MoviePass Owner Signals the End Might Finally Be Near

November 16, 2018, 5:21 PM UTC

The long, slow death of MoviePass might finally be entering the final stages.

Helios & Matheson, the parent company of the beleaguered service, said in a 10-Q filing with the Securities and Exchange Commission Thursday that it is running out of cash and is unsure if it will be able to obtain any more.

“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,” the company wrote.

Helios & Matheson says it has $6.2 million cash on hand and $23.3 million on deposit that’s held by credit card processors. The company said it will seek other sources of capital, however if it falls behind on payments to merchants and fulfillment processors, it could experience a service interruption like it did earlier this year.

The company also said its stock could be delisted by Nasdaq by December 18. In addition to falling below the minimum bid price requirement, a key board member resignation knocked the MoviePass parent out of compliance with a Nasdaq rule regarding independent director and audit committees.

Earlier this week, Helios & Matheson proposed a 1-for-500 reverse stock split, but failed to get board approval.

MoviePass has seen a big drop in subscribers since changing its plan from one free movie per day to three per month and the filing noted “future changes to our subscription plan may not be favorably received by customers.”

The dire SEC filing comes just over a month after MoviePass announced a $65 million lifeline, underlining just how fast the company has been burning through cash.