- Helios & Matheson, which owns MoviePass, crashed more than 30% Tuesday following a dire financial filing.
- The company said it had $15.5 million of available cash and another $27.9 million on deposit.
- It also admitted its cash burn was more than $20 million each month.
- Follow HMNY stock price in real-time here.
Shares of MoviePass’ parent company, Helios & Matheson Analytics (HMNY), crashed more than 30% Tuesday after it released updated financials that paint a dire picture for the subscription cinema service.
The company said in an 8-K filing Tuesday that it had “approximately $15.5 million in available cash and approximately $27.9 million on deposit with our merchant processors for a total of approximately $43.4 million.”
Additionally, it estimates that its seen an average cash deficit of $21.7 million per month from September to April.
The new filing comes just as MoviePass recently implemented measures in April to help it reduce the rate at which its hemorrhaging cash. In late April, the company enhanced its technology to prevent subscribers from sharing accounts with non-subscribers, and stopped allowing subscribers to see a movie title more than once while using the service.
I tend to avoid companies whose business model is basically “hey if you give me a dollar I give you 2 in return”.
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