10-K: Limitless X Holdings Reports Significant Revenue Drop in 2024, Focuses on New Ventures

Limitless X Holdings experienced a substantial revenue decrease in 2024 while strategically shifting its focus towards new business divisions including film, skincare, and digital assets.

Summary

• Limitless X Holdings, Inc., a Delaware corporation, reported its Form 10-K for the fiscal year ended December 31, 2024.
• The company experienced a significant decrease in product sales, dropping from $15.5 million in 2023 to $3.4 million in 2024, a 78.3% decrease.
• This decline is attributed to a shift from third-party affiliate marketing to an in-house digital marketing strategy.
• The company is expanding into new industries, including television and film, regenerative skin care, digital assets, entertainment, and real estate.
• Limitless Films advanced a $1 million bridge loan to a film producer in January 2025, secured by copyright ownership in the film and its script.
• The company's independent auditor included a going concern uncertainty explanatory paragraph in their report for 2024.
• The company incurred a net loss of $4.2 million for the year ended December 31, 2024, and has an accumulated deficit of $38.8 million.
• The company is dependent on its CEO, Jas Mathur, as all current brands and products are licensed from his company, Limitless Performance, Inc.
• The company is implementing measures to improve internal control over financial reporting, including hiring additional personnel and creating a functioning audit committee.
• The company is subject to various federal, state, and local laws and regulations, including those related to data privacy and cybersecurity.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with declining revenue, net losses, and a going concern warning. While there are efforts to diversify, the current state warrants a low sentiment score.

Positives

• The company is expanding into new industries, which could diversify revenue streams.
• The company is implementing measures to improve internal control over financial reporting.
• Limitless Films advanced a $1 million bridge loan to a film producer in January 2025, secured by copyright ownership in the film and its script.
• The company is shifting to in-house digital marketing to decrease customer acquisition costs.

Negatives

• The company experienced a significant decrease in product sales, dropping from $15.5 million in 2023 to $3.4 million in 2024.
• The company incurred a net loss of $4.2 million for the year ended December 31, 2024, and has an accumulated deficit of $38.8 million.
• The company's independent auditor included a going concern uncertainty explanatory paragraph in their report for 2024.
• The company is dependent on its CEO, Jas Mathur, as all current brands and products are licensed from his company, Limitless Performance, Inc.

Risks

• The company's future profitability is uncertain.
• The company may not be able to generate sufficient revenue to achieve and maintain profitability.
• The company is dependent on its CEO, Jas Mathur, as all current brands and products are licensed from his company, Limitless Performance, Inc.
• The company is expanding into a variety of different industries through its subsidiaries, any one of which ventures may prove to be unsuccessful.
• If the company fails to cost-effectively acquire new consumers or retain existing consumers, its business could be adversely affected.
• The company faces significant competition in its market from various companies, most of which have greater financial, technical, and other resources than the company.
• The company's stock price may be volatile.

Future Outlook

The company plans to expand into new industries, including television and film, regenerative skin care, digital assets, entertainment, and real estate. The company needs to raise additional capital to fund its future operations.

Industry Context

The company operates in the highly competitive nutritional supplement industry and is expanding into other competitive industries such as film and entertainment, fintech, and real estate.

Corporate Governance

Legal Proceedings

• A legal action was filed in the Central District of California against Limitless X Inc. and two of its officers along with Emblaze One, Inc., alleging trademark infringement and dilution, unfair competition, false advertising, and violation of the right of publicity.
• A new case was filed and just served on us in early April 2025. The case is titled Lace Marketing LLC dba Leisurepay v. Limitless X Holdings Inc, et al, (with 9 other unrelated parties named as defendants), Case number 2024L014194 in Circuit Court of Cook County, Illinois.

Related Party Transactions

• All current brands and products are licensed from Limitless Performance, Inc., an entity owned by the company's CEO.
• The company had various notes payable with its shareholder who is the Chief Executive Officer of the Company.
• The company entered into various notes payable with shareholders of the Company.
• On June 1, 2023, the Company entered into an Agreement for Purchase and Sale of Stock (the Vybe Sale Agreement) with Emblaze One, Inc., a Nevada corporation, (Emblaze) wherein the Company sold all 5,000 of its shares of common stock of its wholly owned subsidiary, Vybe Labs, Inc., a Delaware corporation (Vybe).
• On January 24, 2025, Limitless Films, Inc. (Lender), a subsidiary of Limitless X Holdings Inc. (the Company) entered into a Bridge Loan Agreement with a film producer (the Borrower) to finance part of the pre-production budget for Borrowers upcoming film (the Picture) with an A-list actor.

Stakeholder Impact

• Shareholders may experience dilution due to the issuance of shares for convertible securities and various considerations in the future.
• The company's ability to continue as a going concern is uncertain, which could impact stakeholders.
• The company's dependence on its CEO and related party transactions could create conflicts of interest.

Next Steps

• The company needs to secure additional funding to continue operations.
• The company needs to successfully implement its new business strategies in television and film, regenerative skin care, digital assets, entertainment, and real estate.
• The company needs to improve its internal control over financial reporting.

Key Dates

Keywords

Limitless X Holdings, financial results, revenue, net loss, going concern, product sales, digital marketing, subsidiaries, Jas Mathur, licensing agreement, internal control, risk factors, film production, regenerative skincare, digital assets, entertainment, real estate