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North Carolina promised a $40m tax rebate that, due to a paperwork error, they were unable to deliver. That was roughly half the proposed budget for s1 (which is estimated at $80m).
When NC discovered the error, the corrected. WB shut down production, realizing they'd be taking a bath on the rebate and paying for far more of it than assumed. The adjusted number from NC is something like $14m. That's a massive difference.
There won't be a s2 because it's now too expensive to maintain the levels of quality of s1, *especially* for s a niche platform, and there's no great reason to keep the production on standby when the deal in NC is no good for them anyway.