IDW is about to reveal the "tremendous loss" of several million dollars which precipitated the company reset
A new Q2 2023 report will be shared with stockholders, press, and "potential investors" later this week
The news of IDW and its recent layoffs/"reset" is a story that took over the comics industry for several weeks, and that story isn't over yet.
IDW Media Holdings, the parent company of IDW Publishing and IDW Entertainment, has announced it will release its Q2 2023 financial and operational results later this week. Following the issuing of those results, IDW's new management team have scheduled a conference call to talk with its stockholders, press, and "potential investors."
Although we don't have an early copy of that Q2 2023 report, recently-installed IDW CEO (and board member) Davidi Jonas recently gave us a preview.
"Going from fiscal Q1 to Q2, the company had a tremendous loss. From Q4 [2022] to Q1 [2023], the company lost I think it was $600,000 or $700,000," Jonas told Popverse. "That wasn’t the scary moment. Part of that was beause there were some one-time revenue hits that were able to remediate the negative performance in the quarter. But we haven’t put out our Q2 numbers yet, but when we put out the initial press release regarding the reduction and the delisting [from the New York Stock Exchange], we did put out the capital on-hand at the company before paying out severance and related costs. And we went from having about $9.4 million to under $6 million in a quarter. Based on that run rate, the company was on a path to insolvency in a matter of two to three quarters."
Jonas tells Popverse thatt the upcoming Q2 2023 reports will show more of "the reality of the financial situation" IDW was (and remains) in. According to the CEO, the recent "reset" was to "staunch the capital bleeding", adjusting the "culture" within the company, and avoid what he describes as 'siloing' in the business.
".... figuring out bottoms-up, what are the functionalities and skillsets that we want the company to have going forward, and to retool the organization to have alignment between the different groups in the company, and making sure we have the skillsets," says Jonas. "So, doubling down on our digital capability and putting a team in place for that. Putting more of a focus on direct-to-consumer engagement, and fan engagement, and live events."
Look for IDW's Q2 2023 reports, and POpverse's analysis of what it discloses, later this week.
Read Popverse's deep dive into the IDW "reset", as well as a 5000+ word interview with new IDW CEO Davidi Jonas.
