Well, IMO
For the die hard fans, free books work but make others wonder what else is available
For a small fee, like $5 (assuming it doesn't cost you more per book to make it work) make them ebook format
If the books are free (or very low cost) what else drives people to buy into LOS?
Story, miniatures, hype, movies, books, etc
While talking to the guys see if they have any bubby companies that are willing to pick up another line of miniatures. Whether lead, metal, plastic, 3 1/4, 6" or larger.
Example, even though Halo is a very popular game, the cool firgures (6") are purchased by many who don't even play the game.
Sorry to hear about your wild ride on the beast of economics this summer. Just keep us up to date. We would have been happy to tear into what you had and waited patiently for your return to tell us we brainstormed too much.
As for selling LOS, your choice, but have you considered licensing it out for a 3 to5 year run or something like that? You could even do like TMNT, where even though Hasbro has full rights to TMNT, everything must be approved by the originator before it can go to print, manufacture.
Mainly, Peter just makes sure that the story side and the look is there and takes in the royality. He keeps full control of the comic side of TMNT.
Just my thoughts for now.
And good luck.
Dave Chase