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Venu Holding Corp(VENU) - 2024 Q3 - Quarterly Report
VENUVenu Holding Corp(VENU)2024-12-23 21:05

Financial Performance - Total revenues for Q3 2024 reached 5,451,975,a39.45,451,975, 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,comparedtoalossof3,932,221, 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 3,676,261forQ32024,comparedtoalossof3,676,261 for Q3 2024, compared to a loss of 2,754,271 in Q3 2023[20] - The company experienced a net loss of 4,527,472forthequarterendingSeptember30,2024,withtotalstockholders′equityat4,527,472 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 25.61millioncomparedtoanetlossof25.61 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)forthethreemonthsendedSeptember30,2024,anincreaseofapproximately61(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,reflectinga21224,052,258, 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 83,223,707atDecember31,2023[17]−Currentassetsincreasedto83,223,707 at December 31, 2023[17] - Current assets increased to 38,565,664, a 87.0% rise from 20,596,065attheendof2023[17]−Totalliabilitiesroseto20,596,065 at the end of 2023[17] - Total liabilities rose to 52,560,403, an increase of 147.8% from 21,244,022atDecember31,2023[17]−Long−termdebt,netofcurrentportion,increasedto21,244,022 at December 31, 2023[17] - Long-term debt, net of current portion, increased to 14,001,634, compared to 11,182,073atDecember31,2023[17]−AsofSeptember30,2024,thecompanyreportedanaccumulateddeficitof11,182,073 at December 31, 2023[17] - As of September 30, 2024, the company reported an accumulated deficit of 41,073,711, compared to 17,021,453asofDecember31,2023,indicatingasignificantincreaseinlosses[64]−Thetotallong−termdebtasofSeptember30,2024,is17,021,453 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]CashFlow−Netcashprovidedbyoperatingactivitieswas8,791,785[124] Cash Flow - Net cash provided by operating activities was 13.34 million, a significant improvement from a net cash used of 6.52millionintheprioryear[27]−TheendingcashbalanceasofSeptember30,2024,was6.52 million in the prior year[27] - The ending cash balance as of September 30, 2024, was 35.80 million, up from 22.61millionattheendofthesameperiodin2023,reflectinga5822.61 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)inthesameperiodof2023,reflectingapositivechangeof(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)fortheninemonthsendedSeptember30,2024,comparedto(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 63,801,428fortheninemonthsendedSeptember30,2024,comparedto63,801,428 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 20,087,500throughshareissuance[23]−Thecompanyissued209,985sharesduringthequarter,raisingapproximately20,087,500 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 31,693,410fromthesaleof3,169,341sharesofCommonStockduringaprivateplacementoffering[194]OperationalHighlights−ThecompanyplanstoopenRoth′sSeafoodandChophouseinMay2025,adjacenttotheFordAmphitheater,whichopenedinAugust2024[48][49]−TheFordAmphitheaterinColoradoSpringsopenedinAugust2024,contributingtothecompany′srevenuegenerationstrategy[79]−EventOperationsgenerated31,693,410 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,or283,755,113, 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,or608,144,605, 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,up37.09,128,236, 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,anincreaseofapproximately379,128,236, an increase of approximately 37% compared to 6,665,650 in the prior-year period[165] - Labor costs increased by 786,490,or31786,490, 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,asignificantincreaseof11202,717,849, 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]