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Intellivision Entertainment hasn't generated revenue since launch

The company may only be able to operate until July 2022 if it doesn't succeed in raising more funds

Intellivision Entertainment has made no revenue since its inception in 2018 and in its current state may only be able to operate until July 2022.

That's according to a SEC filing shared on the Amico maker's website earlier this week, as it's looking to raise $5 million to pursue its efforts to release the retro console.

The SEC filing goes through the risks associated with investing in Intellivision Entertainment. While some of the risk factors would be expected, such as the fact that "an investment in the company involves a high degree of risk and should be considered by those who can afford the loss of their entire investment," the document provides an interesting insight into the company's business.

For instance, Intellivision pointed out that it's possible that it "may never have an operational product or service."

"It is possible that there may never be a fully operational Intellivision Amico," the document read. "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."

It also addressed that Intellivision has "a limited history upon which an evaluation of its performance and future prospects can be made," as it has not generated profit at this stage and has "sustained losses since inception."

Later in the document, Intellivision disclosed having "significant debt," including an "aggregate of $3.1 million in outstanding loans" from its board members.

If only the minimum of $10,000 is raised from its campaign, the company would "only have operating cash for one to two months," it added. If it did raise $5 million, that would allow Intellivision to keep going for "approximately seven to nine months."

It also mentioned that Intellivision has spent $1.35 million in "pre-payments for electronic components to Ark Electronics USA" but due to a contract dispute, "the disposition of those funds are potentially at risk."

The Amico was announced in October 2018 and initially due to be released in October 2020. It's been pushed back several times, with currently no release date on the horizon.

Earlier this week, Intellivision Entertainment's chief revenue officer Phil Adam was appointed as CEO, replacing Tommy Tallarico who will remain at the company as board member and president.

The firm also recently abandoned its prior commitment to cap game prices for the Amico at $10, with Adam suggesting the hardware itself may receive a price hike as well.

Author

Marie Dealessandri avatar

Marie Dealessandri

Features Editor

Marie Dealessandri joined GamesIndustry.biz in 2019 to head its Academy section. A journalist since 2012, she started in games in 2015 at B2B magazine MCV. She can be found (rarely) tweeting @mariedeal, usually on a loop about Baldur’s Gate and the Dead Cells soundtrack.

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