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 supported by a proprietary webcasting platform.

• Revenue is primarily generated 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.

• Competitive strengths include a proprietary platform, experienced management, and dedicated customer service.

• Plans to expand into platform-as-a-service and self-service offerings to diversify revenue streams.

Financial performance and metrics

• For the nine months ended September 30, 2024, revenue was $2.7M with a net loss of $1.8M; for the same period in 2023, revenue was $2.6M with a net loss of $1.4M.

• For the years ended December 31, 2023 and 2022, revenue was $3.7M and $4.8M, with net losses of $1.7M and $7.7M, respectively.

• Gross profit margin declined in 2024 due to increased costs for a major hybrid event.

• Cash used in operations was $1.76M for the nine months ended September 30, 2024, and $265K for the year ended December 31, 2023.

• Negative working capital of $4.8M as of September 30, 2024, and $2.2M as of December 31, 2023; auditor raised substantial doubt about going concern.

Use of proceeds and capital allocation

• Net proceeds of approximately $10.2M (assuming $5.00/share IPO price) expected.

• Planned allocation: 20% to R&D (AI and cloud streaming), 20% to marketing and sales, 15% to working capital, 15% to repay related-party debt, 15% to potential acquisitions, and 15% to infrastructure and technology upgrades.

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