Yeah we'll need some time for all this to take effect for sure and all the expiration dates out there. In the mean time, I suspect the stock will go sideways or continue tanking until there's more clarification on how much dilution they're doing daily and $$$ in the bank (or lack thereof).
I don't know if you have the app, but on mine, when I log in, it pops up a message each time if I want to accept or not. I just hit the X to get out. So he's saying 15% on the first day agreed to the 3 movie limit change already because they only do 3 or less movies.
MoviePass/HMNY are on the right track though. Before, they were focusing on the "crunching data mumble jumble... please go see every freaking movie in the world so we can milk shareholders to death" idea. At least Mitch now said he's looking for those who only use it a few times a year and doesn't are if the heavy users leave.
Thanks for the clarification on the 60%. "Cost of goods" is affected the same as "Cost of Revenue", for the most part. Technically Cost of Goods Sold is included in Cost of Revenue. Cost of Revenue encompasses more. The ticket cost purchased each month is also included in Cost of Revenue. So when he said he reduced it by 60%, I believe I understand it right, that he was referring to the SEC 8-K filing in my screenshot on the right side where that 8-K basically says they are limiting people from seeing certain movies etc., and therefore reduced ticket costs, and therefore reduced "Cost of Goods / monthly deficit", hence "Cost of Revenue". So I think I understood it correctly, I think.
So it sounds like their term they made up "Monthly cash deficit" is "cost of goods", which is most likely "Cost of Revenue" or at least a portion of it. When the 10-Q comes out, if it matches my expected numbers I posted before, then I'd have known I got it right, assuming they were truthful in their prior SEC reports about the $40 million + cash deficit per month.
But... in one of the articles I posted earlier today, it talked about them not having financial controls or whatever AND typos in their SEC reports. That means they could have "messed up" (intentionally or unintentionally?) reporting a number and all my calculations would be off. DAMN YOU TED!
There's ZERO way they can break even unless:
1. They reduce ticket usage to EXACTLY 1 ratio and they have no other costs on top of the ticket costs (which is NOT true). There'a always additional costs for "Cost of Goods" or "Cost of Revenue". So this is not a valid scenario.
2. They reduce ticket use UNDER a 1 ratio (i.e. people go to the movies 0.75 times a month or something on average). THEN, I can see them breaking even even with Cost of Revenue.
3. They somehow herd MoviePass subs to watch movies where it's least expensive and completely remove expensive theaters from even showing up.
4. They have other sources of revenue AS THEY PROMISED. DAMN YOU TED AND MITCH! Q1, they had over $1.4 million or so in ad revenue, so if this increases, then yeah. But no, I don't see it increasing just yet. I gave them some advice... let's see if they follow it.
So... that's why when they kept claiming they'd be magically profitable at 5 million subs. What a load of brown stuff. They MUST find people who rarely go to the movies and just keep paying, or they MUST find other sources of revenue as they promised. Period. Anything more and they're milking shareholders.
