After a report was released revealing that ex-Blink-182 guitarist Tom DeLonge’s alien hunting company, To the Stars Academy of Arts & Sciences, is $37 million in debt, DeLonge took to Instagram to deny all reports.
A Blink-182 subreddit discovered a recent SEC filing, and Ars Technica broke it down, revealing that despite having open enrollment for Americans to purchase stocks, To The Stars has created a huge amount of defecit. Originally Ars Technica listed the defecit as debt, but after DeLonge took to Instagram to deny the claim, they updated their post.
“The original story mischaracterized To the Stars’ deficit as debt. This story has been changed to reflect a more accurate picture of the company’s finances,” Ars Technica wrote.
According to Complex, DeLonge has since deleted the Instagram post, but you can check out the original angry letter he wrote below.
“BLATENT LIE – APPARENTLY, THIS WRITER CAN’T READ. BTW- TTSA never even raised $37m!!?
So how in the hell did we spend it?! Lord. I ask all of you that believe in the @tothestarsacademymission to go write a complaint on their website RIGHT NOW for trying to hurt an admirable effort to help humanity by using negative attacks and–> lies. OUR LETTER TO THEM: Dear Ars Technica – I am writing you regarding the article posted to Ars Technica this mornning titled ‘All the dumb things? Blink 182 front man’s UFO project $37 million in debt’ by Eric Berger. We were surprised Ars Technica would allow Mr. Berger to post such an article without asking either Mr. DeLonge or To The Stars Academy of Arts and Science for comment. This article is highly misleading and grossly mischaracterizes statements in an SEC filing. Had Mr. Berger bothered to reach out to us for comment this could have been prevented.
Mr. Berger apparently did not EVEN READ the filing in its entirety, and clearly did not understand the excerpt of the SEC filing he quotes. The approximate $37 million stockholders’ deficit is NOT DEBT as he characterized it but is attributable to stock-based compensation expense. IT IS NOT RELATED TO THE OPERATIONAL RESULTS OF THE COMPANY. The Consolidated Balance Sheets of To The Stars Academy of Arts and Science in the SEC filing quoted by your author clearly shows the approximately $37 million deficit is attributed to Stockholders’ Equity (Deficit). The filing goes on to explain the mechanism for calculating stock-based compensation and details the various grants of stock options by the company. Mr. Berger’s characterizations of this as debt implies that it stems from traditional borrowings.
Had Mr. Berger bothered to email or call us we could have directed him to these portions of the SEC filing and walked him through it. For Mr. Berger to make the conclusions he did on incomplete research and his own interpretations without contacting Mr. DeLonge or the company is inexcusable.
We request that you print this letter in full within the article as our statement”