MoviePass.com
As Bloomberg reported, MoviePass, which helps feed people’s film habits by giving them movie theater passes for a monthly fee, recently dropped its monthly subscription price to $9.95.

Since day one, we’ve all known that MoviePass faced an uphill battle when it came to breaking even. After all, the company offers customers a ticket to see one movie a day for the low monthly cost of $9.95 per month.

Now, we have a better look at the finances for MoviePass Inc.’s parent company, Helios & Matheson Analytics, thanks to a recent report from Bloomberg.

HMNY’s recent filing revealed the company has $15.5 million cash on hand, even though the company has expended $21.7 million in a month. This means the company has less than a month’s worth of cash left.

The company has also had $27.9 million on deposit with processors, according to Bloomberg.

HMNY, which saw its shares dip by 32 percent after this came to light, said the MoviePass business model is “highly uncertain.”

“We are unable to estimate the actual funds we will require,” the company said, according to Bloomberg.

In February, HMNY bought more stock in MoviePass, raising its total outstanding shares to 78 percent, according to the Deseret News.

The company previously provided cash advances to HMNY from Dec. 19, 2017, to Feb. 16, 2018, in order “to support MoviePass' working capital and operational requirements, as well as to support the expansion of MoviePass' business plans and objectives,” according to the press release.

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When MoviePass first rose to prominence due to its low prices, AMC Theaters said in a statement to Variety in August 2017 that the service was a “small-fringe player,” contesting that the service “is not in the best interest of moviegoers, movie theaters and movie studios.”

AMC said at the time it wanted to consult with attorneys to see if it could ban MoviePass from its theaters. MoviePass denied its service from specific AMC Theaters. The company later walked back its decision.

AMC still acknowledged that MoviePass won’t work a long time.

“From what we can tell, by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month,” according to AMC’s statement.