From its inception until 1999, there were financial issues with Kimura. A report by industry website Anime News Network (ANN) stated that a company employee reported multiple cases of fraud by Kimura, with the alleged cases of Ironcat funds being given to friends in Japan, took unauthorized trips to Thailand and frequently used company finances for personal expenses. The drain of funds was enough that the company ended up on shaky financial ground, and emptied Kanzaki (the primary financial backer)'s investment in the company.
