What happened
Shares of Eros STX Global (ESGC -80.00%) are falling today, down by 5.3% as of 12:30 p.m. EDT, after the streaming media producer and marketer announced it wasn't going to be filing a supplement to its semiannual unaudited consolidated financial statements for the six-month period ending Sept. 30, 2020.
So what
A month ago, Eros STX issued its unaudited income statement and balance sheets for the six-month time period as required by the NYSE, but noted the complexities of reconciling international accounting standards with GAAP requirements was more difficult than it anticipated due to the merger of Eros with STX and a transition to a new accounting platform.
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Eros STX had promised to have the full unaudited results available by today in a supplemental filing. Now it says that's not happening. Instead, it says it's just going to file its full-year results on Form 20-F, the annual statement for international companies, as required by the SEC.
Now what
Eros STX had said it planned on becoming a billion-dollar business by 2022 on the strength of Bollywood boosting subscriptions to its Eros Now streaming service.
Because of the delays in movie releases due to the COVID-19 pandemic, that may not be possible. Revenue for the six-month period was just $144 million, meaning investors might have to wait a bit longer to see whether the streaming service's potential can ever be realized.
