Xtreme One Entertainment Announces Second Quarter 2024 Financial Results Marked by Continued Progress in Live Event Execution and Growth in XFC Brand
DETROIT, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Xtreme One Entertainment, Inc. (OTCPink:XONI) (the “Company” or “Xtreme One”) today announced its financial results for the second quarter ending June 30, 2024, details of which have been filed within the Company’s quarterly disclosure statement accessible at https://www.otcmarkets.com/stock/XONI/disclosure.
“I’m incredibly proud of the efforts our team demonstrated, as their dedication culminated in the successful production of two live XFC Main events during the quarter, XFC 50 and XFC: Grand Prix II,” commented Chris Defendis, Xtreme One President. “As we continue to evolve in the space, it is clear that our strategy is working; XFC Grand Prix II saw a 52% increase in ticket sales along with a 71% increase in concurrent streams, endorsing our team and business model and giving us momentum going into our next event in Milwaukee in September. Our strategy to be the premier league for emerging pro MMA fighters is on track and we continue to attract top-tier talent both in the ring and out.”
For the second quarter of 2024, the Company incurred a loss of $2.0 million, or ($0.01) per diluted share as the Company continue to make significant investments in the production of live events and building the XFC brand within the MMA category.
During the quarter, the Company achieved a number of significant milestones in pursuit of its strategy to build a successful global Xtreme sports business:
- Successfully produced XFC 50: Resurrection in Lakeland Florida on April 12, 2024, featuring eight total bouts with a variety of male and female fighters in various weight classes. The event was held for a live ticketed audience and broadcast live to pay-per-view audiences in the United States and internationally.
- XFC Grand Prix II in Detroit, Michigan on May 31, 2024 set a new standard for live and fully produced fights, featuring nine bouts of male and female fighters in various weight classes held in conjunction with the Chevrolet Detroit Grand Prix racing event held that same weekend. The second main event marked sequential improvements in a number of key performance measures, including increased ticket sales, increased streaming viewership, and significant improvements in fan engagement through the Company’s website and social media channels.
- The Company is in the final preparations for XFC 51: Evolution which is to be held at the Baird Center in Milwaukee, Wisconsin on September 27, 2024.
- Additionally, during the second quarter the Company announced an agreement with the U.S. Department of Defense to broadcast XFC events live on the American Forces Network.
Defendis added, “While establishing a strong, vibrant, global MMA league can be challenging, we are convinced that the one-two combination of our 50-main event heritage and the investment we’re making to build a fighter-first league will resonate with fans and drive the long-term success of Xtreme One. I am convinced the excitement we saw among the fans at Lakeland and Detroit will only continue to grow at XFC 51 and beyond.”
About Xtreme One Entertainment, Inc.
Founded in 1995 as a consumer and diversified holding company, Xtreme One Entertainment, Inc. (OTCPink: XONI) is now focused on media, entertainment, live sports, and event marketing. The Company, through its wholly owned subsidiary, XFC Global, Inc. (XFC), is the licensee of all the brands and intellectual property of Xtreme Fighting Championships Inc. worldwide. The XFC has produced over 50 televised professional MMA fights in the U.S. and Latin America since 2006 and was relaunched in 2024 by the new management team and world-class Board at Xtreme One. XFC fights are streamed live on Triller TV, the American Forces Network and a growing number of media platforms. For more information, visit XtremeOne.com or XFCFight.com.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. These statements are subject to risks and uncertainties including, but not limited to, the following: the Company’s lack of history of operating profitability, the need to raise significant capital to fund operations and growth, uncertainty concerning the transition of the Company’s business model, uncertainty concerning market acceptance of the Company’s sports and entertainment marketing offerings, competition and the ability to develop or license intellectual property that is critical to the Company’s business, The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
Contact:
Investor Relations for XONI
Zachary Mizener
zmizener@lambert.com
XTREME ONE ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($000’s omitted except share and per share data)
| June 30, | December 31, | ||||||||
| 2024 | 2023 | ||||||||
| ASSETS | |||||||||
| Current Assets | |||||||||
| Cash | $ | 4,143 | $ | - | |||||
| Accounts receivable | 17,705 | - | |||||||
| Inventory | 9,545 | - | |||||||
| Prepaid expenses | 47,673 | - | |||||||
| Total Current Assets | 79,066 | - | |||||||
| Other Assets | |||||||||
| Goodwill and Intangibles | 595,346 | 595,346 | |||||||
| Total Other Assets | 595,346 | 595,346 | |||||||
| Total Assets | $ | 674,412 | $ | 595,346 | |||||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) | |||||||||
| Current Liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 358,909 | $ | 40,348 | |||||
| Accounts payable and accrued expenses-Related party | 816,368 | 198,479 | |||||||
| Notes payable | 847,468 | 847,468 | |||||||
| Derivative liability | 1,542,955 | 1,344,234 | |||||||
| Total Current Liabilities | 3,565,700 | 2,430,529 | |||||||
| Long Term Liabilities | |||||||||
| Notes payable-Related party | 1,211,635 | - | |||||||
| Total Liabilities | 4,777,335 | 2,430,529 | |||||||
| Commitments and contingencies | - | - | |||||||
| Stockholders (Deficit) | |||||||||
| Preferred stock, Class A convertible, $.001 par value, 100,000,000 shares | |||||||||
| authorized, 2,000,000 and 42,000,000 shares issued and outstanding at | |||||||||
| June 30, 2024 and December 31, 2023 | 2,000 | 2,000 | |||||||
| Preferred stock, Class C convertible, $.001 par value, 20,000,000 shares | |||||||||
| authorized, 0 and 184,500 shares issued and outstanding at | |||||||||
| June 30, 2024 and December 31, 2023 | - | - | |||||||
| Preferred stock, Class D, $.001 par value, 25,000,000 shares | |||||||||
| authorized, 0 and 10,000,000 shares issued and outstanding at | |||||||||
| June 30, 2024 and December 31, 2023 | - | - | |||||||
| Common stock, $.001 par value, 300,000,000 shares | |||||||||
| authorized, 134,423,434 and 132,073,434 shares issued | |||||||||
| and outstanding at June 30, 2024 and December 31, 2023 | 134,423 | 132,073 | |||||||
| Additional paid-in capital | 8,003,359 | 7,993,959 | |||||||
| Accumulated (Deficit) | (12,242,705 | ) | (9,963,215 | ) | |||||
| Total Stockholders' (Deficit) | (4,102,923 | ) | (1,835,183 | ) | |||||
| Total Liabilities and Stockholders' (Deficit) | $ | 674,412 | $ | 595,346 | |||||
XTREME ONE ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($000’s omitted except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 87,363 | $ | 15,000 | $ | 87,363 | $ | 30,000 | ||||||||
| Total revenues | 87,363 | 15,000 | 87,363 | 30,000 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Cost of revenues | 1,159,388 | 10,500 | 1,159,388 | 21,000 | ||||||||||||
| General and administrative | 620,470 | 21,950 | 922,120 | 28,775 | ||||||||||||
| Total operating expenses | 1,779,858 | 32,450 | 2,081,508 | 49,775 | ||||||||||||
| (Loss) before other expenses | (1,692,495 | ) | (17,450 | ) | (1,994,145 | ) | (19,775 | ) | ||||||||
| Other (expense) | ||||||||||||||||
| Derivative loss | (198,721 | ) | (198,721 | ) | - | |||||||||||
| Interest expense-Related party | (41,197 | ) | (48,697 | ) | - | |||||||||||
| Interest expense | (18,963 | ) | - | (37,927 | ) | - | ||||||||||
| Total other | (258,881 | ) | - | (285,345 | ) | - | ||||||||||
| (Loss) before income taxes | (1,951,376 | ) | (17,450 | ) | (2,279,490 | ) | (19,775 | ) | ||||||||
| Income taxes | - | - | - | - | ||||||||||||
| Net (loss) | $ | (1,951,376 | ) | $ | (17,450 | ) | $ | (2,279,490 | ) | $ | (19,775 | ) | ||||
| Income per share-Basic and diluted | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic and diluted | 134,423,434 | 102,073,434 | 133,868,214 | 102,073,434 | ||||||||||||
XTREME ONE ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
($000’s omitted)
| Six Months Ended | |||||||
| June 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net (loss) | $ | (2,279,490 | ) | $ | (19,775 | ) | |
| Adjustments to reconcile net (loss) to net cash used | |||||||
| in operating activities: | |||||||
| Derivative loss | 198,721 | - | |||||
| Cancel Preferred Stock C | - | (185 | ) | ||||
| Payment of debt with common stock | 11,750 | - | |||||
| Changes in assets and liabilities: | |||||||
| (Increase) in accounts receivable | (17,705 | ) | (30,000 | ) | |||
| (Increase) in inventory | (9,545 | ) | |||||
| (Increase) in prepaid expenses | (47,673 | ) | - | ||||
| Increase in accounts payable and accrued expenses | 318,561 | 39,960 | |||||
| Increase in accounts payable and accrued expenses-Related party | 617,889 | ||||||
| Note payable-related party | 1,211,635 | 10,000 | |||||
| Increase in derivative liability | - | - | |||||
| Net cash provided by/(used) in operating activities | 4,143 | - | |||||
| Net increase/(decrease) in cash | 4,143 | - | |||||
| CASH AT BEGINNING PERIOD | - | - | |||||
| CASH AT END OF PERIOD | $ | 4,143 | $ | - | |||
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||
| Cash paid for interest | $ | - | $ | - | |||
| Cash paid for income taxes | $ | - | $ | - | |||
| Payment of debt with common stock | $ | 11,750 | $ | - | |||
| Change in fair value of derivative liability | $ | 198,721 | $ | - | |||
© Copyright Globe Newswire, Inc. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Globe Newswire, Inc.
