INSUBCONTINENT EXCLUSIVE:
The big question in the media world today is whether MoviePass parent company Helios and Matheson can stanch the bleeding of its cash flows
before it becomes insolvent.In a new filing today with the SEC, Helios informed investors that it had $15.5 million in available cash, with
another $27.9 million in accounts receivable from members of MoviePass on longer-term subscriptions
The company said that it has lost $21.7 million a month between September and April this year.Investors dumped the stock following the
filing, and the stock was down 31 percent at the close of the equity markets today.While linear math would seem to indicate that the company
is on track for insolvency in a matter of days, the filing and its CEO are maintaining an optimistic line
The company said that following a series of product changes, including more verification that a subscriber actually watched a film
themselves, it should reduce its cash loss on the service by 35 percent during the first week of May.In an interview with TechCrunch,
MoviePass CEO Mitch Lowe struck a positive view on the future of the business
He argued that unlike in the past, where a new app or service would raise venture capital and then invest it in the business, you can just
handle capital concerns as you need them
continue to sell its common stock to investors on a regular basis to fund that negative cash flow
The company said that sales of its common stock will need to begin this month in order to fund operations
