HALL OF FAME RST.ENTM. EQ.WARRT(HOFVW) - 2024 Q1 - Quarterly Report

Revenue Generation - Hall of Fame Resort & Entertainment Company generated revenue from various streams including sponsorship agreements, rents, events, exclusive programming, attractions, and hotel operations[251]. - The company expects revenue to continue increasing with the opening of Gameday Bay Waterpark and Hilton Tapestry Hotel, which are currently under construction[254]. - The Hall of Fame Village Media has produced exclusive programming leveraging professional football, contributing to diversified revenue streams[248]. - Total revenues for Q1 2024 were $4,191,315, an increase of 34.3% compared to $3,120,433 in Q1 2023[276]. - Sponsorship revenues increased by $186,256, or 27.7%, totaling $859,731 in Q1 2024 compared to $673,475 in Q1 2023[277]. - Revenue from events, rents, restaurant, and other sources surged by $1,146,565, or 126.2%, reaching $2,054,877 in Q1 2024[278]. - Hotel revenues decreased by $261,939, or 17.0%, to $1,276,707 in Q1 2024 from $1,538,646 in Q1 2023[279]. Operating Expenses and Financial Performance - Operating expenses have increased due to the completion of Phase II assets and are expected to rise further with the addition of new events and facilities[255]. - Operating expenses dropped by $6,378,352, or 50.9%, totaling $6,150,364 in Q1 2024 compared to $12,528,716 in Q1 2023[280]. - Total interest expense rose by $2,888,897, or 79.5%, reaching $6,521,534 in Q1 2024 compared to $3,632,637 in Q1 2023[284]. - Net cash used in operating activities was $2,476,875 for Q1 2024, a decrease of $9,066,057 from $11,542,932 in Q1 2023[293]. - The company reported a net loss of $14,630,176 for Q1 2024, an improvement from a net loss of $19,392,374 in Q1 2023[276]. - The company had an accumulated deficit of $231.5 million as of March 31, 2024[290]. Strategic Partnerships and Development Plans - The strategic partnership with Josh Harris and David Blitzer aims to enhance youth sports programming at the ForeverLawn Sports Complex, demonstrating a commitment to inspire and educate youth through sports[269]. - The strategic plan for Hall of Fame Village includes three phases, with Phase I operational and further expansions planned for residential and entertainment spaces in Phase III[250]. - The company expects to raise additional financing to support its development plan and working capital needs[291]. Ownership and Asset Management - Hall of Fame Village completed the sale of 80% of a newly formed limited liability company, Sandlot HOFV Canton SC, LLC, for a purchase price of $10 million[270]. - The company has reduced ownership of the ForeverLawn Sports Complex to 20% as of January 11, 2024[247]. - The outstanding principal amount of the company's term loan was adjusted to $10,542,308 following recent amendments to the loan agreement[260]. - The company has entered into multiple amendments to its term loan agreements, resulting in increased principal amounts due to advances totaling $726,634[265].