The reason for all the sky is falling talk came from that SEC filing wherein MoviePass disclosed that it only had $15.5 million in available cash.
It is of course unlikely that Ted Farnsworth would publicly take a dim view of MoviePass’ future prospects, but he certainly sounds confident here that the service will not only survive, but will thrive going forward.
However, Ted Farnsworth also remarked that even without raising more money, the service has 17 more months worth of cash to live on and it has $300 million available to it from an equity line of credit; therefore, any eulogizing would be premature at best.
That sounds like a lot, but when you consider that MoviePass currently spends more than that each month to finance subscriber tickets, it begins to look grim, which certainly contributed to the stock drop and the click-worthy headlines that followed.