TEN Holdings (XHLD) Registration Filing summary

Company overview and business model

• Provides event planning, production, and broadcasting services, focusing on virtual, hybrid, and physical events using a proprietary webcasting platform.

• Revenue is primarily from virtual and hybrid events, with physical events added after a 2023 restructuring.

• Serves a diverse customer base across technology, healthcare, education, marketing, and nonprofit sectors.

• Operates mainly in the U.S., with a single customer accounting for a significant portion of revenue.

• Plans to expand offerings to include platform-as-a-service and self-service webcasting.

Financial performance and metrics

• For the six months ended June 30, 2024: revenue $2.2M, net loss $0.8M; for 2023: revenue $3.7M, net loss $1.7M.

• Revenue increased 21.3% in the first half of 2024 compared to 2023, but cost of revenue rose 128.5% due to a large hybrid event.

• Negative working capital of $3.6M as of June 30, 2024; auditor raised substantial doubt about going concern.

• Cash used in operations was $1.0M for the first half of 2024; company relies on short-term related party loans.

• Largest customer accounted for 64% of revenue in the first half of 2024.

Use of proceeds and capital allocation

• Plans to use IPO proceeds: 20% for R&D (AI and cloud streaming), 20% for marketing and sales, 15% for working capital, 15% to prepay related party debt, 15% for acquisitions, and 15% for infrastructure upgrades.

• No proceeds from the resale of shares by selling stockholders.