MoviePass has been hit by a service outage after its parent company Helios and Matheson Analytics ran out of cash temporarily.
The subscription service began tweeting on Thursday evening about “an issue that is preventing users from checking-in to movies” and said it was working to resolve the problem. The company said its e-ticketing function was still working. The outage took place during preview showings of Tom Cruise’s Mission: Impossible — Fallout, which grossed an impressive $6 million on Thursday night in North America.
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In a Securities and Exchange Commission filing on Friday, Helios and Matheson disclosed that the service interruption had taken place because the company ran out of cash.
“The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfillment processors,” Helios and Matheson noted in the filing. “If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. (‘MoviePass’), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018.”
Helios and Matheson borrowed $6.2 million from Hudson Bay, including $5 million in cash, according to the filing.
