MoviePass Auditor Raises ‘Substantial Doubt’ About Subscription Business

An independent auditor has raised “substantial doubt” about MoviePass’s ability to continue operating as “a going concern” in financial documents made public by Helios & Matheson Analytics, the subscription service’s parent company.In addition, Helios & Matheson revealed that it has lost $150.8 million in 2017, which it ascribed to its acquisition of MoviePass.

Helios & Matheson CEO Ted Farnsworth told Business Insider that $110 million of the loss is non-cash.

It’s still a much bigger number than the loss of $7.4 million that the company reported before it acquired MoviePass.Revenues for the company were approximately $10.4 million, up from roughly $6.8 million for 2016.

As of December, Helios & Matheson said there was $54.4 million of deferred revenue related to MoviePass subscriptions.Helios & Matheson said that MoviePass will have a need for additional funding and will have net losses for the foreseeable future.

In a recent interview with Variety, MoviePass CEO Mitch Lowe predicted that the company

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