LINGERIE FIGHTING CHAMPIONSHIPS, INC. SEC 10-K Report

Lingerie Fighting Championships, Inc. (LFC), a unique sports entertainment company that combines wrestling and mixed martial arts (MMA) techniques, has released its 2024 Form 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive sports entertainment market.

Financial Highlights

• Revenue: $0.133 million, attributed to an increase in sponsorship and advertising revenue.
• Gross Profit: $0.048 million, a decrease due to higher cost of sales incurred to achieve a similar level of revenue during the year ended December 31, 2024.
• Net Income (Loss): $(1.868) million, primarily due to increased operating expenses and loss on changes in fair value of derivatives.
• Basic (Loss) Income per Common Share: $(0.00), reflecting the net loss experienced by the company.

Business Highlights

• Business Focus: LFC is focused on developing a sports entertainment league that combines wrestling and MMA techniques for entertainment purposes. The company promotes its brand through live events, a reality series, and merchandise.
• Unique Business Model: LFC's predominantly all-female league structure provides a competitive advantage in the sports entertainment market.
• Recent Business Development: Significant growth in its YouTube channel, with over 800,000 subscribers and more than a quarter billion views. Recent events have averaged nearly 4 million views each.
• Live Events and Programming: LFC has hosted 25 live events across the U.S. and Europe and produced over 120 episodes of a reality series. The company plans to continue expanding its live events and video programming.
• Video and Television Programming: LFC produces video content for digital home video and intends to expand into broadcast television, cable, pay-per-view, and video-on-demand markets. The company owns its television programming and video library.
• Merchandising Strategy: LFC is pursuing opportunities in the home video market and plans to license its video library to third parties. The company also sells branded merchandise, including DVDs, through its website and platforms like Amazon.
• Online Presence: LFC utilizes its website and social media to engage with fans, sell event tickets, and distribute programming. The main site is www.lingeriefc.com.
• Competition: LFC competes with major sports entertainment providers like WWE and UFC, as well as other forms of media for viewer attention. The company targets a niche audience interested in MMA and professional wrestling.
• Regulatory Environment: LFC's live events are not subject to athletic commission regulations due to their scripted nature. However, changes in regulations could impact the company's operations.
• Future Outlook: LFC plans to release up to six shows in 2025, continuing to build its brand and expand its audience through live events and digital content.

Strategic Initiatives

• Strategic Focus: LFC is focused on developing, producing, promoting, and distributing entertainment through live events and digital media channels. The company has ceased to be a shell company and is actively pursuing equity financing arrangements to fund its operations and strategic initiatives.
• Capital Management: LFC has been managing its capital through the issuance of convertible notes and warrants, which are classified as liabilities due to the lack of explicit limits on the number of shares to be delivered upon conversion. The company has a significant working capital deficiency, which increased from $4,199,107 in 2023 to $5,933,668 in 2024, primarily due to increased derivative liabilities and accrued interest. The company has not paid any dividends and does not anticipate doing so in the foreseeable future, as it plans to retain earnings to finance business expansion.
• Future Outlook: The company faces substantial doubt about its ability to continue as a going concern due to its accumulated deficit and working capital deficiency. Management intends to raise additional funds through equity financing and public or private placements to support ongoing operations and strategic initiatives. The company is also focused on addressing its liquidity challenges and exploring opportunities to improve its financial position.

Challenges and Risks

• Competitive Market: The company operates in a highly competitive entertainment market, competing with established entities like WWE and UFC, which have greater financial resources and established fan bases. The niche nature of LFC's audience, primarily mature viewers with an appreciation for MMA and wrestling, limits its market reach.
• Regulatory Risks: Potential regulatory risks if the company's business structure changes or if it is perceived as a full contact sport, which could subject it to athletic commission regulations. Failure to comply with Regulation 14C in a timely manner could lead to SEC enforcement actions, potentially resulting in fines or litigation, diverting management's attention from core business activities.
• Financial Challenges: The company faces significant financial challenges, with a working capital deficiency of $5,933,668 and an accumulated deficit of $11,170,795 as of December 31, 2024. The increase in operating expenses and loss on changes in fair value of derivatives have contributed to a net loss of $1,868,186 for 2024. Management plans to address these financial challenges through equity financing arrangements, but there is substantial doubt about the company's ability to continue as a going concern without additional funding.
• Market Risks: LFC does not engage in hedging activities and does not hold derivative instruments, which limits its ability to mitigate market risks. The company is exposed to potential fluctuations in market conditions that could impact its financial performance.

SEC Filing: LINGERIE FIGHTING CHAMPIONSHIPS, INC. [ BOTY ] - 10-K - Apr. 11, 2025