CMON April 2020 update

Despite the ongoing COVID-19 crisis, it is business as usual at CMON (or as usual as possible given the lockdowns implemented in various locations globally). We have fulfilled (or are in the process of fulfilling) 37 Kickstarter projects to date with a spotless record and will continue to do so.

Some of you may have read about our public announcement where we have a legal requirement to report on any issues we face as a public company.  We are aware that there are articles incorrectly attributing meaning to “going concern” that may not be wholly accurate.

“Going concern” is a highly technical accounting term referring to a situation where net current liabilities are greater than net current assets.  This happens for CMON from time to time since we record funds received from Kickstarter as both a liability and an asset – the money is an asset we received from our backers, but it is also a liability we owe to them that is not fulfilled until we ship our products. Since we use the funds to pay for molds, production and development of those products, and some of these are considered “Non-Current assets”, the asset column goes down as we use the money to fulfill the development of the game.  Once we ship the game, the project goes back into the black because we can take the liability for the Kickstarter funds off the books.  

The tricky part is when this crosses a financial reporting year, which happens often for Kickstarter projects, and if that happens it automatically triggers this technical nomenclature, and if you review our prospectus you will see we have reported this in the past.

This accounting treatment has nothing to do with the underlying strength of the company or our ability to make games and deliver them to you. Please rest assured that despite the current state of the world, CMON is and will be in the business of making great games for many years to come.

On that note, here’s what’s happening with our current open projects:

Starcadia Quest – Fully shipped out to backers.
Blood Rage Digital – Physical rewards fulfilled. Digital game has finished Beta testing and a launch date will be announced soon.
Time Machine – Partially fulfilled. The lockdown has slowed down packing in the USA hub and delayed deliveries in Europe.
Munchkin Dungeon and Project Elite – On the way to fulfillment centers. We will face some delays in Europe as our fulfillment center is not considered an essential service and cannot operate until the lockdown is lifted
Marvel United, Bloodborne, Night of the Living Dead, Trudvang Legends, and Zombicide 2nd edition are in various stages of production as per schedule, please check the relevant project pages for the latest status updates.

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