The end may be nigh for Wizard World. The company released its latest financial report today, and things are looking… well, as bleak as they’ve been looking in the last several financial reports. But this time, Wizard World writes as part of their analysis that there is “substantial doubt about the company’s ability to continue” through next November:
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. 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.
Wizard World has been on a solid year long run of bad luck, consistently posting losses. That’s been compounded by a legal battle with the Shamus family, who left Wizard World and later started their own new convention company, Ace Universe, which is also what former CEO John Macaluso did with Fandemic. In June, Wizard canceled shows in Orlando and Albuquerque, and then postponed another five in September, though they’ve promised to double their schedule in 2018.
But hey, they’re bringing the magazine back. At this point, all hope to save Wizard World may rest in the success of Wizard Magazine.
If you want to delve into the financial report, you can check out this chart comparing revenue and profit from the 3rd quarter of 2017 to 2016:
Here’s the same chart, but with the year to date ending in September from 2017 and 2016:
Despite what appear to be vultures circling overhead, Wizard World did express the belief that they can obtain another round of death spiral financing if they really need to:
If necessary, management believes that both related parties (management and members of the Board of Directors of the Company) and potential external sources of debt and/or equity financing may be obtained based on management’s history of being able to raise capital from both internal and external sources coupled with current favorable market conditions. Therefore, the accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern.