Financial Performance - For fiscal year 2025, the company recorded a net cash outflow from operations of A$8,307,183, an improvement from A$9,330,767 in fiscal year 2024[49]. - The company reported a loss after tax of A$26,016,967 for fiscal year 2025, compared to a loss of A$14,408,346 in fiscal year 2024[49]. - Total revenue for fiscal year 2025 was A$1,377,921, a substantial increase of A$815,609 or approximately 145% compared to A$562,312 in fiscal year 2024[237]. - The company's cash balance decreased to A$2,084,674 as of June 30, 2025, down from A$3,544,837 on June 30, 2024[235]. - The net liability position changed to A$1,381,647 at June 30, 2025, from a net asset position of A$2,558,544 on June 30, 2024, primarily due to increased losses and higher payables[235]. - Employee salaries and benefits increased to A$5,708,574 in fiscal year 2025, up from A$5,504,592 in fiscal year 2024, reflecting additional costs from new employees due to the BJJLink acquisition[235]. - Investor relations and corporate advisory expenses surged to A$4,780,451 in fiscal year 2025, up from A$160,586 in fiscal year 2024, a significant increase of A$4,619,865[235]. - Share-based payments expense rose to A$9,716,016 in fiscal year 2025, up from A$4,521,598 in fiscal year 2024, an increase of A$5,194,418 due to the issuance of restricted stock units and performance rights[235]. - Revenue from the Warrior Training Program represented greater than 70% of net revenues during fiscal years 2025 and 2024[226]. - SaaS revenue was earned for the first time in fiscal 2025 with the acquisitions of Hype and BJJLink, providing strong growing recurring revenue streams[227]. Operational Risks - There is substantial doubt about the company's ability to continue as a going concern due to its financial position and operating losses[51]. - The company relies heavily on technology for operations, and any security breaches or outages could disrupt business and harm its reputation[55]. - The company faces significant competition in the fitness and entertainment sectors, which could impact revenue generation[54]. - The company is subject to risks related to content moderation and compliance with laws due to user-generated content on its platform[59]. - The company may experience fluctuations in reported results due to exchange rate movements affecting its international operations[65]. - The company faces risks related to payment processing, including potential increases in fees and software malfunctions that could impact revenue[78][79]. - The company is dependent on maintaining strong relationships with partner gyms and may face adverse effects from disputes or contract terminations[70][72]. - The company must adapt to technological changes and competition in the fitness industry to avoid losing clients and revenue[87][88]. - The company is subject to various international market risks, including political instability and unfavorable economic conditions[90]. - The company faces risks related to government regulation, including potential adverse impacts from political instability and unfavorable economic conditions in international markets[98]. Strategic Initiatives - The company expects operating expenses to increase as it invests in sales, marketing, research and development, and expands its operating infrastructure[50]. - The company has experienced growth in partner gyms, but future expansion may strain management and operational resources[77]. - The company is expanding into new markets, which may lead to increased risks due to unfamiliarity and different competitive conditions, potentially resulting in higher operating expenses[92]. - The company plans to launch a Community and Fan platform in 2026, targeting an estimated 700 million global fans of MMA, supported by the Solana blockchain network[147]. - The company aims to convert the interest of 700 million combat sports fans into active participation through its training programs and platforms[178]. - The company is developing a blockchain- and AI-powered rewards platform to enhance engagement and monetization in martial arts[156]. - The company anticipates launching its Community and Commerce Platform in 2026, targeting a global martial arts community of 700 million fans[190]. - The company plans to introduce a tokenized rewards and loyalty platform supported by the Solana blockchain in early 2026, allowing users to earn cryptocurrency rewards[183]. - The company is developing a Web 3.0 ecosystem that integrates combat sports, blockchain, and artificial intelligence, with a testnet release already underway[199]. Compliance and Governance - The company is required to comply with economic sanctions laws, which may restrict transactions in certain markets and could lead to fines or damage to its reputation[108]. - The company must assess and report on the effectiveness of its internal controls over financial reporting starting with the annual report for the year ending June 30, 2024[115]. - The company has identified material weaknesses in its internal controls over financial reporting, including a lack of a formally implemented system and insufficient resources and key accounting personnel[117]. - There is a reasonable possibility that material misstatements in the annual financial statements could occur due to inadequate segregation of duty controls[118]. - The company is enhancing its finance and reporting function with additional key hires and professional education to remediate identified weaknesses[121]. - Increased costs are expected as a result of being a listed public company, including legal, accounting, and compliance expenses[123]. - The company may face significant compliance costs if it ceases to be an "emerging growth company," with estimated costs of compliance being around $210,000 per annum[114]. - As a foreign private issuer, the company is permitted to file less information with the SEC than domestic issuers, which may result in less publicly available information[134]. - The company may lose its foreign private issuer status, which would require compliance with more extensive U.S. domestic reporting requirements and increase legal and compliance costs[135]. Market Position and Growth - MMA.INC operates four core business units, with over 5 million social media followers, 530,000 user profiles, and 75,000 active students across 16 countries[144]. - In September 2024, MMA.INC entered a three-year revenue share agreement with UFC Gym Group, where the company will receive 30% of program revenue from over 150 gyms in 40 countries[150]. - The company completed a private placement of ordinary shares in November 2024, raising US$1,815,451 at US$1.68 per share, indicating strong management confidence[153]. - MMA.INC acquired BJJLink for up to US$13 million, enhancing its position in the martial arts management sector[154]. - The company successfully completed a US$5 million public offering in June 2025, further strengthening its financial position[155]. - The company's business model is subscription-driven, with a projected growth in the martial arts industry to 67,000 gyms by the end of 2025, generating approximately US$19.4 billion in annual revenues[179][180]. - The strategic partnership with UFC Gym includes the selection of BJJLink as the official software platform for its new Brazilian Jiu-Jitsu franchise studios[157].
Alta Global Group Limited(MMA) - 2025 Q4 - Annual Report