Las Vegas ticketing group Tix Corporation said it will likely have to modify its ticket software or use third party software to comply with new COVID-19 requirements as the entertainment sector begins to reopen.
In the company’s 2021 first quarter financial results, it explains the impact that the pandemic had on its business, while looking ahead to full-capacity reopening. It said it is addressing each property’s COVID-19 ticket sales protocols, coupled with their timing and availability of ticket inventory to sell.
Tix Corp said it continues to monitor the Las Vegas entertainment marketplace to determine when and if it will be able to commence viable operations again. In its 2020 financial results, the group expressed uncertainty over whether it will be able to resume operations.
The operator, which provides discount ticketing services for concerts and shows via its Tix4Tonight brand, has closed all seven ticket booths of the business that is geographically concentrated in the Las Vegas marketplace, via MGM Resorts and Cirque du Soleil shows.
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.
Tix Corp generated no revenue in the first three months of 2021, as compared to $1.96m in the first three months of 2020. The ticketing firm’s first quarter 2021 net loss was $1.48m, as compared to a $927,000 net loss in the first quarter 2020.
In March 2020, Tix Corp laid off the majority of its employees and suspended sales to shows, attractions and tours due to the coronavirus.
Most hotel properties have recently reopened in Las Vegas, along with some shows, attractions and dining 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,” it noted.
It also said it plans to seek additional available disaster assistance, as well as other forms of financing to help with liquidity during this disruption to its business.
Since April 2020, Tix has not made the majority of its lease payments, and is in default on the majority of its operating leases due to the impact on the business related to COVID-19. As of March 31, 2021, the total amount of past due lease payments was more than $1.5m and the company said it is in discussions with its landlords to restructure its leases.
Earlier this month, the company entered into a Conditional Support Agreement with stockholders holding greater than 21 per cent of issued and outstanding capital stock.
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.
The company also reported that its chief financial officer Steve Handy stepped down from his role from today to “pursue another opportunity.”
Image: Christopher Michel / CC BY 2.0 / Edited for size
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