Xtreme Fighting Championships Announces Full Year 2021
MIAMI, May 09, 2022 (GLOBE NEWSWIRE) — Xtreme Fighting Championships (“XFC” or “the Company”), the second-largest publicly traded international mixed martial arts (“MMA”) organization, has released its financial results for the fiscal year ended December 31, 2021.
Financial Highlights for Fiscal 2021
- Revenue increased 487% to approximately $2.2 million, primarily due to the fight against sponsorship ads
- Operating expenses decreased 68% to $4.6 million
- Selling, general and administrative expenses decreased by $10.5 million
- Net loss for the year ended December 31, 2021 decreased from $14.1 in 2020 to $2.4
“We are extremely pleased with our strong revenue in fiscal 2021, especially as life returns to normal post-pandemic and demand for our MMA content continues to increase,” said Steve Smith, CEO of XFC. “Our sponsors and increased attendance at our live events have been instrumental in improving our results. As we move forward into fiscal 2022, we believe we are well positioned for even stronger growth with our expansion into several new regions; actively seeking out exciting new talent to establish the next generation of MMA fighters; our globally recognized brand; and a team always focused on delivering premium MMA content to our fans.
Financial results for the 2021 financial year
Revenue: For the years ended December 31, 2021 and 2020, revenue generated was approximately $2.2 million and $371,000, an increase of $1.8 million or 487%. Revenue came primarily from sponsorship advertising during fights.
Operating Expenses : Total operating expenses for the year ended December 31, 2021 were $4.6 million a, a decrease of $9.8 million from total operating expenses for the year ended December 31, 2021. year ended December 31, 2020, $14.4 million.
Selling, general and administrative expenses: Selling, general and administrative expenses for the year ended December 31, 2021 were $2.7 million, a decrease of 80% or $10.5 million compared to 2020. The company has started operations in 2020 as a sports entertainment media company.
Depreciation and amortization: Depreciation expense amounted to $1.9 million for the year ended December 31, 2021, compared to $1.1 million for the year ended December 31, 2020, an increase of 746,409 $.
Interest charges: Interest expense amounted to $47,100 and $44,011 during the years ended December 31, 2021 and 2020 respectively, representing an increase of $3,089 or 7% in 2021. The increase is primarily attributable to the addition of a debt of $500,000 in 2021.
“We expect our operating and interest expenses to continue to increase in fiscal 2022 and beyond as we expand our operations and generate additional revenue from our current operations. . However, we are not in a position at this time to estimate the amount of the expected increases,” said Steve Smith, CEO of XFC.
Net loss: XFC recorded a net loss after income taxes of $2.4 million for the year ended December 31, 2021, compared to a net loss of $14.1 million for the year ended December 31, 2020 The decrease is the result of the factors described above.
Miami-based Xtreme Fighting Championships, Inc. (“XFC”) is the second-largest publicly traded international mixed martial arts (“MMA”) organization, trading the symbol XFCI. XFC is currently ranked #1 in MMA broadcast distribution reaching over 780 million homes worldwide. XFC owned and operated OTT channel “XFCTV Fightworld” averages 220,000 viewers per day. Additionally, XFC partners with 36 broadcasters worldwide, including HBOMAX worldwide and the FOX family of networks in the United States. XFC has already aired on some of the biggest open TV broadcasters in Latin America – Rede TV! as well as ESPN, NBC Sports Network, Telemundo Universo, Esportes Interativo, Terra TV (the largest Internet portal in the world) and UOL – the largest Internet portal in Latin America, and premium cable and satellite television networks. The XFC currently has over 83 exclusively signed fighters representing over 35 countries worldwide with even more growth expected. Boasting the signing of the “Next Generation of Male & Female Superstars”, the XFC is known for entertaining fans with the most action-packed MMA events both on TV and in stadiums. For more information about the company, visit www.XFCMMA.net, or for XFC products and exclusive shareholder benefits, visit www.TiiCKER.com/XFCI.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that do not relate to historical facts should be considered forward-looking statements. These forward-looking statements are based on management’s current expectations. These statements are not promises or guarantees and involve known and unknown risks, uncertainties and other important factors which may cause actual results, performance or achievements to differ materially from what is expressed or implied. understood by forward-looking statements. In addition, words such as “expects”, “anticipates”, “intends”, “believes”, “will” and similar words are used to identify forward-looking statements.
Some or all of the results anticipated by these forward-looking statements may not occur. Important factors, uncertainties and risks that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, risk factors that may appear in XFC’s filings and reports made with from the Securities and Exchange Commission (the “SEC”), a lack of working capital, the value of XFC securities, the impact of competition, continuation or worsening of current economic conditions, technology and technological changes , a potential decline in consumer spending, and the state of credit and capital markets. In addition, these forward-looking statements are made as of the date the 10-K is filed with the SEC. XFC has not intends to update these forward-looking statements.
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