Helios & Matheson Analytics Inc.

CIK:0001040792|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Consulting	$ 802,114	$ 1,173,023	$ 2,471,223	$ 3,672,036
Subscription	72,284,725		191,850,812
Marketing, promotional services, and film revenue	1,615,177		3,991,575
Total revenues	74,702,016	1,173,023	198,313,610	3,672,036
Cost of revenue	109,635,383	946,308	424,371,078	2,969,357
Gross (loss)/profit	(34,933,367)	226,715	(226,057,468)	702,679
Operating expenses:
Selling, general & administrative	18,121,681	2,243,440	58,340,040	8,023,886
Research and development	85,943	621,754	465,407	1,555,095
Loss on impairment of goodwill	38,524,016		38,524,016
Depreciation & amortization	1,387,106	437,785	4,036,034	1,302,381
Total operating expenses	58,118,746	3,302,979	101,365,497	10,881,362
Loss from operations	(93,052,113)	(3,076,264)	(327,422,965)	(10,178,683)
Other income/(expense):
Change in fair market value - derivative liabilities	(7,760,748)	(11,115,463)	5,484,296	(10,434,611)
Change in fair market value - warrant liabilities	4,217,981	(17,038,711)	194,058,069	(17,038,711)
Gain/(loss) on the extinguishment of debt	45,516,809	(683,885)	60,524,508	(683,885)
Gain on exchange of warrants			301,487
Interest expense	(95,575,954)	(11,563,078)	(189,305,904)	(16,856,284)
Interest income	4,474	14,436	26,101	51,695
Total other income/(expense)	(53,597,438)	(40,386,701)	71,088,557	(44,961,796)
Loss before income taxes	(146,649,551)	(43,462,965)	(256,334,408)	(55,140,479)
Provision for income taxes	10,283	(2,747)	46,953	39,110
Net loss	(146,659,834)	(43,460,218)	(256,381,361)	(55,179,589)
Net loss attributable to the noncontrolling interest	8,127,268		59,689,897
Net loss attributable to Helios and Matheson Analytics Inc.	(138,532,566)	(43,460,218)	(196,691,464)	(55,179,589)
Other comprehensive loss - foreign currency adjustment	(23,699)	(7,355)	(52,419)	(6,066)
Comprehensive loss	$ (138,556,265)	$ (43,467,573)	$ (196,743,883)	$ (55,185,655)
Basic and diluted loss per share:
Net loss per share attributable to common stockholders - basic and diluted	$ (0.22)	$ (5.79)	$ (0.91)	$ (8.35)
Weighted average shares - basic and diluted	642,704,390	7,500,558	216,795,141	6,607,149

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (256,381,361)	$ (55,179,589)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,036,034	1,302,381
Gain on exchange of warrants	(301,487)
Change in fair market value - derivative liabilities	(5,484,296)	10,434,611
Change in fair market value - warrant liabilities	(194,058,069)	17,038,711
(Gain)/loss on extinguishment of debt	(60,524,508)	683,885
Provision for doubtful accounts	(10,721)	8,005
Non-cash interest expense	173,022,046	16,856,284
Impairment of Goodwill	38,524,016
Share based compensation in exchange for services	10,186,007	2,251,115
Amortization and impairment of film costs	3,809,548
Amortization of deferred revenue	(13,308,643)
Shares issued in advance of services	324,369
Change in operating assets and liabilities:
Accounts receivable	(3,241,645)	147,171
Prepaid expenses and other current assets	(2,871,148)	(110,697)
Unbilled receivables		(3,388)
Deposits and other assets	(488,001)	(79,823)
Investment in films	(18,811,981)
Accounts payable and accrued expenses	10,331,786	(992,962)
Deferred revenue	(7,444,701)
Net cash used in operating activities	(322,692,755)	(7,644,296)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of property and equipment		1,929
Advanced from related parties	1,150,000
Purchases of equipment	(203,491)	(109,785)
Acquisition of intangible asset		(195,143)
Payments for acquisition of business net of cash acquired	(1,000,000)	(5,000,000)
Net cash used in investing activities	(53,491)	(5,302,999)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible notes payable	99,959,736	11,950,000
Redemption of convertible notes payable	(63,856,937)
Payment of deferred financing fees	(2,170,328)
Payment of make-whole interest	(5,000,000)
Payment for exchange warrants	(779,219)
Proceeds from equity raises, net of transaction fees	244,013,817
Proceeds from issuance of June notes and preferred shares, net of transaction fees	20,235,925
Extinguishment of September placement note		(80,000)
Proceeds from non-convertible notes payable	10,298,250
Net cash provided by financing activities	302,701,244	11,870,000
Net change in cash	(20,045,002)	(1,077,295)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(52,419)	(6,066)
Cash, beginning of period	24,949,393	2,747,240
Cash, end of period	4,851,972	1,663,879
Supplemental disclosure of cash and non-cash transactions:
Cash paid during the period for interest	16,283,858	253,407
Cash paid for income taxes		5,975
Non-cash investing and financing activities
Conversion of convertible notes and interest to shares of common stock	82,546,858	10,297,936
Exercise of investor warrants to shares of common stock	18,875,484
Warrant liability which ceases to exist	53,998,650
Change in carrying value of convertible common stock equity		152,763
Debt discount for derivative and warrant liability	(118,080,530)
Derivative ceases to exist - reclassified to paid in capital	(80,366,991)	4,674,682
Increase in debt for new original issue discount	27,606,850	7,827,984
Reclassification of warrant from public offering to derivative liability	(158,944,798)
Reclassification of April public offering to warrant liability	(33,997,600)
Non-cash fees relating to public offering	(19,100)
Issuance of warrants in public offering	192,942,398
Interest capitalized as debt	3,345,670
Non-cash consideration for Moviefone acquisition	$ (13,074,959)

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 4,851,972	$ 24,949,393
Accounts receivable - less allowance for doubtful accounts of $61,614 and $72,335 at September 30, 2018 and December 31, 2017, respectively	30,722,585	27,470,219
Prepaid expenses and other current assets	3,469,645	3,557,811
Total current assets	39,044,202	55,977,423
Property and equipment, net of accumulated depreciation of $332,447 and $274,587 at September 30, 2018 and December 31, 2017, respectively	379,666	234,035
Intangible assets, net	30,097,399	28,536,782
Goodwill	49,148,120	79,137,177
Investment in films	15,002,433
Deposits and other assets	635,172	147,171
Total assets	134,306,992	164,032,588
Current liabilities:
Accounts payable and accrued expenses	17,691,260	13,144,003
Deferred revenue	33,672,286	54,425,630
Due to related parties	1,150,000
Liabilities to be settled in stock	5,988,363	21,320,705
Convertible notes payable, net of debt discount of $0 and $2,444,368 at September 30, 2018 and December 31, 2017, respectively		2,061,072
Warrant liability	60,809	67,288,800
Derivative liability		4,834,462
Notes payable	4,375,000
Total current liabilities	62,937,718	163,074,672
Convertible notes payable, net of current portion and debt discount of $0 and $1,392,514 at September 30, 2018 and December 31, 2017, respectively		1,550,555
Notes payable, net of current portion	5,923,250
Total liabilities	68,860,968	164,625,227
Commitments and Contingencies
Stockholders' equity/(deficit):
Preferred stock, $0.01 par value; 2,000,000 shares authorized; 20,500 and 0 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	205
Common stock, $0.01 par value; 5,000,000,000 shares authorized; 1,357,590,536 issued and outstanding as of September 30, 2018; 100,000,000 shares authorized; 95,925 issued and outstanding as of December 31, 2017	13,575,906	959
Paid-in capital	464,197,744	150,595,611
Accumulated other comprehensive loss - foreign currency translation	(156,399)	(103,980)
Accumulated deficit	(386,186,649)	(189,495,185)
Total Helios and Matheson Analytics Inc. stockholders' equity/(deficit)	91,430,807	(39,002,595)
Noncontrolling interest	(25,984,783)	38,409,956
Total stockholders' equity/(deficit)	65,446,024	(592,639)
Total liabilities and stockholders' equity/(deficit)	$ 134,306,992	$ 164,032,588