Tix Corporation Reports Full Year 2020 Results and Litigation
LAS VEGAS, March 24, 2021 (GLOBE NEWSWIRE) — Tix Corporation (the “Company”) (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the full year ended December 31, 2020, and new litigation.
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 full year 2020 financial results were significantly impacted by the closure of entertainment on the Las Vegas Strip due to COVID-19.
Most hotel properties have recently reopened and some shows, attractions and dining have recently opened with extreme limitations on their capacities and operations. Shows can be permitted to open with the lesser of 50% occupancy or 250 customers, along with a pre-approved COVID-19 prevention plan. The Company is addressing each property’s COVID-19 ticket sales protocols, coupled with their timing and availability of ticket inventory. 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 in March 2020, full year 2020 revenues decreased to $1,957,000, or 85%, as compared to $12,746,000 in the full year of 2019. Our full year 2020 net loss was $4,716,000, as compared to a $2,973,000 net loss in the full year of 2019.
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 December 31, 2020, the total amount of past due lease payments was approximately $1,062,000. The Company is in discussions with its landlords to restructure its leases.
Litigation
On March 17, 2021, Bandera Master Fund LP (“Bandera”) filed a compliant against the Company in the Delaware Chancery Court demanding to inspect various Company’s books and records pursuant to Section 220 of the Delaware General Corporation Law. Bandera claims to have owned a beneficial ownership in Tix Corporation’s common stock of approximately 11.1% at the date of such filing.
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 currently 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:
Steve Handy, CFO, (424)313-8201
| TIX CORPORATION AND SUBSIDIARY | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 311,000 | $ | 2,251,000 | ||||||
| Prepaid expenses and other current assets | 22,000 | 212,000 | ||||||||
| Total current assets | 333,000 | 2,463,000 | ||||||||
| Property and equipment, net | 53,000 | 123,000 | ||||||||
| Right of use asset, net | 2,849,000 | 3,086,000 | ||||||||
| Other assets: | ||||||||||
| Equity investment | – | – | ||||||||
| Deposits and other assets | 38,000 | 487,000 | ||||||||
| Total other assets | 38,000 | 487,000 | ||||||||
| Total assets | $ | 3,273,000 | $ | 6,159,000 | ||||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable – shows and events | $ | – | $ | 267,000 | ||||||
| Accounts payable and accrued expenses | 961,000 | 487,000 | ||||||||
| Lease termination obligation, current portion | 20,000 | – | ||||||||
| Leases payable, current portion | 1,605,000 | 1,601,000 | ||||||||
| Notes payable, current portion | 10,000 | – | ||||||||
| Deferred revenue | – | 42,000 | ||||||||
| Total current liabilities | 2,596,000 | 2,397,000 | ||||||||
| Lease termination obligation, net of current portion | 40,000 | – | ||||||||
| Leases payable, net of current portion | 1,962,000 | 1,550,000 | ||||||||
| Notes payable, net of current portion | 1,120,000 | – | ||||||||
| Total liabilities | 5,718,000 | 3,947,000 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ equity (deficit): | ||||||||||
| Preferred stock, $.01 par value; 500,000 shares authorized; none issued | ||||||||||
| Common stock, $.08 par value; 100,000,000 shares authorized; 17,387,175 and 17,342,175 shares issued and outstanding, net of 16,649,814 and 16,644,814 treasury shares issued and outstanding at December 31, 2020 and 2019, respectively | 2,724,000 | 2,720,000 | ||||||||
| Additional paid-in capital | 95,257,000 | 95,199,000 | ||||||||
| Treasury stock at cost | (28,167,000 | ) | (28,164,000 | ) | ||||||
| Accumulated deficit | (72,259,000 | ) | (67,543,000 | ) | ||||||
| Total stockholders’ equity (deficit) | (2,445,000 | ) | 2,212,000 | |||||||
| Total liabilities and stockholders’ equity (deficit) | $ | 3,273,000 | $ | 6,159,000 | ||||||
| TIX CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2020 AND 2019 | |||||||||||||||
| Years Ended December 31, | |||||||||||||||
| 2020 | 2019 | ||||||||||||||
| Revenues | $ | 1,957,000 | $ | 12,746,000 | |||||||||||
| Operating expenses: | |||||||||||||||
| Direct costs of revenues | 4,048,000 | 8,069,000 | |||||||||||||
| Selling, general and administrative expenses | 2,461,000 | 5,706,000 | |||||||||||||
| Depreciation | 71,000 | 108,000 | |||||||||||||
| Total costs and expenses | 6,580,000 | 13,883,000 | |||||||||||||
| Operating loss | (4,623,000 | ) | (1,137,000 | ) | |||||||||||
| Loss on equity investment | (84,000 | ) | (336,000 | ) | |||||||||||
| Other income (expense) | (9,000 | ) | 4,000 | ||||||||||||
| Loss before provision for income tax expense | (4,716,000 | ) | (1,469,000 | ) | |||||||||||
| Provision for income tax expense | – | (1,504,000 | ) | ||||||||||||
| Net loss | $ | (4,716,000 | ) | $ | (2,973,000 | ) | |||||||||
| Net loss per common share – basic and diluted | $ | (0.27 | ) | $ | (0.17 | ) | |||||||||
| Weighted average common shares outstanding – basic and diluted | 17,337,353 | 17,342,175 | |||||||||||||
