Hall of Fame Resort & Entertainment Company (HOFV) reported a decline in revenue for the third quarter and the first nine months of 2024 compared to the same periods in 2023. Total revenues for the three months ended September 30, 2024, were $7.5 million, down from $8.7 million in the prior year. For the nine months ended September 30, 2024, revenues totaled $16.4 million, a decrease from $18.0 million in 2023. The decline in revenue was attributed to reduced event, rental, and restaurant revenues, which fell by 19.5% and 11.9%, respectively, compared to the previous year.

Despite the revenue drop, the company reported a smaller loss from operations for the third quarter, with a loss of $7.2 million compared to $10.0 million in the same quarter of 2023. The net loss for the third quarter of 2024 was $4.4 million, significantly improved from a net loss of $16.2 million in the prior year. For the nine-month period, the net loss was $34.5 million, down from $48.9 million in 2023. The improvement in losses was attributed to a reduction in operating expenses, which decreased by 38.4% for the nine months ended September 30, 2024, compared to the same period in 2023.

The company’s cash position as of September 30, 2024, was approximately $2.6 million in unrestricted cash and $4.9 million in restricted cash, down from $3.2 million and $8.6 million, respectively, at the end of 2023. Total liabilities increased to $341.9 million from $315.2 million at the end of 2023, with notes payable rising to $241.6 million from $219.5 million.

Strategically, HOFV received a non-binding acquisition proposal from IRG on September 27, 2024, to acquire all outstanding shares of common stock at $1.98 per share. Additionally, the company faced a significant challenge with the termination of its waterpark ground lease on October 26, 2024, due to a payment default, which could lead to defaults on approximately $81 million in loan agreements. The company is actively seeking additional financing to support its operations and development plans, amid substantial doubt about its ability to continue as a going concern for at least one year from the issuance of the financial statements.

The company also reported a material weakness in its internal control over financial reporting, which it is working to remediate. Despite these challenges, management believes that the financial statements fairly present the company's financial position in accordance with U.S. GAAP.