By Zach Arnold | April 17, 2008
Quietly, the IFL filed their 10k SEC report on tax day. Of note, the following items in the report:
- Since the company’s inception, they have suffered a net loss of $31 million USD. Revenues are currently insufficient to run operations past Q3 if things do not change.
- Costs to promote events in 2007 were $15.9 million USD. The companie received $1.6 million USD from MyNetworkTV for 2007 programming.
- There will be no IFL PPVs in 2008.
- The company generated $498,000 USD in sponsorship revenue and $117,544 USD in branded merchandise sales for 2007.
Here’s a paragraph from the 10k filing:
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, and may materially and adversely affect the terms of any financing that we may obtain. If revenues grow slower than we anticipate, or if operating expenses exceed our expectations or cannot be adjusted accordingly, we may not achieve profitability and the value of your investment could decline significantly.