10-K: Agassi Sports Entertainment Reports 2025 Losses, Eyes Pickleball Growth

Agassi Sports Entertainment Corp. reported a significant net loss of $9.49 million for 2025, as it pivots to become a leader in global sports entertainment, focusing on pickleball and padel with a new AI-powered digital platform and the 'World Series of Pickleball' initiative.

Summary

• Agassi Sports Entertainment Corp. (AASP) changed its name from Global Acquisitions Corporation on March 31, 2025, and ceased being a shell company on May 31, 2025.
• The company is strategically pivoting to become a leader in the global sports entertainment and media industry, with an initial focus on high-growth court sports like pickleball and padel.
• AASP is developing an AI-powered comprehensive digital platform, 'Agassi Intelligence,' and a mobile application, expected to launch by Q2 2026 and Q3/Q4 2026, respectively.
• The company acquired the trademark for 'World Series of Pickleball' on May 31, 2025, with plans to launch a new championship property headquartered in Las Vegas.
• A net loss of $9,491,534 was reported for the year ended December 31, 2025, a substantial increase from $793,749 in 2024.
• The accumulated deficit reached $39,630,102 as of December 31, 2025.
• Working capital significantly decreased from $2,272,365 in 2024 to $1,975 in 2025.
• Independent auditors expressed 'substantial doubt about the Company's ability to continue as a going concern' due to recurring losses and negative cash flows.
• Significant stock-based compensation expense of $7,232,145 was incurred in 2025, contributing to the net loss.
• The company has substantial future payment obligations to IBM, including approximately $2.1 million for platform development and a minimum $500,000 commitment for cloud services in the first year (Feb 2026-Jan 2027), followed by $3.3 million (Feb 2027-Jan 2031).
• Stefanie Graf, spouse of Andre Agassi (the largest stockholder), joined as a Brand Partner, receiving warrants to purchase 1,000,000 shares.
• Material weaknesses were identified in internal control over financial reporting and disclosure controls and procedures due to insufficient personnel for segregation of duties.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing with low sentiment due to significant financial distress, including substantial losses, a 'going concern' warning, and no revenue generation. While the strategic pivot into high-growth sports and partnerships with IBM and celebrity endorsers offer long-term potential, the immediate financial instability and heavy reliance on future capital raises present considerable risks.

Positives

• The company successfully transitioned from a shell company to an operating entity on May 31, 2025, with a clear business plan focused on sports entertainment.
• Strategic partnerships with IBM for an AI-powered digital platform ('Agassi Intelligence') and mobile application position the company to leverage advanced technology in the sports sector.
• The acquisition of the 'World Series of Pickleball' trademark provides a foundation for a new, high-profile championship property in a rapidly growing sport.
• Engagement of high-profile figures like Andre Agassi (largest stockholder) and Stefanie Graf (Brand Partner) brings significant brand recognition and industry connections.
• The company successfully raised $2,500,000 in a private placement in November 2024 and an additional $650,000 in March 2026, demonstrating some investor confidence in its new direction.
• The pickleball industry is experiencing rapid growth, with a 223.5% increase in participation in the US over three years, and the equipment market is projected to grow from $65 billion in 2022 to over $155 billion by 2033, indicating a large and expanding target market.

Negatives

• Reported a significant net loss of $9,491,534 for the year ended December 31, 2025, a substantial increase from $793,749 in 2024.
• The accumulated deficit reached $39,630,102 as of December 31, 2025, highlighting a history of unprofitability.
• Working capital dramatically decreased from $2,272,365 in 2024 to $1,975 in 2025, indicating severe liquidity constraints.
• Independent auditors issued a 'going concern' warning, raising substantial doubt about the company's ability to continue operations.
• No revenues were generated in either 2025 or 2024, despite significant operating expenses and strategic initiatives.
• The company faces substantial future payment obligations to IBM, totaling approximately $2.1 million for platform development and a minimum $500,000 commitment for cloud services in the first year, with a further $3.3 million commitment for subsequent years.
• High stock-based compensation expense of $7,232,145 in 2025 significantly contributed to the net loss.
• Material weaknesses were identified in internal control over financial reporting and disclosure controls due to insufficient personnel for segregation of duties.
• Heavy reliance on Andre Agassi without a formal written agreement for the use of his name and likeness poses a significant risk if the relationship changes.
• The common stock is considered a 'penny stock' (below $5.00 per share), which may limit liquidity and investor interest.

Risks

• Will require additional financing to fund operations and meet obligations, including under IBM agreements, and such financing may not be available on favorable terms, or at all.
• Substantial additional funds are required, raising questions about the company's ability to continue as a going concern.
• Has a limited operating history, including no experience in the court sports industry, and has incurred significant losses since inception.
• The business model is unproven, and the company may never achieve or sustain profitability.
• Operates in a highly competitive market and may be unable to compete effectively.
• The anticipated benefits of transactions with the IBM Parties are uncertain and may not be realized.
• Obligations under the IBM agreements may require substantial management attention and resources.
• The market for the planned platform and mobile application is unproven and may not develop as expected.
• Consumers may be reluctant to adopt or pay for the planned platform or application.
• May not successfully develop or timely launch the planned platform or application.
• Products and services may not achieve market acceptance.
• Business may be adversely affected by changes in consumer preferences, discretionary spending, and economic conditions.
• The use of artificial intelligence in products may create operational, legal, reputational, and competitive risks.
• Disruptions to information systems, cybersecurity threats, and unauthorized access to data could harm reputation and result in significant liability.
• May be unable to secure suitable venues or obtain necessary permits and approvals to host events for the World Series of Pickleball.
• May be unable to attract sufficient sponsorships, brand partnerships, players, or participants for events.
• May encounter significant operational and logistical challenges in executing events.
• Business depends on discretionary consumer and corporate spending, which is subject to economic conditions.
• May face liability for injuries, accidents, or security incidents at events, and insurance coverage may be inadequate.
• Limited operating history and unproven business model increase the risk of not successfully launching or scaling the World Series of Pickleball.
• Growth strategy depends on expansion in the pickleball and padel industries, which are competitive and evolving.
• Unfavorable economic conditions may reduce discretionary spending and demand for products and services.
• May be subject to claims related to the construction or operation of facilities and related activities.
• May be unable to maintain adequate insurance coverage on acceptable terms.
• Has not yet established strong brand recognition or customer loyalty.
• Ability to grow depends on effective management of increased operational scale and complexity.
• Current or future products may not achieve or maintain sufficient commercial market acceptance.
• Business depends on the management team, and the loss of key personnel could adversely affect operations.
• Relies significantly on Andre Agassi, and the loss of this relationship could materially harm the business, especially given the lack of a formal written agreement for name/likeness use.
• Lacks independent directors, which may raise corporate governance concerns and negatively impact investor perception.
• Conflicts with strategic partners could adversely affect the business.
• Identified material weaknesses in internal control over financial reporting and disclosure controls and procedures; failure to remediate could result in material misstatements and failure to meet reporting obligations.
• As a non-accelerated filer and smaller reporting company, is not subject to certain corporate governance requirements, limiting stockholder protections against conflicts of interest.
• Evolving privacy, data protection, and information security regulations may increase costs and restrict operations.
• May be unable to adequately protect intellectual property rights from unauthorized use, especially outside the United States.
• Common stock is illiquid and volatile and may remain so; price may be impacted by factors unrelated or disproportionate to operating performance.
• Future sales of securities, including upon exercise of outstanding warrants, may adversely affect stock price and cause substantial dilution.
• Officers, directors, and affiliates, including Andre Agassi, control a significant percentage of voting power, limiting other stockholders' ability to influence corporate matters.
• Does not intend to pay dividends in the foreseeable future.
• Common stock is considered a penny stock, which may make it more difficult to trade.
• If acquisitions are made, they may disrupt or have a negative impact on the business.
• Ongoing SEC reporting and compliance costs may strain resources if revenues are insufficient.
• Changes in accounting standards or interpretations may adversely affect reported results.
• Short selling of common stock may cause its price to decline.
• Global economic conditions could materially adversely affect business, results of operations, financial condition, and growth.
• May be adversely affected by climate change or by legal, regulatory, or market responses to such change.

Future Outlook

The company plans to launch its AI-powered digital platform, 'Agassi Intelligence,' by the end of Q2 2026, with a staggered roll-out of e-commerce, a personalized racquet/paddle recommender, and an AI coaching model. The mobile application launch is anticipated in Q3 or Q4 2026, expanding features to pickleball and padel to establish a single hub for racquet sports. The company hopes to begin generating revenues in April 2026 from the Agassi Intelligence software, website, and expected sponsorship relations. The 'World Series of Pickleball' is intended to be a long-term commercial platform, with costs expected to be covered by sponsorship agreements. Additional funding through equity sales is planned to support these initiatives and meet ongoing obligations.

Management Comments

• "We currently plan to create and manage unique content, building sports communities around entertainment, media, wellness, education, commerce, and charitable efforts, with the goal of becoming a leading media and entertainment company in the world of racket sports."
• "We expect its publicly-traded structure to provide a way for the investing public to participate in these exciting and rapidly growing markets."
• "We hope that the Platform and App will create strong and recurring revenue streams, while also fostering a fun, thriving and informative racquet sports community on a global scale under the iconic Agassi brand."
• "We believe the partnership with IBM supports and will facilitate the acceleration of our mission to build a global commercial digital ecosystem around wellness, learning and entertainment."
• "We expect the partnership, and the A.I. Model, to create strong and recurring revenue streams, while also fostering a fun, thriving and informative racquet sports community on a global scale under our iconic Agassi brand."
• "Our management believes that its operations will not be sufficient to fund operating cash needs over at least the next 12 months."
• "We plan on raising additional required funding through the sale of equity in the future, which is expected to be on similar terms as our recent $650,000 raised through the sale of common stock in March 2026."

Industry Context

StockSavvy.ai notes that Agassi Sports Entertainment Corp.'s pivot into pickleball and padel aligns with significant industry trends, as pickleball is cited as the fastest-growing sport in the U.S. for three consecutive years, with its equipment market projected to reach $155 billion by 2033. The company's strategy to leverage high-profile endorsements (Andre Agassi, Stefanie Graf) and develop an AI-powered digital platform positions it to capitalize on this growth, similar to how other sports tech companies are integrating technology and celebrity influence to capture market share in emerging sports. However, the highly fragmented and competitive nature of these nascent industries means the company faces substantial challenges in execution and market penetration against potentially larger, more established players or new entrants.

Comparison to Industry Standards

• The company's strategy of leveraging celebrity endorsements (Andre Agassi, Stefanie Graf) for brand building in emerging sports like pickleball and padel is a common tactic, comparable to how Michael Jordan's brand elevated Nike's basketball division or how Serena Williams has influenced various sports and wellness brands.
• The development of an AI-powered digital platform for player development and community engagement (Agassi Intelligence) is in line with broader sports tech trends, where companies like Hudl (video analysis for athletes) or Peloton (interactive fitness platforms) have successfully integrated technology for personalized training and community building. However, Agassi Sports Entertainment Corp. is entering a competitive space with significant development costs and an unproven market for a comprehensive racket sports hub.
• The plan to launch a 'World Series of Pickleball' aims to create a marquee event, similar to how the Professional Pickleball Association (PPA Tour) or Major League Pickleball (MLP) have established professional circuits. The success will depend on attracting top talent, securing sponsorships, and media distribution, which are significant hurdles for a new entrant without a proven track record.
• The company's current financial state, with no revenues and substantial losses, contrasts sharply with more mature sports entertainment companies that have diversified revenue streams from media rights, sponsorships, and events. Its 'going concern' warning is a critical indicator of financial instability, unlike established industry players.

Management Changes

Corporate Governance

Legal Proceedings

• Not currently a party to any material legal proceeding.
• Not aware of any material legal or governmental proceedings against the company or contemplated to be brought against it.

Related Party Transactions

• Corporate offices are shared with Agassi Graf Holdings, an affiliate of Andre Agassi (the largest shareholder), and are provided to the company without charge.
• On July 3, 2024, the company issued 1,495,390 shares of common stock to All American Golf Center, Inc. (AAGC), an entity owned and controlled by Ronald S. Boreta (CEO, President, Director) and former director John Boreta, in exchange for the release of $593,670 in obligations for expenses previously paid by AAGC.
• On July 3, 2024, warrants to purchase 2,269,583 shares of common stock were issued to James Askew (Director) for services and support. On February 4, 2026, Mr. Askew exercised these warrants on a cashless basis, receiving 2,097,740 net shares.
• On July 3, 2024, warrants to purchase 705,417 shares of common stock were issued to Investments AKA, LLC (indirectly controlled by Andre Agassi, a greater than 5% stockholder) for services and support. On February 6, 2026, Investments AKA, LLC exercised these warrants on a cashless basis, receiving 651,231 net shares.
• On November 22, 2025, the company entered into a Brand Partner Agreement with Stefanie Graf (spouse of Andre Agassi), granting her warrants to purchase 1,000,000 shares of common stock at an exercise price of $5.50 per share for advisory, spokesperson, and brand partner services.
• On March 13, 2026, the Boreta Lifetime Trust, whose trustee is Ronald S. Boreta (CEO, President, Director), purchased 50,000 shares of restricted common stock for $250,000 in a private placement.
• Ronald S. Boreta's Executive Employment Agreement, effective March 1, 2026, includes an annual base salary of $270,000 (subject to 10% annual increases), a targeted cash bonus of 50% of base salary, and a grant of 300,000 restricted stock units (not yet granted). A $250,000 sign-on bonus was not paid.
• Jett Boreta, son of CEO Ronald S. Boreta, was employed as a data analyst and paid $5,191 in 2025 and $0 in 2024.
• James (Jake) Askew and Austin Askew, sons of Director James Askew, were employed in business development positions and paid $97,222 and $10,000 (Jake) and $77,405 and $10,000 (Austin) in 2025 and 2024, respectively.

Stakeholder Impact

• **Shareholders**: Face significant dilution risk from future equity issuances to fund operations. Existing shareholders (officers, directors, Andre Agassi) hold majority voting control, limiting the influence of other stockholders. The 'going concern' warning indicates a high risk of investment loss. Potential for stock price volatility and illiquidity due to penny stock status.
• **Employees**: Current employees (5 full-time, 1 part-time) are subject to the company's financial stability and ability to secure future funding. Key personnel (Ronald S. Boreta, Shawn Cable) are critical, and their loss could adversely affect operations.
• **Customers/Users**: Potential users of the planned AI-powered platform and mobile app may benefit from new services in racket sports, but face risks of delayed launch, lack of market acceptance, or service disruptions if the company's financial issues persist.
• **Suppliers/Partners**: IBM and other service providers are critical to the company's strategic initiatives but face payment risks given the company's financial condition and reliance on future funding. Payments to Moneta Advisory Partners are already suspended.
• **Creditors**: Face risk due to the company's 'going concern' status and accumulated deficit. The conversion of a promissory note to equity reduced one debt obligation.

Next Steps

• Complete the build-out and commercially launch the AI-powered digital platform ('Agassi Intelligence') by the end of Q2 2026.
• Launch the mobile application (App) in Q3 or Q4 2026, expanding features to pickleball and padel.
• Begin generating revenues in April 2026 from the Agassi Intelligence software, website, and sponsorship relations.
• Launch the 'World Series of Pickleball' event, including securing venues, obtaining permits, attracting sponsorships, and managing logistics.
• Pursue relationships with leading hospitality and media organizations for the World Series of Pickleball.
• Acquire, build, and/or create physical facilities, leagues, tournaments, events, social communities, and merchandisers (funding permitting).
• Develop strategic relationships with 'Best of Class' operators and developers in pickleball and padel communities.
• Develop the ACE Program for certifying facilities, communities, content creators, coaches, and leagues.
• Create and distribute proprietary and curated content through various media channels.
• Launch the 'Pickleball for All' charitable initiative.
• Remediate material weaknesses in internal control over financial reporting and disclosure controls by adding additional personnel or through acquisition/merger.
• The Board of Directors expects to approve the grant of 300,000 restricted stock units to CEO Ronald S. Boreta following the filing of a contemplated Form S-8 registration statement.
• The company plans to implement a clawback policy in the future, if required.
• The company plans to adopt policies and procedures governing the purchase, sale, and/or other dispositions of its securities by directors, officers, and employees.
• The company plans to provide shareholders the right to vote on say-on-pay matters beginning at the next annual meeting of stockholders.

Key Dates

Recommendation

The company faces severe financial challenges, including substantial and increasing net losses, a critical 'going concern' warning from auditors, and a dramatic decline in working capital. Despite ambitious plans in high-growth industries like pickleball and padel, and high-profile partnerships, the company has generated no revenue and relies entirely on future, uncertain equity raises to meet significant operational and contractual obligations. The high dilution risk, illiquid penny stock status, and material weaknesses in internal controls further compound the investment risk. A seasoned investor would likely view the current financial instability and execution risks as too high, warranting a 'sell' recommendation to avoid potential further capital loss.

Keywords

Agassi Sports Entertainment, AASP, Pickleball, Padel, Sports Entertainment, Digital Platform, AI-powered platform, Agassi Intelligence, World Series of Pickleball, Sports Media, Financial Results, Going Concern, Stock-based Compensation, IBM Partnership, Stefanie Graf, Andre Agassi, Corporate Governance, Risk Factors, SEC 10-K, Annual Report, Nevada Corporation, OTC Markets