Wizard World. Inc.'s Q3 2017 quarterly report has been released, with a notice 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."
Wizard World managment reported that outside "debut and/or equity financing" could be available, similar to the $2.475 million deal made in December 2016 by WW chairman Paul Kesller through his financial firm, Bristol. Wizard World has used up that money in the first three quarters of 2017.
In was additionally noted that former COO Randall Malinoff, who left the company in July 2017, is "engaged in a dispute" with Wizard World over his departure from the company. Both sides have retained counsel, but no other details are given.
For new initiatives, in addition to the previously noted Wizard Magazine relaunch and the company's China TV deal, management is exploring "exploring combinations, mergers and acquisitions with third party entities to work together on marketing, e-commerce, merchandising and branding initiatives."
Wizard World has 17 conventions planned for 2018.