MassRoots saw its red ink double in the third quarter, though the cannabis-focused social media network’s cash reserves were substantially higher than the previous three-month period.
According to the company’s latest quarterly filing with the Securities and Exchange Commission, MassRoots posted a $7.1 million net loss in the third quarter versus $3.5 million a year earlier.
Revenue during the period tumbled to just $11,516 from $209,003 in the third quarter of 2016.
The filing also showed that MassRoots is still strapped for cash.
At the end of September, it listed $5.8 million in assets; but most of that – $4.97 million – represented the intangible asset known as “goodwill” acquired through the acquisition of two companies earlier in the year.
The company, however, built up its cash reserves during the third quarter, listing $267,322 in cash as of Sept. 30 versus $31,247 at the end of the second quarter.
During the first nine months of the year, the company burned through net cash in operating activities totaling $7.2 million.
MassRoots also reported that it doubts the company “has sufficient capital to become cash-flow positive from operations. We expect to need to raise at least $2,500,000 over the next quarter to continue to fund operations.”
However, the company appears to now be dabbling in cryptocurrency.
Near the end of September, MassRoots entered into an agreement with a pair of accredited investors for the right to purchase up to $420,000 in cryptographic tokens.