1. How did the reverse stock split of Movie Pass’s parent company affect its total stockholders’ equity?

2. Helios and Matheson is parent company
Reverse stock split 1:250
Implemented July 25, 2018
Stock price was adjusted from 8.5 cents per share to $21.25 per share after the reverse split
Trying to avoid being delisted by NASDAQ

3. Question 1
What impact did the reverse stock split have on Helios and Matheson’s total stockholders’ equity?

4. Question 2
What impact does a reverse stock split have on a stock’s par value? Explain.

5. Question 3
Why do you think Helios and Matheson did not want to be delisted from NASDAQ?

6. Question 4
What has happened to the market price of Helios and Matheson stock since the reverse stock split was implemented on July 25, 2018?

7. Question Recap
What impact did the reverse stock split have on Helios and Matheson’s total stockholders’ equity?
What impact does a reverse stock split have on a stock’s par value? Explain.
Why do you think Helios and Matheson did not want to be delisted from NASDAQ?
What has happened to the market price of Helios and Matheson stock since the reverse stock split was implemented on July 25, 2018?

8. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Dr. Wendy Tietz at