Shares of MoviePass’s owner crashed as much as 30 percent as it revealed it has less than a month of cash in the bank — even as the company’s chairman told The Post in an exclusive interview that he’s not worried.
The controversial subscription service said in a Tuesday securities filing it had just $15.5 million in available cash as of April 30. That means MoviePass is on track to run out of cash in a matter of weeks, as it has been burning through cash at a rate of $21.7 million a month, or $725,000 per day.
MoviePass, which sold $150 million in new stock last month, “will need additional capital to offset our monthly cash deficit,” the company warned in its filing. The company said it also has $27.9 million in cash deposits from longer-term memberships that it can’t immediately access.
Shares of MoviePass’s parent company, Helios & Matheson Analytics, were recently off 28 percent at $1.52.
“I’m not worried about the cash burn at all,” Helios & Matheson chairman Ted Farnsworth told The Post on Tuesday.
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Tuesday’s filing came on the heels of a late Monday conference call held by AMC Theaters, whose chief executive, Adam Aron, told analysts that MoviePass in April paid an average of $12.02 per ticket to AMC as its subscribers went to the movies an average of 2.75 times.
“Now, I took the calculator out and I multiplied 2.75 times $12.02 and I got to a number that was considerably larger than $9.95,” Aron said.
The theater exec was referring to MoviePass’s movie-a-day deal for a flat fee of $9.95 — a business model he repeatedly called “unsustainable” given the cash it’s burning.
