Yesterday, we reported that Intellivision Entertainment's Tommy Tallarico had been replaced as CEO by chief revenue officer Phil Adam in order to "better align" company resources with "new challenges."
One of those new challenges may be keeping the company afloat, as an SEC filing shared on the firm's website earlier this week suggests that it has made no revenue since its resurrection in 2018 and may not be able to operate beyond July of this year (thanks, GI.biz).
The filing goes through the various risks associated with investing in a firm like Intellivision. The fact that any investment carries an inherent degree of risk is perhaps obvious, but other parts of the filing shed a light on the company's current predicament.
For example, the filing points out that we may never see a "fully operational" Amico console:
It is possible that there may never be a fully operational Intellivision Amico. It is possible that the failure to release the product is the result of a change in business model upon [the] company's making a determination that the business model, or some other factor, will not be in the best interest of [the] company and its stockholders/members/creditors.
Elsewhere, the filing states that Intellivision – which Tallarico revived in 2018 – has not generated any profit since it was resurrected and has instead "sustained losses since inception." Significant debts are also disclosed, including an "aggregate of $3.1 million in outstanding loans" from its board members.
Intellivision has already run several investment drives which have raised around $17 million towards the cost of designing, manufacturing and marketing the Amico console, as well as paying for the development of software. The firm is now seeking a further $5 million, which would "approximately seven to nine months." If only a minimum of $10,000 is raised from its campaign, the company would "only have operating cash for one to two months."
The filing also points out that Intellivision has spent $1.35 million in "pre-payments for electronic components to Ark Electronics USA" but an ongoing contract dispute means that "the disposition of those funds are potentially at risk."
The Amico was been delayed three times (the original launch was supposed to happen in October 2020) and, as of February 2022, the console still doesn't have a solid launch date.
Tallarico's role switch within the company is believed to be related to the fact that he is now looking after his terminally ill father at home: