|1||Once in a lifetime opportunity to became an owner in the sports industry.|
|2||Filling a gap in the multi-billion dollar MMA industry following examples set by the NCAA to develop a profitable national amateur platform.|
|3||The Sport of MMA is only 25 years old and its natural evolution requires a national amateur organization.|
|4||We are not an idea, a beta, and we are not looking for development money. We are positioned to scale|
|5||Promoted over 150 amateur fighters, some have gone on to professional careers competing for the UFC, Bellator, Combate Americas, and LFA.|
|6||"The Future Fight Here"|
Imagine the NFL or the NBA if there was no NCAA! Surprisingly that was the state of the fastest growing sport in the United States, Mixed Martial Arts. A billion-dollar business without a national amateur platform. With your help, we can evolve and create a NCAA atmosphere and business around amateur MMA.
The Elite Amateur Fight League's team vs team format is designed to capture both hardcore MMA fans, as well as the casual sports fan. A casual sports fan simply is a fan of the home team. Casual fans are linked via geographical ties or peer relations. They still buy the merchandise, buy tickets, and watch events. MMA’s current landscape does not capture this type of fan. We believe our format is the missing piece to reaching 80% more of the sports fan demographic.
After a year of R&D and producing a concept season in 2015 we proved the platform,
Season 1 was televised and included fighters from 4 states, where Dan Henderson’s Team Quest coached by UFC Fighter Sam Alvey, took the 1st national title in Southbend Indiana.
In our second season, we added Northern California with fighters from Team Alpha Male and crowned New Mexico featuring fighters from the world-famous Jackson Wink Academy, as Season 2 national champs in San Diego.
And Finally in Season 3, we added the east coast with Virginia & and fighters from American Top Team from Florida to the league, stretching our reach from coast to coast. In June of 2019, we crowned team Arizona lead by head coach Santino Defranco (FightReady MMA) as champions against team Illinois in Chicago.
Over the last 5 years, we’ve invested our own time and money to build this platform and now that we have teams from coast to coast, with the most talented fighters, from the industry’s biggest gyms, it's time to hit the accelerator.
We have a media product with multiple revenue streams. We make money from B2B
sponsorship sales, Live event ticket sales, and digital content placement.
A fan owned sports league would change the face of sports ownership. A national amateur organization with a 32 team broadcast level, national MMA tournament, featuring the best amateur fighters from across the country, will give elite level fighters the platform they deserve and provide fans the ability to watch the future of the sport.
Our plan is to raise $500,000 to fund the growth of the league by giving our fans an opportunity to become equity owners in the next big sports league. We think this opportunity is similar to investing in the UFC 20+ years ago. And, when we're successful, the owners (fans) will all share in the reward.
We see MMA fans as having immeasurable power through their passion for this sport! Being an MMA fan is what motivated me to build the EAFL, I believe in the power of fans and a fan-owned company, with your support we can build the future of MMA.
Not only will we give amateur MMA fighters the exposure and platform they deserve, but we will also give MMA fans an opportunity to own a piece of the league. Instead of being owned by elite businessmen, we want the EAFL to be owned by sports fans.
The business of sports is funded by us the fans, by offering equity ownership to our fans, fans who chose to become owners can now share in the reward.
How much to invest?
Please only invest what you can afford. Whether you invest a large sum of money or as little as $100, you will be a part owner of a sports league in the fastest growing sport in the world.
Elite Amateur Fight League has financial statements ending December 31 2019. Our cash in hand is $14,370, as of January 2020. Over the three months prior, revenues averaged $1,600/month, cost of goods sold has averaged $1,000/month, and operational expenses have averaged $330/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We are a state vs state, team vs team, televised national amateur Mixed Martial Arts (MMA) tournament. We supply a fair and nationally competitive platform for amateur fighters to compete and a place for the fans of MMA to watch it all go down and meet the future champions of MMA.
We see the Elite Amateur Fight League as a nationally broadcasted amateur sports league with 32 teams in States across the country, established as the lead feeder system to all of professional MMA.
Elite Amateur Fight League, LLC was organized in the state of Indiana on 05/29/2014. In November of 2019, Elite Amateur Fight League, LLC totally and completely (all assets and liabilities) converted to a C Corp under the name, Elite Amateur Fight League, Inc., in the state of Indiana.
Since then, we have:
Historical Results of Operations
Our company has been in existence since 2014, and to-date we have focused primarily on research and development, as well as relationship building within relevant industries. Having launched our first formal season in 2016, we still have only limited operations and performance metrics that prospective investors may evaluate.
The figures above are from reviewed financial statements based on our performance in tax years 2017 and 2018. 2019, however, was a breakthrough year for us, with 975% growth in revenue. This spike was caused by an adjustment in our business model - taking on the role of fight promoter, thereby allowing us to collect revenue from hosting of our own events.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $99,933 in debt.
After the conclusion of this Offering, if we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Elite Amateur Fight League, Inc. cash in hand is $14,370, as of January 2020. Over the last three months, revenues have averaged $1,600/month, cost of goods sold has averaged $1,000/month, and operational expenses have averaged $330/month, for an average net margin of $270 per month.
We have experienced a 975% growth in revenue between the reported 2018 financials and 2019 ($140,615.71). Our expenses for 2019 were $24,827.56 We were able to host multiple live events throughout the year driving ticket sales. We also had 20 air dates from the recorded live events that help drive sponsorship sales.
As we have more capital to operate, we will be able to schedule and book multiple events, driving more revenue. We hope for (but cannot guarantee) a 300% increase in revenue from these additional events in the next 3-6 months. In addition we will be able to make key hires in sales and marketing to help drive sponsorship sales. Expenses will reflect the additional events and hires. We expect (but cannot guarantee) to spend approximately $400,000 through these additional expenses over the next 6 months.
Our revenue stream is largely contingent on events, which are seasonal. In our third season, we facilitated 6 events, the last of which was in June 2019.
Outside of the funds raised by this Offering, we can rely on incoming revenues as additional capital, if necessary.
The following risk factors are not intended as a substitute for professional legal, tax or financial advice. These risks factors are non-exhaustive and are intended to highlight certain risks associate with investing in securities (equity) that are not registered with the Securities and Exchange Commission. This investment is highly speculative and should not be made by anyone who cannot afford to risk their entire capital contribution. In addition to these risks, you should carefully consider the specific information and risks disclosed by the issuer issuing the securities (referred to herein as the "Company"). We strongly advise you to consult an independent financial advisor before investing.
The Company is not subject to Sarbanes-Oxley regulations and may lack the financial controls and procedures of public companies.
The Company may not have the internal control infrastructure that would meet the standards of a public company, including the requirements of the Sarbanes Oxley Act of 2002. As a privately-held (non-public) Company, the Company is currently not subject to the Sarbanes Oxley Act of 2002, and it's financial and disclosure controls and procedures reflect its status as a development stage, non-public company. There can be no guarantee that there are no significant deficiencies or material weaknesses in the quality of the Company's financial and disclosure controls and procedures. If it were necessary to implement such financial and disclosure controls and procedures, the cost to the Company of such compliance could be substantial and could have a material adverse effect on the Company's results of operations.
Investments in small businesses and start-up companies are often risky.
The Company's management may be inexperienced and investors will not be able to evaluate the Company's operating history. Small businesses may also depend heavily upon a single customer, supplier, or employee whose departure would seriously damage the company's profitability. The demand for the company's product may be seasonal or be impacted by the overall economy, or the company could face other risks that are specific to its industry or type of business. The Company may also have a hard time competing against larger companies who can negotiate for better prices from suppliers, produce goods and services on a large scale more economically, or take advantage of bigger marketing budgets. Furthermore, a small business could face risks from lawsuits, governmental regulations, and other potential impediments to growth.
The Securities will not be registered, and no one has passed upon either the adequacy of the disclosure contained herein or the fairness of the terms of the offering.
No governmental agency has reviewed the offerings posted and no state or federal agency has passed upon either the adequacy of the disclosure contained herein or the fairness of the terms of any offering. The exemptions relied upon for such offerings are significantly dependent upon the accuracy of the representations of the investors to be made to the Company in connection with the offering. In the event that any such representations prove to be untrue, the registration exemptions relied upon by the Company in selling the securities might not be available and substantial liability to the Company would result under applicable securities laws for rescission or damages.
There is no public trading market for the securities, and none may develop. The securities sold in this offering are restricted and not freely transferable.
There has been no public or private market for the Company's securities, and there can be no assurance that any such market would develop in the foreseeable future. There is, therefore, no assurance that the securities can be resold at all, or near the offering price. You will be required to represent that it is acquiring such securities for investment and not with a view to distribution or resale, that it understands that the securities are not freely transferable and, in any event, that it must bear the economic risk of an investment in the securities for an indefinite period of time because the securities have not been registered under the Act or applicable state Blue Sky or securities laws. The securities cannot be resold unless they are subsequently registered or an exemption from registration is available.
There is no active trading market for the securities being offered and no market may develop in the foreseeable future for any of such securities. Further, there can be no assurance that the Company will ever consummate a public offering of any of the Company's securities. Accordingly, investors must bear the economic risk of an investment in the securities for an indefinite period of time. Even if an active market develops for such securities, Rule 144 promulgated under the Securities Act ("Rule 144"), which provides for an exemption from the registration requirements under the Securities Act under certain conditions, requires, among other conditions, for resales of securities acquired in a non public offering without having to satisfy such registration requirements, a six-month holding period following acquisition of and payment in full for such securities assuming the issuer of such securities has filed periodic reports with the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act") for a period of 90 days prior to the proposed sale. If the issuer of such securities has not made such filings, such securities will be subject to a one-year holding period before they can be resold under Rule 144. There can be no assurance that the Company will fulfill any reporting requirements in the future under the Exchange Act or disseminate to the public any current financial or other information concerning the Company, as is required by Rule 144 as part of the conditions of its availability.
Accordingly, you should be prepared to hold the securities acquired in such offerings indefinitely and cannot expect to be able to liquidate any or all of their investment even in case of an emergency. In addition, any proposed transfer must comply with restrictions on transfer imposed by the Company and by federal and state securities laws. The Company may permit the transfer of such securities out of a subscriber's name only when his or her request for transfer is accompanied by an opinion of counsel reasonably satisfactory to the Company that neither the sale nor the proposed transfer results in a violation of the Securities Act or any applicable state securities or "blue sky" laws.
THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL EVER FILE A REGISTRATION STATEMENT TO REGISTER SUCH SECURITIES, THAT SUCH REGISTRATION STATEMENT WILL BECOME EFFECTIVE, OR THAT ONCE EFFECTIVE, SUCH EFFECTIVENESS WILL BE MAINTAINED.
Small Management Team.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company has limited operating history.
The Company is still in an early phase, and is just beginning to implement its business plan. There can be no assurance that it will ever operate profitably. The likelihood of its success should be considered in light of the problems, expenses, difficulties, complications and delays usually encountered by companies in their early stages of development, with low barriers to entry. The Company may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties.
The Company may need additional capital, which may not be available.
The Company may require funds in excess of its existing cash resources to fund operating deficits, develop new products or services, establish and expand its marketing capabilities, and finance general and administrative activities.
Due to market conditions at the time the Company may need additional funding, or due to its financial condition at that time, it is possible that the Company will be unable to obtain additional funding as and when it needs it. If the Company is unable to obtain additional funding, it may not be able to repay debts when they are due and payable. If the Company is able to obtain capital it may be on unfavorable terms or terms which excessively dilute then-existing equity holders. If the Company is unable to obtain additional funding as and when needed, it could be forced to delay its development, marketing and expansion efforts and, if it continues to experience losses, potentially cease operations.
The offering price of the securities offered on the Site has been arbitrarily determined and may not be indicative of its actual value or future market prices.
The offering price was not established in a competitive market, but was determined by the placement agent and the Company. The offering price bears no relationship to the Company's assets, book value, historical results of operations or any other established criterion of value. The offering price should not be considered as an indication of the Company's actual value or the value of the securities.
The Company's management may have broad discretion in how the Company use the net proceeds of an offering.
Unless the Company has agreed to a specific use of the proceeds from an offering, the Company's management will have considerable discretion over the use of proceeds from their offering. You may not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.
The Company may not be able to manage its potential growth.
For the Company to succeed, it needs to experience significant expansion. There can be no assurance that it will achieve this expansion. This expansion, if accomplished, may place a significant strain on the Company's management, operational and financial resources. To manage any material growth, the Company will be required to implement operational and financial systems, procedures and controls. It also will be required to expand its finance, administrative and operations staff. There can be no assurance that the Company's current and planned personnel, systems, procedures and controls will be adequate to support its future operations at any increased level. The Company's failure to manage growth effectively could have a material adverse effect on its business, results of operations and financial condition.
The Company faces significant competition
The Company faces competition from other companies, some of which might have received more funding than the Company has. One or more of the Company's competitors could offer services similar to those offered by the Company at significantly lower prices, which would cause downward pressure on the prices the Company would be able to charge for its services. If the Company is not able to charge the prices it anticipates charging for its services, there may be a material adverse effect on the Company's results of operations and financial condition. In addition, while the Company believes it is well-positioned to be the market leader in its industry, the emergence of one of its existing or future competitors as a market leader may limit the Company's ability to achieve national brand recognition, which could also have a material adverse effect on the Company's results of operations and financial condition.
The Company's growth relies on market acceptance.
While the Company believes that there will be significant customer demand for its products/services, there is no assurance that there will be broad market acceptance of the Company's offerings. There also may not be broad market acceptance of the Company's offerings if its competitors offer products/services which are preferred by prospective customers. In such event, there may be a material adverse effect on the Company's results of operations and financial condition, and the Company may not be able to achieve its goals.
The Company may not pay dividends for the foreseeable future.
Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Because the Company's founders, directors and executive officers may be among the Company's largest stockholders, they can exert significant control over the Company's business and affairs and have actual or potential interests that may depart from those of subscribers in the offering.
The Company's founders, directors and executive officers own or control a significant percentage of the Company. Additionally, the holdings of the Company's directors and executive officers may increase in the future upon vesting or other maturation of exercise rights under any of the options or warrants they may hold or in the future be granted or if they otherwise acquire additional interest in the Company. The interests of such persons may differ from the interests of the Company's other stockholders, including purchasers of securities in the offering. As a result, in addition to their board seats and offices, such persons will have significant influence over and control all corporate actions requiring stockholder approval, irrespective of how the Company's other stockholders, including purchasers in the offering, may vote, including the following actions:
-to elect or defeat the election of the Company's directors;
-to amend or prevent amendment of the Company's Certificate of Incorporation or By-laws;
-to effect or prevent a merger, sale of assets or other corporate transaction; and
-to control the outcome of any other matter submitted to the Company's stockholders for vote.
-Such persons' ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company, which in turn could reduce the Company's stock price or prevent the Company's stockholders from realizing a premium over the Company's stock price.
The Company may not have audited financial statements nor is it required to provide investors with any annual audited financial statements or quarterly unaudited financial statements.
The Company may not have audited financial statements or audited balance sheets reviewed by outside auditors. In addition, the Company is not required to provide investors in the offering with financial information concerning the Company to which the investors may use in analyzing an investment in the Company. Therefore, your decision to make an investment in the Company must be based upon the information provided to the investors in its private placement documents without financial statement information and therefore, the limited information provided herewith with which investors will make an investment decision may not completely or accurately represent the financial condition of the company. Furthermore, as a non-reporting SEC company, the Company is not required to provide you with annual audited financial statements or quarterly unaudited financial statements.
Natural disasters and other events beyond the Company's control could materially adversely affect the Company.
Natural disasters or other catastrophic events may cause damage or disruption to the Company's operations, international commerce, and the global economy, and thus could have a strong negative effect on the Company. The Company's business operations are subject to interruption by natural disasters, fire, power shortages, pandemics, and other events beyond the Company's control and could make it difficult or impossible for the Company to deliver services to customers and could decrease demand for the Company's services. The Company's business model involves the marketing of entertainment, including live events and creation of content originating from such events. To the extent, the entertainment industry is impacted by either the ability to create new content (e.g., the halting of events and productions) or the ability to monetize the content (e.g., content sales), the Company's business prospects could be severely hampered.
In addition, as an early stage startup, the Company relies on investments to fund operations. To the extent the Company's investment flow is interrupted by disasters or the effect they have on the economy, the Company's ability to maintain operations could be severely hampered.
In December 2019, a novel strain of coronavirus, COVID-19, was reported in Wuhan, China. The World Health Organization has since declared the outbreak to constitute a pandemic. The extent of the impact of COVID-19 on the Company's operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, its impact on the global economy as well as the impact on the Company's current and potential investors, customers, employees, vendors, and industry events, all of which are uncertain and cannot be predicted. The Company has had multiple planned events cancelled due to concerns about the virus or based on governmental orders prohibiting live events, as a result of the pandemic. At this point, the extent to which COVID-19 may further impact the Company's financial condition or results of operations is uncertain. If the COVID-19 outbreak continues to spread, the Company may need to further limit operations and substantially modify business practices. There is a risk that other countries or regions may be less effective at containing COVID-19, or it may be more difficult to contain if the outbreak reaches a larger population or broader geography, in which case the risks described herein could be elevated significantly.
Company has incurred losses and may incur future losses. The Company has had years of losses. The Company expect to experience losses from operations for some time during this expansion of the league. The Company cannot predict when or if the Company will become profitable. If the Company achieves profitability, the Company may not be able to sustain it.
Company’s Operating Costs May Rise. The Company has budgeted for a wide range of operating costs based on current conditions; but unforeseen conditions could cause operating costs to rise substantially. For example, stadium leasing fees, administrative costs, costs due to expansion into a new league among others may all be larger than expected. An increase in such projected costs or in other operating costs could cause the Company to be unprofitable.
The Company depends on the services of key employees, whose knowledge and connections to the Mixed Martial Arts industry would be difficult to replace. The Company currently does not have a firm plan fully detailing how to replace these persons in the case of death or disability, although this is mitigated by significant skill redundancies among the founders. The Company’s success also depends on the Company’s ability to recruit, train, and retain qualified personnel. The loss of the services of any of the key members of senior management, other key personnel, or the Company’s inability to recruit, train, and retain senior management or key personnel may have a material adverse effect on the Company’s business, operating results, and financial condition. The business may be harmed if the Company lose the services of these people and the Company are not able to attract and retain qualified replacements.
Risks Related to State Sports Sanctioning Requirements. The Company’s events are subject to abide by individual State Sports Sanctioning bodies. Promotion of Mixed Martial Arts events require a promoter’s license issued by State Sports Sanctioning bodies. State regulations are subject to change and can adversely affect the Company’s business model and the Company’s ability to host an event.
Company could incur substantial liability in the event of accidents or injuries occurring during the events. Company holds numerous live events each year. This schedule exposes athletes and employees who are involved in the production of those events to travel and performance-related risks, the consequences of which are not fully covered by insurance. The physical nature of our events exposes our athletes to the risk of serious injury or death. Although the athletes are not employees or independent contractors for the Company. The athletes are all licensed amateur fighters responsible for maintaining their own health, disability and life insurance, the Company self-insures medical costs for the athletes for injuries sustained from the mixed martial arts bout. The Company also self-insures a substantial portion of any other liability that we could incur relating to such injuries. Liability to the Company resulting from any death or serious injury sustained by one of the athletes while competing, to the extent not covered by our insurance, could adversely affect the Company business, financial condition and operating results.
Our live events entail other risks inherent in public live events, which could lead to disruptions of our business, as well as, liability to other parties, any of which could adversely affect our financial condition or results of operations. Company holds numerous live events each year. Certain risks are inherent in competitive mixed martial arts events, as well as, the travel to and from them. Risks of travel and live events include air and land travel interruption or accidents, the spread of illness, injuries resulting from building problems, pyrotechnics or other equipment malfunction, local labor strikes and other force majeure type events. These issues, among others, could result in personal injuries or deaths, cancelled events and other disruptions to our business for which our business interruption insurance may be insufficient . Any of these occurrences could also result in liability to other parties for which we may not have insurance. Any of these risks could adversely affect the Company business, financial condition and/or results of operations.
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