In a story that we must stress that we are absolutely not making up, beleaguered comic convention company Wizard World has announced plans to pivot their business model to selling jello shot machines to bars, restaurants, and hospitals as a result of the coronavirus pandemic. The strange but, again, very real news comes via the company's latest financial report, which details a loss of over $180,000 the company has incurred in the first quarter of 2020. Though Wizard has worked to reduce costs in order to keep the company solvent despite concerns it might not last, the pandemic has put a damper on their primary business of holding conventions, as the report details.
Up until the age of Covid-19, the Company had a single revenue stream rooted in the sale of exhibitor booths, sponsorships, and tickets for public mass events. The virus has interrupted that revenue stream and it is uncertain when the situation will get back to normal. The Company's work force has been reduced to a handful of employees who have continued to provide services while, at times, receiving only a portion of their salaries.
But Wizard has a solution, a solution which we will once again point out that this is 100% real. They're diversifying their business into selling a jello shot machine called the Jevo, which they plan to sell to "bars, restaurants, clubs, casinos, hotels, cruise lines, resorts and other establishments that serve beverages." But the best part is that Wizard also plans to expand the Jevo machine to other market segments, such as, and again, we're not making this up, the healthcare industry.
On April 28, 2020 the Company, through one of its wholly-owned operating subsidiaries, acquired the assets of the creator of the Jevo machine, which is a patent protected first-mover application for the creation of gelatin shots. With Jevo, the Company will diversify its revenue generation capabilities by manufacturing, marketing and selling Jevo units and related consumables, both nationally and internationally to: bars, restaurants, clubs, casinos, hotels, cruise lines, resorts and other establishments that serve beverages (both alcoholic and non-alcoholic) to the public. In addition to food and beverage applications the Company has identified other market segments where the Jevo units can be marketed including but not limited to the healthcare industry. The acquisition of Jevo is the Company's initial entry into M&A activity intended to broaden the Company's revenue base.
You might be wondering what the healthcare industry needs with jello shots, or for that matter, why they would choose to buy those shots from a failing purveyor of comic book conventions, but why ask questions for which you're never going to find a satisfactory answer? Just sit back and appreciate the very strange times we're living in, and know that if you do end up hospitalized due to the pandemic, if you're lucky, you'll be able to get wasted off jello shots produced by the people who once ran the mighty Wizard Magazine. Did we mention we're not making any of this up?