On November 15, 2017, Wizard World. Inc. released their Q3 2017 quarterly report, and it wasn’t pretty. In addition, released the report with a notice stating that due to recent operations loss there is “substantial doubt” that the company can continue operating as it is now past November 2018.
“The Company had a loss from operations of $4,454,857 and $1,182,246 for the nine months ended September 30, 2017, and the year ended December 31, 2016, respectively. As of September 30, 2017, we had cash and working capital deficit (excluding the derivative liability) of $1,176,034 and $1,514,182, respectively,” the company stated. “We have evaluated the significance of these conditions in relation to our ability to meet our obligations and have concluded that, due to these conditions, there is substantial doubt about the Company’s ability to continue as a going concern through November 2018.”
There is a chance the CON could be saved, as Wizard World management reported that outside “debut and/or equity financing” could be available. much like it was to the $2.5 million deal that was made back in December 2016, by Wizard World chairman Paul Keller through his own financial firm, Bristol. The issue here is that Wizard World went through that money in the first 3 quarters of 2017. to add to the ordeal, previous COO Randall Malinoffm and Wizard World are engaged in a dispute over his release from the company.
Wizard World has plans to relaunch Wizard magazine and have a Chinese TV deal this coming year. They have also stated
“management is exploring “exploring combinations, mergers, and acquisitions with third-party entities to work together on marketing, e-commerce, merchandising and branding initiatives.”
Though Wizard World. Inc. has 17 conventions planned for 2018, if the current status if their earnings don’t change, Wizard World may not make it past Q3 of 2018.