MIAMI, May 09, 2022 (GLOBE NEWSWIRE) -- Xtreme Fighting Championships (“XFC” or “the Company”), the second largest publicly traded premier international mixed martial arts (“MMA”) organization, released its financial results for the fiscal year ended December 31, 2021.
Financial Highlights for the Fiscal Year 2021
- Revenue increased 487% to approximately $2.2 million, primarily due to fight sponsorship advertising
- Operating expenses decreased by 68% to $4.6 million
- Selling, general and administration expenses decreased by $10.5 million
- Net loss for the year ended December 31,2021 shrank to $2.4 from $14.1 in 2020
“We are extremely pleased with our strong revenue in fiscal 2021, particularly as life goes back to normal post-pandemic and as demand for our MMA content continues to surge,” said Steve Smith, CEO of the XFC. “Our sponsors along with increased attendance at our live events contributed largely to our improved results. As we move forward in FY2022, we believe we are well positioned for even stronger growth with our expansion into several new regions; active pursuit of exciting new talent to establish the next generation of MMA fighters; our globally recognized brand; and a team ever-focused on delivering premium MMA content to our fans.”
Financial Results for the Fiscal Year 2021
Revenue: For the years ended December31, 2021, and 2020, revenues generated were approximately $2.2 million and $371 thousand, an increase of $1.8 million or 487%. Revenues were derived primarily from sponsorship advertising during fights.
Operating Expenses: Total operating expenses for the year ended December 31, 2021, were $4.6 million a, decrease of $9.8 million from total operating expenses for the year ended December 31, 2020, of $14.4 million.
Selling, General and Administrative expenses: Selling, general and administrative expenses for the year ended December 31, 2021, were $2.7 million, a decrease of 80% or $10.5 million from 2020. The Company commenced operations in 2020 as sports entertainment media company.
Depreciation and amortization: Depreciation and amortization expenses were $1.9 million for the year ended December 31, 2021, as compared to $1.1 million for the year ended December 31, 2020 an increase of $746,409.
Interest Expense: Interest expenses were $47,100 and $44,011 during the years ended December 31, 2021, and 2020 respectively, representing an increase of $3,089 or 7% in 2021. The increase is primarily attributable to the addition of debt of $500,000 in 2021.
“We expect our operating and interest expenses to continue to increase during fiscal 2022 and beyond as we expand our operations and generate additional revenues under our current business. However, we are unable at this time to estimate the amount of the expected increases,” said Steve Smith, CEO of the XFC.
Net Loss: XFC recorded a net loss after income tax of $2.4 million for the year ended December 31,2021, as compared to a net loss of $14.1 million for the year ended December 31,2020. The decrease is a result of the factors described above.
About XFC
Headquartered in Miami, Xtreme Fighting Championships, Inc. (“XFC”) is the second largest publicly traded premier international mixed martial arts (“MMA”) organization, trading under the ticker symbol XFCI. XFC is currently ranked #1 in MMA broadcast distribution reaching more than 780 million households worldwide. XFC’s owned and operated OTT channel “XFCTV Fightworld” averages 220,000 viewers daily, in addition XFC partners with 36 broadcasters worldwide, including HBOMAX globally and the FOX family of networks in the United States. XFC has previously been carried on some of the largest open television broadcasters in Latin America - Rede TV! as well as ESPN, NBC Sports Network, Telemundo Universo, Esportes Interativo, Terra TV (the largest internet portal in the world), and UOL - the largest internet portal in Latin America, and premium cable and satellite television networks. The XFC currently has more than 83 exclusively signed fighters, representing over 35 countries worldwide with even more growth expected. Boasting the signing of the “Next Generation of Male & Female Superstars”, the XFC is known for entertaining fans with the most action-packed MMA events both on television and in-stadium venues. For more information on the company, visit www.XFCMMA.net, or for XFC merchandise and exclusive shareholder perks go to www.TiiCKER.com/XFCI.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that do not relate to matters of historical fact should be considered forward- looking statements. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward looking statements. Additionally, words such as “expects,” “anticipates,” “intends,” “believes,” “will” and similar words are used to identify forward-looking statements.
Risk Factors
Some or all of the results anticipated by these forward-looking statements may not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Risk Factors which may appear in XFC filings and reports made with the Securities and Exchange Commission (the “SEC”), a lack of working capital, the value of XFC securities, the impact of competition, the continuation or worsening of current economic conditions, technology and technological changes, a potential decrease in consumer spending and the condition of the domestic and global credit and capital markets. Additionally, these forward-looking statements are presented as of the date the 10-K is filed with the SEC. XFC does not intend to update any of these forward-looking statements.
Contact:
Cornell Hazelton
Lambert & Co.
chazelton@lambert.com
