Speculation is rife that internet celebrity and king of Instagram Dan Bilzerian is a worried man, as his company Ignite continues to wallow in bankruptcy. The poker player-turned-internet personality could be fleeing the country as his company stares at closure in just a few weeks.
Company in a worse financial crisis
According to a YouTuber Tom Nash who recently analyzed Ignite’s financial records for the past six months, the company is in a dire financial situation that could see it close shop in just two weeks. Recently, Dan Bilzerian, who is Ignite’s Founder and CEO, has been posting pro Armenian nationalist tweets that have left everyone wondering what’s really going on with Dan and his company.
Some months ago, a report by Forbes revealed that the Ignite company lost a staggering $50 million in 2019, which was seen as lavish spending by the CEO. Ignite International Brands specializes in several products, including electronic cigarettes, cannabis, and others.
However, Dan Bilzerian has dismissed such rumors, as evidenced by his recent tweets.
In one of his tweets, he mentioned Uber as an example to draw a parallel and counter bankruptcy speculation about Ignite.
End of the road for Ignite?
According to YouTuber Tom Nash, Ignite failed to file its Q2 financials on time, releasing it just two-and-a-half months after the deadline. But this still raises a lot of questions.
However, they finally released it so nobody could find them; it’s not on their website, which is horrendous. What kind of public company doesn’t put its own financials on its own website? That is unheard of. So they throw it on some website, which is really hard to get to. However, I found it, and I found some interesting stuff, Nash said on YouTube.
After analyzing the financials, Nash concluded that Ignite could be literally out of cash in two weeks and questioned Bilzerian’s managerial skills.
Not balance sheet insolvency, not theoretical accounting insolvency, they are out of cash in exactly fourteen days, Nash said.
According to YouTuber, the Ignite company started the year with $15.1 million and ended the second quarter with $5.8 million. This implies it burned more than $9 million in just six months, translating into a million and a half every 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, Nash said.
The Ignite company has also recorded a stagnant growth rate, which is a precursor to an uncertain future. Nash wondered how a company that sells weed during a pandemic when everyone was at home “smoking weed had zero percent growth over one year.”
Bilzerian and his Ignite company going to trial
Dan Bilzerian’s company, Ignite International Brands (BILZ / BILZF), a few days ago received another piece of bad news. Dan Bilzerian was hit by a lawsuit from his former executive, Curtis Heffernan. The former President of Ignite sued Dan Bilzerian in July, and now the court ruled that the jury trial will take place during December of next year.