|1||Founded by experts in esports and hospitality with the skills to improve and grow the brand.|
|2||If we achieve our vision, Valhalla Esports Lounge will define a new type of restaurant and bars.|
|3||Innovative new concept in the rapidly growing esports market.|
|4||Has raised over $1.2M from investors.|
We created one of the coolest esports venues on the planet for gamers, now we want gamers to own it!
Valhalla Esports Lounge started on January 11th, 2018 when the founder, Hans, attended a watch party for the Houston Outlaws, one of the professional esports teams competing in the Overwatch League. The incredible energy of the fans at the watch party inspired Hans to create a sports bar for gamers!
When developing the concept Hans met Reed Woogerd, who had an extensive background in hospitality!
Together the two of them created a refined esports bar experience that is redefining what esports venues can be!
Hans was a lifelong gamer organizing LAN parties, and even hosting guitar hero tournaments at local bars while still in high school to raise money for his debate team. When leaving High School, Hans joined the US Army as an Airborne Infantryman.
After he got out of the Army it was the friends he made in video games that helped him through the difficult transition. He joined a guild in the Elder Scrolls Online that became his much needed support group when he needed it the most.
Since gamers had done so much for Hans that he was doubly motivated to make Valhalla Esports Lounge a second home for the gamers of the world!
With experience ranging from fine dining restaurants to nightclubs, Reed Woogerd developed some of the most popular bar/restaurant concepts in Ohio. Reed has gone on to explore some of the nation’s top hospitality markets, developing an upscale boutique hotel and restaurant in Silicon Valley and now sitting on our board of directors as he led our team in concept development, menu development and recruiting while opening our first venue in Austin.
Now we want gamers to own Valhalla Esports Lounge!
Valhalla Esports Lounge is a full service bar and restaurant with a 12 pc gaming arena, free to play consoles and over 20 TVs to show the latest esports and traditional sports!
Every week we host tournaments at Valhalla Esports Lounge where participants of all ages compete for cash prizes and bragging rights!
We have a great menu full of delicious food and tasty drinks! When you stop in you can try our wings that come in three signature sauces like Movie Theater Butter Buffalo, Cherry Cola BBQ, and Jalapeno Parmesan Ranch!
Our drinks are not only creative, but taste amazing too! Our boozy slushies are sure to turn any night into a good time!
If you want some more fire, our Game Over will do!
Valhalla Esports Lounge Coming to a City Near You!
Our team has a big vision to bring this concept to cities all over America. Right now we are perfecting our craft in Austin, TX then coming to a city near you!
We don't just want to give gamers a second home, we want to let them be owners of it! Invest now to join us in fulfilling this vision!
Check out our Instagram, and the picture below to see what Valhalla Esports Lounge is all about!
Valhalla Esports Lounge has financial statements ending December 31 2019. Our cash in hand is $97,635, as of May 2020. Over the three months prior, revenues averaged $48,617/month, cost of goods sold has averaged $15,654/month, and operational expenses have averaged $63,895/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.
Valhalla Esports Lounge is a full service bar and restaurants with a 12 pc arena, free to play consoles, DJ booth, and dance floor.
During the day we do esports tournaments and at night we transition to high volume drink service.
We want to have a chain of Valhalla Esports Lounges. At least 50 including corporate stores and franchises.
Esports USA Holdings, Inc. was incorporated in the State of Delaware in August 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in August 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Esports USA Holdings, Inc. was incorporated in Delaware on September 27, 2018. It is the sole owner of 100% membership interests in HOU-1 LFG Esports Bar LLC and 710B West Sixth LLC. The consolidated financial statements attached to this Form C include the financial position and results of operations of all related entities (referred collectively as the ‘Company’). The Company does business (dba) Valhalla Esports Lounge. The Company opened is first Valhalla Esports Lounge in Austin, Texas in August of 2019.
Liquidity & Capital Resources
To-date, the company has been financed with $945,999 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 10 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 3 months following this Offering. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. 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
Esports USA Holdings, Inc. cash in hand is $97,635, as of May 2020. Over the last three months, revenues have averaged $48,617/month, cost of goods sold has averaged $15,654/month, and operational expenses have averaged $63,895/month, for an average burn rate of $30,932 per month. Our intent is to be profitable in 10 months.
In late January through early March of 2020 we hit record numbers, with February bringing in $56,000 in sales.
We expect revenue to be low in the next month or two. By 6 months out we expect to be averaging over $43,000 in sales. We are cutting back our kitchen to either nothing or just Pizza. We have cut our expenses down to $43,000 a month, because most of our expenses were kitchen staff.
We have the PPP loan, and cashflow from the venue once we can reopen. We also host esports tournaments which will help supplement
That COVID-19 continues, and even when forced shelter in place is over customers do not feel safe enough to come out.
Outstanding debt that will be paid off overtime. This debt is only an issue if cashflow remains low after COVID-19.
Big events like SXSW, which are the lifeblood of nightlife in Austin, may be cancelled into 2021.
After reopening COVID-19 has another spike and venues across the state or country are force to re-close.
The Company runs out of cash before spring of 2021, which is when bars in Austin make the most money for the year.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
If The Company fails to successfully implement the growth strategy, which includes opening new domestic, the ability to increase revenues and operating profits could be adversely affected.
Timothy Jones and David Baumgartner are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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