LAS VEGAS, May 17, 2021 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTC Pink: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2021, and provided an update on recent events.
The Current Las Vegas Marketplace:
Our Tix4Tonight business is located in Las Vegas where (when we conduct our business in the ordinary course, which currently we are not) we sell shows, attractions, tours, and dining from our seven ticket booths that are strategically located on the Strip. As previously announced, due to efforts to mitigate the impact of COVID-19, virtually all Las Vegas entertainment, restaurants, bars, and major hotel properties temporarily closed on or about the week of March 16, 2020. With the closure of entertainment on the Las Vegas Strip, and therefore the cessation of revenue for our business, we effected a layoff of the majority of our employees, closed our ticket booths, and continue to significantly reduce our operating costs. The Company’s first quarter 2021 financial results were significantly impacted by the closure of entertainment on the Las Vegas Strip due to COVID-19.
Hotel properties have reopened and many shows and attractions have reopened with continually-lessening limitations on their capacities and operations. It appears that entertainment venues will be able to operate without restrictions in June or July of this year. The Company is addressing each property’s COVID-19 ticket sales protocols, coupled with their timing and availability of ticket inventory for us to sell. The Company will likely have to modify its ticket software or use 3rd party software to comply with new requirements. We are continually monitoring the Las Vegas entertainment marketplace to determine when and if we will be able to commence viable operations again.
We plan to seek additional available disaster assistance, as well as other forms of financing to help with liquidity during this disruption to our business.
Financial Summary Results:
With the closure of entertainment on the Las Vegas Strip due to COVID-19, and therefore the cessation of revenue for our business, the Company generated no revenues in the first three months of 2021, as compared to $1,957,000 in the first three months of 2020. Our first quarter 2021 net loss was $1,476,000, as compared to a $927,000 net loss in the first quarter 2020.
Beginning in April 2020, and due to the impact on our business related to COVID-19, the Company has not made the majority of its lease payments, and is in default on the majority of its operating leases. As of March 31, 2021, the total amount of past due lease payments was approximately $1,523,000. The Company is in discussions with its landlords to restructure its leases.
Recent Events
On April 12, 2021, the Company obtained a Paycheck Protection Program loan in the amount of $980,000.
On April 6, 2021, the Company received the written consent of stockholders representing a majority of the Company’s outstanding shares of stock removing the following individuals from the Company’s Board of Directors: Haren Bhakta, Gopal Patel and John Buckingham. In accordance with the Company’s Bylaws, the ownership of such shareholders and the removal of such individuals from the Company’s Board of Directors were verified by the independent inspector’s certification that the requisite number of valid consents were obtained to authorize the action specified in said consents. As a result of the removal action, Mitch Francis, Norman Feirstein, Barry Fieldman and Jordan Fiksenbaum constitute the Company’s Board of Directors and there are three (3) vacancies on the Board of Directors.
On May 2, 2021, the Company entered into a Conditional Support Agreement, (the “Support Agreement”), with stockholders holding greater than 21% of the Company’s issued and outstanding capital stock. The stockholders party to the Support Agreement have agreed to vote and/or tender, as the case may be, in favor of the acquisition of all outstanding shares of capital stock of the Company not already held of record or beneficially by Mitch Francis and/or his family members and management of the Company (collectively, the “Covered Shares”) at a price per Covered Share equal to at least $0.17. Pursuant to the terms of the Support Agreement, (i) a definitive fully-financed proposal to acquire the Covered Shares must be submitted by Mitch Francis (alone or in concert with other parties) on or before June 15, 2021, (ii) the Board (or a committee thereof) must approve a qualifying transaction on or before June 25, 2021, and (iii) an approved transaction must be consummated on or before August 20, 2021. The Support Agreement contains customary standstill provisions during the pendency of the transaction and mutual releases effective upon consummation of an approved transaction.
On May 12, 2021, Steve Handy, the Company’s Chief Financial Officer, notified the Company that he was resigning, effective May 18, 2021, to pursue another opportunity. Mr. Handy did not resign as an officer of the Company due to any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices. The Company would like to thank Mr. Handy for more than a decade of superb guidance and support and wish him every success in his future endeavors.
About Tix Corporation
Tix Corporation (OTCQX: TIXC) provides discount ticketing services. Due to COVID-19, the Company suspended its operations in March 2020, which included the closure of its current seven discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offers up to a 50 percent discount for shows, concerts, attractions, and tours, as well as discount dining and shopping offers. The Company continually monitors the Las Vegas marketplace to determine when and if it will be able to commence operations again.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company's filings with the OTC Markets. The Company assumes no obligation to update these forward-looking statements. A copy of the Company’s reports for the twelve months ended December 31, 2020, can be found on the Company website at www.tixcorp.com or www.otcmarkets.com.
Investor Contact:
Mitch Francis, CEO, (424)313-8201
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
| March 31, 2021 | December 31, 2020 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 198,000 | $ | 311,000 | |||
| Prepaid expenses and other current assets | 38,000 | 22,000 | |||||
| Total current assets | 236,000 | 333,000 | |||||
| Property and equipment, net | 44,000 | 53,000 | |||||
| Right of use asset, net | 2,565,000 | 2,849,000 | |||||
| Deposits and other assets | 17,000 | 38,000 | |||||
| Total assets | $ | 2,862,000 | $ | 3,273,000 | |||
| Liabilities and Stockholders’ Deficit | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 1,220,000 | $ | 961,000 | |||
| Lease termination obligation, current portion | 20,000 | 20,000 | |||||
| Leases payable, current portion | 1,646,000 | 1,605,000 | |||||
| Notes payable, current portion | 78,000 | 10,000 | |||||
| Total current liabilities | 2,964,000 | 2,596,000 | |||||
| Lease termination obligation, net of current portion | 40,000 | 40,000 | |||||
| Leases payable, net of current portion | 1,841,000 | 1,962,000 | |||||
| Notes payable, net of current portion | 1,052,000 | 1,120,000 | |||||
| Total liabilities | 5,897,000 | 5,718,000 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ deficit: | |||||||
| Preferred stock, $.01 par value; 500,000 shares authorized; none issued | |||||||
| Common stock, $.08 par value; 100,000,000 shares authorized; 23,637,175 and 17,387,175 shares issued and outstanding, net of 16,649,814 and 16,649,814 treasury shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 3,224,000 | 2,724,000 | |||||
| Additional paid-in capital | 95,643,000 | 95,257,000 | |||||
| Treasury stock at cost | (28,167,000 | ) | (28,167,000 | ) | |||
| Accumulated deficit | (73,735,000 | ) | (72,259,000 | ) | |||
| Total stockholders’ deficit | (3,035,000 | ) | (2,445,000 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 2,862,000 | $ | 3,273,000 | |||
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (UNAUDITED) | |||||||||||||
| Three Months Ended March 31, | |||||||||||||
| 2021 | 2020 | ||||||||||||
| Revenues | $ | - | $ | 1,957,000 | |||||||||
| Operating expenses: | |||||||||||||
| Direct costs of revenues | 665,000 | 1,742,000 | |||||||||||
| Selling, general and administrative expenses | 807,000 | 1,058,000 | |||||||||||
| Total costs and expenses | 1,472,000 | 2,800,000 | |||||||||||
| Operating loss | (1,472,000 | ) | (843,000 | ) | |||||||||
| Loss on equity investment | - | (84,000 | ) | ||||||||||
| Other expense | (4,000 | ) | - | ||||||||||
| Net loss | $ | (1,476,000 | ) | $ | (927,000 | ) | |||||||
| Net loss per common share – basic and diluted | $ | (0.07 | ) | $ | (0.05 | ) | |||||||
| Weighted average common shares outstanding – basic and diluted | 21,276,064 | 17,337,897 | |||||||||||