LINGERIE FIGHTING CHAMPIONSHIPS, INC. FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of
Our financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are
expressed in
As used in this quarterly report, the terms "we", "us", "our" and "our company"
mean
General Overview
We were incorporated under the laws of the
We are a media company focused on the development, production, promotion and distribution of original entertainment which we plan to make commercially available predominantly through live entertainment events, as well as through digital home video, broadcast television networks, video-on-demand and digital media channels.
Our business and corporate address is
We do not have any subsidiaries.
We have never declared bankruptcy nor have we ever been in receivership.
Our Current Business
Our LFC business and brand is focused on building and establishing a sports entertainment league that utilizes wrestling and mixed martial arts ("MMA") fighting techniques for purposes of providing entertainment. We seek to promote and market our brand, our programming, our events and our products.
Our mission is to establish the popularity of our LFC league and brand based on holding live events and to promote our athletes via a reality series and merchandise such a t-shirts and calendars. Our uniqueness is derived from our predominantly all female league structure, where a vast array of beautiful, attractive and unique women engage in wrestling and MMA fighting techniques against one another for purposes of delivering high quality entertainment to mature audiences.
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Our management believes that the LFC league and our unique approach in applying a predominantly all female league structure to wrestling and mixed martial arts gives us a substantial competitive advantage to build the popularity of the LFC league in general.
Results of Operations
Three months ended
Our operating results for the three months ended
Three Months Ended
September 30, Changes
Statement of Operations Data: 2020 2019 Amount %
Revenue $ 14,661 $ 18,939 $ (4,278 ) (23 %)
Cost of Services (23,552 ) (22,369 ) (1,183 ) -
Total operating expenses (73,972 ) (45,027 ) (28,945 ) 64 %
Other expense (81,562 ) (53,088 ) (28,474 ) 54 %
Net loss $ (164,425 ) $ (101,545 ) $ (62,880 ) 62 %
Revenues
We generated revenues of
Cost of Services
We incurred total cost of services of
Operating Expenses
We incurred total operating expenses of
Other Income (Expenses)
We recognized total other expense of
Net Income (Loss)
We incurred net loss of
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Nine months ended
Our operating results for the nine months endedSeptember 30, 2020 andSeptember 30, 2019 , and the changes between those periods for the respective items are summarized as follows: Nine Months Ended September 30, Changes Statement of Operations Data: 2020 2019 Amount % Revenue$ 22,021 $ 22,623 $ (602 ) (3 %) Cost of Services (25,852 ) (33,619 ) 7,767 - Total operating expenses (169,341 ) (182,844 ) 13,503 (7 %) Other income (expense) 1,245,574 (296,480 ) 1,542,054 (520 %) Net Income (loss)$ 1,072,402 $ (490,320 ) $ 1,562,722 (319 %) Revenues
We generated revenues of
Cost of Services
We incurred total cost of services of
Operating Expenses
We incurred total operating expenses of
Other Income (Expenses)
We recognized total other income of
Net Income (Loss)
We recognized net income of
Liquidity and Capital Resources
September 30, December 31, Changes
Working Capital Data: 2020 2019 Amount %
Current Assets $ 788 $ 43,707 $ (42,919 ) (98 %)
Current Liabilities $ 3,295,107 $ 4,410,428 (1,115,321 ) (25 %)
Working Capital Deficiency $ (3,294,319 ) $ (4,366,721 ) 1,072,402 (25 %)
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At
The ability of the Company to realize its business plan is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.
These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The following table sets forth certain information about our cash flow during
the nine months ended
Nine Months Ended
September 30, Changes
Cash Flows Data: 2020 2019 Amount %
Cash Flows used in Operating Activities
(78 %)
Activities 25,000 116,000 (91,000 )
Net decrease in cash during period
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities.
During the nine months ended
During the nine months ended
Cash Flows from Investing Activities
There were no investing activities during the nine months ended
Cash Flows from Financing Activities
During the nine months ended
Off-Balance Sheet Arrangements
As of
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Significant Accounting Estimates and Policies
The preparation of financial statements in accounting principles generally
accepted in
Revenue Recognition
The Company recognizes revenue from the sale of products and services in accordance with ASC 606,"Revenue Recognition" following the five steps procedure:
Step 1: Identify the contract(s) with customers
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation
Convertible Instruments and Derivatives
The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 "Derivatives and Hedging Activities."
Fair Value Measurement
The Company adopted the provisions of ASC Topic 820, "Fair Value Measurements and Disclosures," which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.
ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:
Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or
inputs that are observable
Level 3 - inputs that are unobservable (for example cash flow modeling inputs
based on assumptions)
The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis.
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Recent accounting pronouncements
In
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