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

Source: GlobeNewswire
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  $-