The company will struggle to remain in business if it cannot expand revenue and renegotiate repayments.
Mind Candy, creator of Moshi Monsters, saw its revenue cut almost in half to £7.2m in 2015, according to its annual accounts. Revenue had peaked at just under £47m in 2012.
The company cut a third of its staff and pared its operating losses to £10.4m for the year, down from £14m in 2014. It also saw its cash position erode from £9m to just under £4m in the same period.
It’s thought that the company struggled to turn the popular Moshi Monsters brand into a mobile gaming platform. It has also had difficulty creating another game to match the success Moshi Monsters saw from 2007 to 2012.
The company said that it must expand its revenue in order to stay in business, or receive a further capital injection. It also said that it must renegotiate the repayment schedule for the £6.5m loan it received in 2014 from investor TriplePoint Capital.