Lingerie Fighting Championships Reports Mixed Financial Results for Q2 and H1 2024

Lingerie Fighting Championships, Inc. (LFC) reported its financial results for the second quarter and the first half of 2024, highlighting significant changes in revenue, profitability, and operational expenses compared to the previous fiscal period.

For the three months ended June 30, 2024, LFC generated revenue of $34,480,000, an increase from $31,108,000 in the same period of 2023. The revenue for the six months ended June 30, 2024, reached $79,508,000, up from $56,303,000 in the prior year. This growth was primarily driven by higher sponsorship and advertising revenue, with advertising revenue alone increasing to $28,646,000 for the second quarter, compared to $20,599,000 in 2023.

Despite the revenue growth, LFC reported a gross profit of $11,140,000 for the second quarter, down from $15,151,000 in 2023, attributed to increased costs related to subcontractor fees and materials. Total operating expenses surged to $111,346,000 for the second quarter, significantly higher than $51,370,000 in the previous year, largely due to increased professional fees, audit costs, and advertising expenses. Consequently, the operating loss for the second quarter widened to $(100,206,000) from $(36,219,000) in 2023.

The company experienced a net income of $1,389,365 for the second quarter of 2024, an increase from $867,837 in the same quarter of 2023. However, for the six months ended June 30, 2024, LFC reported a net loss of $(840,435), contrasting with a net income of $795,711 for the same period in 2023. This shift was influenced by a loss on changes in the fair value of derivatives, which amounted to $(523,926) for the first half of 2024, compared to a gain of $1,030,522 in 2023.

As of June 30, 2024, LFC's cash and cash equivalents stood at $10,449,000, up from $5,295,000 at the end of 2023. However, total current liabilities increased to $5,030,291, compared to $4,204,402 at the end of the previous year, resulting in a working capital deficiency of $(5,019,842). The accumulated deficit also grew to $(10,143,044) from $(9,302,609) at the end of 2023.

In terms of financing activities, LFC reported net cash provided of $97,500 for the first half of 2024, compared to $25,000 in the same period of 2023. The company continues to rely on additional investment capital to fund its operations, with no assurances of achieving financial viability in the near future. Management has indicated that the company has generated nominal revenues since inception and has sustained operating losses, raising substantial doubt about its ability to continue as a going concern.