Xtreme One Entertainment Announces Second Quarter 2024 Financial Results Marked by Continued Progress in Live Event Execution and Growth in XFC Brand

Rhea-AI Summary

Xtreme One Entertainment (OTCPink:XONI) reported its Q2 2024 financial results, highlighting progress in live event execution and growth of the XFC brand. The company successfully produced XFC 50 and XFC Grand Prix II events, with the latter showing a 52% increase in ticket sales and a 71% increase in concurrent streams. Despite these achievements, Xtreme One incurred a loss of $2.0 million, or ($0.01) per diluted share, due to significant investments in live event production and brand building.

Key developments include an agreement with the U.S. Department of Defense to broadcast XFC events on the American Forces Network and preparations for XFC 51: Evolution in Milwaukee on September 27, 2024. The company's strategy focuses on being the premier league for emerging pro MMA fighters, attracting top-tier talent both in and out of the ring.

Positive

• 52% increase in ticket sales for XFC Grand Prix II
• 71% increase in concurrent streams for XFC Grand Prix II
• Agreement with U.S. Department of Defense to broadcast XFC events on American Forces Network
• Successful production of two live XFC Main events (XFC 50 and XFC Grand Prix II)

Negative

• Q2 2024 loss of $2.0 million
• Diluted EPS loss of ($0.01) per share

Quarter Highlighted by XFC 50 and XFC Grand Prix Events, Naming of Sports and Entertainment Industry Executive as President

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			$	-

FAQ

What were Xtreme One Entertainment's (XONI) financial results for Q2 2024?

Xtreme One Entertainment (XONI) reported a loss of $2.0 million, or ($0.01) per diluted share, for Q2 2024 due to significant investments in live event production and brand building.

How did XFC Grand Prix II perform compared to previous events?

XFC Grand Prix II showed significant improvements, with a 52% increase in ticket sales and a 71% increase in concurrent streams compared to previous events.

When and where is the next XFC event (XFC 51: Evolution) scheduled?

XFC 51: Evolution is scheduled to be held at the Baird Center in Milwaukee, Wisconsin on September 27, 2024.

What new broadcasting agreement did Xtreme One Entertainment (XONI) secure in Q2 2024?

Xtreme One Entertainment (XONI) secured an agreement with the U.S. Department of Defense to broadcast XFC events live on the American Forces Network.