Ominto is hemorrhaging money, and there's no sign the bleeding will stop.

The company lost $1.9 million in the third quarter alone. Through nine months of 2016, Ominto has racked up $6.9 million in losses—already climbing past the $4.7 million it had lost during the same period last year. This is the latest chapter in a brutal string of red ink. Over 2014 and 2015, Ominto (also known as Dubli) lost a combined $24.5 million.

The 10-Q filing paints a bleak picture. The company burned through $5.9 million in negative cash flow from operations in the first nine months of 2016, nearly double the $2.5 million it lost during the same stretch in 2015.

What's killing the company? The numbers tell the story. Ominto generated $3.9 million in total revenue through June 30. Membership subscription fees and commission income accounted for $3.2 million of that. But the company spent $4.2 million on selling, general and administrative expenses—meaning it lost money on every dollar it brought in.

This isn't a new problem. For years, bloated selling expenses have dragged Ominto and its Dubli subsidiary into the red. The company simply cannot figure out how to control costs while scaling revenue.

The financial situation has deteriorated to a crisis point. Ominto now sits on an accumulated deficit of $56.3 million since its inception through June 30, 2016. The company is operating with a working capital deficit of $10.3 million, meaning it owes more money than it has on hand.

In its SEC filing, Ominto stated bluntly: "We will require additional financing to meet our working capital and capital expenditures requirements." The company added a dire warning that "these factors raise substantial doubt about our ability to continue as a going concern."

That's SEC-speak for: we might not survive.

Dubli, the company's original brand, has been operating since 1999. Seventeen years in, the business model still isn't working. The company has shifted names and strategies multiple times, trying to find a formula that generates profit instead of losses. So far, nothing has taken.

Whether Ominto can turn things around remains unclear. The company needs fresh capital to stay afloat, but investors have watched it burn through cash for years. Finding someone willing to pump money into a money-losing operation with mounting losses gets harder each quarter.

🤖 Quick Answer

What were Ominto's financial losses in the third quarter of 2016?
Ominto reported a net loss of $1.9 million in the third quarter of 2016. Through the first nine months of the year, cumulative losses reached $6.9 million, significantly exceeding the $4.7 million loss recorded during the same period in 2015, indicating an accelerating financial deterioration.

How much cash did Ominto burn through operational activities in 2016?
Ominto experienced negative operational cash flow of $5.9 million during the first nine months of 2016, nearly double the $2.5 million negative cash flow recorded in the comparable period of 2015, demonstrating worsening liquidity conditions.

What were Ominto's total revenues through mid-2016?
Ominto generated $3.9 million in total revenue through

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