Poker player and internet personality Dan Bilzerian could end up seeing his company, Ignite, go bankrupt in the next two weeks.
This is according to a YouTuber's recent analysis of Ignite's financial records for the past six months, where it is revealed that the situation is much more worse than one could have imagined.
Dan Bilzerian, aka 'The King of Instagram', is the CEO and founder of Ignite International Brands etc. which specialises in electronic cigarettes, cannabis and several other products. Over the course of the last few months, worrisome reports have surfaced which hint at the company being hit by major financial issues and according to a report by Forbes, Dan Bilzerian's Ignite lost a whopping $50 million last year.
Dan Bilzerian, however, seems to be dismissive of such rumours, courtesy of his recent tweet in which he cited the example of Uber to draw a parallel and counter bankruptcy rumours about Ignite:
Despite his dismissiveness, things don't seem to be looking up for the former US Navy SEALS trainee-turned-venture capitalist as Ignite continues its steep fall from grace.
The end of the road for Dan Bilzerian's Ignite?
In a recent YouTube video, financial analyst Tom Nash reveals why exactly it could be the end of the road Dan Bilzerian's company.
He delves into Ignite's financial records for Q2, which were recently revealed two-and-a-half months after the deadline.
"However, they finally released it in a way nobody could find them , it's not on their website, which is horrendous. What kind of public company doesn't put it's own financials on it's own website, that is unheard of. So they throw it in some website which is really hard to get to , however I found it and I found some really interesting stuff. "
After analysing the reports, he questions Dan Bilzerian's managerial skills and jumps straight to the point:
"Based on the financials,the company in two weeks is going to be literally out of cash. Not balance sheet insolvency , not theoretical accounting insolvency , they are out of cash in exactly fourteen days ."
He then delves into deeper details, which do not bode well for Dan Bilzerian, as he reveals why exactly Ignite could go bankrupt in the upcoming fortnight:
"Based on these financials, the company started the year with 15.1 million, i ended the 2nd quarter with 5.8 million, meaning it burned through 9 million dollars in a span of six months. That means it burns through a million and a half, every single month. "
"Now if you have 5.8 million on June 30th, it literally means that you have four months to live . That's it, from June 30th, four months, you get October 30th which is in two weeks. "
He also highlights their stagnant growth rate, which hints at an uncertain future for Dan Bilzerian's Ignite:
"They literally had zero growth from last year . A company that sells weed online during a pandemic, when everybody's tuck at home smoking weed had zero percent growth over one year. This is insane. "
"We were told that Ignite is gonna get healthier, they're gonna fix a lot of these things, they're gonna spend less - their expenditures are the same, their gross profit is abysmal , their efficiency is in the toilet. "
If this detailed analysis turns out to be true, we could soon witness Dan 'The King' Bilzerian being forced to eat humble pie.
Published 19 Oct 2020, 06:37 IST