Image for Tom DeLonge Releases Statement Following Reports His Space Academy Has Racked Up $37 Million In Debt

Tom DeLonge Releases Statement Following Reports His Space Academy Has Racked Up $37 Million In Debt

Written by Emmy Mack on October 16, 2018

Tom DeLonge has issued a statement following reports that there’s something very wrong at his space research academy.

Finances seem to be down (down, down down) at To The Stars, the bizarre company launched by the Blink-182 guitarist turned UFO hunter in 2017 as “a consortium among science, aerospace and entertainment”.

According to a report from the US Securities and Exchange Commission (via Ars Technica), To The Stars has racked up a US$37 million dollar deficit after only being in business for a year, prompting fears its future could be in jeopardy, and we may never truly find out if aliens exist.

“The accompanying financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and the satisfaction of liabilities in the normal course of business,” the report reads.

“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.”

But DeLonge has since refuted the claims in a caps-ridden statement to Ars Technica clarifying To The Stars’ financial circumstances, which is pretty much guaranteed to make your brain hurt.

It reads:

“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.”

Dark and scary, ordinary.

Explanation, information.

 

 

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