I guess I missed the reverse split, but it is pretty much dead anyway: https://www.thisisinsider.com/movie...of-massive-fraud-2018-7?utm_source=reddit.com
The Mitch Lowe character is pulling a Bain Capital and siphoning off available cash to pay his $7MM salary. It was never going to work... it was never meant to be viable.
I can’t believe a business model based on “the more product you sell, the more money you lose” wasn’t sustainable. Now they will have to rewrite all the economics books.
Best way to become a millionaire is to have a billion dollars and start an airline (or a movie pass company I guess).
My favorite crash of the .com era was a company that figured that since most people don't mail in rebates they'd sell a bunch of stuff at inflated prices with 100% rebates and make money off everyone who didn't bother to send in the rebate form. Of course they suffered the same adverse selection you described, only the hard core couponers who send in every rebate form are going to pay $40 for a Foreigner CD (it was the 90s) so of course they had a nearly 100% rate of rebate payout and folded after burning through their VC cash and contributing to several hoards that probably exist to this day.