Brag House Holdings, Inc. (TBH) 2024 10-K Review

In the fast-evolving world of collegiate esports, Brag House Holdings (NASDAQ: TBH) is positioning itself as the first vertically integrated platform for casual college gamers. Launched in 2018 by CEO Lavell Juan Malloy II and COO Daniel Leibovich, Brag House aims to bridge the gap between traditional college sports fandom and competitive gaming under one banner.

Warren.AI 💰 4.0 / 10

Business Model and Strategy

Mission: Brag House’s mission is to empower casual college gamers to connect, compete and “brag” in a safe environment while giving brands authentic ways to engage Gen Z. The platform combines three core pillars:

• B2C (Consumer): A freemium app (“Bragger”) where users predict in‐game outcomes (“Brags”) using virtual Brag Bucks and earn Loyalty Tokens. Paid membership tiers (Bragger Plus, Gamer, Streamer, Ultimate) unlock enhanced rewards, multipliers, tournament discounts and premium content.
• B2B (Brands & Sponsors): White-labelling tournaments and turnkey production for corporate sponsors, including major brands like McDonald’s, Coca-Cola and the Denver Broncos. Revenue streams are generated from tournament fees, sponsorship packages and advertising.
• Data Insights (2026 SaaS Launch): Through partnerships with Artemis and EVEMeta, Brag House is building a machine-learning platform for anonymized Gen Z engagement insights. Learfield’s collegiate media assets provide expansive campus data to refine targeting and creative strategies.

Collegiate Partnerships: In May 2025, Brag House will kick–off its Learfield alliance at the University of Florida, tapping into media rights at 200+ campuses. Student activations and branded events will test the model for national roll-out.

Platform Features:

• Brag Bucks & Loyalty Tokens: Users bet Brag Bucks on match predictions. Correct Brags earn virtual currency and leaderboard positions, which convert into Loyalty Tokens for real-world prizes.
• Live Streaming & Production: Professional-grade broadcasts with commentary, in-game captures and highlight packages.
• Community Engagement: Team rivalries, chat, and user-generated content to sustain average view times of 19 minutes (compared to the industry’s 11-minute benchmark).

2024 Performance Highlights

• Bookings: Held 27 major tournaments, up from 20 in 2023.
• Viewership: Nearly 1.4 million video views across Twitch, YouTube, TikTok and social channels (148% YoY growth).
• Impressions: 8 million+ impressions since inception, a 57% YoY improvement.
• Engagement: 50 K live‐chat messages and a 7.76% engagement rate (5x the 1.5% industry average).
• Revenue: $105 in live-stream ad revenue (vs. $366 K in 2023’s tournaments). Tournament bookings were paused late–year pending IPO.
• Net Loss: $(3.29 M) vs. $(4.67 M) in 2023.
• Cash & Liquidity: $29 K on 12/31/24, down from $34 K. Post–IPO funding of $6.8 M provides runway into mid–2026.

Financial Review

Revenue Breakdown (2024 vs. 2023)

• Tournaments & Sponsorships: $0 vs. $366 K
• Live-stream ads: $105 vs. $105

Operating Expenses

• Legal & Professional: $490 K (+53% YoY)
• S,G&A: $627 K (–43%)
• Marketing: $173 K (–44%)
• Stock Comp: $180 K (–68%)

Capital Raise & IPO

• Completed March 2025 IPO: 1.475 M shares at $4.00, net $6.2 M after overallotment and fees.
• Underwriter Warrants for 44.25 K shares at 4.00, 5-year term.
• Artemis & EVEMeta stock awards: 937.5 K and 312.5 K shares, respectively.

Balance Sheet & Cash Flow

• Assets: $1.30 M (includes $1.22 M deferred IPO costs).
• Liabilities: $9.76 M (face value of convertible notes), working capital deficit $9.68 M.
• Cash Burn: $(572 K) in 2024 ops vs. $(777 K) in 2023.
• Runway: Post-IPO cash provides ~15 months into growth phase.

Key Risks & Challenges

• Going Concern: Recurring operating losses and working-capital deficits raise doubt. Reliant on IPO proceeds and future financings.
• Limited Revenue: 2024 revenues almost nil as pre-IPO bookings paused.
• Partnership Dependence: 99% of 2023 revenue from four marquee sponsors with no long-term commitments.
• Emerging Market: Casual college esports is a niche; mainstream esports focus on pros.
• Regulatory & IP: Dependence on publisher licenses; content liability and data privacy concerns.

Governance & Controls

• Material Weaknesses: Deficiencies in cash-disbursement, tax accounting and cybersecurity policies.
• Remediation: Hired CRO/STO, ramping up internal controls; expect Section 404 compliance by end 2025.

Outlook & Growth Path

1. Learfield Activations: Scale campus-level tournaments to national league.
2. Data SaaS: Q1 2026 launch of anonymized Gen Z insights.
3. Recurring Revenue: Monetize Brag Bucks and premium memberships.
4. Global Expansion: License model to other non-U.S. markets.

Net Loss

• 2024 Net Loss: $(3,288,519)

---

Brag House is pioneering an underserved corner of esports—the casual college gamer. With partners like Learfield and a near-term revenue playbook, it has the architecture—but 2024’s near-zero revenues and cash burn underscore the perils of an early-stage turnaround. Investors should weigh the potential of a distinct platform and large Gen Z audience against going-concern risk and unproven monetization.

Investment Score: 4.0/10