According to the original plan, self-timer drone manufacturer Lily should deliver the intended consumer to the present, but the company stopped its business in January, and all the more than 60,000 consumers who subscribed did not receive the so-called drone products. .
On Monday, the company filed for a bankruptcy reorganization in accordance with Chapter 11 of the US Bankruptcy Law in a court in Delaware, USA. The company will receive bankruptcy protection, and in accordance with the Chapter 11 model, Lily may still be seeking restructuring and continuing to operate the business.
Previously, the San Francisco City Procuratorate filed a public prosecution against Lily, accusing the company of misleading behavior, and federal law enforcement agencies also conducted a raid on Lily.
Previously, Lily claimed to develop a self-timer drone. It is said that the drone can be thrown from the hand and take a self-portrait from all angles of the user directly around the user. This wonderful application prospect has led to extensive media coverage. And consumer reservations.
In the past two years, Lily has received $34.8 million in cash through product pre-sales, and has also received a total of $15 million in investments from some of Silicon Valley's leading venture capital firms, including Spark Capital, Hotline Capital, and SV Angel Investments. , Slow Ventures, Sherpa Capital, etc.
The bankruptcy filing file submitted by the company to the court showed that it was prepared to return the funds to the booking user and to prepare for the transfer of intellectual property rights.
Many scheduled consumers said they have received funds from Lily, but in the past month, many subscribers have told the press that although they have contacted Lily several times, they have not received the reservations so far.
One booker said: "I have sent emails to Lily several times, but I have not received any response."
Another booker said: "I want to get back the booking. I have filled out the application form twice, but I have not received any response."
According to several sources, consumers outside the United States will face even greater difficulties if they make a reservation.
Bankruptcy documents show that about half of the drone subscribers come from overseas locations outside the United States, covering more than 80 countries and regions.
In accordance with relevant laws and regulations, if Lily is unable to deliver the goods as promised, the consumer must cancel the reservation, get the money back, or obtain the consent of the subscriber to continue the extension of the product delivery time.
However, the San Francisco prosecutor’s prosecution file stated that Lily announced that the product had been postponed several times and that the reservation was continued without a refund.
Lily uses the services of two US payment companies, Stripe and TIlt, for payment processing. The bankruptcy documents show that in January, Lily remitted $16.5 million to Stripe for a refund to the subscriber, and $1.8 million to TIle for a total refund of $20.4 million. Lily is currently in another account with $6.6 million.
It should be noted that in 2015, Lily began to make reservations for self-timer drones, and soon consumers regretted withdrawing, so the company has already issued refunds.
Lily is now seen as an example of a “market bubble†for drones. At peak times, the company employed a total of 69 employees. The bankruptcy documents mentioned that a maximum of one million dollars was burned each month.
Lily's focus on consumers and the media is due to the elaborate demo video that was launched in 2015. However, the US prosecutors found that the product demonstration video was not from Lily's own self-timer drone, but installed the US sports camera manufacturer GoPro's product on a prototype of Lily's drone.
An email from the prosecution showed that Anlyine Balaresque, CEO of Lily, once said to the production agency of the product introduction video: "I am worried that the master of the lens will study the photos we took and discover the unique traces of the GoPro camera. But I am just guessing that I don't know much about the lens, but if we want to lie to the public, we must be very careful."
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