CMON Posts $3 Million Loss For 2024 Despite Having More Than $26 Million In Unfulfilled Crowdfunds

Recently, CMON (Cool Mini Or Not) released a statement blaming tariffs for upcoming cuts to their staff and future board game development, but new data proves their business model has been struggling with huge losses for much longer than tariffs have been a discussion.

The board game industry went into abject panic over Donald Trump’s tariffs with China. Even though the negotiating tactics have already proved successful from the president, this industry more than any other seems to rely on cheap plastic components claiming they can’t possibly be made anywhere else.

CMON, like many, issued a statement blaming tariffs and COVID for their current woes, “The industry continues to rapidly evolve, and unpredictable situations like the recent tariffs, or COVID just a few years ago, present challenges for everyone in board games.”

COVID was one of the bigger boons for the board game industry as so many companies, CMON included, exploited giant crowdfunds from the stay-at-home crowd who was itching for anything to do to keep them occupied. With CMON, however, those games would take years to come out, burning out their audience with Kickstarters that are unfulfilled.

This temporary success on Kickstarter caused CMON to use one crowdfund to pay for the last, spiraling further and further as they raised money and didn’t deliver, with 11 crowdfunded projects currently unfulfilled. Even though they’ve raised more than $26 million in revenue, the company still is slashing their staff and development, showing this has little to do with tariffs.

Last month CMON announced to investors that they might expect a $1.4 to $2.4 million loss for 2024 as they wrap up their fiscal year financials.

The company has been delaying releasing its financial reports, blaming understaffing in its department for missing the Federally mandated reporting date as they’re a public company. During this time, they had been attempting to raise capital and sell off IPs, similar to the way video game company Ubisoft handled their recent massive losses. However, unlike Ubisoft, CMON’s deal fell through and they were unable to raise the additional capital.

Now, the company has announced that their losses for 2024 exceeded estimates, posting a $3 million loss in total for the year. This number is larger than profits from 2021-2023 combined.

Last year, CMON reported $3.1 million in cash on hand, that number has now dwindled to $2.1 million over the last year, leaving the company at a point where they have little choice but to initiate massive layoffs.

With so little capital and so much left to fulfill from $26 million in crowdfunds, CMON is at risk of completely going under and not fulfilling its obligations to backers for the board game revenue they’ve already collected.

With gaming development on pause, they don’t have much of an option to open up a new crowdfund to try to pay for all of these, and customers might balk at the idea at this point because it’s not safe for them to do so. One thing is certain, tariffs were not the problem with this company, it was the business model.

What do you think of CMON posting $3 million in losses in 2024 despite having 11 unfulfilled crowdfunds? Leave a comment and let us know.

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