What happened

For Helios and Matheson Analytics (NASDAQ:HMNY) stock, it's all over but the voting.

Last month we told you about a plan by Helios and Matheson -- majority owner of MoviePass -- to once again reverse-split its stock, probably 1-for-500, in an effort to lift its share price up from about $0.02 to something more than the $1 minimum required to maintain a listing on the Nasdaq Stock Market. Shareholders will vote on this plan on Thursday, and if the measure passes, Helios should be able to remain listed on the Nasdaq.

Today, the chances of that vote succeeding increased measurably when independent proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) -- which advise shareholders on whether companies' proposed actions are good ideas or bad -- both decided that this latest plan by Helios is a good one.

ISS said that the reverse split not only might allow Helios to maintain its listing on Nasdaq, but also "the effective increase in the number of authorized shares would enable Helios to satisfy reserve requirements under certain convertible notes."

Glass Lewis said that it is in the company's best interest to reduce the number of shares outstanding in an attempt to raise the share price.

In response, Helios and Matheson stock was up 26.1% as of 1:45 p.m. EDT on Tuesday.

Man peeping between fingers at a screen

If MoviePass fails to reverse split its stock this week, investors may not be able to bear seeing what comes next. Image source: Getty Images.

So what

This is good advice. If shareholders vote down the reverse split on Thursday, and Helios shares remain priced at $0.02 (or less), the stock will almost certainly be delisted. Trading Helios stock will become more difficult, fewer investors will want to buy it, and with less demand, the stock price will fall.

Conversely, a successful reverse split will at least temporarily keep alive the hope that Helios shares are worth something, and that they could one day be worth more.

Now what

The shares might still not be worth a lot, however. MoviePass is not profitable, and I've yet to see anyone make a compelling case that it ever will be. It's burning cash, burdened with debt, and diluting existing shareholders with abandon through new stock issuances. Honestly, I don't see a very bright future for MoviePass even if the reserve split vote succeeds on Thursday.

It's just that if the reverse split fails, the future will be even bleaker -- and probably shorter, too.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.