Tom DeLonge's UFO Hunting Company Is $37 Million in Debt

UPDATE: DeLonge is now denying that the $37,432,000 figure is "debt," but rather a "deficit" that is "attributed to stockholders’ equity." Read his statement in full below.

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BLATENT LIE — APPARENTLY, THIS WRITER CAN’T READ. BTW- TTSA never even raised $37m!!? So how in the hell did we spend it?! Lord. I ask all of you that believe in the @tothestarsacademy mission to go write a complaint on their website RIGHT NOW for trying to hurt an admirable effort to help humanity by using negative attacks and—-> lies. OUR LETTER TO THEM: Dear Ars Technica— I am writing you regarding the article posted to Ars Technica this morning titled ‘All the dumb things? Blink 182 front man’s UFO project $37 million in debt’ by Eric Berger. We were surprised Ars Technica would allow Mr. Berger to post such an article without asking either Mr. DeLonge or To The Stars Academy of Arts and Science for comment. This article is highly misleading and grossly mischaracterizes statements in an SEC filing. Had Mr. Berger bothered to reach out to us for comment this could have been prevented. Mr. Berger apparently did not EVEN READ the filing in its entirety, and clearly did not understand the excerpt of the SEC filing he quotes. 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. Mr. Berger’s characterizations of this as debt implies that it stems from traditional borrowings. Had Mr. Berger bothered to email or call us we could have directed him to these portions of the SEC filing and walked him through it. For Mr. Berger to make the conclusions he did on incomplete research and his own interpretations without contacting Mr. DeLonge or the company is inexcusable. We request that you print this letter in full within the article as our statement.
A post shared by Official Tom DeLonge (@tomdelonge) on Oct 15, 2018 at 2:10pm PDT

ORIGINAL POST: Former Blink-182 guitarist/vocalist Tom DeLonge has been hunting aliens with his company To the Stars since he was dismissed from the band in 2015. His ventures, however, seem to be doomed to come to a crashing halt as it has been revealed that the company is over $37 million in debt.

Tech site Ars Technica dug up a biannual financial report for To the Stars, which revealed the substantial number. Filed through the Securities and Exchange Commission, the listing adds that the company plans to remain in operation for the next 12 months by attempting to sell its stock. "These factors raise doubt about the Company’s ability to continue as a going concern," reads the filing.

To put their current situation into context, read an excerpt below:

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We have an accumulated deficit at June 30, 2018 of $37,432,000. We expect to incur substantial expenses and generate continued operating losses until we generate revenues sufficient to meet our obligations. Thus, until we can generate sufficient cash flows to fund operations, we are dependent on raising additional capital through debt and/or equity transactions. At June 30, 2018, the company had cash of $129,534.

Last December, DeLonge released a video of what he claimed to be evidence of extraterrestrial life. Neil deGrasse Tyson then proceeded to destroy the clip on CNN’s New Day. "Call me when you have a dinner invite from an alien," Tyson said. “The evidence is so paltry for aliens to visit Earth, I have no further interest. Let other people who care go ahead, and then when you finally find some aliens bring them into Times Square.”

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