By Zach Arnold | May 15, 2007
By Zach Arnold
The numbers are in on the IFL’s 2007 First Quarter report and the verdict is not good. The IFL’s first quarter saw the company have a net loss of $7 million USD. They claimed $1.6 million USD in revenues, but the cost to obtain that revenue was $6.4 million USD – $5.6 million USD of it alone for live event costs. In short, the house shows (and the way they are poorly promoting events) are killing the company and the IFL is bleeding cash very quickly. The quarterly report states that the IFL has $9.2 million USD left in cash and cash equivalents. Also, IFL Chief Marketing Officer Joel Ehrlich announced his resignation (effective June 30th).
The IFL stock price closed at $3.00 USD/share on Tuesday afternoon. I don’t expect it to stay at $3.00/share. Just based on the 10k report and today’s filing, the IFL has had a net loss of $16.6 million USD since the promotion started in 2006. Related post at Sprawl ‘n Brawl.