Lingerie Fighting Championships Reports Decline in Revenue and Increased Net Losses for Q3 2024

Lingerie Fighting Championships, Inc. (LFC) reported its financial results for the third quarter and the first nine months of 2024, revealing a decline in revenue and an increase in net losses compared to the same periods in 2023. For the three months ended September 30, 2024, LFC generated revenue of $23,533, a decrease of 27% from $32,455 in the same quarter of the previous year. The company’s gross profit also fell to $11,024, down 50% from $22,006 in the prior year. For the nine-month period, revenue increased to $103,041, up 16% from $88,758, primarily due to higher sponsorship and advertising revenue.

The company's operating expenses surged to $169,120 for the third quarter, an increase of 83% from $92,225 in the same quarter of 2023. This rise was attributed to higher stock-based compensation, accounting fees, and promotional costs. The net loss for the third quarter was $770,144, a 38% increase from the loss of $559,840 reported in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss was $1,610,579, a significant decline from a net income of $235,871 in the same period of 2023.

LFC's balance sheet as of September 30, 2024, showed current assets of $12,835, a substantial increase from $5,295 at the end of 2023. However, current liabilities also rose to $5,686,537 from $4,204,402, resulting in a working capital deficiency of $5,673,702. The company’s accumulated deficit increased to $10,913,188, reflecting ongoing financial challenges. The increase in liabilities was driven by higher accounts payable and accrued liabilities, as well as increased derivative liabilities related to convertible notes.

In terms of operational developments, LFC has seen significant growth in its digital presence, with its YouTube channel nearing 800,000 subscribers and achieving over a quarter billion views. The company has also launched an online pharmacy, KnockoutRx, in partnership with a major sponsor. Despite these advancements, LFC continues to face challenges, including a compromised Facebook page that required the creation of a new account, which has since gained 320,000 followers. The company plans to air content on Toro TV in 2025 and is in discussions with a new streaming platform for an LFC channel.

Looking ahead, LFC's management acknowledges the need for additional financing to support operations and growth initiatives. The company intends to pursue equity financing arrangements to address its working capital needs. However, the ongoing losses and working capital deficiency raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty, highlighting the critical need for strategic financial planning and capital acquisition in the near future.