10-K: Lingerie Fighting Championships, Inc. Issues 10-K Report, Details Warrant and Note Agreements

Lingerie Fighting Championships, Inc. files its annual report on Form 10-K, outlining financial performance and agreements related to warrants and convertible notes.

Summary

• Lingerie Fighting Championships, Inc. has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024.
• The report details the company's business, including its focus on sports entertainment using wrestling and mixed martial arts techniques.
• The company's revenue for 2024 was $132,978, compared to $117,722 in 2023, with the increase attributed to sponsorship and advertising revenue.
• The company incurred a net loss of $1,868,186 in 2024, a significant decrease from the net income of $308,452 in 2023.
• The report mentions the issuance of 157,915,500 shares of common stock for the exercise of warrants during 2024.
• The company's working capital deficiency increased to $5,933,668 as of December 31, 2024.
• The company has one employee, Shaun Donnelly, who serves as Chief Executive Officer and Chief Financial Officer.
• The report also details several common stock purchase warrant and promissory note agreements with Auctus Fund, LLC.
• The company's ability to continue as a going concern is dependent on obtaining additional financing.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with a significant net loss and increasing working capital deficiency, raising doubts about the company's ability to continue as a going concern. While revenue increased, the overall sentiment is negative due to the financial instability and reliance on future financing.

Positives

• The company's revenue increased by 13% from 2023 to 2024.
• The company's YouTube channel has seen a massive increase in popularity, with more than 800,000 subscribers and more than a quarter billion views.
• The company anticipates doing as many as 6 shows the remainder of 2025.

Negatives

• The company incurred a significant net loss of $1,868,186 in 2024.
• The company's working capital deficiency has increased.
• The company's ability to continue as a going concern is dependent on obtaining additional financing.
• Several promissory notes are currently in default.

Risks

• The company's ability to continue as a going concern is dependent on obtaining additional financing.
• The company faces competition from established sports entertainment providers like WWE and UFC.
• The company may be subject to government regulations regarding live events and television programming.
• The company's failure to curtail piracy, infringement or other unauthorized use of our intellectual property rights effectively, or our infringement of others' intellectual property rights, could adversely affect our operating results.
• The company may be the subject of trademark and copyright infringements suits from other companies that seek to protect their names or marks on the basis of similarity or dilution, and no assurance can be made that we will be able to defend such actions.
• The company did not timely comply with the requirements of Regulation 14C under the Exchange Act for the above referenced increases in the Company's authorized common shares.

Future Outlook

The company intends to fund future operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2024.

Industry Context

The company operates in the highly competitive entertainment market, competing for viewers with established content programming and entertainment value.

Comparison to Industry Standards

• The company competes with major sports entertainment providers like World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC).
• WWE and UFC have substantially greater financial resources than Lingerie Fighting Championships, Inc.

Legal Proceedings

• The company is not currently involved in any litigation that it believes could have a materially adverse effect on its financial condition or results of operations.

Related Party Transactions

• During the years ended December 31, 2024 and 2023, the Company accrued $120,000 and $120,000 of salary payable to the Director of the Company.
• During the years ended December 31, 2024 and 2023, the Company paid $18,500 and $20,540 owing to the Director of the Company for the accrued salaries, respectively.
• As of December 31, 2024 and December 31, 2023, the total amount due to the related party was $743,628 and $642,128, respectively.

Stakeholder Impact

• The company's financial instability and reliance on future financing raise concerns for shareholders.
• The company's ability to continue operations and execute its business plan impacts employees, customers, and suppliers.

Next Steps

• The company intends to raise additional funds through public or private placement offerings.
• The company plans to take steps to enhance and improve the design of its internal control over financial reporting during the fiscal year ending December 31, 2025.

Key Dates

Keywords

warrants, convertible notes, common stock, promissory notes, Auctus Fund, Lingerie Fighting Championships, financial results, 10-K, SEC