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.
