Helios and Matheson Analytics

{{Infobox company

| name = Helios and Matheson Analytics Inc.

| logo =

| type = Public

| traded_as = {{OTC Expert was|HMNY}}

| former_name = {{Unbulleted list|Software Ben-Tov, Inc.|The A Consulting Team, Inc.|Helios & Matheson North America Inc.|Helios & Matheson Information Technology Inc.}}

| fate = Chapter 7 bankruptcy

| industry = Data
Cinema

| founded = {{Start date and age|1983}}

| defunct = {{End date and age|2020|1|28}}

| founder =

| location = Empire State Building

| location_city = Manhattan, New York City, New York

| location_country = U.S.

| area_served =

| key_people = Parthasarathy Krishnan
(Interim CEO){{Cite web |title=Our Team |url=https://www.hmny.com/our-team/ |archive-url=https://web.archive.org/web/20180910014730/https://www.hmny.com/our-team/ |url-status=usurped |archive-date=September 10, 2018 |access-date=September 9, 2018 |publisher=Helios and Matheson Analytics}}

| products =

| net_income = {{loss}} US$150.8 million (2017)

| owner =

| num_employees = 71 (2018)

| parent =

| divisions =

| subsid = {{ubl|MoviePass|Moviefone|MoviePass Films|Zone Technologies}}

| website =

}}

Helios and Matheson Analytics Inc. was a publicly traded data analytics company based in New York City, New York. The company became widely known during its final years for acquiring and subsequently operating MoviePass, which ultimately led to the company's bankruptcy.

History

The company was founded in 1983 by Shmuel BenTov as Software Ben-Tov.{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/0000950130-97-002800.txt |title=Form SB-2: Registration Statement |date=June 13, 1997 |publisher=The A Consulting Team |pages=12 & 35 |via=EDGAR}} It changed its name later that year to The A Consulting Team. The company made its initial public offering in 1997.{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/0001040792-98-000004.txt |title=Form 10-KSB: Annual Report |date=March 31, 1998 |publisher=The A Consulting Team |page=8 |via=EDGAR}}

In 2006, Helios & Matheson Information Technology Ltd., an IT consulting firm based in Chennai, India, purchased a majority stake in the company.{{Cite news |last=Byron |first=Christopher |date=August 7, 2006 |title=Stock vindaloo: Shady Indian investors take grip of a U.S. firm |work=New York Post |url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1135DC12AA891D48&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899 |via=NewsBank}}{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/000112528206005648/b414864_8k.txt |title=Form 8-K: Current Report |date=September 8, 2006 |publisher=The A Consulting Team |via=EDGAR}} The A Consulting Team changed its name in 2007 to Helios & Matheson North America, to highlight its association with the parent company.{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/000095012307004660/y32542e10vk.htm |title=Form 10-K: Annual Report |date=March 29, 2007 |publisher=Helios & Matheson North America |page=1 |via=EDGAR}}

The company again changed its name in 2011 to Helios & Matheson Information Technology Inc., to reflect that it was seeking business opportunities worldwide,{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/000114420412014589/v303156_10k.htm |title=Form 10-K: Annual Report |date=March 13, 2012 |publisher=Helios & Matheson Information Technology |page=3 |via=EDGAR}} and then in 2013 to Helios and Matheson Analytics, to reflect that the business had "moved beyond IT".{{Cite report |url=https://www.sec.gov/Archives/edgar/data/1040792/000143774914003183/hmny20131231_10k.htm |title=Form 10-K: Annual Report |date=March 13, 2014 |publisher=Helios and Matheson Analytics |page=1 |via=EDGAR}}

The company acquired Zone Technologies, maker of the RedZone Map app, in November 2016.{{Cite news |last=Bary |first=Emily |date=April 3, 2018 |title=Helios & Matheson stock falls after company gets extension for 10-K filing |work=MarketWatch |url=https://www.marketwatch.com/story/helios-matheson-stock-falls-after-company-gets-extension-for-10-k-filing-2018-04-03 |access-date=June 5, 2018}}{{Cite press release |title=Helios and Matheson Analytics and Zone Technologies, maker of RedZone Map, close merger |date=November 9, 2016 |publisher=Helios and Matheson Analytics |url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1608D06131CA5A68&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899 |via=NewsBank}} Zone founder Ted Farnsworth was appointed chairman of Helios, and then, in January 2017, became Helios's CEO.{{Cite press release |title=Helios and Matheson Analytics Inc. names chairman Theodore Farnsworth as chief executive officer |date=January 23, 2017 |publisher=Helios and Matheson Analytics |url=https://www.prnewswire.com/news-releases/helios-and-matheson-analytics-inc-names-chairman-theodore-farnsworth-as-chief-executive-officer-300394541.html |accessdate=September 9, 2018}}

In August 2017, Helios purchased a majority stake in MoviePass.{{Cite news |last=Lang |first=Brent |date=August 15, 2017 |title=MoviePass Sells to Helios and Matheson Analytics |language=en-US |work=Variety |url=https://variety.com/2017/film/news/moviepass-1202527956/ |access-date=August 16, 2017}} Helios advanced MoviePass $55 million from December to February 20, 2018. MoviePass then converted the advances from debt to equity. This increased Helios' ownership stake from 62.4 percent to 81.2 percent. Another $35 million in advances converted to capital put Helios at 91.8 percent, allowing for a merger unilaterally initiated by the Helios board.{{Cite news |last=Morgan |first=Richard |date=April 23, 2018 |title=MoviePass owners weighing merger despite burning through cash |work=New York Post |url=https://nypost.com/2018/04/22/moviepass-owners-weighing-merger-despite-burning-through-cash/ |access-date=June 5, 2018}} In January 2018, co-founder Stacy Spikes was fired from the company.{{Cite news |last=Guerrasio |first=Jason |title=The cofounder of MoviePass recounts what led to his firing from the company he'd built from the ground up |language=en-US |work=Business Insider |url=https://www.businessinsider.com/moviepass-cofounder-on-what-led-to-firing-2019-4 |access-date=2023-02-06}}

In April 2018, Helios acquired the movie listings website Moviefone from Verizon's digital media subsidiary, Oath Inc. As part of the transaction, Verizon took an equity stake in MoviePass.{{Cite news |last=Smith |first=Gerry |date=April 5, 2018 |title=MoviePass Acquires Moviefone to Bolster Film-a-Day Service |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2018-04-05/moviepass-teams-with-moviefone-to-shake-up-theater-business |access-date=April 5, 2018}}

In March 2018, the board of directors began the process to spin off Zone Technologies to shareholders as a separate, publicly traded company, with the hope that it would allow Helios to focus on its strengths.{{Cite press release |title=Helios and Matheson Analytics Inc. announces plans to spin-off Zone Technologies Inc. to become a separate public company |date=March 15, 2018 |publisher=Helios and Matheson Analytics |url=https://www.businesswire.com/news/home/20180315005643/en/Helios-Matheson%C2%A0Analytics-Announces-Plans-Spin-Off-Zone-Technologies |accessdate=September 9, 2018}}{{Cite news |last=Armental |first=Maria |date=April 18, 2018 |title=MoviePass owner's shares tumble after stock-sale plan |work=Wall Street Journal |url=https://www.wsj.com/articles/moviepass-owners-shares-tumble-after-stock-sale-plan-1524110178 |access-date=September 9, 2018}} {{subscription required}}

In April 2018, Helios sold $150 million in stock with $30 million of the shares at $2.75, a discount from the closing market price of $3.83. Most of the proceeds were used to fund MoviePass. With the diluting and discount on the shares, prior investors indicated their unhappiness with the company on Twitter.{{Cite news |last=Vega |first=Nicolas |date=April 20, 2018 |title=MoviePass faces angry investors after selling off $150M in stock |work=New York Post |url=https://nypost.com/2018/04/19/moviepass-faces-angry-investors-after-selling-off-150m-in-stock/ |access-date=June 5, 2018}}

In May 2018, the company acquired the assets of Emmett Furla Oasis Films, gaining its executives' expertise in making films for a new subsidiary, MoviePass Films, with an option to purchase the library.{{Cite news |last=Goldsmith |first=Jill |date=May 31, 2018 |title=MoviePass Expands And Will Now Make Movies Too |language=en |work=Forbes |url=https://www.forbes.com/sites/jillgoldsmith/2018/05/31/moviepass-expands-and-will-now-make-movies-too/#a2686e7400ad |access-date=October 16, 2018}} The new company would be 51% owned by Helios and the remainder by EFO.{{Cite news |last=Lang |first=Brent |date=May 30, 2018 |title=MoviePass Parent Company Acquiring Emmett Furla Oasis Films |work=Variety |url=https://variety.com/2018/film/news/moviepass-emmett-furla-lone-survivor-1202825039/ |access-date=June 4, 2018}} By early August 2018, Helios and Matheson completed the acquisition of Emmett Furla Oasis Films assets for the MoviePass subsidiary, MoviePass Films.{{Cite news |last=Fleming |first=Mike Jr. |date=August 7, 2018 |title=MoviePass Films Sets First Pic: Bruce Willis To Star In '10 Minutes Gone' |work=Deadline |url=https://deadline.com/2018/08/moviepass-films-bruce-willis-10-minutes-gone-1202441596/ |access-date=October 16, 2018}}

In August 2018, the company reported a loss of $100 million in the second quarter of 2018 with the company trading at an implied value of $30 million.{{Cite news |last=Salinas |first=Sara |last2=Forkin |first2=Jim |date=2018-10-17 |title=New York AG launches probe into MoviePass parent company for allegedly misleading investors |work=CNBC |url=https://www.cnbc.com/2018/10/17/new-york-ag-launches-probe-into-moviepass-parent-company-for-allegedly-misleading-investors-source.html |access-date=2018-10-19}} In October 2018, the Attorney General of New York opened an investigation into Helios and Matheson Analytics, looking into whether it misled investors about the company's financial situation.

With market perception of MoviePass affecting Helios & Matheson's stock value, in October 2018 the company revealed a preliminary plan to spin off its film industry units as MoviePass Entertainment Holdings. The plan calls for a stock dividend of a minority of the holding company's stock allowing Helios to retain a controlling interest and for listing the new company on the NASDAQ or alternative market.{{Cite news |last=Vlessing |first=Etan |date=October 23, 2018 |title=MoviePass Parent to Spin Off Cinema Subscription Service |language=en |work=The Hollywood Reporter |url=https://www.hollywoodreporter.com/news/moviepass-parent-confirms-ipo-plans-cinema-subscription-service-1154382 |access-date=October 23, 2018}} The company's stock was delisted from the Nasdaq on February 12, 2019, and moved to over-the-counter markets.{{Cite news |last=Hayes |first=Dade |date=February 13, 2019 |title=MoviePass Parent's Shares Begin Trading Over The Counter After Nasdaq Delisting |language=en |work=Deadline |url=https://deadline.com/2019/02/moviepass-parents-shares-begin-trading-over-the-counter-after-nasdaq-delisting-1202556218/ |access-date=February 19, 2019}} On January 28, 2020, the company filed for chapter 7 bankruptcy and announced plans to close the company.{{Cite web |last=Linnane |first=Ciara |title=MoviePass parent Helios and Matheson files for Chapter 7 and stock falls to zero |url=https://www.marketwatch.com/story/moviepass-parent-helios-and-matheson-files-for-chapter-7-and-stock-falls-to-zero-2020-01-29 |access-date=2020-01-29 |website=MarketWatch |language=en-US}}