Provides Update on MoviePass Inc. and MoviePass Films Business

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NEW YORK--(November 15, 2018) -- Helios and Matheson Analytics Inc. (Nasdaq: HMNY) (“Helios”), a provider of information technology services and solutions and the 92% owner of MoviePass Inc. (“MoviePass”), the nation’s premier movie-theater subscription service, today announced financial results for the third quarter ended September 30, 2018.

 “During this transitional period for Helios and MoviePass, we have been focused on reducing our burn rate and striving to improve our business model and we are very encouraged by our Q3 financial results,” said Ted Farnsworth, Chairman and CEO of Helios.

 Helios Highlights for the third quarter ended September 30, 2018, include the following:

  •  Helios diluted net loss per share is $.20 per share compared to a loss of $5.79 per share for the same period a year ago.

  • The ATM offering has terminated and, as a result, Helios is no longer using an ATM offering to raise capital and has not used the ATM since August 27, 2018.

  • As of October 4, 2018, the June 2018 convertible notes aggregating $164.0 million have been fully extinguished.

Subscription and Marketing and Promotional Services, and Films operating segment (collectively the “MoviePass Segment”) Highlights for the third quarter ended September 30, 2018, include the following:

  • MoviePass Segment revenues increased $7.2 million, or 9.8%, from $73.3 million to $80.5 million, in the quarter ended September 30, 2018 as compared to the prior quarter ended June 30, 2018. The increase is primarily driven by MoviePass, which generated $79.9 million during the quarter ended September 30, 2018 as compared to $72.8 million during the prior quarter ended June 30, 2018, an increase of $7.1 million, or 9.8%. 

  • MoviePass Segment gross margin improved $76.2 million, or 72.8%, from a loss of $104.7 million to a loss of $28.5 million, in the quarter ended September 30, 2018 as compared to the prior quarter ended June 30, 2018, driven primarily by MoviePass, whose gross margin improved by $75.5 million, or 70.6%.

  • Average monthly usage per subscriber was dramatically reduced to .77 movies per month in September 2018, as compared to 2.22 movies per month in April 2018 (see graphic below).

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MoviePass Films and MoviePass Ventures have acquired stakes in the following films:

  • Monsters and Men

  • Border

  • The Row

  • 10 Minutes Gone

  • American Animals

  • Gotti

The information in this press release should be read in conjunction with Helios’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and is qualified in its entirety by reference to such Quarterly Report.  Investors are urged to review such Quarterly Report at www.sec.gov.

About Helios and Matheson Analytics

Helios and Matheson Analytics Inc. (Nasdaq: HMNY) (“Helios”) is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. Helios currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc., the nation's premier movie-theater subscription service, 100% of the outstanding membership interests in MoviePass Ventures LLC and 51% of the outstanding membership interests in MoviePass Films LLC. Helios's holdings include Zone Technologies, Inc., creator of RedZone Map™, a safety and navigation app for iOS and Android users, and a community-based ecosystem that features a socially empowered safety map app that enhances mobile GPS navigation using advanced proprietary technology. Helios is headquartered in New York, NY and listed on the Nasdaq Capital Market under the symbol HMNY. For more information, visit us at www.hmny.com.

About MoviePass Films

MoviePass Films LLC is dedicated to supporting independent filmmakers and distributors by collaborating with creatives, co-acquiring equity stakes in films and offering them enhanced performance in the theatrical window. A joint venture of Helios and Matheson Analytics Inc. and Emmett Furla Oasis (EFO) Films, MoviePass Films focuses on studio-driven content and new film production for theatrical release and other distribution channels, with the goal of democratizing the film production experience by bridging the gap between moviegoers and film industry endeavors.

About MoviePass Inc.

MoviePass Inc. ("MoviePass") is a marketing technology platform enhancing the exploration of film and the moviegoing experience. As the nation's premier movie-theater subscription service, MoviePass provides film enthusiasts the ability to attend select new movies in theaters. The service, now accepted at more than 91% of theaters across the United States, is the nation's largest theater network. Visit us at moviepass.com.

Cautionary Statement on Forward-looking Information

Certain statements in this communication contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, “forward-looking statements”) that may not be based on historical fact, but instead relate to future events, including without limitation statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “project” and similar expressions. All statements other than statements of historical fact included in this communication are forward-looking statements.

Such forward-looking statements are based on numerous assumptions. Although Helios’ management believes that the assumptions made and expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement contained herein will prove to be accurate. Actual results and developments (including, without limitation, the ability of Helios to reduce its burn rate and improve its business model) may differ significantly from those expressed or implied by the forward-looking statements contained herein and even if such actual results and developments are realized or substantially realized, there can be no assurance that they will have the expected consequences or effects. Risk factors include, among other things: Helios’ capital requirements and whether or not it will be able to raise capital as needed; the success of MoviePass’ cost-reduction and subscription revenue increase measures; the ability to successfully develop the business model of MoviePass; the ability to integrate the operations of MoviePass, MoviePass Ventures, MoviePass Films, Moviefone and other acquired businesses into Helios’ operation; MoviePass’ ability to retain its existing subscribers and market and sell its services to new subscribers, and the risk factors described in Helios’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017, its quarterly reports on Form 10-Q for the quarters ended June 30, 2018 and September 30, 2018 and other filings, including subsequent current and periodic reports, information statements and registration statements filed with the U.S. Securities and Exchange Commission. You are cautioned to review such reports and other filings at www.sec.gov.

Given these risks, uncertainties and factors, you are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. All forward-looking statements and information made herein are based on Helios’ current expectations and Helios does not undertake an obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.