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. Under accounting rules, those dollars cant be used to fund current expenses. 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 …
Read the full article at: https://techcrunch.com/2018/05/08/moviepass-parent-drops-31-on-looming-cash-crunch/