http://www.mmapayout.com/2008/04/ifl-10-k-notes.html


April 21, 2008


IFL 10-K Notes



The IFL released its 10-K annual report last week. The company has lost a total of $31 million through the end of 2007, including $21.3 million last year alone. The biggest news from the filing was the inclusion of an opinion from the company's independent auditors expressing doubt about its ability to continue as a going concern. From the filing:
<BLOCKQUOTE>As a result of our continued losses, our independent auditors have included an explanatory paragraph in our financial statements for the fiscal year ended December 31, 2007, expressing doubt as to our ability to continue as a going concern. The inclusion of a going concern explanatory paragraph in the report of our independent auditors could make it more difficult for us to secure additional financing or enter into strategic relationships with distributors on terms acceptable to us, if at all, & may materially & adversely affect the terms of any financing that we may obtain...

We expect that our revenues from operations will be insufficient to meet our projected expenses, unless we are able to increase our revenues through other sources, such as entering into a strategic alliance with a significant television broadcaster or sports or entertainment enterprise or exploiting our digital rights. Unless we can successfully increase our revenues through these other sources (in excess of the costs we incur to generate these revenues), we will likely be required to raise additional capital through equity or debt financings by the end of the second quarter or in the early part of the third quarter of 2008. Such capital may not be available, or, if it is available, may not be available on terms that are acceptable to us. A future financing may be substantially dilutive to our existing stockholders & could result in significant financial & operating covenants that would negatively impact our business. If we are unable to raise sufficient additional capital on acceptable terms, we will likely have a cash shortage which would disrupt our operations, have a material adverse effect on our financial condition or business prospects & could result in insolvency.</BLOCKQUOTE>In other words, the end game is approaching for the company as it will need additional capital to continue through the end of the year. The inclusion of a going concern explanatory paragraph will make the company's efforts to find additional funding more difficult. At the end of 2007 the company had $6.1 million in cash.

The IFL's largest expense in 2007 was the promotion, staging, & production of live events. The company spent $15.9 million on 13 events last year, an average of $1.2 million per event. The company generated $5.7 million in total revenue including $2.4 million in live event revenue (mainly consisting of the live gate), $1.6 million in TV rights fees from MyNetworkTV, $1 million in international TV rights fees (with programming in 50 countries), $498,000 in sponsorship revenue, & $117,544 in branding revenue.

The company currently has 27 employees in two offices in New York & Las Vegas (20/7 split). The total staff payroll for 2007 was $4.5 million. Jay Larkin (CEO) & Michael O'Keefe (CFO) currently have base salaries of $325,000 & $240,000 respectively.

Glad i didn't pick up any of those stocks for cheap as hell a while back.

I didn't really like the IFL. Had potential but didn't have the financial backing like others seem to do.

lol i don't like ifl, if they had better fighters then it would have had the potential to be something.

I always hated the team format.