CMON stock price continued to fall as the company reported losses of $4.1 million for the 9 month period ending September 2018. The company blamed the losses mainly on decreasing Kickstarter revenue and increased convention expenses.
Revenue fell 32.6% from $17.5 million for 2017 to $11.8 million in 2018. The losses were primarily due to decreases in revenue from Kickstarter including ‘A Song of Ice & Fire: Tabletop Miniatures Game’ and ‘Arcadia Quest: Riders.’
CMON’s gross profit decline, from 47.5% to 39.8%, was attributed to the increase in fixed costs. Cost of sales decreased as inventories declined and shipping and handling costs dropped. The company also reported a decrease in the sales of advertising space on their website.
Expenses also increased for the game maker due to increase marketing efforts, namely the participation in large scale game conventions.
The company also incurred extra costs related to an application to transfer their stock listing from Growth Enterprise Market (GEM) to the main board.
CMON’s stock continued to slide, closing at 0.16 HKD on Friday, a decrease of 30.4% over last years price.