We have financial statements ending December 31 2020. Our cash in hand is $335,000, as of March 2021. Over the three months prior, revenues averaged $19,000/month, cost of goods sold has averaged $21,000/month, and operational expenses have averaged $90,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
As Chattanooga Football Club enters a new era of growth, we’re inviting you to invest in our future and own part of the team. By selling equity shares, we’re expanding our commitment to Chattanooga and our fans, so that when Chattanooga Football Club wins, we all win. We are leading the way in American soccer, creating a sustainable model that’s better for players, fans, and communities.
Our goal has always been to establish a community-based club that will be around for 100 years, like soccer clubs around the world. With the experience gained over the last 10 seasons, we've established our place in the landscape of American soccer and are ready to move to the next level. We are adding professional players next year and playing a longer season in a new league we're helping launch. This is something we’ve been working on for years, and we are thrilled to finally see it happen.
Milestones
Beautiful Game, Inc. was incorporated in the State of Tennessee in October 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in October 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
-Revenues & Gross Margin. For the period ended December 31, 2020, the Company had revenues of $452,470 compared to the year ended December 31, 2019, when the Company had revenues of $1,009,938 . Our gross margin was 16.64% in fiscal year 2020, compared to 25.01% in 2019.
-Assets. As of December 31, 2020, the Company had total assets of $737,984, including $352,131 in cash. As of December 31, 2019, the Company had $401,459 in total assets, including $99,715 in cash.
-Net Loss. The Company has had net losses of $837,002 and net losses of $1,055,242 for the fiscal years ended December 31, 2020 and December 31, 2019, respectively.
Liabilities. The Company's liabilities totaled $612,387 for the fiscal year ended December 31, 2020 and $41,360 for the fiscal year ended December 31, 2019.
Liquidity & Capital Resources
To-date, the company has been financed with $2,125,707 in equity.
In 2020 the Company received $450,000 in bridge loans from investors. These loans may be converted into Equity in future years.
The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Beautiful Game, Inc. cash in hand is $335,000 as of March 2021. Over the last three months, revenues have averaged $19,000/month, cost of goods sold has averaged $21,00/month, and operational expenses have averaged $68,000/month, for an average burn rate of $70,000 per month.
We are hosting NISA Spring Tournament and will be able to play our first entire professional season with fans in attendance, allowing us to generate revenue beyond the bounds of our past season. Our partnerships are expanding in number and commitment. We were also granted a second Small Business Administration Payment Protection loan in early 2021.
Our expenses in 2021 will rise above 2020 expenses as described above with increased games played and hosting a tournament. The increase in expenses will primarily be related to the Cost of Goods Sold.
Small Management Team. Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Competition. The Club will be facing competition from a new team that has announced it will also be playing in Chattanooga. Although the club feels strongly that its fan loyalty will sustain its business model, there is a risk of lower attendance and revenue due to the competition from the new club.
Stadium Lease Terms. The Company leases the use of a stadium; it does not own its own stadium. The current lease is a 2 year commitment with an option for a 1 year extension through the 2021 season. While the team’s lease is a significant source of revenue for the stadium, there is no guarantee that the lease will be renewed for the Company on similar or feasible terms in the future. Should the Company’s lease expire or should the Company and the stadium fail to come to agreement, the Company would need to find another venue and there is no guarantee that another facility would provide similar features, cost-effective lease terms or revenue stream opportunities.
| Director | Occupation | Joined |
| Thomas Clark | Real Estate Analyst @ Lamppost Properties, LLC | 2018 |
| Sheldon Grizzle | Contractor @ Beautiful Game, Inc dba Chattanooga Football Club | 2018 |
| Paul Rustand | Designer @ Widgets and Stone, LLC | 2018 |
| Frank Kruesi Brock, Jr | Executive Director @ Chattanooga FC Foundation | 2018 |
| Daryl Heald | Philanthropic Consulting @ MacClellan Foundation | 2018 |
| Marshall Brock | Investment Advisors @ Keel Point Advisors | 2018 |
| Tim Kelly | Auto Dealer @ Kelly Auto Group, Inc | 2018 |
| Hiren Desai | Real Estate Developer @ 3H Group | 2019 |
| Claire Tuley | Attorney @ Baker and Donelson | 2019 |
| Jeremy Alumbaugh | Coach and Sports Director @ Beautiful Game, Inc | 2019 |
| Barry Large | Venture Capitalist @ Lamp Post Group | 2019 |
| Davis Grizzard | President & CEO @ SageHill Investors | 2020 |
| Officer | Title | Joined |
| Tim Kelly | Chairman | 2018 |
| Sheldon Grizzle | Vice Chairman | 2018 |
| Paul Rustand | Secretary | 2018 |
| Thomas Clark | Treasurer | 2018 |
| Date | Security | Amount |
| 01/2020 | Priced Round | $605,000 |
| 06/2019 | Priced Round | $872,750 |
| 12/2018 | Priced Round | $447,956 |
| 11/2018 | Priced Round | $200,000 |
| $50,000 | 85% -- professional player payroll
10%-- marketing
5% -- Wefunder Intermediary fee
|
| $1,070,000 | 50% --player payroll
20%--marketing budget
15%-- travel budget
10%-- international friendlies
5% -- Wefunder Intermediary fee
|
| Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
| Class A Units | 24,108.1007 | 24,108.1007 | Yes |
| Class S Units | 20,000 | 6,972 | No |
| Class B Units | 5,000 | 3,583.650175 | No |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.