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Tom DeLonge’s To the Stars in Deep Debt

Discussion in 'Article Discussion' started by Melody Bot, Oct 15, 2018.

  1. Melody Bot

    Your friendly little forum bot. Staff Member

    This article has been imported from chorus.fm for discussion. All of the forum rules still apply.

    Eric Berger, writing for Ars Technica:


    Put another way, after a year of fundraising, Tom DeLonge’s alien conspiracy business is $37.4 million in debt. The financial filing states that To the Stars intends to remain in business over the next 12 months by selling additional stock.

     
    Raku likes this.
  2. AshlandATeam

    Regular

    Man we’re all gonna feel real dumb if, one of these days, we find out he was right all along about the aliens.
     
  3. NJPunkMusic

    Die rad.

    Was bound to go in debt from beginning, but thats typical. I wouldnt say its a bust yet. Too early to tell. Go get em' Tom!
     
    Raku likes this.
  4. tobytobes

    Regular

    Someone call @Jason Tate , he warned us all months ago!
     
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  5. Ska Senanake

    Trusted

    Has he ever spoken about the phoenix lights? Im very curious to hear his take on that event.
     
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  6. scottlechowicz

    Trusted Supporter

    Ska Senanake, Raku, beachdude and 2 others like this.
  7. AshlandATeam

    Regular

    I have no idea what those even are. I’m just 1000% sure Tom isn’t right. Which is why I’ll feel real dumb if it turns out he is!
     
    All Systems Goku likes this.
  8. The Company has incurred losses from operations and has an accumulated deficit at June 30, 2018 of $37,432,000. These factors raise doubt about the Company’s ability to continue as a going concern.

    That seems bad.
     
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  9. scottlechowicz Oct 15, 2018
    (Last edited: Oct 15, 2018)
    scottlechowicz

    Trusted Supporter

    The good news is that Tom is guaranteed his $100k. That way investors know that he is super serious even though the company is tens of millions of dollars in the red.
     
    Raku likes this.
  10. Oh man, I re-read some of that thread you linked.

    This was always going to be a massive shit show.
     
  11. Michael Schmidt

    Don't recreate the scene, or reinvent the meanings Supporter

    The funny thing is that thread could have easily just been the first two comments.
     
    Raku likes this.
  12. ben.

    Newbie

    ..wait, what's that? Tom wants to re-join blink?! Effective immediately..?!!
     
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  13. The Format

    Regular

    Tom is going to have to go for the cash grab and join Blink again. Or better, Box Car Racer.
     
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  14. Frank Lapidus

    Regular Supporter

    Look - if this somehow gets a new Box Car Racer record and/or tour - I wouldn't be that mad about it.
     
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  15. Bambros Oct 15, 2018
    (Last edited: Oct 15, 2018)
    Bambros

    Newbie

    They are only $1,914,506 in debt as of June 30, 2018. Looking at the balance sheet on the SEC website...the $37.4M is their accumulated deficit, which is just the sum of all of their net losses since they began operations. In fact, at least $30M of the accumulated deficit was caused by stock-based compensation expense, which is non-cash and isn't debt-related ( i.e. doesn't need to be paid back to anyone).

    Definitely not a promising investment, but they are not $37.4M in debt. Not even close. So that news clip at the top of this thread is incorrect.
     
  16. KyleK

    Let's get these people moving faster! Supporter

    He could be 100% right about the aliens, and it'd still have been a stupid investment/business model he was pedaling.
     
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  17. Colin Your Enthusiasm

    It's nobody's battle but your own. Prestigious

    4ED17016-10E1-43FB-8AD1-1C71CA6D0E38.gif
     
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  18. You want ArsTechnica's comment section to argue about their use of debt or deficit.
     
    Raku likes this.
  19. gbuffers

    England.

    At least Tom gets his guaranteed salary!
     
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  20. Bambros

    Newbie

    It's not an argument though, it's just how accounting works....I would suggest changing what you are quoting from that article because that statement is factually incorrect and verified to be false. They don't owe anyone $37.4M....
     
  21. They just have a $37.4M deficit. The people at Ars used debt as a synonym. Many people do. (Just look at the way we talk about economics and the debt/deficit on virtually any political TV show to see that.) I can't change what they wrote to be more technically correct. I think most people understand these words are used regularly to mean the same thing.
     
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  22. The Black Parade

    Now I Know This World Isn’t Spinning Just For Me Prestigious

    Tom’s response made me LOL

     
    Brent likes this.
  23. Iain

    Regular Supporter



    "BLATENT LIE — APPARENTLY, THIS WRITER CAN’T READ. BTW- TTSA never even raised $37m!!? So how in the hell did we spend it?! Lord. I ask all of you that believe in the @tothestarsacademymission to go write a complaint on their website RIGHT NOW for trying to hurt an admirable effort to help humanity by using negative attacks and—-> lies. OUR LETTER TO THEM: Dear Ars Technica— I am writing you regarding the article posted to Ars Technica this morning titled ‘All the dumb things? Blink 182 front man’s UFO project $37 million in debt’ by Eric Berger. We were surprised Ars Technica would allow Mr. Berger to post such an article without asking either Mr. DeLonge or To The Stars Academy of Arts and Science for comment. This article is highly misleading and grossly mischaracterizes statements in an SEC filing. Had Mr. Berger bothered to reach out to us for comment this could have been prevented.
    Mr. Berger apparently did not EVEN READ the filing in its entirety, and clearly did not understand the excerpt of the SEC filing he quotes. The approximate $37 million stockholders’ deficit is NOT DEBT as he characterized it but is attributable to stock-based compensation expense. IT IS NOT RELATED TO THE OPERATIONAL RESULTS OF THE COMPANY. The Consolidated Balance Sheets of To The Stars Academy of Arts and Science in the SEC filing quoted by your author clearly shows the approximately $37 million deficit is attributed to Stockholders’ Equity (Deficit). The filing goes on to explain the mechanism for calculating stock-based compensation and details the various grants of stock options by the company. Mr. Berger’s characterizations of this as debt implies that it stems from traditional borrowings.
    Had Mr. Berger bothered to email or call us we could have directed him to these portions of the SEC filing and walked him through it. For Mr. Berger to make the conclusions he did on incomplete research and his own interpretations without contacting Mr. DeLonge or the company is inexcusable.
    We request that you print this letter in full within the article as our statement."
     
    Raku likes this.
  24. “It’s not debt we just ... uh ... paid ourselves lots of stock ... and uh yeah, thanks for buying those shares that are 1/100th the value.”
     
  25. All Systems Goku

    Newbie

    Well Joe Rogan is giggling somewhere right now. He called bullshit super hard on his Podcast when Tom was on.
     
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