HALL OF FAME RESORT & ENTMT COMPANY C/WTS 01/07/2025 (TO PUR COM) | 10-Q: FY2025 Q1 Revenue: USD 2.945 M

Revenue: As of FY2025 Q1, the actual value is USD 2.945 M.

EPS: As of FY2025 Q1, the actual value is USD -2.3.

Segment Revenue

• Sponsorships, net of activation costs: $566,263 for the three months ended March 31, 2025, compared to $859,731 for the same period in 2024, representing a decrease of $293,468 or 34.1%.
• Event, rents, restaurant, and other revenues: $1,110,645 for the three months ended March 31, 2025, compared to $2,054,877 for the same period in 2024, a decrease of $944,232 or 46.0%.
• Hotel revenues: $1,268,425 for the three months ended March 31, 2025, compared to $1,276,707 for the same period in 2024, a slight decrease of $8,282 or 0.6%.

Operational Metrics

• Loss from operations: - $8,372,328 for the three months ended March 31, 2025, compared to - $7,092,231 for the same period in 2024.
• Net loss: - $15,068,950 for the three months ended March 31, 2025, compared to - $14,630,176 for the same period in 2024.
• Operating expenses: $11,317,661 for the three months ended March 31, 2025, compared to $11,283,546 for the same period in 2024.

Cash Flow

• Net cash used in operating activities: - $1,465,710 for the three months ended March 31, 2025, compared to - $2,476,875 for the same period in 2024.
• Net cash used in investing activities: - $102,800 for the three months ended March 31, 2025, compared to - $2,967,807 for the same period in 2024.
• Net cash provided by financing activities: $1,645,632 for the three months ended March 31, 2025, compared to $512,766 for the same period in 2024.

Unique Metrics

• Interest expense: - $5,524,454 for the three months ended March 31, 2025, compared to - $6,521,534 for the same period in 2024.
• Amortization of debt discount: - $1,148,719 for the three months ended March 31, 2025, compared to - $955,322 for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company is seeking additional funding through debt, construction lending, and equity financing to support its development plan and working capital needs. There is substantial doubt about the company’s ability to continue as a going concern due to insufficient cash flows to meet current operating costs.
• Non-Core Business: The company has received a nonbinding proposal from IRG related to a proposed acquisition, and discussions are ongoing.
• Priority: The company has entered into multiple amendments to extend the maturity dates of its debt instruments, indicating a focus on managing its financial obligations.