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The stock lost 99.99% of its value... I most confident that is validation for those that have expressed concern, and are suspect of this Company!
Would love to see you step up to the podium in front of the 10's of thousands of investors that lost huge, and spout of that which you just posted about "Doom and Gloom"..... I'm sure you get the picture.
And they will wait until they can pick it up for even less when it goes through the bankruptcy. Whose gonna be the horse that buys it?!
There are ONLY 3 options on the table!!
1. Bankruptcy
2. RS
3. A buyout OR some sort of toxic funding round, AGAIN
Pick your poison. EOM
THIS IS YOUR FOCUS
Anyone good at deciphering BS that = another RS?!
June 2018 Convertible Notes and Series A Preferred Stock
On June 26, 2018, pursuant to the Securities Purchase Agreement, dated as of June 21, 2018, by and between the Company and certain institutional investors (the “June Buyers” and such agreement, the “June Securities Purchase Agreement”), the Company issued and sold 20,500 shares of Series A Preferred Stock of the Company (the “Preferred Stock”) and Series B-2 Senior Convertible Notes in the aggregate principal amount of $164,000,000 (which includes an approximate 15.0% original issue discount) (the “June 2018 Convertible Notes”), for total consideration consisting of an aggregate cash payment to the Company of $20,500,000 and secured promissory notes payable by the June Buyers to the Company (the “June 2018 Investor Notes”) in the aggregate principal amount of $139,400,000, which is subject to a master netting agreement between the Company and the June Buyers (collectively, the “June 2018 Financing”).
Unless earlier converted or redeemed, the June 2018 Convertible Notes will mature on June 26, 2020. The maturity date of the June 2018 Investor Notes is June 26, 2060. Upon issuance, (i) $24,600,000 in principal amount of the June 2018 Convertible Notes consisted of “Unrestricted Principal”, which is defined as that portion of the principal amount of June 2018 Convertible Note that may be converted at any time and is not subject to netting against any June 2018 Investor Notes, and (ii) the balance of the principal amount under the June 2018 Convertible Notes, equal to $139,400,000, consisted entirely of “Restricted Principal”, which is defined as that portion of the principal amount of a June 2018 Convertible Note that equals the outstanding principal amount of a corresponding June 2018 Investor Note. The principal amount of each June 2018 Investor Note is subject to reduction through prepayments by the applicable June Buyer of the applicable June 2018 Investor Note given by the applicable June Buyer to the Company or, upon maturity or redemption of the June 2018 Convertible Notes, by netting the amount owed by the applicable June Buyer under such June 2018 Investor Note against a corresponding amount of Restricted Principal to be canceled under the June 2018 Convertible Note. Each prepayment under the June 2018 Investor Notes will convert a corresponding amount of Restricted Principal under the June 2018 Convertible Notes into “Unrestricted Principal” that may be converted into common stock.
HELIOS AND MATHESON ANALYTICS INC.
Notes to Condensed Consolidated Financial Statements
As of June 30, 2018, the June Buyers had converted $0 of the June 2018 Notes into shares of the Company’s common stock. On any unfunded principal balance of the June 2018 Investor Notes the Company owed to the June Buyers a 5.25% interest obligation which is due quarterly and calculated on a 360-day basis. For the funded portion of the June 2018 Notes the Company has a 10% interest obligation.
Interest on the June 2018 Convertible Notes will be capitalized on each quarterly interest payment date starting July 1, 2018 by adding the interest to the then outstanding principal amount of the June 2018 Convertible Notes. Interest may also be paid by inclusion in the “Outstanding Amount”, which is defined in the June 2018 Convertible Notes as the principal amount to be converted or redeemed, accrued and unpaid interest with respect to such principal amount, accrued and unpaid late charges, if any, and the “June Make-Whole Amount.” The “June Make-Whole Amount” is defined as the amount of any interest that, but for a conversion or redemption, would have accrued with respect to the Outstanding Amount (as defined in the June 2018 Convertible Notes) of principal being redeemed or converted under the June 2018 Convertible Notes, for the period from the applicable date of conversion or redemption date through the maturity date of the June 2018 Convertible Notes. No June Make-Whole Amount will be payable under the June 2018 Convertible Notes with respect to any portion of Restricted Principal after the cancellation of such Restricted Principal pursuant to netting under the June 2018 Convertible Notes, the June 2018 Investor Notes or the Master Netting Agreement (as defined below), as applicable. In the event of an event of default interest under the June 2018 Convertible Notes may be increased to 15% during the first 30 days following the occurrence and continuance of an event of default and to 18% thereafter (the “Default Rate”).
The June Buyers may elect, at any time after the Company obtains approval by its stockholders to either increase its authorized shares of common stock or effect a reverse stock split, which approval was obtained on July 23, 2018, to convert the June 2018 Convertible Notes into shares of the Company’s common stock at the Conversion Price, subject to certain beneficial ownership limitations described below. The “Conversion Price” is $250 ($1.00 pre-split) per share (subject to anti-dilution adjustment as described in the June 2018 Convertible Notes).
Provided there has been no Equity Conditions Failure (as defined in the June 2018 Convertible Notes) and no November 2017 Notes, January 2018 Notes, or shares of the Preferred Stock remain outstanding and no Unrestricted Principal remains outstanding under the June 2018 Convertible Notes, the Company will have the right to redeem all, but not less than all, of the Outstanding Amount remaining unpaid under the June 2018 Convertible Notes. The portion of the June 2018 Convertible Notes subject to redemption can be redeemed by the Company in cash at a price equal to 115% of the amount being redeemed. Under the June 2018 Convertible Notes, the Company may reduce, on a dollar for dollar basis, the Restricted Principal by the surrender for cancellation of such portion of the corresponding June 2018 Investor Notes equal to the amount of Restricted Principal included in the redemption.
The June Buyers may elect, at any time after the Company obtains approval by its stockholders to either increase its authorized shares of common stock or effect a reverse stock split, which approval was obtained on July 23, 2018, to convert the June 2018 Convertible Notes into shares of the Company’s common stock at the Conversion Price, subject to certain beneficial ownership limitations described below. The “Conversion Price” is $250 ($1.00 pre-split) per share (subject to anti-dilution adjustment as described in the June 2018 Convertible Notes). However, pursuant to the June Securities Purchase Agreement, the Company is required to seek stockholder approval in accordance with Nasdaq Listing Rule 5635(d) of the issuance of common stock at a conversion price per share below $250 which may result from the full ratchet conversion price adjustments required by the June 2018 Convertible Notes in the event of certain issuances below the initial conversion price. The Company is required to hold a special meeting of stockholders by October 18, 2018 to obtain such approval. If such stockholder approval is obtained, if the Company issues securities in certain transactions, such as the ATM Offering, at a price lower than the applicable conversion price, then the applicable conversion price for the June 2018 Convertible Notes will be reduced to equal such lower price. As of August 13, 2018, the conversion price would be $0.05 if stockholder approval is obtained.
The Preferred Stock was determined to be classified in equity. Accordingly, the June 2018 Convertible Notes and the Preferred Stock were recorded based on their relative fair values. A derivative liability related to the conversion feature and make-whole interest feature embedded within the June 2018 Convertible Notes is recorded as a debt discount, and accreted into interest expense over the life of the June 2018 Convertible Notes using the effective interest method, and any excess value over the amount allocated to the June 2018 Convertible Notes was expensed immediately to interest expense. In addition, June Placement Agent Warrants are also issued (See The Placement Agent Notes and Warrants below), recognized as liabilities pursuant to their terms and recorded as a debt discount, and accreted into interest expense over the life of the June 2018 Convertible Notes using the effective interest method, and any excess value over the amount of cash received is expensed immediately to interest expense.
MoviePass has guaranteed the obligations arising under the June 2018 Convertible Notes.
In connection with the June 2018 Financing, Theodore Farnsworth, the Chief Executive Officer and Chairman of the Board of the Company, and Helios & Matheson Information Technology Ltd, of which Muralikrishna Gadiyaram, a director of the Company, is the chief executive officer, and its wholly-owned subsidiary, Helios & Matheson Inc., who collectively owned approximately 1.5% of the Company’s issued and outstanding common stock as of the Closing Date, entered into the Voting and Lockup Agreements with the Company. In addition, the Company entered into separate Buyer Voting Agreements with each of the June Buyers with terms consistent with the June 2018 Amendment and Exchange Agreements (see below).
HELIOS AND MATHESON ANALYTICS INC.
Notes to Condensed Consolidated Financial Statements
As of June 30, 2018, the unrestricted principal balance of the June 2018 Convertible Notes was $24,600,000. For the three and six months ended June 30, 2018, the Company recognized $5,300 of interest expense pertaining to the June 2018 Convertible Notes and had $5,300 of accrued interest as of June 30, 2018.
Exchange of Warrants for Common Shares
On June 28, 2018, the Company entered into separate June 2018 Amendment and Exchange Agreements (each, an “Exchange Agreement”) with the holders (each, a “Holder” and collectively, the “Holders”) of certain warrants to purchase shares of the Company’s common stock for the purpose of exchanging outstanding warrants to purchase an aggregate of 106,437 (26,609,269 pre-split) shares of common stock (the “June Exchange Warrants”) for an aggregate of 90,472 (22,617,879 pre-split) shares of common stock (collectively, the “June Exchange Shares”), based on a ratio of 0.85 June Exchange Shares for each warrant share. As a result, the June Exchange Warrants have been cancelled.
On June 28, 2018, each Holder that was not a party to the June Securities Purchase Agreement entered into a voting agreement with the Company (each, a “Voting Agreement” and collectively, the “Voting Agreements”). Pursuant to the Voting Agreements, each Holder agreed to vote the June Exchange Shares and any shares of common stock the Holder owns or may acquire (collectively, the “Holder Securities”) at any meeting of stockholders of the Company: (a) in favor of (i) approval of resolutions providing for the January 2018 Notes Stockholder Approval, (ii) an increase in the authorized shares of the Company and (iii) a reverse stock split of the common stock; and (b) against any proposal or any other corporate action or agreement that would result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company under the Transaction Documents (as defined in the June Securities Purchase Agreement) or the Transaction Documents (as defined in the January Securities Purchase Agreement) or which could result in any of the conditions to the Company’s obligations under the Transaction Documents (as defined in the June Securities Purchase Agreement) or the Transaction Documents (as defined in the January Securities Purchase Agreement), as applicable, not being fulfilled. The agreements to vote the Holder Securities described above terminate immediately following the occurrence of the January 2018 Notes Stockholder Approval described above.
The Voting Agreements also required that, at any time on or prior to the record date for the meeting of stockholders of the Company at which the Company obtained the January 2018 Notes Stockholder Approval, each Holder would not sell or transfer any of the June Exchange Shares. However, the Holders (or their designees, as applicable) were not prohibited from (i) using their Holder Securities to cover the Holders’ or their respective affiliates’ Short Sales (as defined in SEC Regulation SHO) outstanding as of the date of the Voting Agreement, (ii) lending any of their Holder Securities to any person, or (iii) pledging any of the Holder Securities to any person.
In connection with the Exchange Agreements, on June 28, 2018, each Holder entered into a leak-out agreement with the Company (each a “Leak-Out Agreement” and collectively, the “Leak-Out Agreements”), which restricted each Holder from selling the June Exchange Shares during certain periods. Pursuant to the Leak-Out Agreements, for a period ending on the earlier of (x) July 23, 2018 and (y) the Stock Split Stockholder Approval Date (as defined in the June Securities Purchase Agreement) (such earlier date, the “Lock-Up End Date”), the Holder was not, after the date of the Leak-Out Agreement, to sell any of the June Exchange Shares. However, the Holders (or their designees, as applicable) were not prohibited from (i) using their Holder Securities to cover the Holders’ or their respective affiliates’ Short Sales (as defined in SEC Regulation SHO) outstanding as of the date of the Leak-Out Agreement, (ii) lending any of their Holder Securities to any person, or (iii) pledging any of their Holder Securities to any person. In addition, subject to certain exclusions, Holders and any Trading Affiliates (as defined in the Leak-Out Agreements) were be restricted from selling specified amounts of their June Exchange Shares for up to fifteen calendar days after the Lock-Up End Date, unless certain events, as described in the Leak-Out Agreements, earlier terminated such restrictions.
On June 28, 2018, the Company and the Required Holder (as defined in the June Securities Purchase Agreement), entered into an amendment to the June Securities Purchase Agreement (“Amendment No. 1 to Securities Purchase Agreement”), pursuant to which the Stockholder Meeting Deadline (as defined in the June Securities Purchase Agreement) was amended from July 18, 2018 to July 23, 2018.
The collective June Exchange Warrants which were exchanged in this transaction, were all recorded as liabilities at fair value upon issuance, and marked to market at each balance sheet date. The June Exchange Warrants were valued through the date of exchange, June 28, 2018, based upon the original terms of the agreements with changes in fair value recorded in the as gain/loss on warrant liability. The June Exchange Warrants were then valued on the same day based on the fair value of the common shares into which they were converted (0.85 June Exchange Shares for each warrant), and the difference in the fair value between the two instruments was recorded as gain/loss on exchange of warrant. The fair value determined on June 28, 2018 then became the consideration received for the issuance of the common stock. The excess of the consideration received over the par value of the common stock was recorded as Additional Paid in Capital. Accordingly, the incremental change in fair value between the Investor Warrant and the Exchange Warrant is calculated as $301,500 and recorded as Gain on Exchange of Warrants.
HELIOS AND MATHESON ANALYTICS INC.
Notes to Condensed Consolidated Financial Statements
The Placement Agent Notes and Warrants
The Company entered into an agreement with a placement agent (the “Placement Agent”) for assistance with the placement of the February 2017 Notes. The Placement Agent accepted from the Company a 5-year warrant (each, a “February Placement Agent Warrant”) as partial payment for the Placement Agent’s services. The February Placement Agent Warrants allow the purchase of up to 8% of the number of shares of the Company’s common stock into which the unrestricted principal of the February 2017 Notes may be converted. Through the first nine months of 2017, the Company received $5,000,000 of cash payments for the February 2017 Notes, resulting in the issuance of February Placement Agent Warrants for the purchase of 533 (133,334 pre-split) shares of common stock at an exercise price of $750 ($3.00 pre-split) per share. As of June 30, 2018, the Placement Agent has not elected to exercise any February Placement Agent Warrants.
The Company entered into an agreement with the Placement Agent for assistance with the placement of the August 2017 Notes and Investor Warrant. The Placement Agent accepted from the Company a 5-year warrant (each, an “August Placement Agent Warrant”) as partial payment for the Placement Agent’s services. The August Placement Agent Warrants allow the purchase of up to 8% of the number of shares of the Company’s common stock into which the unrestricted principal of the Additional Series A Note and the Series B Note in the combined principal amount of $9,050,000 becomes convertible at an exercise price equal to the greater of the exercise price of the August 2017 Notes and the consolidated closing bid price of the Company’s common stock on the date that the Placement Agent becomes entitled to the August Placement Agent Warrants. During the period ended December 31, 2017, the Company received $8,800,000 of cash payments in conjunction with the August 2017 Notes and issued August Placement Agent Warrants for the purchase of 704 (176,000 pre-split) shares of common stock at exercise prices of $750 ($3.00 pre-split) and $3,568 ($14.27 pre-split) per share. As of June 30, 2018, the Placement Agent has not elected to exercise any August Placement Agent Warrants.
The Company entered into an agreement with the Placement Agent for assistance with the placement of the November 2017 Notes. The Placement Agent accepted from the Company a 5-year warrant (each, a “November Placement Agent Warrant”) as partial payment for the Placement Agent’s services. The November Placement Agent Warrants allow the purchase of up to 8% of the number of shares of the Company’s common stock into which the unrestricted principal of the November Series A Note and the November 2017 Notes in the combined principal amount of $100,000,000 becomes convertible at an exercise price equal to the greater of the exercise price of the November 2017 Notes and the consolidated closing bid price of the Company’s common stock on the date that the Placement Agent becomes entitled to the November Placement Agent Warrants. During the period ended June 30, 2018, the Company received $25,077,889 of cash payments for the November 2017 Notes resulting in the issuance of 272 (67,987 pre-split) warrants at an exercise prices of $301.50 ($12.06 pre-split) per share. As of June 30, 2018, the Placement Agent has not elected to exercise any November Placement Agent Warrants.
The Company entered into an agreement with the Placement Agent for assistance with the placement of the January 2018 Notes. The Placement Agent accepted from the Company a 5-year warrant (each, a “January Placement Agent Warrant”) as partial payment for the Placement Agent’s services. The January Placement Agent Warrants allow the purchase of up to 8% of the number of shares of the Company’s common stock into which the unrestricted principal of the Series A-1 Note and the Series B-1 Note in the combined principal amount of $0 becomes convertible at an exercise price equal to the greater of the exercise price of the January 2018 Notes and the consolidated closing bid price of the Company’s common stock on the date that the Placement Agent becomes entitled to the January Placement Agent Warrants. During the period ended June 30, 2018, the Company received $35 million of cash payments for the January 2018 Notes resulting in the issuances of 699 (174,826 pre-split) warrants at an exercise prices of $2,860 ($11.44 pre-split) per share. As of June 30, 2018, the Placement Agent has not elected to exercise any January Placement Agent Warrants.
The Company entered into an agreement with the Placement Agent for assistance with the placement of the June 2018 Financing. The Placement Agent accepted from the Company a 5-year warrant (each, a “June Placement Agent Warrant”) as partial payment for the Placement Agent’s services. The June Placement Agent Warrants allow the purchase of up to 8% of the number of shares of the Company’s common stock determined by dividing the aggregate purchase price of the Preferred Stock purchased by the Conversion Price of the June 2018 Convertible Notes in effect as of the Subscription Date (as defined in the June Placement Agent Warrant) and eight percent (8%) of the number of shares of common stock into which any Unrestricted Principal of the June 2018 Convertible Notes purchased is initially convertible at the Conversion Price in effect as of the Subscription Date, at an exercise price equal to the Conversion Price of the June 2018 Convertible Notes in effect as of the Subscription Date, without regard to any adjustment of the Conversion Price resulting from the anti-dilution provision of the June 2018 Convertible Notes, other than proportionate adjustments to the Conversion Price resulting from stock splits or combinations or similar proportionately applied changes to the Company’s outstanding common stock. During the period ended June 30, 2018, the Company issued 3,200 (800,000 pre-split) warrants at an exercise prices of $250 ($1.00 pre-split) per share. As of June 30, 2018, the Placement Agent has not elected to exercise any January Placement Agent Warrants.
WOW.. I was thinking the OS was 250- 300 last week and maybe around 350 by now, but wow, just wow'!!
Hey BOB DOLE.... I think you were off by about 500+ million!
And I remember people saying the Q was priced in... LOL
THIS IS TOAST!!
10Q----
Bad--- The Company has exhausted all of its authorized shares of common stock and, absent an increase in the authorized shares or a reverse split or both, will be unable to issue any additional shares of common stock.
Really Bad--- Our net income from continuing operations was $45.5 million for the three months ended June 30, 2018, as compared to a net loss of $10.0 million for the three months ended June 30, 2017. The net gain is due primarily to the revaluation of our derivative instruments. Also contributing to the net income in the current period is the $7.7 million bargain purchase gain related to the Jamestown Regional Medical Center acquisition on June 1, 2018, among other items.
Horrible--- As reflected in the condensed consolidated financial statements, the Company had a working capital deficit and an accumulated deficit of $123.9 million and $270.2 million, respectively, at June 30, 2018. In addition, the Company had a loss from operations of approximately $101.0 million and cash used in operating activities of $5.8 million for the six months ended June 30, 2018.
Scary--- For the six months ended June 30, 2018 and 2017, we have financed our operations primarily from the sale of our equity securities, the issuance of debentures, short-term advances from related parties, and the proceeds we received from pledging certain of our accounts receivable. Future cash needs for working capital, capital expenditures and potential acquisitions will require management to seek additional equity or obtain additional credit facilities. As of August 1, 2018, the Company has exhausted its authorized shares of common stock so it is currently unable to issue additional shares of common stock. The sale of additional equity will result in additional dilution to our stockholders. A portion of our cash may be used to acquire or invest in complementary businesses or products or to obtain the right to use complementary technologies. From time to time, in the ordinary course of business, we evaluate potential acquisitions of such businesses, products or technologies.
At June 30, 2018, we had $7 thousand in cash on hand from continuing operations, a working capital deficit of $123.9 million and a stockholders’ deficit of $129.9 million. In addition, we incurred a loss from continuing operations before other income (expense) and income taxes of $2.4 million and $6.1 million for the three and six months ended June 30, 2018, respectively. As of the date of this report, our cash position is critically deficient and payments critical to our ability to operate are not being made in the ordinary course. Our fixed operating expenses, including payroll, rent, capital lease payments and other fixed expenses, including the costs required to operate Big South Fork Medical Center, which began operations on August 8, 2017, and Jamestown Regional Medical Center, which we acquired on June 1, 2018, are approximately $2.4 to $2.9 million per month.
Wondering if they are going to file a delay in the 10Q....
Wow...another Penny scam... Who woulda thought!?
Watching
Interesting
Whew... That's some funny Shizz!!
ROTFLMAO... Whew!
No...Teds doing a fine job of that himself
Is that a crystal ball?!
Sorry, but this was clearly an institutional run to dump as much as they had left in the barrel based upon the current circumstances. Glad I got in @ .07 and sold @.40 on the brief spike! Major one day profits!!!
Won't play this again no matter what type of bounce it may have.... In and out and let the powder dry!
RS & AS incoming...
Curiosity
Can you provide a valid and verifiable basis for your claim? Thanks
AMC will be the horse that buys HMNYQ's position in MP.
Global financial markets are on the verge of meltdown.... The Dominos are beginning to fall which will expose the truth of the propped up markets. US will likely benefit in the short term due to money seeking "safety" in ours, but it will be short lived.
Oils gonna spike
BTC will likely spike
Banks will drop
Dollar will rise "some"
Trade wars getting worse due to Trumpy
% rates?
Nasty US elections on tap
Venezuela on verge on no return
Turkey on the edge of the Abyss
Massive debt by all the Worlds top Countries
US in HUGE debt
US unemployment at record lows---- time for reversal
Housing market near all time highs--- time for reversal
Stock market near all time highs AGAIN--- time for reversal
Shizz is gonna get real and soon!
No worries though, it's Funday Sunday
Not gonna happen....see you guys in 60 days! :)
It's been very apparent that there are plenty of shares to be had!!
And sadly, they KNEW this was coming months and months ago and decided to USE the shareholder as opposed to a favorable financing deal... But then again, if a prudent Company was to finance them they would have clearly seen the financial issues about to rear their ugly head and thus not offered financing. HMNY did try to get financing, and they couldn't get it except for toxic vultures! Companies go public to finance themselves by selling shares, unfortunately this play backfired on the retail investors!
Compliance is not the issue, it's money needed by HMNY to keep the ship afloat.
They may turn off the dilution faucet now and then, but they won't turn it off completely until their financial condition is no longer hemmoraging.
They are certainly in a pickle! They need to fund themselves as much as they can for this quater and probably trying to generate some for next quarter as a buffer, but, they are on deaths door in terms of the stock.
I know full well your saying the chance of a RS is nill, but I'm just not there yet.
https://seekingalpha.com/article/4061121-dryships-r-s-1-4-2016-agm-one-reverse-splits
There is no restriction on how often a company can reverse split, and DryShips has taken advantage of this SEC loop hole by aiming for a reverse split every two months on average.
No capital No trades.
There are thousands of Penny stocks....I will await confirmation rather than give HMNY/Ted my money!
The most obvious issue from a shareholder perspective is that they were trying to guess the bottom based on FOMO and got burned big time. If people stopped buying based on FOMO bottom guessing and waited for a VALID confirmation they would be much better off....sure, you won't get the bottom but IF what people are speculating comes to fruition of $1, then why the hell not wait and buy on confirmation?!
Personally, I'd much rather buy at even .25+ IF it's gonna run to a $1! That in itself prevents me from the continued dilution, possible bankruptcy, possible RS, and/or a vulture takeover that would decimate current shareholders.
I'm more than content waiting in cash than subjecting it to what so many have done and failed over the past few months.
Seems the only thing we're differing on is the OS, which is somewhere between 100M and 300M. I will go with 200M. Sadly, all of this number crunching won't mean squat until the 10Q is released. Ethier way, it's not gonna be pretty in my opinion.
Ted would be wise to draft a shareholder letter that directly addresses all the issues so that there is clarity, but I don't think he's going to because it would most likely scare off his ATM machine.
With all the news, figures and speculation, I missed that HMNY lost $85 million in May & June alone.
They literally only make money when subs DONT go to the movies! That's the exact formula insurance Compaines use....take in premiums, and hope for a very small % of claims.
http://comicbook.com/movies/2018/08/11/moviepass-limiting-two-movies-a-day/
Burn rate for Q1 was $68 Million, and thus I'm sure the numbers won't be too far off from that for Q2 seeing that there really wasn't any fundamental change that would drastically swing the numbers ethier way.
So 2 X $68 million = $136,000,000 and it is quite obvious that dilution has yet to end which leads me to believe they are trying to generate enough funds to cover Q3 which we are currently in. Therefore add another $68 Million and you get $204,000,000 to cover the past and present cash burn for all 3 Q's.
Q1 average share price and volume was?
Q2 average share price and volume was?
Q3 average share price and volume is and will be?
Going by your estimate of 100 million OS for this Q divided by their past cash need of $68M per Q would be an average share price of shares sold of $1.47. The huge volume days didn't really pick up until the past 10 trading days which leads me to believe that ethier the OS is more like 250 million (and this Q isn't even over yet) which would be an average share price sold of $.58, or there are a lot of air shares (I know people will want this to be true, but I'm not buying it).
We're only half way through Q3 and the SP is at .05, and they likely have another $34 million they want/need to generate, but with a SP of .05 and a terrible Q2 coming out in days, how are they going to pull it off? They are in a huge pickle ATM and their past actions show they have not been kind to the shareholder. They need a cash infusion or they can only stay afloat for a couple months at that.
So...
1. They just continue to dilute like crazy down to sub penny land.
2. Get a merger or buyout offer that covers the finances needed.
3. Come out with a fluff PR blitz to dilute shareholders on the run.
4. Do another RS.
OR
5. File for Bankruptcy protection. It appears Ted is willing to go down with the ship rather than sell, therefore Chp 11 would provide enough protection and time to come out of the gates in a few months like a new shiny penny ( no pun intended). Chp 11 would also provide DIP, and force providers not to shut of the services that seem to be on the edge at the moment.
All the above is JMO
Unfortunately, I think you are 100% correct....they haven't even announced the 10Q yet that is expected to be very unfavorable. Ugh!!
Yikes!! And that's after diluting the hell out of current shareholders.
Wonder whom paid the measley $200 for the news today... Hmmmm
My 5 year old niece could have written a better PR!!!
Does this look like a stock you'd want to own or hold??!!
http://schrts.co/xKR3wi
This is going to be an epic flip or the mother of all losses!
Sometimes cheap shares can co$t you!
Later boys and girls...
Guess I've done a spectacular job since $25!? Man, I'm better than I thought....