Intellivision Entertainment have started seeking additional funding via StartEngine, but it seems it might be to little to late.
Fundraising documents filed with the SEC have been discovered and shows that the company are currently in serious financial trouble. Their auditor has also issued a “going concern” option on their financial statements as they have yet to generate no revenues from their principal operations. These documents also reveal they are currently $8.7 million debt and only have around $428,000 cash in hand. $1.35 million was paid to Ark Electronics USA for manufacturing the Amico, but had a contract dispute at an unknown date and could potentially not get a penny of it back.
While the current plan is to launch in six months, the documents also reveal that “based on current fundraising strategies, it is estimated that the company can operate until July 2022 without generating any revenue.” It’s also been stated that “if no other sources of capital are raised and if only the minimum [$10k] is raised as part of the CF offering the company would only have operating cash for one to two months.”
One thing that will not go over well with gamers provided the system does see a launch is that the documents confirms that all games will be NFTs. This includes the 15 games currently planned for launch and 6 pack-in titles.
While Intellivision Entertainment Found and President Tommy Tallarico has left his position as CEO, many feel this decision was made way longer than what it should have.