Wizard World is a comic book convention that travels from city to city bringing the likes of Stan Lee, Carre Fisher, and many other stars. Since the start of the Wizard World conventions, the question of how exactly can Wizard World finance these conventions does beg the question. Recently this information has been released. Newsarama is reporting that Wizard World working captial of $2,543,922 but with an accumulated deficit of $15,263,411. To help mitigate this problem, the company's newly-hired President/CEO John D. Matta and the board are beginning to seek outside funding through loans, equity investments, and cutting some operating costs.
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," reads Wizard World's 10-Q form. "There is no assurance that the Company’s projections and estimates are accurate. The Company is actively managing and controlling the Company’s cash outflows to mitigate these risks."
Also, Wizard World is in a lawsuit with with former Chief Marketing Officer Stephen Shamus who is seeking $400,000 in unpaid salary and bonuses, $125,000 severance pay, stock options on 500,000 shares in the company, as well as an unspecified amount of commissions and interest.
Reading this news story, this does not bode well for the Wizard World Convention circut. I did question how exactly Wizard World was able to contunie running Wizard World. We see how exactly this will bode for the future of Wizard World, but its not looking good right now.