In 2000 – a boozy writer-friend secured a $160,000-a-year job as the CEO of “an on-line information portal devoted to silk ties”.
When we inquired how the website was going to make money, he admitted that he had “No f**king clue”.
Three weeks later, investors got spooked and the company keeled over dead.
MassRoots (MSRT.OTC) is the 2018 version of a “silk tie information portal.”
A “user-driven social media platform for marijuana consumers,” MassRoots wants to be “Yelp for pot users” – which sounds promising until you consider that pot users could just use Yelp.
MassRoots assures investors that its “financial model is not tied to the success of a particular location, brand or a particular ballot initiative.”
Good to know.
But its financial model is, presumably, tied to notion that someone, somewhere, eventually, will want to cut a cheque made out to “MassRoots”.
Financials released this week reveal heavy losses, shrinking sales and very little cash.
During the first 6 months of the fiscal year, MassRoots lost $8.4 million on $3,700 in revenue.
Twelve months ago, MassRoots lost $19 million on revenue of $277,600 for the same period.
In 2017, MassRoots lost $44 million.
Almost 50% of the 2017 loss was tied to stock-based compensation.
At the end of June, 2018 MassRoots had only $15,950 in cash on hand.