Which means it’s left to the hacks, rumour mongers and people who like wrestling too much, to look through the SEC filings of Wizard World, made yesterday.
And, ho boy.
This paragraph sticks out half a mile.
The Company estimates the cash and cash equivalents currently on hand as of November 21, 2016 is insufficient to fund its operations on a long term basis past December 31, 2016.
So there’s that.
In order to fund operations past that date is dependent on management’s plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, or the significant reduction of operating expenses until such time that funds provided by operations are sufficient to fund working capital requirements.
Which is a shame, really, as Wizard World has been doing significantly better in 2016 than in 2015. According to these figures, last year they made a net income loss of over two millon, this year a positive net income of over three quarters of a million. So that meant they didn’t have to pay any taxes.
We expect to produce 19 live events during the year ending December 31, 2016. Historically, we have operated profitable live events in Philadelphia, Chicago, New Orleans, Columbus, Portland, Nashville, Austin, Sacramento, Louisville, Minneapolis, San Antonio, Atlanta, Tulsa, Reno and St. Louis, but we have operated at a deficit in other events
In order for the Company to grow the digital business, we must attract unique users and drive traffic to our online site. To date, we have exhausted considerable resources developing our media platform, but we have yet to earn a profit from the platform.
They also co-created the company ButtaFyngas, which has been PR’ed as Norman Reedus‘ app, which makes your phone sound like Dwight. They own 50%.
They also mention that their offices are subleased from Bristol Capital Advisors, “an entity controlled by the Company’s Chairman of the Board. The term of the Sublease is for 5 years and 3 months beginning on July 1, 2016 with monthly payments of $8,118. Upon execution of the Sublease, the Company paid a security deposit of $9,137 and $199,238 for prepaid rent.” Which, I guess, keeps things in the family.
Talking of which, we covered the lawsuit against Chief Marketing Officer and Wizard founder Stephen Shamus, and scooped the news on his counterclaim. They state “the lawsuit is in an early stage and the Company intends to thoroughly pursue its claims and establish a rigorous defense against the Counterclaim. In the event we fail to defend against the Counterclaim, we may be subject to a judgment which could materially impact our financial condition.”
Basically, Shamus wants a million.
But even if it all goes their way, they still need additional funding to continue into 2017…
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