MoviePass suffered an outage on Thursday after its parent company Helios and Matheson Analytics temporarily ran out of cash.
As reported by Variety, MoviePass has encountered an issue that prevents some users from checking-in to movies. The service tweeted about the issue, stating “We’ve determined this issue is not with our card processor partners and will be continuing to work on a fix throughout this evening and night.”
Revealed in a Securities and and Exchange Commission filing issued by Helios and Matheson Analytics today, the issue was caused because the parent company ran out of money. According to the filing, the company has borrowed $6.2 million from Hudson Bay, $5 million of it in cash, to pay its merchant and fulfillment processors. This occurred after Wednesday’s reverse stock split of the company, which has resulted in the value of its shares dropping drastically.
The filing states: “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… which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018.”
As reported by Deadline, this issue coincided with the release of Mission: Impossible – Fallout. Many users specifically weren’t able to secure tickets to M:I Fallout at major theater chains like AMC, Regal and Cinemark, and could only obtain them at MoviePass theater partners like Landmark. As of now, it doesn’t appear that the issue has been completely resolved, despite the parent company borrowing money.
MoviePass has been dealing with issues stemming from money problems quite some time. Peak Pricing for popular showtimes was introduced to MoviePass earlier this month, and the service recently prohibited repeat viewings of the same film.
Colin Stevens is a freelance writer for IGN. Follow him on Twitter.