Lingerie Fighting Championships Reports 39% Revenue Decline but Achieves Net Income Turnaround in Q1 2025

Lingerie Fighting Championships, Inc. (LFC) reported a significant decline in revenue for the first quarter of 2025, generating $27,487 compared to $45,028 in the same period of 2024, marking a decrease of approximately 39%. The company's cost of services also decreased to $11,064 from $34,203, resulting in a gross profit increase to $16,423 from $10,825 year-over-year. Despite the drop in revenue, LFC achieved a net income of $1,279,508, a substantial turnaround from a net loss of $2,229,800 in the prior year, primarily due to a favorable change in the fair value of derivative liabilities.

The company's total operating expenses rose to $90,893 from $49,420, largely driven by increased professional fees. This increase in expenses, however, was offset by a notable gain of $1,353,978 in other income, attributed to changes in the fair value of derivatives related to convertible notes and warrants. The overall financial performance indicates a complex interplay between reduced revenues and improved profitability metrics, reflecting the company's ongoing adjustments in its operational strategy.

LFC's balance sheet as of March 31, 2025, showed total assets of $2,750, a decrease from $4,552 at the end of 2024. Current liabilities also decreased to $4,639,670 from $5,935,861, resulting in a working capital deficiency of $4,638,957. The company’s accumulated deficit improved to $9,891,287 from $11,170,795, indicating a reduction in losses over the period. The company’s cash and cash equivalents fell to $713 from $2,193, highlighting liquidity challenges.

In terms of operational developments, LFC's employee headcount and customer engagement metrics were not disclosed in the filing. However, the company continues to focus on its unique positioning in the sports entertainment market, emphasizing its all-female wrestling league. The management has indicated plans to raise additional funds through equity financing to support ongoing operations and growth initiatives, although there remains substantial doubt about the company's ability to continue as a going concern without further capital.

Looking ahead, LFC's management anticipates that the company will need to secure additional investment capital to fund its operations and achieve its business objectives. The financial statements reflect a cautious outlook, with management acknowledging the need for strategic adjustments to navigate the current market conditions and enhance revenue generation capabilities.