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B2Digital, Incorporated, Inc.(BTDG) a leading sports entertainment company, announced its financial results for the nine months ended December 31, 2022. The company reported a net loss of $19.2 million during this period. Despite the loss, B2Digital generated significant revenue of $576.1 million, reflecting its strong performance in the sports entertainment industry.**
B2Digital, Incorporated, a prominent sports entertainment company, has released its unaudited consolidated financial statements for the nine months ended December 31, 2022. The financial statements reveal a net loss of $19.2 million during this period. However, B2Digital achieved substantial revenue of $576.1 million, underscoring its success in the sports entertainment sector.
Consolidated Balance Sheets
The consolidated balance sheets demonstrate B2Digital's financial position as of December 31, 2022, and provide insights into the company's assets and liabilities. As of the end of the period, B2Digital's total assets amounted to $642.9 million. These assets included cash and cash equivalents of $264 and various other current assets, such as notes receivable, prepaid expenses, and deposits.
On the liabilities side, B2Digital reported total liabilities of $29.5 million as of December 31, 2022. These liabilities comprised current liabilities, accounts payable, accrued liabilities, deferred revenue, and various other obligations. The stockholders' deficit stood at $28.8 million, indicating the company's financial challenges.
Consolidated Statements of Operations
The consolidated statements of operations shed light on B2Digital's financial performance during the three and nine months ended December 31, 2022. The company generated total revenue of $576.1 million during the nine-month period. This revenue primarily came from live event revenue, which amounted to $77.8 million. Despite the substantial revenue, B2Digital faced significant operating expenses, including sales and marketing, utilities, leasing expense, and payroll expense.
As a result, B2Digital incurred a net loss of $19.2 million from continuing operations for the nine months ended December 31, 2022. The net loss can be attributed to various factors, including general and administrative expenses, depreciation and amortization expenses, and financing expenses. Additionally, the loss was influenced by other factors such as the change in fair value of derivatives and interest expense.
Consolidated Statements of Changes in Stockholders' Deficit
The consolidated statements of changes in stockholders' deficit illustrate the changes in B2Digital's stockholders' equity during the three and nine months ended December 31, 2022. The statements reflect the issuance of convertible notes, the issuance of common stock for services, and the accumulated deficit. These factors contributed to the stockholders' deficit of $28.8 million as of December 31, 2022.
Consolidated Statements of Cash Flows
The consolidated statements of cash flows provide an overview of B2Digital's cash flows for the nine months ended December 31, 2022. The company reported a net loss of $19.2 million from continuing operations and a net loss of $0.6 million from discontinued operations. In terms of cash flow, B2Digital used $2.8 million in operating activities, which includes adjustments for stock-based compensation, depreciation and amortization, and changes in operating assets and liabilities.
B2Digital's investing activities involved capital expenditures and resulted in a net cash outflow of $63,413. The company's financing activities, on the other hand, generated a net cash inflow of $2.7 million, primarily driven by proceeds from notes payable and convertible notes payable.
Conclusion
B2Digital, Incorporated faced a net loss of $19.2 million for the nine months ended December 31, 2022. Despite the loss, the company achieved substantial revenue of $576.1 million during this period, demonstrating its success in the sports entertainment industry. B2Digital continues to navigate its financial challenges and work towards improving its performance in the market.