePass will live on.