Xtreme One Entertainment Announces Third Quarter 2024 Financial Results
DETROIT, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Xtreme One Entertainment, Inc. (OTCPink: XONI) (the “Company” or “Xtreme One”) today announced its financial results for the third quarter ending September 30, 2024, details of which have been filed within the Company’s quarterly disclosure statement accessible at https://www.otcmarkets.com/stock/XONI/disclosure.
“The team put on another incredible event this quarter with XFC 51: Evolution in Milwaukee. The more events we get under our belt, the more successful they become, and it allows us to further focus on amping up the production quality and fan engagement. As we move forward on our path, we continue to drive efficiencies that allow us to lower our per event operating costs, at the same time, we’re amplifying each of our revenue channels,” said Chris Defendis, Xtreme One President. “We are seeing increased demand for our events from fans, fighters, and media partners and this allows us to fully engage all facets of monetization to enhance top-line growth.”
For the third quarter of 2024, the Company incurred a loss of $1.5 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 several significant milestones in pursuit of its strategy to build a global sports business:
- Successfully produced XFC 51: Evolution in Milwaukee, Wisconsin on September 27, 2024, featuring seven total bouts with a variety of male and female fighters in various weight classes. The event was held for a ticketed audience and broadcast live to pay-per-view audiences in the United States and internationally.
- The Board approved a strategic growth plan including a $10 million capital raise
- The Company announced it had entered into Name, Image, Likeness (NIL) agreement with a number of world-class college wrestlers and combat-sport veterans including Henry Cejudo and Jeremy Stephens.
- Xtreme Shareholder Rewards were launched and include perks and VIP event access for verified retail investors. (TiiCKER.com/XONI)
Defendis added, “Our differentiated model, built on nearly two-decades of experience, is for the XFC to be the number one developmental league for MMA athletes to grow and shine. And when we couple this with delivering great stories and great shows for our fans, the result will be sustainable growth in revenue, sponsor engagement and global distribution and viewership that we expect to fuel 2025 and beyond.”
Xtreme One is building out its fight calendar for 2025 and anticipates a combination of Main Card fights and the return of its Tryouts and Young Guns series to source the next generation of professional MMA fighters.
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, or to unlock shareholder perks and rewards, go to www.TiiCKER.com/XONI.
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) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash | $ | 147,001 | $ | - | |||
| Accounts receivable | 30,020 | - | |||||
| Inventory | 9,193 | - | |||||
| Prepaid expenses | 38,125 | - | |||||
| Total Current Assets | 224,339 | - | |||||
| Other Assets | |||||||
| Goodwill and Intangibles | 595,346 | 595,346 | |||||
| Total Other Assets | 595,346 | 595,346 | |||||
| Total Assets | $ | 819,685 | $ | 595,346 | |||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses | $ | 574,482 | $ | 40,348 | |||
| Accounts payable and accrued expenses-Related party | 1,377,059 | 198,479 | |||||
| Notes payable | 847,468 | 847,468 | |||||
| Derivative liability | 2,023,866 | 1,344,234 | |||||
| Total Current Liabilities | 4,822,875 | 2,430,529 | |||||
| Long Term Liabilities | |||||||
| Notes payable-Related party | 1,564,635 | - | |||||
| Total Liabilities | 6,387,510 | 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 September 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 September 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 September 30, 2024 and December 31, 2023 | - | - | |||||
| Common stock, $.001 par value, 300,000,000 shares authorized, 137,223,434 and 132,073,434 shares issued and outstanding at September 30, 2024 and December 31, 2023 | 137,223 | 132,073 | |||||
| Additional paid-in capital | 8,077,979 | 7,993,959 | |||||
| Accumulated (Deficit) | (13,785,027 | ) | (9,963,215 | ) | |||
| Total Stockholders' (Deficit) | (5,567,825 | ) | (1,835,183 | ) | |||
| Total Liabilities and Stockholders' (Deficit) | $ | 819,685 | $ | 595,346 | |||
| XTREME ONE ENTERTAINMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($000’s omitted except per share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 69,697 | $ | 15,000 | $ | 157,060 | $ | 45,000 | |||||||
| Total revenues | 69,697 | 15,000 | 157,060 | 45,000 | |||||||||||
| Operating Expenses | |||||||||||||||
| Cost of revenues | 349,173 | 10,500 | 1,508,561 | 31,500 | |||||||||||
| General and administrative | 703,306 | - | 1,625,426 | 28,775 | |||||||||||
| Total operating expenses | 1,052,479 | 10,500 | 3,133,987 | 60,275 | |||||||||||
| (Loss)/income before other expenses | (982,782 | ) | 4,500 | (2,976,927 | ) | (15,275 | ) | ||||||||
| Other (expense) | |||||||||||||||
| Derivative loss | (480,911 | ) | (679,632 | ) | - | ||||||||||
| Interest expense-Related party | (59,404 | ) | (108,101 | ) | - | ||||||||||
| Interest expense | (19,225 | ) | - | (57,152 | ) | - | |||||||||
| Total other | (559,540 | ) | - | (844,885 | ) | - | |||||||||
| (Loss)/income before income taxes | (1,542,322 | ) | 4,500 | (3,821,812 | ) | (15,275 | ) | ||||||||
| Income taxes | - | - | - | - | |||||||||||
| Net (loss)/income | $ | (1,542,322 | ) | $ | 4,500 | $ | (3,821,812 | ) | $ | (15,275 | ) | ||||
| (Loss)/income per share-Basic and diluted | $ | (0.01 | ) | $ | 0.00 | $ | (0.03 | ) | $ | (0.00 | ) | ||||
| Weighted average shares outstanding | |||||||||||||||
| Basic and diluted | 136,888,651 | 102,073,434 | 134,882,376 | 102,073,434 | |||||||||||
| XTREME ONE ENTERTAINMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ($000’s omitted) | |||||||
| Nine Months Ended | |||||||
| September 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net (loss) | $ | (3,821,812 | ) | $ | (15,275 | ) | |
| Adjustments to reconcile net (loss) to net cash used in operating activities: | |||||||
| Derivative loss | 679,632 | - | |||||
| Cancel Preferred Stock C | - | (185 | ) | ||||
| Issuance of common stock for services | 77,420 | - | |||||
| Payment of debt with common stock | 11,750 | - | |||||
| Changes in assets and liabilities: | |||||||
| (Increase) in accounts receivable | (30,020 | ) | (45,000 | ) | |||
| (Increase) in inventory | (9,193 | ) | |||||
| (Increase) in prepaid expenses | (38,125 | ) | - | ||||
| Increase in accounts payable and accrued expenses | 534,134 | 50,460 | |||||
| Increase in accounts payable and accrued expenses-Related party | 1,178,580 | ||||||
| Note payable-related party | 1,564,635 | 10,000 | |||||
| Increase in derivative liability | - | - | |||||
| Net cash provided by operating activities | 147,001 | - | |||||
| Net increase in cash | 147,001 | - | |||||
| CASH AT BEGINNING PERIOD | - | - | |||||
| CASH AT END OF PERIOD | $ | 147,001 | $ | - | |||
| 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 | $ | 679,632 | $ | - | |||
| Issuance of common stock for services | $ | 77,420 | $ | - | |||
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