Helios and Matheson Analytics Inc (HMNY)

[VortMax]

thanks ya what is happening is people see a $124M loss and figure $40/M loss. not correct. any cost of a subscription is a 3 year cost due to ASC 606 accounting. they have to report what the loss is if the sub stays on the books for 3 years or the expected lifetime loss. so the loss is amplified its not like they actually spent $124M in just the quarter as a loss. they would definitely lost $124M or spend $124M if those subs stayed for 3 years and they did not update to a 3/mo max.

Issue was it was 1.7 tickets used/mo/sub on the current model. 15% were superusers who account for 40% of all tickets. The new model brings it close to 1.0 tickets used/mo/sub as the average mp holder goes 1x/mo.

Burn/loss was $20M May at peak, and is probably in the $15M area this month. Burn is headed toward $0 next few quarters leaving only $7m/mo G/A expense.