The Board of Directors of Helios and Matheson Analytics Inc. (NasdaqCM:HMNY) announced the spin-off of Zone Technologies, Inc. (Zone) on March 15, 2018. Pursuant to the spin-off, HMNY plans to distribute shares of Zone common stock as a dividend to persons who hold common stock of HMNY as of a record date to be determined. Holders of any convertible notes and warrants of HMNY outstanding as of the applicable record date may be entitled to participate in the dividend of Zone shares in the spin-off in accordance with the terms of such notes and warrants. The strategic goal of the spin-off is to create two public companies, each of which can focus on its own strengths and operational plans. Following the spin-off, Zone Technologies would become an independent publicly traded company that HMNY expects to also be listed on Nasdaq. Upon the completion of the spin-off transaction, HMNY plans to continue focusing on its operations related to its controlling interest in MoviePass and expects HMNY’s management to be comprised of the same management team as prior to the spin-off. Following the spin-off, Zone plans to continue focusing on its RedZone Map™ product, as well as growth and acquisitions. Both HMNY and Zone expect to remain headquartered in New York City, HMNY’s current base of operations. The spin-off is subject to numerous conditions, including, without limitation, the effectiveness of a Registration Statement on Form S-1 to be filed with the Securities and Exchange Commission and the approved listing of Zone's common stock on Nasdaq. The Board of Directors of HMNY has approved the plan to spin-off of Zone Technologies, Inc. The Board of Directors of HMNY expects to set a record date to determine the stockholders entitled to receive shares of Zone in the spin-off for approximately 20 to 40 days before the effective date of the spin-off.