Lingerie Fighting Championships Reports 13% Revenue Growth but Faces Significant Net Loss

Lingerie Fighting Championships, Inc. (LFC) reported a revenue of $132,978 for the fiscal year ending December 31, 2024, marking a 13% increase from $117,722 in 2023. Despite this growth in revenue, the company experienced a significant net loss of $1,868,186, a stark contrast to the net income of $308,452 reported in the previous year. The increase in revenue was primarily attributed to higher sponsorship and advertising income, while the net loss was largely driven by a 44% rise in total operating expenses, which reached $392,454, compared to $272,377 in 2023.

The company's cost of services also increased, rising 23% to $84,995 from $68,917 in the prior year. This increase was mainly due to higher subcontractor and material costs. Gross profit slightly decreased to $47,983 from $48,805, reflecting the challenges in maintaining profitability amid rising costs. Additionally, LFC reported a substantial increase in other expenses, which totaled $1,523,715, compared to other income of $532,024 in 2023. This shift was attributed to losses related to the fair value of derivatives and increased interest expenses.

In terms of operational developments, LFC has seen a notable increase in its digital presence, with its YouTube channel surpassing 800,000 subscribers and accumulating over a quarter billion views. The company hosted 25 live events across the U.S. and Europe and produced over 120 episodes of a reality series, indicating a strong engagement with its audience. However, the company continues to face challenges, including a working capital deficiency of $5,933,668 as of December 31, 2024, which has raised concerns about its ability to sustain operations without additional financing.

Looking ahead, LFC plans to continue expanding its brand through live events and digital content, with expectations to host up to six shows in 2025. The company aims to leverage its growing online presence to enhance revenue streams from sponsorships and merchandise. However, management has acknowledged the need for additional funding to support ongoing operations and business development, which remains a critical factor for the company's future viability. The financial statements indicate substantial doubt about LFC's ability to continue as a going concern, emphasizing the importance of securing further investment capital.