Financial Performance - Total revenues for Q1 2025 were $3,499,159, a decrease of 11.2% from $3,939,743 in Q1 2024[15] - Net loss for Q1 2025 was $19,432,750, compared to a net loss of $15,816,019 in Q1 2024, representing a 23.5% increase in losses[17] - Operating costs increased significantly to $22,041,523 in Q1 2025, up from $16,906,528 in Q1 2024, marking a 30.5% rise[15] - Equity-based compensation for Q1 2025 was $11,340,620, compared to $9,565,554 in Q1 2024, reflecting an increase of 18.6%[17] - Cash used in operating activities for Q1 2025 was $9,036,985, significantly higher than $2,711,868 in Q1 2024[17] - Cash and cash equivalents at the end of Q1 2025 were $24,663,106, down from $38,806,976 at the end of Q1 2024, indicating a decrease of 36.4%[17] - The company reported a basic and diluted net loss per share of Class B common stock of $0.48 in Q1 2025, compared to $0.47 in Q1 2024[15] - Net cash provided by financing activities in Q1 2025 was $19,779,579, a decrease from $30,264,576 in Q1 2024[17] Assets and Liabilities - Total assets increased by $34,464,672, or 19%, to $212,882,187 as of March 31, 2025, compared to $178,417,515 at December 31, 2024[5] - Property and equipment rose by 33% to $182,906,195 as of March 31, 2025, up from $137,215,936 at December 31, 2024[5] - The total liabilities increased to $73,550,166 as of March 31, 2025, compared to $47,600,277 at December 31, 2024[13] - Stockholders' equity totaled $139,332,021 as of March 31, 2025, up from $130,817,238 at December 31, 2024[13] - Total operating lease liabilities decreased by $92,350 in Q1 2025, compared to a decrease of $114,848 in Q1 2024[17] Sales and Investments - Luxe FireSuite and Aikman Club sales reached $38.7 million for the three months ended March 31, 2025, with $12.5 million generated from the Luxe FireSuites fractional ownership model since its launch[5] - The company invested $1,999,999 in EIGHT Brewing during Q1 2025 as part of its growth strategy[17] Strategic Initiatives - The company is under contract to acquire a strategic site in Centennial, Colorado, to develop a $40 million entertainment campus[7] - VENU expanded its partnership with the City of El Paso, committing a minimum investment of $100 million for the future Sunset Amphitheater projected to open in 2026[7] - A new structured financing model for Luxe FireSuites was introduced to enhance ownership opportunities and drive sales[7] - The company filed an Offering Statement under Regulation A to provide investment opportunities to institutional and retail investors[7] Management Changes - Vic Sutter, a Live Nation veteran, was appointed as Executive Vice President of Operations to enhance operational excellence and guest experiences[7]

Venu Holding (VENU) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Heather Atkinson - CFOJW Roth - Founder, Chairman & CEOWill Hodgson - PresidentMartin Calvert - Senior Vice PresidentJon Lutz - PresidentWes Gottesman - Financial Advisor Conference Call Participants None - Analyst Operator Good afternoon, and welcome to Venue Holding Corporation's first quarter twenty twenty five financial results and business update. Earlier today, Venue Trading under the ticker symbol, b e n u, issued ...

Financial Data and Key Metrics Changes - Total assets increased by 19% from $178,417,515 as of December 31, 2024, to $212,882,187 as of March 31, 2025 [20] - Property and equipment rose by 33% to $182,906,190 as of March 31, 2025, up from $137,215,936 at the end of 2024 [21] - Fractional ownership sales reached $38,700,000 for the first quarter, significantly contributing to the balance sheet [21] Business Line Data and Key Metrics Changes - The company reported a modest decline in top-line sales year-over-year, attributed to a shift in daypart at Noat's Eatery and softer performance at Bourbon Brothers and Fill Along Event Center [17] - The launch of structured financing for Luxe Fire Suites has led to a 32% increase in sales [13][37] Market Data and Key Metrics Changes - The company is expanding its market presence through public-private partnerships, with a goal of adding between $100 million to $300 million to the balance sheet with each development agreement [26] - A new property acquisition in El Paso, Texas, includes a $31,500,000 performance-based incentive package from the city [11] Company Strategy and Development Direction - The company aims to build world-class live music and hospitality destinations, focusing on fan experiences and public-private partnerships [5][6] - A partnership with Ryan & Company is expected to accelerate expansion, with a target of two new public-private partnerships per quarter [10][26] - The company plans to have nine open and operating entities by the end of 2025, increasing to 16 by 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational profitability by 2026, driven by development profits and operational efficiencies [10] - The focus remains on enhancing guest experiences and unlocking value from current operations through smarter strategies [19] Other Important Information - The company has made strategic additions to its leadership team, including a new financial leader and strategic growth adviser [15] - The introduction of structured payment plans for fractional ownership has broadened access for buyers [13] Q&A Session Summary Question: Impact of Ryan and Company partnership on expansion - Management indicated that the partnership will dramatically accelerate expansion, potentially adding 200% more amphitheaters and music halls than originally projected [26][28] Question: New offerings at Ford Amphitheater - Management highlighted plans for new development agreements and enhanced fan experiences, including new dining options and event packages [32] Question: Performance of fire pit suites and financing model - The financing model has increased sales by 32%, and the company is expanding its market reach for fire pit suites [37] Question: Partnership with Sands Investment Group - This partnership aims to expand the market for fire pit suite ownership, allowing investors across the U.S. to participate [41]

Financial Performance - Total revenues for Q1 2025 were $3,499,159, a decrease of 11.2% from $3,939,743 in Q1 2024[20] - Net loss for Q1 2025 was $19,432,750, compared to a net loss of $15,816,019 in Q1 2024, representing a 23.5% increase in losses[20] - Operating costs increased significantly to $22,041,523 in Q1 2025, up from $16,906,528 in Q1 2024, marking a 30.5% rise[20] - The company reported a significant increase in general and administrative expenses, which rose to $6,740,311 in Q1 2025 from $4,174,817 in Q1 2024, a 61.3% increase[20] - Equity compensation expenses also increased to $11,340,620 in Q1 2025, compared to $9,565,554 in Q1 2024, representing an 18.6% rise[20] - The net loss for the period ending March 31, 2024, was $(15,598,938), reflecting a significant decrease compared to previous periods[23] - For the three months ended March 31, 2025, the net loss was $19,432,750, compared to a net loss of $15,816,019 for the same period in 2024, representing a 23% increase in losses[25] - Net cash used in operating activities was $9,036,985 for Q1 2025, significantly higher than $2,711,868 in Q1 2024, indicating a 233% increase in cash outflow[25] Assets and Liabilities - Cash and cash equivalents decreased to $24,663,106 as of March 31, 2025, down from $37,969,454 as of December 31, 2024, a decline of 34.9%[17] - Total assets increased to $212,882,187 as of March 31, 2025, compared to $178,417,515 as of December 31, 2024, reflecting a growth of 19.3%[17] - Total liabilities rose to $73,550,166 as of March 31, 2025, up from $47,600,277 as of December 31, 2024, an increase of 54.5%[17] - The company’s accumulated deficit increased to $(65,424,938) as of March 31, 2025, compared to $(47,361,208) as of December 31, 2024, indicating a worsening financial position[17] - As of March 31, 2025, total equity amounted to $139,332,021, with an accumulated deficit of $(65,424,938)[23] Cash Flow and Investments - Cash flows from investing activities totaled $24,048,942 in Q1 2025, compared to $8,946,836 in Q1 2024, reflecting a 168% increase in cash used for investments[25] - The company made an investment of $1,999,999 in EIGHT Brewing during Q1 2025[25] - Proceeds from the sale of non-controlling interest equity were $15,967,250 in Q1 2025, compared to $10,375,000 in Q1 2024, representing a 54% increase[25] - The company accepted cash deposits of $3,431,250 for fractional ownership of Luxe FireSuites, with total investments of $13,720,000 recorded as of March 31, 2025[133] Expansion Plans - The company plans to open Roth's Seafood and Chophouse, LLC in fall 2025, which is adjacent to the Ford Amphitheater[45] - The Company plans to open the Sunset amphitheater in McKinney, TX, in Q3 2026 and the Sunset amphitheater in El Paso, TX, in Q4 2026, expanding its operational footprint[50][51] - The company is focusing on market expansion into new areas such as Oklahoma and Texas, with plans for new venues while not anticipating operational profits until these venues are opened[197] - The Company plans to develop a mid-size indoor music venue and a full-size restaurant in Centennial, Colorado, with the acquisition expected to close around July 1, 2025[145] Equity and Financing - The company issued 2,008,750 shares, resulting in an increase of $20,087,500 in equity[23] - The Company completed a private placement offering in 2024, selling 3,300,341 shares of Common Stock for gross proceeds of $32,059,550[130] - An initial public offering on November 26, 2024, generated gross proceeds of $12,000,000 from the sale of 1,200,000 shares at $10.00 per share[131] - The Company issued a $6,000,000 principal amount convertible promissory note on February 28, 2025, with a 12% annual interest rate[116] - The Company issued two convertible promissory notes totaling $6,000,000 on April 4, 2025, with a 12% annual interest rate[144] Operational Challenges - The Company incurred negative cash flows from operations for both the three months ended March 31, 2025, and 2024, raising concerns about operational sustainability[60] - The Company has not recognized any impairment losses during the periods ending March 31, 2025, and March 31, 2024, indicating stable asset valuations[72] - The company is evaluating the impact of ASU No. 2024-03, which requires expanded expense disclosures, to be adopted for fiscal years commencing after December 15, 2026[99] Revenue Generation - Venu generated total revenue of $3,299,226 for the three months ended March 31, 2025, with $2,044,916 (58%) from Restaurant Operations, $1,264,910 (36%) from Event Operations, and $189,333 (5%) from Amphitheater Operations[167][169][170] - The Ford Amphitheater, which opened in August 2024, has a capacity of 8,000 and includes 92 VIP firepit suites accommodating a total of 736 guests[158] - Venu's partnership with AEG for the operation of Ford Amphitheater is expected to enhance revenue through ticket sales, venue rentals, and sponsorship sales[170] Cost Management - Total advertising expenses increased to approximately $1,494,456 for Q1 2025, up from $713,125 in Q1 2024, representing a growth of 109%[79] - The company experienced a significant increase in rental costs, which rose by $67,919 or 23% during the three months ended March 31, 2025, compared to the same period in 2024[182] - Depreciation and amortization expenses for property and equipment were $1,358,685 for the three months ended March 31, 2025, compared to $589,784 for the same period in 2024, indicating a significant increase of 130%[101]

Financial Performance - Total annual revenue rose by 42% to $17.8 million in fiscal 2024 compared to $12.6 million in fiscal 2023[8]. - Total revenues for 2024 reached $17,834,383, a 41.5% increase from $12,597,664 in 2023[17]. - Luxe FireSuite sales reached $77.7 million in 2024, representing a 250% increase over 2023's total of $22.2 million[6]. - Restaurant operations grew by $1.3 million, a 14% increase, while event center operations grew by $2.2 million, a 74% increase in fiscal 2024 compared to fiscal 2023[8]. - The Ford Amphitheater generated gross receipts of $15.2 million over its limited 2024 season, selling over 97,000 tickets at an average price of $156[8]. Losses and Expenses - Net loss for 2024 was $32,948,974, compared to a net loss of $11,386,793 in 2023, representing a 189.1% increase in losses[19]. - Operating costs surged to $45,212,508 in 2024, up from $23,729,832 in 2023, indicating a 90.5% increase[17]. - Total operating loss for 2024 was $27,378,125, which is a 146.1% increase from the operating loss of $11,132,168 in 2023[17]. - Equity-based compensation for 2024 amounted to $12,015,133, significantly higher than $1,610,350 in 2023[19]. Cash Flow and Financing - Cash and cash equivalents at the end of 2024 were $37,969,454, up from $20,201,104 at the beginning of the year, reflecting a net increase of $17,768,350[19]. - The company reported a net cash provided by financing activities of $86,420,198 in 2024, compared to $32,771,605 in 2023, marking a 163.5% increase[19]. - Proceeds from the sale of non-controlling interest equity were $38,463,367 in 2024, compared to $16,750,000 in 2023, indicating a 129.5% increase[19]. - The company issued equity for interest on convertible debt amounting to $766,920 in 2024, with no such issuance in 2023[19]. Future Outlook and Initiatives - Venu Holding Corporation aims to achieve $200 million in revenue for 2025, having generated $10.4 million in January and $11.2 million in February 2025[11]. - The company launched VENU Income Offering and VENU Fractional Ownership Financing to enhance revenue growth and accessibility of Luxe FireSuites[11]. - Ground was broken on amphitheater projects in Broken Arrow, Oklahoma, and construction commenced for new locations in Texas and Oklahoma[8]. - The company announced a $105 million ultra-lux amphitheater in El Paso, Texas, through a significant public-private partnership[8]. IPO and Asset Growth - The company successfully completed its IPO, raising approximately $12.3 million in net proceeds[8]. - Total assets increased by 114% to $178.4 million as of December 31, 2024, up from $83.2 million at the end of 2023[6].

Financial Data and Key Metrics Changes - The company's total annual revenue rose 42% to $17.8 million in fiscal 2024 compared to $12.6 million in fiscal 2023 [29] - Total assets increased 114% to $178.4 million as of December 31, 2024, up from $83.2 million at December 31, 2023 [28] - Property and equipment increased 138% to $137.2 million as of December 31, 2024, up from $57.7 million at December 31, 2023 [28] - Firesuite sales reached $77.7 million in 2024, representing a 250% increase over 2023's total of $22.2 million [28] Business Line Data and Key Metrics Changes - Restaurant operations grew by $1.3 million and 14% in fiscal 2024 compared to fiscal 2023 [29] - Event center operations grew by $2.2 million and 74% respectively in fiscal 2024 compared to fiscal 2023 [29] - Amphitheater operations generated net profit due to the opening and initial success of the Ford Amphitheater, which sold over 97,000 tickets at an average of $156 per ticket [30][31] Market Data and Key Metrics Changes - The company anticipates welcoming 3.7 million guests in 2026 and over 4 million guests annually by early 2027 across all entities [13] - The Ford Amphitheater welcomed more than 112,000 guests from over 5,500 zip codes nationwide [11] Company Strategy and Development Direction - The company is focused on developing premium live entertainment venues and enhancing shareholder value [26] - A new $300 million multi-seasonal Sunset Amphitheater is planned in McKinney, Texas, which will be the largest venue in the company's collection [17] - The company is implementing a multi-configuration model across new amphitheaters to maximize revenue and drive long-term shareholder value [18] Management's Comments on Operating Environment and Future Outlook - Management expects to turn operationally profitable in 2026, driven by the opening of four major venues [25] - The company is optimistic about its expansion plans, with seven new municipalities in talks for future venues [93] - Management highlighted the importance of increasing dwell time and enhancing the fan experience to drive repeat attendance [64] Other Important Information - The company launched the Venue Arts and Culture Foundation to support local talent and community vibrancy [15] - A fractional ownership financing program was announced to accelerate the expansion of Lux Fire Suites [19] Q&A Session Summary Question: How is the process going with sponsorships and strategic partners? - The company has seen significant interest in venue sponsorship offerings due to the premium guest experience being introduced [44] Question: Can you explain how fractional ownership financing works? - Fractional ownership financing has been added, allowing banks to finance these investments, which has doubled sales [51] Question: Can you expand on the multi-seasonal configurations? - New amphitheaters will feature multi-seasonal configurations, allowing for year-round events and enhancing the overall ambiance [60] Question: What innovations are being implemented to drive repeat attendance? - The focus is on increasing dwell time through clubs and premium experiences around the events [66] Question: What is the expected revenue mix and opportunities for non-music events? - The company is looking to diversify revenue through multi-seasonal configurations and community events [72][76] Question: When do you anticipate reaching consistent positive operating income? - A development profit is expected in 2025, with operational profit anticipated in 2026 [82]

Venue Operations and Development - Venu operates upscale music venues and restaurants, with indoor venues accommodating approximately 1,400 guests and outdoor amphitheaters accommodating 8,000 or more guests[16]. - Venu plans to open new venues in Oklahoma and Texas, with the Sunset at Broken Arrow expected to open in late 2025 or early 2026, and other locations in 2026[16]. - Venu's first outdoor amphitheater, the Ford Amphitheater, opened in August 2024 in Colorado Springs, Colorado[22]. - The company plans to develop additional amphitheaters in Broken Arrow, Oklahoma, and the McKinney and El Paso markets of Texas, with city government approvals already secured[52]. - Venu is constructing The Sunset El Paso amphitheater, which will accommodate 12,500 people on approximately 17 acres of land[86]. - Venu is developing The Sunset McKinney amphitheater, expected to attract crowds from the Dallas and Fort Worth areas, enhancing local entertainment value[81]. - The Sunset McKinney will have a seating capacity of 20,000, making it Venu's largest venue to date, and is expected to host 50 to 70 shows annually[80]. - Venu's BBP venues have hosted a total of 219 events in 2024, exceeding the goal of 100 events per year since 2021[46]. - BBP GA, opened in June 2023, has hosted 268 events in 2024, targeting the approximately 1.2 million residents of the Northeast Georgia region[51]. Financial Incentives and Partnerships - Venu has negotiated over $2.0 million in tax incentives through property-tax rebates and sales-tax abatements for its developments in Gainesville, Georgia, and El Paso, Texas[31]. - Venu focuses on high-growth areas that are underserved in premium music and entertainment options, partnering with municipalities for financial incentives[30]. - Venu's partnership with the City of McKinney includes financial investments to support the development of The Sunset McKinney[79]. - The City of McKinney's partnership with Venu represents a potential investment exceeding $220 million, aimed at driving local economic growth and commercial development[82]. - El Paso is providing Venu with an incentives package valued at approximately $30.9 million, including an $8 million forgivable loan and tax rebates over a 20-year period[87]. - Venu has entered into a public-private partnership with the City of El Paso, Texas, which includes a financial incentives package totaling approximately $30.9 million[150]. Revenue Streams and Financial Strategy - Venu's revenue streams include ticket sales, venue rentals, naming rights, sponsorships, food and beverage sales, and parking fees, with a focus on maximizing operational flexibility[41]. - Venu's financing strategy includes pre-sales of naming rights and sponsorships, which help fund development-related costs[33]. - Venu's financing strategy includes accessing attractive debt capital and revenue growth from its subsidiaries, enhancing its overall financial position[37]. - Venu estimates the naming rights for The Sunset Amphitheater venues will be valued between $1.0 million to $2.0 million per year, per venue, with contracts lasting five to ten years[56]. - Venu's naming rights sponsors include Phil Long Dealerships, Inc. for BBP CO, and Boot Barn for BBP GA, which helps offset development and operational costs[41]. Operational Challenges and Risks - Venu incurred net losses of $32.9 million and $11.4 million for the years ended December 31, 2024 and 2023, respectively, and expects to incur an operating loss in 2025[173]. - As of December 31, 2024, Venu had an accumulated deficit of $47,361,208, raising substantial doubt about its ability to continue as a going concern[173]. - Venu's ability to raise additional capital may be limited, potentially affecting its growth and operations[171]. - The company faces risks related to construction delays and cost overruns, which could impact the opening of new venues and overall financial performance[201]. - The rejection of land acquisition or construction plans by local city councils could result in significant project delays and increased costs, impacting financial performance[204][205]. - Venu's ongoing and planned projects may require additional capital due to unfinalized development costs, potentially leading to higher operating costs and less favorable results[202]. Management and Staffing - As of March 15, 2025, Venu has 50 full-time employees and 178 part-time employees, with plans to increase hiring as it expands[158][159]. - Venu's management team has prior success in hospitality and entertainment, contributing to its growth capabilities[17]. - Venu's management plans to enhance its accounting systems and financial reporting processes, having increased its accounting staff by over 57% during the year ended December 31, 2024[181]. Competitive Strategy and Market Position - Venu's competitive strategy includes entering markets with limited live-entertainment offerings and leveraging local partnerships for development[153][154]. - Venu anticipates challenges in brand recognition and competition against larger companies in the live-entertainment industry[155]. - Venu's public-private partnerships impose conditions that could lead to monetary penalties, such as a $10,000 monthly fee if the Sunset BA amphitheater is not completed by December 31, 2025[186]. - Venu faces competition in the market, which may hinder its ability to maintain or expand its collection of live music venues and offerings[210]. Ownership and Financial Structure - Venu holds 100% ownership in Bourbon Brothers Holdings LLC, Notes Live Real Estate, LLC, and several other subsidiaries, while maintaining 100% voting control in subsidiaries with third-party investors holding non-voting interests[106][107]. - Venu holds approximately 10% membership interest in The Sunset Amphitheater LLC, with third-party investors owning a greater than 50% interest, affecting control and revenue distribution[184]. - Venu's subsidiaries are structured to ensure that distributions of available cash from operations primarily benefit Venu as the Class A member[108]. Future Growth and Expansion Plans - Venu aims to establish up to ten entertainment campuses and three or more open-air amphitheaters by 2028, expanding its market presence significantly[111]. - The company has committed to a minimum capital investment of $70 million in Broken Arrow, Oklahoma, with a purchase price of $577,314.62[126]. - In McKinney, Texas, Venu's investment commitment is $200 million, with a purchase price of $35 million, which will be reimbursed upon obtaining a Certificate of Occupancy[126]. - Venu's business plan involves substantial upfront capital expenditures for opening new venues, which may not perform as projected[172].

Financial Performance - Year-over-year revenue for the nine months ended September 30, 2024, was $13.6 million, reflecting a 56% increase compared to $8.7 million for the same period in 2023[6] - Total revenues for Q3 2024 reached $5,451,975, a 39.4% increase from $3,911,379 in Q3 2023[20] - Event center ticket and fees revenue increased significantly to $2,002,572, up 108.5% from $961,222 in the same quarter last year[20] - VENU's net profit from amphitheater operations was $1,606,573, representing 30% of total revenue for the three months ended September 30, 2024[6] - For the nine months ended September 30, 2024, the net loss increased to $25.61 million compared to a net loss of $8.24 million in the same period of 2023, representing a significant increase of 211%[23] - Net loss for Q3 2024 was $4,527,472, compared to a net loss of $2,807,913 in Q3 2023, reflecting a 61.2% increase in losses[20] - The company reported a basic and diluted net loss per share of Class A common stock at $(0.13) for Q3 2024[21] Assets and Liabilities - Total assets increased to $166.6 million as of September 30, 2024, a 100% increase from $83.2 million as of December 31, 2023[6] - Total assets as of September 30, 2024, were $166,597,802, compared to $83,223,707 at the end of 2023, indicating a 100.5% growth[18] - Total liabilities increased to $52,560,403 from $21,244,022, representing a 147.5% rise[18] - Total stockholders' equity rose to $114,037,399 from $61,979,685, reflecting a 83.5% increase[18] Cash Flow and Investments - Cash reserves improved to $35,796,857, up from $20,201,104 at the end of 2023, marking a 77.1% increase[18] - Net cash provided by operating activities was $13.34 million, a turnaround from a net cash used of $6.52 million in the prior year[23] - Cash flows from investing activities showed a net cash outflow of $61.54 million, compared to $19.19 million in the previous year, indicating increased investment activity[23] - The ending cash balance increased to $35.80 million from $22.61 million year-over-year, marking a growth of 58%[23] Operational Highlights - The Ford Amphitheater generated gross receipts of $12,739,599 from 17 shows, selling over 83,000 tickets at an average price of $152 per ticket[6] - The Ford Amphitheater welcomed over 96,000 music fans from over 5,500 different zip codes during its limited first season[3] - The restaurant operations contributed $2,740,411, or 50%, of total revenue for the three months ended September 30, 2024[6] - VENU's anticipated markets are projected to add over $2 billion in real assets to the balance sheet and increase seat inventory to approximately 150,000 seats[5] - The company is set to unveil a $35 million dining and entertainment collection in 2025, designed for year-round service[4] - VENU's annual gross receipts could exceed $1.5 billion with an expected average gross sales price of $150 per seat across its venues[5] Debt and Equity Management - Principal payments on long-term debt increased to $232,327 from $144,431, reflecting a focus on debt management[23] - The company raised $29.90 million from the sale of non-controlling interest equity, up from $10.95 million in the prior year, reflecting strong financing efforts[23] - The company issued equity for services amounting to $7.00 million, significantly higher than $1.74 million in the previous year, indicating increased reliance on equity compensation[23] - The acquisition of Treasury Stock amounted to $1.50 million, a notable increase from $76 in the previous year, suggesting a strategic move to manage equity[23] - The company reported a significant increase in accrued expenses to $12.44 million from $54,576, indicating potential growth in operational costs[23] - The company reported a non-cash operating expense of $3.00 million related to debt discounts from warrants, indicating ongoing financing activities[23]

Financial Performance - Total revenues for Q3 2024 reached $5,451,975, a 39.4% increase from $3,911,379 in Q3 2023[20] - Net loss attributable to common stockholders for Q3 2024 was $3,932,221, compared to a loss of $2,774,206 in Q3 2023, reflecting a 41.7% increase in losses[20] - The company reported a loss from operations of $3,676,261 for Q3 2024, compared to a loss of $2,754,271 in Q3 2023[20] - The company experienced a net loss of $4,527,472 for the quarter ending September 30, 2024, with total stockholders' equity at $114,037,399[23] - For the nine months ended September 30, 2024, the net loss increased to $25.61 million compared to a net loss of $8.24 million in the same period of 2023, representing a 211% increase in losses[27] - The company reported a net loss of $(4,527,472) for the three months ended September 30, 2024, an increase of approximately 61% compared to $(2,807,913) in the prior-year period[163] - Net loss attributable to common stockholders for the nine months ended September 30, 2024, was $24,052,258, reflecting a 212% increase compared to the same period in 2023[167] Assets and Liabilities - Total assets as of September 30, 2024, were $166,597,802, up 100.5% from $83,223,707 at December 31, 2023[17] - Current assets increased to $38,565,664, a 87.0% rise from $20,596,065 at the end of 2023[17] - Total liabilities rose to $52,560,403, an increase of 147.8% from $21,244,022 at December 31, 2023[17] - Long-term debt, net of current portion, increased to $14,001,634, compared to $11,182,073 at December 31, 2023[17] - As of September 30, 2024, the company reported an accumulated deficit of $41,073,711, compared to $17,021,453 as of December 31, 2023, indicating a significant increase in losses[64] - The total long-term debt as of September 30, 2024, is $22,793,417, with current maturities of $8,791,785[124] Cash Flow - Net cash provided by operating activities was $13.34 million, a significant improvement from a net cash used of $6.52 million in the prior year[27] - The ending cash balance as of September 30, 2024, was $35.80 million, up from $22.61 million at the end of the same period in 2023, reflecting a 58% increase[27] - Net cash provided by operating activities improved to $13,336,007 for the nine months ended September 30, 2024, compared to a cash outflow of $(6,518,214) in the same period of 2023, reflecting a positive change of $19,854,221[200] - Net cash used in investing activities rose to $(61,541,682) for the nine months ended September 30, 2024, compared to $(19,190,024) in 2023, primarily due to increased property and equipment purchases[201] - Net cash provided by financing activities increased to $63,801,428 for the nine months ended September 30, 2024, compared to $24,851,531 in 2023, driven by share issuance and proceeds from a municipality promissory note[202] Share Issuance and Equity - The company issued 2,008,750 shares, raising $20,087,500 through share issuance[23] - The company issued 209,985 shares during the quarter, raising approximately $757,555[24] - The total number of shares outstanding increased by 526,250 shares due to the issuance for fixed asset acquisition[23] - The Company authorized a Class D common stock of up to 60,000,000 shares on March 5, 2024[129] - The Company issued 614,341 Class C shares and 3,149,341 Class C shares during the three and nine months ended September 30, 2024, respectively[128] - The company raised gross proceeds of $31,693,410 from the sale of 3,169,341 shares of Common Stock during a private placement offering[194] Operational Highlights - The company plans to open Roth's Seafood and Chophouse in May 2025, adjacent to the Ford Amphitheater, which opened in August 2024[48][49] - The Ford Amphitheater in Colorado Springs opened in August 2024, contributing to the company's revenue generation strategy[79] - Event Operations generated $1,104,991, or 21% of total revenue for the three months ended September 30, 2024, and $3,755,113, or 28% for the nine months ended September 30, 2024[155] - Restaurant Operations contributed $2,740,411, or 50% of total revenue for the three months ended September 30, 2024, and $8,144,605, or 60% for the nine months ended September 30, 2024[157] - Amphitheater Operations generated net revenues of $1,606,573, or 30% of total revenue for the three months ended September 30, 2024[158] Expenses and Costs - Operating costs for Q3 2024 totaled $9,128,236, up 37.0% from $6,665,650 in Q3 2023[20] - Total operating costs for the three months ended September 30, 2024, were $9,128,236, an increase of approximately 37% compared to $6,665,650 in the prior-year period[165] - Labor costs increased by $786,490, or 31%, for the nine months ended September 30, 2024, primarily driven by inflation and higher wages[173] - Depreciation and amortization costs increased by $1,040,003, an 81% rise for the nine months ended September 30, 2024, due to the operational status of new venues[176] - Interest expense for the nine months ended September 30, 2024, was $2,717,849, a significant increase of 1120% compared to $222,812 in the same period of 2023[180] Strategic Initiatives - The company plans to continue raising cash through private sales of membership interests and collaborative arrangements to fund venue construction[162] - The company is engaged in strategic transactions for future expansion, which is critical for its growth plan[65] - The company anticipates operational profits will not materialize until the new venues in Colorado, Oklahoma, and Texas are opened and operational[191] - The company is actively monitoring inflation and interest rates, seeking cost-saving measures to mitigate their impact on operations[190]