Alliance MMA first company to go public, starts trading at $4.50 a share

Alliance MMA estimates assets of $14 million, $3.3 million operations loss

Alliance MMA (NASDAQ:AMMA) is a mixed martial arts (MMA) company that publicly began trading in October 2016, opening at $4.50 a share.  It was the first of its kind to do so since the International Fight League in 2006, a historic moment nonetheless.

Every publicly traded company is required to file a Form 10-K which is an annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company’s financial performance.

Today, Alliance MMA filed a Form 12b-25.  A Form 12b-25 is filing with the SEC, also known as the Notification of Late Filing. It is used when a company anticipates that other key filings will not be completed by their deadlines.

You can view the filing here.

Annual reports on this Form shall be filed within the following period:

(a) 60 days after the end of the fiscal year covered by the report (75 days for fiscal years ending before December
15, 2006) for large accelerated filers (as defined in 17 CFR 240.12b-2):
(b) 75 days after the end of the fiscal year covered by the report for accelerated filers (as defined in 17 CFR 240.12b-2); and
(c) 90 days after the end of the fiscal year covered by the report for all other registrants.

Today, being March 31, 2017, Alliance MMA was nearing the end of the 90 day period.

In the report Alliance MMA CEO and Chairman Paul Danner states:

“On September 30, 2016, in connection with its initial public offering, the Company completed the acquisition of the mixed martial arts business assets of seven private companies and purchased the mixed martial arts related media libraries of two others. From the formation of the Company on February 12, 2015 until September 30, 2016, the Company had no operations or revenue, limited assets consisting only of prepaid expenses, and liabilities incurred in connection with the anticipated initial public offering and concurrent acquisition of assets. Accordingly, for the fiscal year ended December 31, 2015, the Company had total assets of $25,000, total liabilities of $406,167, and loss from operations of $386,456 . During that period, the Company had no cash flow from operations, cash flow from borrowing from an affiliate of $358,739, and net loss per share of $0.07. As a result of the completion of the initial public offering and the acquisitions described above, and after adjusting for certain non-cash compensation expenses incurred prior to the initial public offering, we estimate that, for the fiscal year ended December 31, 2016, the Company will have assets of approximately $14.0 million and total liabilities of approximately $0.3 million, and will incur a loss from operations of approximately $3.3 million, or approximately $0.46 per share.”

Danner expects completed Form 10-K to be turned in within grace period

“Due to the Company’s efforts to resolve certain matters relating to non-cash compensation expenses incurred prior to the Company’s initial public offering on September 30, 2016, the compilation, dissemination and review of the information required to be presented in the Form 10-K for the period ending December 31, 2016 could not be completed and filed by the Company without undue hardship and expense to the Company. The Company anticipates that it will file its Form 10-K for the period ended December 31, 2016 within the “grace” period provided by Securities Exchange Act Rule 12b-25.”

Despite rocky start, still moving forward

Alliance MMA officials just returned from two sellout shows in one week;  Combat Games (COGA) 54 in Snoqualmie, Washington at the Snoqualmie Casino, and Cage Fury Fighting Championship (CFFC) 64 in San Diego, California at The Observatory North Park.

Next up, Cage Fury and Combat Games are set to host events simultaneously on May 20th as CFFC 65 is held at the 2300 Arena in Philadelphia, PA and COGA 55 returns to the Snoqualmie Casino. CFFC intends to make its return to San Diego in early June of 2017.

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