424B4 1 form424b4.htm

Filed pursuant to Rule 424(b)(4)

Registration No. 333-281271

1,200,000 Shares

Common Stock

Venu Holding Corporation

This is a firm commitment initial public offering of shares of Common Stock of Venu Holding Corporation. Prior to this offering, there has been no public market for our Common Stock. The initial public offering price of our shares of Common Stock is $10.00 per share.

Our Common Stock has been approved for listing on the NYSE American LLC under the trading symbol “VENU.”

We are an “emerging growth company” under applicable federal securities laws and will be subject to reduced reporting requirements.

We have a multi-class capital structure consisting of an authorized 144,000,000 shares of voting Common Stock, 1,000,000 shares of Class B Non-Voting Common Stock, and 5,000,000 shares of Preferred Stock. Except with respect to voting rights, our Common Stock and Class B Non-Voting Common Stock have the same preferences, limitations, and relative rights in all respects. Our Preferred Stock may be issued from time to time in one or more series, each of which will have a distinctive designation or title as determined by our Board, which is authorized to establish the designations, preferences, limitations, restrictions, and relative rights of the Preferred Stock and any variations in the relative rights and preferences as between different series of Preferred Stock in accordance with the Colorado Business Corporations Act.

As determined in accordance with the beneficial-ownership provisions of Rule 13d-3 and Item 403 of Regulation S-K under the Securities Exchange Act of 1934, as amended, immediately after this offering, our officers and directors will beneficially own approximately 37% of our Common Stock, including JW Roth, our Chairman, Chief Executive Officer, and founder, who will beneficially own approximately 31% of our Common Stock. See the “Principal Shareholders” section beginning on page 96.

Investing in our Common Stock involves a high degree of risk. See the “Risk Factors” section beginning on page 12. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

|  | Per Share |  |  | Total |
Public offering price |  | $ | 10.00 |  |  | $ | 12,000,000 |
Underwriting discounts and commissions(1) |  | $ | 0.70 |  |  | $ | 840,000 |
Proceeds to us, before expenses |  | $ | 9.30 |  |  | $ | 11,160,000 |

| (1) | We refer you to “Underwriting” beginning on page 105 for additional information regarding underwriters’ compensation. |

We have granted a 45-day option to the representative of the underwriters to purchase up to an additional 180,000 shares of Common Stock, solely for the purpose of covering over-allotments, if any.

The underwriters expect to deliver the shares of Common Stock to purchasers on or about November 29, 2024.

ThinkEquity

The date of this prospectus is November 27, 2024.

Venu Holding Corporation

TABLE OF CONTENTS

| Page
PROSPECTUS SUMMARY | 2
RISK FACTORS | 12
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | 37
USE OF PROCEEDS | 37
DIVIDEND POLICY | 37
CAPITALIZATION | 38
DILUTION | 39
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 40
BUSINESS | 58
MANAGEMENT | 84
EXECUTIVE COMPENSATION | 90
PRINCIPAL SHAREHOLDERS | 96
CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS | 97
DESCRIPTION OF CAPITAL STOCK | 98
SHARES ELIGIBLE FOR FUTURE SALE | 100
MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS TO NON-U.S. HOLDERS | 102
UNDERWRITING | 105
LEGAL MATTERS | 110
EXPERTS | 110
WHERE YOU CAN FIND ADDITIONAL INFORMATION | 110
INDEX TO FINANCIAL STATEMENTS | F-1

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ABOUT THIS PROSPECTUS

Basis of Presentation

We are offering to sell, and seeking offers to buy, shares of our Common Stock only in jurisdictions where such offers and sales are permitted. You should rely only on the information contained in this prospectus or to which we have referred you. Neither we nor the underwriters have authorized any other person to provide you with information different from that contained in this prospectus. If anyone provides you with different or inconsistent information, you should not rely on it. The information contained in this prospectus is accurate only as of its date, regardless of the time of delivery of this prospectus or any sale of our Common Stock. Our business, financial condition, results of operations, and prospects may have changed since that date. Neither the delivery of this prospectus, nor any sale or delivery of our Common Stock, shall under any circumstances, imply that there has been no change in our affairs since the date of this prospectus. This prospectus will be updated and made available for delivery to the extent required by the federal securities laws.

As used in this prospectus, unless the context otherwise requires, references to “we,” “us,” “our,” “the Company,” and “Venu” refer to Venu Holding Corporation, formerly known as Notes Live, Inc., and its subsidiaries, and references to “Common Stock” refer to the common stock, $0.001 par value per share of the Company.

This prospectus contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. Please read “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.”

Neither we nor the underwriters have taken any action that would permit this offering or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this offering in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus and any free writing prospectus must inform themselves about and observe any restrictions relating to this offering and the distribution of this prospectus outside of the United States.

Market, Industry, and Other Data

This prospectus includes estimates regarding market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity, and market size, are based on our management’s knowledge and experience in the markets in which we operate, together with currently available information obtained from various third-party sources, including publicly available information, industry reports and publications, surveys, our customers, trade and business organizations, and other contacts in the markets in which we operate. Although we believe these third-party sources are reliable as of their respective dates, neither we nor the underwriters have independently verified the accuracy or completeness of this information. Some data is also based on our good faith estimates. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section entitled “Risk Factors.” These and other factors could cause results to differ materially from those expressed in the estimates made by us and independent third parties, and you are cautioned against giving undue weight to such estimates.

Numerical figures included in this prospectus have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.

Trademarks and Trade Names

We own or have rights to various trademarks, service marks, and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks, and trade names of third parties, which are the property of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names, or products in this prospectus is not intended to, and does not imply, a relationship with or endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks, and trade names referred to in this prospectus may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks, and trade names.

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PROSPECTUS SUMMARY

This summary provides an overview of information appearing elsewhere in this prospectus and highlights the key aspects of this offering. This summary does not contain all of the information you should consider prior to investing in our Common Stock. You should read this entire prospectus carefully, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes appearing at the end of this prospectus, before making any investment decision. Our fiscal year ends on December 31. Unless the context otherwise requires, references to “Venu,” the “Company,” “we,” “us,” and “our” in this prospectus refer to Venu Holding Corporation, formerly known as Notes Live, Inc., and our consolidated subsidiaries.

Our Business

Venu is an entertainment and hospitality holding company based in Colorado Springs, Colorado. Through several subsidiary entities, Venu designs, develops, owns, and operates (whether directly or through third-party operators) up-scale music venues, outdoor amphitheaters, and full-service restaurants and bars where music, dining, and luxury experiences converge. Venu was founded in 2017. Since its inception, Venu has strived to set a new standard in the hospitality and entertainment industry through its entertainment-campus venue concept and to meet the growing demand for live entertainment by developing new venues in strategically selected, rapid-growth, entertainment-underserved markets. Venu takes pride in being a catalyst for memorable experiences, a champion of local entertainment, and a contributor to vibrant communities.

To date, Venu has developed, or is in the process of developing, three restaurant concepts and one bar concept, as well as live music indoor venues that accommodate approximately 1,400 guests and outdoor amphitheaters that accommodate 8,000 or greater guests. Currently, Venu operates two indoor venues, three restaurants, and one outdoor amphitheater across Colorado and Georgia. To complement its first outdoor amphitheater, the Ford Amphitheater, which opened in Colorado in August 2024, Venu expects to open an associated mixed-use development adjacent to the Ford Amphitheater in May 2025, which will consist of a fine-dining restaurant, Roth’s Seafood & Chophouse (“Roth’s”), a rooftop bar, Brohan’s, and premier rental space framing either side of Roth’s called Notes Hospitality Collection (“NHC”). Venu is aiming to develop additional venues in Oklahoma, Texas, and potentially other locations through 2026. Venu forecasts meaningful economic and cultural impacts in communities targeted for expansion across the United States.

Venu owns and operates, or will operate, a variety of restaurant, live entertainment, music venue, and hospitality concepts, including its indoor music venue concept, Bourbon Brothers Presents (“BBP”), its outdoor music amphitheater concept, The Sunset Amphitheater, various restaurants and bars, including Bourbon Brothers Smokehouse & Tavern (“BBST”), Notes Eatery (“Notes”), and Roth’s, and premier rental space, NHC.

Music Venue Concepts

Bourbon Brothers Presents (indoor music venues)

BBP, which was originally known as “The Hall at Bourbon Brothers” or “Boot Barn Hall” but, as of August 2024, is now known as “Phil Long Music Hall at Bourbon Brothers” (“Phil Long Hall”), is the Company’s indoor intimate music and event venue known for promoting national-touring artists as well as upcoming artists and premier local bands and performers. This concept served as Venu’s entry into the live-entertainment venue business. Venu currently operates BBP venues in Colorado (“BBP CO”) and Georgia (“BBP GA”), each of which is designed to flexibly handle approximately 1,400 concertgoers for a general admission concert featuring national-touring artists or to comfortably accommodate roughly 500-700 people for fully seated events complete with eight-top tables for intimate concerts, dueling pianos, tribute bands, and other genres that consistently lure entertainment fans. Although Venu does not have current plans to develop and open new BBP venues, it may explore additional locations for this concept. To date, rather than engaging a third-party operator, Venu has directly operated and managed its BBP venues.

Although live-entertainment promotion is the foundation of Venu’s BBP model, Venu also generates incremental revenue from each BBP location through event rentals, naming rights, and sponsorship sales. The Company charges varying rental rates depending on an array of factors, including the time, day, and date of the rental, the event purpose, and the number of attendees. BBP CO has been rented by a multitude of organizations and businesses for proms and homecomings, corporate functions, political events, and weddings. Venu’s current title sponsor for its BBP GA location is Boot Barn Holdings, Inc. (NYSE: BOOT) (“Boot Barn”), the nation’s leading and fastest growing retailer of western and work-related apparel and footwear. Beyond selling the naming rights to its venues, Venu has developed a menu of sponsorship inventory for each of its locations, which primarily offers table and show sponsorship opportunities.

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The Sunset Amphitheaters (Outdoor Amphitheaters)

Having successfully implemented its indoor BBP music venue, Venu’s primary focus going forward is to develop significantly larger outdoor amphitheaters, capable of accommodating audiences of at least 8,000, that will attract major national-touring entertainers and will be managed by leading music and entertainment events presenters. In May 2023, the Company broke ground on its first development of The Sunset Amphitheater, now known as the “Ford Amphitheater” (“Ford Amphitheater”), an open-air, 8,000-person amphitheater located in Colorado Springs, Colorado that offers concertgoers unobstructed views of Pikes Peak, the Rocky Mountains, and the United States Air Force Academy. Ford Amphitheater had its grand opening in August 2024. The property is intended to rival Red Rocks Amphitheater in Morrison, Colorado, which is among the most attended music venues in the country. Ford Amphitheater is meant to complement BBP CO as a venue capable of hosting larger national-touring acts. Venu expects to host up to 50 concerts during Ford Amphitheater’s six-month peak concert season each year from May through October and for that amphitheater to generate up to $50 million in total full-season revenue, with that revenue being subject to a defined split between Venu and the third-party operator. For its initial shortened season of August through October 2024, 20 concerts were held. As further described in this prospectus, in July 2024, Venu entered into a Name and Sponsorship Rights Agreement and sold the naming rights to this venue, pursuant to which the venue is known as “Ford Amphitheater.”

Venu has also entered into public-private partnerships to open Sunset Amphitheater venues in Broken Arrow, Oklahoma (“The Sunset BA”), McKinney, Texas (“The Sunset McKinney”), and El Paso, Texas (“The Sunset El Paso”).

Restaurant Concepts

Bourbon Brothers Smokehouse & Tavern

BBST is the Company’s flagship full-service restaurant concept. BBST serves American classics and Southern staples out of a scratch kitchen, accompanied by a selection of rare bourbons, ryes, and whiskies, as well as local craft beers. Venu currently operates BBST restaurants in Colorado Springs, Colorado (“BBST CO”) and Gainesville, Georgia (“BBST GA”), both of which were designed with a unique blend of dining, bar, and patio or lounge areas that can comfortably accommodate up to 300 customers at one time.

Notes Eatery

“Notes Eatery” is the Company’s newest restaurant concept with a live music theme. Notes Eatery originally opened as “Notes” bar in fall 2022 in the Phil Long Hall-anchored development of the Polaris Pointe retail center in Colorado Springs, Colorado, but expanded to a full restaurant in May 2024. The live music and social bar uniquely serves breakfast, lunch, and dinner in a vibrant and eclectic atmosphere

Roth’s Seafood & Chophouse and Notes Hospitality Collection

Roth’s will be an upscale seafood and chophouse in a mixed-use development adjacent to Ford Amphitheater in Colorado Springs, Colorado. The property sits on a total of 4.97 acres and will be designed to capture views of the Rocky Mountains along with unobstructed views of the Ford Amphitheater’s stage. Roth’s will also feature a top-shelf bar and lounge named Brohan’s on the second floor of the mixed-use development, which will offer premium views of Ford Amphitheater that can be monetized during marquee shows.

NHC will feature two, approximately 5,000-square-foot configurable hospitality spaces framing either side of Roth’s on the first floor, which the Company believes will be a premier venue rental location for hosting corporate events, weddings, trade shows, conventions, and other events. NHC’s second floor will consist of over 8,000 square feet that can be flexibly configured into corporate VIP suites, which will feature indoor and outdoor components and will overlook Ford Amphitheater and the Rocky Mountains. Each suite is expected to have a designated corporate sponsor and will be available to rent during Ford Amphitheater events.

Market Opportunity

The music industry has evolved in recent years and decades by the digitalization of the ways in which music is produced, distributed, marketed, and consumed. Physical music sales have been largely displaced by a shift to, and rise in, music streaming, digital downloads, and consumer preference for subscription-based, on-demand music services. While those structural changes have made the music industry more accessible for artists, they have also led to diminishing album-sale revenues, decreasing radio royalties, and difficultly for artists to monetize the streaming platforms that now dominate the industry. In response, artists have become increasingly incentivized to tour. We believe that various markets lack high quality venues that will attract performers and tours, particularly in mid-sized metropolitan areas or on the outskirts of larger metropolitan areas that have experienced significant geographic and population growth in recent years. To date, our restaurant concepts (including smaller indoor venues) and planned outdoor amphitheaters (with adjoining developments) have focused on markets that we believe will support upscale restaurant concepts and live performance venues, such as Colorado Springs, Colorado, Gainesville, Georgia (in the outlying areas of the Atlanta metropolitan area), Tulsa, Oklahoma, the Oklahoma City, Oklahoma metropolitan area, McKinney, Texas (in the outlying areas of the Dallas and Fort Worth metropolitan areas), and the El Paso, Texas metropolitan area. Our management team, led by our Chief Executive Officer, is seasoned in founding early-stage companies and then growing and financing their operations. In addition to our management team, we believe our growth and business strategies outlined below position Venu to capitalize on the demand and growth potential in the music and live entertainment industry.

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Competitive Strengths

Our strengths include:

| ● | our market-expansion strategy, which includes a methodical site-selection plan for developing new properties and adherence to regimented criteria for establishing our business in new markets,
| ● | our attention to detail and skill in designing venues with modern, premium features that attract audiences and enhance customer experience;
| ● | our strategic partnerships with public municipalities that see the long-term value of our entertainment assets and choose to invest local resources into the construction and development of our venues;
| ● | our strategic partnerships with other private companies that allow our venues to be operated as efficiently and effectively as possible; and
| ● | our strong and seasoned management team.

Growth and Business Strategies

Venu prides itself on its luxury venues and exceptional service intended to provide unparalleled experiences to our patrons. With a growing demand for live entertainment and touring acts, Venu strategically develops projects in rapid-growth areas and negotiates naming rights with ubiquitous brands to become a highly sought-after entertainment and hospitality company by municipalities across the country. Our primary means of achieving our growth objectives is to continue expanding through venue and infrastructure development without substantial future dilution. Key components of our business strategy include:

| ● | Elevating customers’ live music and entertainment experiences. Venu current and anticipated collection of restaurants and luxury venue properties are designed to enhance the customer experience through thoughtfully designed spaces and a spectrum of ticket and menu offerings that accommodate the needs and desires of a wide range of customers, whether their priority is to enjoy an outing that maximizes both fun and affordability or to be treated to a decadent, VIP type of experience
| ● | Adhering to strict site-selection criteria when expanding to new markets. In determining where to develop its venues, to date, Venu has focused on markets in warmer weather locations, in metro areas that have expanded substantially, and where there are few entertainment venues in the outer lying areas (such as the greater Atlanta, Georgia market), or in mid-market metro areas that Venu believes have been overlooked with respect to live-music entertainment opportunities (such as Tulsa, Oklahoma).
| ● | Attracting top-tier entertainment by partnering with premier music and entertainment event presenters. Venu strategically contracted with a subsidiary of the Anschutz Entertainment Group (“AEG”), a major music and entertainment events presenter, to operate Ford Amphitheater in Colorado. By relying on AEG and its reputation for exceptional quality and reliability in producing and promoting music and entertainment, the Company expects that AEG will be a valuable partner and will attract top entertainment to the Company’s first outdoor amphitheater.
| ● | Obtaining financial incentives from municipalities. Across the country, the Company has worked with city officials and economic development funds that sell land substantially below market value and offer other property-related financial incentives like tax abatements and property tax refunds to induce companies like Venu to develop entertainment campuses and other properties in their towns. For example, by pursuing and utilizing these financial incentives, Venu was able to purchase 1.7 acres of land from the City of Gainesville, Georgia for $800,000 and approximately 13 acres from the City of Broken Arrow, Oklahoma for approximately $580,000, in each case in exchange for Venu’s agreement to develop a restaurant and music hall (in the case of Gainesville) and an amphitheater venue and campus (in the case of Broken Arrow) on those properties.

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| ● | Pre-selling naming rights, sponsorships, and suites. Venu seeks to pre-sell the naming rights to its venues and generating capital that can be used to finance development-related costs. The cost of naming rights for each of Venu’s venues range from approximately $140,000 per year for an indoor concert venue such as Phil Long Hall to up to $2,000,000 per year for a large outdoor amphitheater like The Sunset McKinney that Venu anticipates opening in McKinney, Texas in the second quarter of 2026. Venu also accumulates financing and acquisition capital by selling non-voting membership units of specific subsidiaries, which entitle holders to various in-kind benefits, such as rights to lifetime use of the firepit suites at the Company’s outdoor music amphitheaters as well as certain preferential economic rights. The rights associated with the non-voting membership units are set forth in each subsidiary’s operating agreement, which provides that any distributions of available cash that is attributable to a defined portion of revenues generated by ticket sales for an event held at a specific venue project will be distributed to the non-voting members (which include all members except Venu and its subsidiaries), with the excess to be distributed to the voting member (which is Venu or a wholly-owned subsidiary). See “Business – Venu’s Subsidiaries and Properties.”
| ● | Utilizing minimal debt capital. Although Venu has, in part, utilized debt financing to acquire certain of its real property assets (such as the properties where the Ford Amphitheater is located in Colorado Springs, Colorado and BBST GA is located in Gainesville, Georgia), to date, Venu has not relied on significant debt financing to acquire parcels where its venues are located. Instead, Venu’s strategy for acquiring and financing venue properties is largely driven by its public-private partnerships with municipalities and related incentives. Based on the land sales that Venu has negotiated to date with various municipalities, Venu believes it can acquire land inexpensively by continuing to strategically partner with municipalities.

Summary of Risk Factors

We are subject to numerous risks that make an investment in our Company and in our Common Stock speculative and risky, including risks that may prevent us from achieving our business objectives or that may adversely affect our business, results of operations, financial condition, and/or cash flows. Before investing in our Common Stock, you should carefully consider the risks discussed in the “Risk Factors” section of this prospectus and summarized below:

General Risks Related to Venu

| ● | Venu will likely require additional capital to support its business plan and potential growth, and this capital might not be available on favorable terms, or at all.
| ● | Venu has incurred net losses and anticipates that it will continue to incur net losses for the near-term future and may never achieve profitability.
| ● | Venu’s business plan is based on numerous assumptions and estimates that may not prove accurate.
| ● | Venu’s debt obligations may adversely affect cash flow and impose restrictions on the ability to operate its business.
| ● | Certain subsidiaries of Venu that own, or are expected to own, key real property assets are not wholly owned, and as a result, third parties have rights in certain assets and operations of those subsidiaries.
| ● | The agreements specifying the terms of Venu’s public-private partnerships with local municipalities impose various conditions, obligations, restrictions, and covenants related to Venu’s ownership, use, development, and operation of the properties it acquires and the venues it constructs. Venu’s failure to comply with such restrictions could subject Venu to various consequences, ranging from the payment of monetary fees to the clawback of purchased property, any of which could have a materially adverse impact on Venu’s business and financial condition.

Risks Related to Venu’s Industry and Current and Planned Operations

| ● | Venu’s ability to open new amphitheaters and venues on schedule and in accordance with targets may be adversely affected by delays or problems associated with acquisition and construction delays, recruiting and training qualified employees to operate the venues and by other factors, some of which are beyond Venu’s control and the timing of which is difficult to forecast accurately.
| ● | The success of Venu’s amphitheater and venue projects depends on the popularity of guest experiences at those venues, as well as Venu’s ability to attract advertisers, marketing partners, operating partners, audiences and artists to concerts at other events at those locations. If The Sunset Amphitheater and other venues owned by Venu do not appeal to customers, or if Venu is unable to attract advertisers and marketing partners, there will be a material negative effect on the Company’s business and results of operations.

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| ● | Venu’s construction of its first outdoor amphitheater project in Colorado Springs required, and future amphitheater facilities that Venu intends to open will require, significant capital investments by Venu with no assurance that the venues will be successful.
| ● | Venu has not finalized certain plans and specifications for many of its proposed new venue locations, and as a result Venu’s costs may be higher than anticipated, resulting in possible additional capital requirements, additional debt, or less favorable operating results than projected.
| ● | Venu may suffer project delays, increased costs, and financial losses if city councils or other local governmental bodies oppose Venu’s land-purchase and venue-construction proposals or reject purchase and development agreements that Venu has negotiated with other regulatory bodies within a given city.
| ● | Potential development and construction delays could cause Venu’s estimate of future income, expenses, and development costs to be inaccurate.
| ● | The success of Venu’s business operations depends in part on its ability to acquire, develop, lease, and maintain live-music venues, and if it is unable to do so on acceptable terms, or at all, its results of operations could be adversely affected.
| ● | Venu’s reliance on third-party operators to manage and operate Ford Amphitheater and future amphitheater locations exposes Venu to risks, including profit sharing, limited operational control, non-compete restrictions, indemnification obligations, and potential disruptions from the termination or renewal of operating agreements.
| ● | Venu was previously engaged in litigation related to its construction and operation of Ford Amphitheater in a lawsuit that was ultimately dismissed by the district and appellate courts. If the plaintiffs were to appeal to the Colorado Supreme Court, an adverse outcome for Venu in the appeal could negatively affect Venu’s business operations and prevent Venu from fulfilling certain contractual obligations related to scheduled events at Ford Amphitheater. Venu may face similar lawsuits in other municipalities where it is constructing, or plans to construct, Sunset Amphitheaters.
| ● | If Venu fails to execute its business strategy, which includes identifying, acquiring, and then developing new restaurant, amphitheater, and entertainment venue locations, and opening locations that are profitable, Venu’s business could suffer.
| ● | Expansion into new geographic markets may present increased risks due to relative unfamiliarity with these markets.
| ● | The catastrophic loss of a facility could adversely affect business.
| ● | Venu’s operational costs may be greater than projected due to factors beyond Venu’s control that slow project development and may adversely impact Venu’s profitability.
| ● | Venu’s restaurants and live-music venues face intense competition, and if Venu is unable to continue to compete effectively, its business, financial condition, and results of operations would be adversely affected.
| ● | Venu may face challenges in building name recognition, developing its reputation, and protecting its brand and reputation from adverse events that may not be within Venu’s control, which could adversely impact its expansion efforts, its operating results, and its ability to attract talented performers, generate audience enthusiasm, sell tickets, and generate revenue from its venues.
| ● | The entertainment business in which Venu operates is highly sensitive to customer tastes. The success of Venu’s business depends on Venu’s (and its contractual partners’) ability to attract popular artists and other live events to its venues. Venu and its partners may be unable to book events that generate demand, or anticipate or respond to changes in consumer preferences, which may result in decreased attendance at concerts and events hosted at Venu’s venues.
| ● | Venu’s success depends, in significant part, on entertainment and leisure events and economics, and other factors adversely affecting such events could have a material adverse effect on business, financial condition, and results of operations.
| ● | Venu’s business depends on discretionary consumer and corporate spending, which may be impacted by market volatility and challenging economic conditions.
| ● | Portions of Venu’s business are subject to seasonal fluctuations and its operating results and cash flow likely will vary from period to period.
| ● | Poor weather adversely affects attendance at live music events, which could negatively impact Venu’s financial performance from period to period.
| ● | There is a risk of personal injuries and accidents in connection with live music events, which could subject Venu to personal injury or other claims and increase expenses, as well as reduce attendance at its live music events, causing a decrease in revenue.
| ● | The sale of food and prepared food products for human consumption involves a risk of injury to customers.
| ● | The price and availability of food, ingredients, retail merchandise, transportation, distribution, and utilities used by Venu’s venues could adversely affect revenues and results of operations.
| ● | Venu and its venues may be adversely affected by the occurrence of extraordinary events, such as terrorist attacks or disease epidemics.

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| ● | Health concerns, government regulation relating to the consumption of food products, and widespread infectious diseases could impact consumer preferences and negatively affect results of operations.

Risks Related to Governmental Regulation

| ● | Venu is subject to extensive governmental regulation and changes in these regulations and its failure to comply with them may have a material negative effect on the Company’s business and results of operations.
| ● | Zoning and governmental approvals could hinder, delay, or completely inhibit Venu’s ability to own, develop, lease, and construct upon the real estate upon which it intends to build new restaurants and venues.
| ● | The ability to meet labor needs while controlling costs is subject to external factors such as unemployment levels, minimum wage legislation, health care legislation, payroll taxes and changing demographics.
| ● | The restaurant business is subject to a significant amount of regulation and licensing requirements that could adversely affect our business or require changes to our business practices.
| ● | The regulatory environment surrounding information security and privacy is increasingly demanding, with the frequent imposition of new and constantly changing requirements.
| ● | Various federal and state employment laws govern the relationship between the Company and its employees and affect the Company’s operating costs.

General Business and Personnel Risks

| ● | A material disruption in information technology, network infrastructure and telecommunication systems could adversely affect business and results of operations.
| ● | A privacy breach or cybersecurity attack could adversely affect Venu’s business and operations.
| ● | Failure to maximize or to successfully protect and assert Venu’s intellectual property rights could adversely affect business and results of operations.
| ● | We may be subject to claims that we infringed upon certain third-party intellectual property rights, which, even if meritless, could be costly to defend and could adversely affect our business, results of operations, financial condition, and prospects.
| ● | Venu is involved in a number of related-party transactions.
| ● | Venu is dependent on its key personnel and will need to hire additional personnel. Venu’s hiring abilities may be strained by current employment trends and economic conditions.
| ● | Venu’s officers, directors, and principal shareholders will collectively own a substantial majority of our Common Stock following this offering.
| ● | Venu’s officers and directors do not owe a duty of exclusivity to Venu.
| ● | Venu is dependent on attracting and retaining qualified employees while also controlling labor costs.
| ● | Global economic and market uncertainty may adversely impact Venu’s business and operating results.

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Risks Related to Ownership of Our Common Stock

| ● | There has been no prior public market for our Common Stock, the stock price of our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell your Common Stock at or above the initial public offering price.
| ● | We do not expect to pay dividends in the foreseeable future. Any return on investment may be limited to the value of our Common Stock.
| ● | Management has broad discretion in directing the Company’s use of proceeds from this offering and may not use them effectively or in ways that increase the value of our share price.
| ● | An investment in our Common Stock carries a high degree of risk and is highly speculative, illiquid, and suitable only for persons who are able to bear a total loss of their investment.
| ● | If certain communications used to market certain exempt offerings of membership interests conducted by the Company’s subsidiaries are deemed to have been an “offer” with respect to the initial public offering being conducted by the Company in violation of Section 5 of the Securities Act, the Company may be subject to claims for rescission by investors that are participating in this offering. You should rely only on statements made in this prospectus in determining whether to purchase our shares of Common Stock.
| ● | If you purchase our Common Stock in this offering, you will incur immediate and substantial dilution in the book value of your shares.
| ● | The financial and operational projections that we may make from time to time are subject to inherent risks.
| ● | The market price of our Common Stock may be subject to fluctuation, and you could lose all or part of your investment.
| ● | Widespread market volatility and fluctuations in the share price of our Common Stock could expose us to costly securities litigation.
| ● | An investment in the Company may involve tax implications, and you are encouraged to consult your own advisors as neither we nor any of our related parties is offering any tax assurances or guidance regarding the Company or your investment.
| ● | Our ability to use our net operating loss carry-forwards and certain other tax attributes may be limited.
| ● | Our Articles of Incorporation permit “blank check” Preferred Stock, which can be designated by our Board of Directors without shareholder approval.
| ● | Certain provisions in our Governance Documents could make a merger, acquisition, other change in control, tender offer, or proxy contest more difficult and may prevent shareholder attempts to replace or remove our current management, which could depress the trading price of our Common Stock.
| ● | Certain limitation-of-liability and indemnification provisions in our Governance Documents may discourage shareholders from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties, may reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit the Company and other shareholders, and may adversely impact shareholders’ investments to the extent that the Company pays the costs of settlement and damage awards against directors and officers as required by these indemnification provisions.
| ● | If equity research analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business or our market, our stock price and trading volume could decline.

Risks Related to Being and Reporting as a Public Company

| ● | If we fail to establish and maintain an effective system of internal control or disclosure controls and procedures are not effective, we may not be able to report our financial results accurately and timely or to prevent fraud. Any inability to report and file our financial results accurately and timely could harm our reputation and adversely impact the trading price of our Common Stock.
| ● | We are an “emerging growth company” and a “smaller reporting company,” and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Common Stock less attractive to investors.
| ● | We could be subject to securities class action litigation.
| ● | We will incur significantly increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.
| ● | Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.
| ● | Future changes in financial accounting standards or practices may cause adverse and unexpected revenue fluctuations and adversely affect our reported results of operations.
| ● | Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.
| ● | There are many risks associated with forward-looking information in this prospectus.

Please carefully review the section of this prospectus entitled “Risk Factors” for a discussion of each of the risk factors listed above.

8

Going Concern

Venu’s accumulated deficit as of December 31, 2023, incurred net losses during the years ended December 31, 2023 and 2022, and anticipated operating loss in 2024 raised substantial doubt about Venu’s ability to continue as a going concern. However, as of the issuance of our consolidated financial statements, we have concluded that there is no substantial doubt about our ability to continue as a going concern for the next twelve months. Any doubt regarding our ability to continue as a going concern was alleviated by our management’s plan to add additional venue locations and to continue our business operations at our existing venues. Venu believes that cash on hand, anticipated improved profitability in 2024 from its operation of restaurants and venues in Colorado Springs, Colorado and Gainesville, Georgia, the opening of Ford Amphitheater in August 2024, as well as the proceeds of this offering and other capital raising and debt financing in 2024 will allow Venu to continue its business operations for at least 12 months from the date of this prospectus. Nonetheless, Venu’s continued implementation of its business plan to add additional locations is dependent on its future engagement in strategic locations, real estate transactions, capital raising, and debt financing. There is no guarantee that we will be able to execute on our business plan.

Capital Structure

Under our Articles of Incorporation, the Company is authorized to issue up to 150,000,000 shares of stock, par value $0.001 per share, of which (i) 144,000,000 shares are denominated as Common Stock; (ii) 1,000,000 shares are denominated as Class B Non-Voting Common Stock; (iii) 5,000,000 shares are denominated as Preferred Stock. Each share of Common Stock entitles its holder to one vote with respect to any matters submitted to the shareholders for a vote whereas a share of Class B Non-Voting Common Stock does not entitle a holder to vote (except as may be required by law). Except with respect to voting rights, our Common Stock and Class B Non-Voting Common Stock have the same preferences, limitations, and relative rights in all respects. The shares of Class B Common Stock are not convertible into Common Stock or any other security of the Company, as the Company’s Articles of Incorporation and other governing documents do not prescribe circumstances or events that require the conversion of shares of Class B Non-Voting Common Stock into Common Stock or provide holders with the right at their option or volition to convert their shares of Class B Non-Voting Common Stock.

Our Preferred Stock may be issued from time to time in one or more series, each of which will have a distinctive designation or title as determined by our Board, which is authorized to establish the designations, preferences, limitations, restrictions, and relative rights of the Preferred Stock and any variations in the relative rights and preferences as between different series of Preferred Stock in accordance with the Colorado Business Corporations Act. As of November 27, 2024, the Company had the following shares of capital stock issued and outstanding: (i) 36,073,215 shares of Common Stock; (ii) 383,656 shares of Class B Non-Voting Common Stock; and (iii) 0 shares of Preferred Stock.

Corporate Information

The Company was originally formed in Colorado on March 13, 2017 as Bourbon Bothers Restaurants, LLC, a Colorado limited liability company, prior to its conversion to a Colorado corporation and name change to Notes Live, Inc. on April 6, 2022. On May 29, 2024, we began doing business as “VENU Holding Corporation” by filing a Statement of Trade Name of a Reporting Entity with the Colorado Secretary of State. On September 6, 2024, we legally changed our name to “Venu Holding Corporation” by amending and restating our Articles of Incorporation. Our principal executive office is located at 1755 Telstar Drive, Suite 501, Colorado Springs, Colorado 80920. Our telephone number at that address is (719) 895-5483. Our website address is https://venu.live/. Information contained on or that can be accessed through our website is not incorporated by reference into this prospectus. Investors should not consider any such information to be part of this prospectus.

Implications of Being an Emerging Growth Company

Given that our Company had less than $1.235 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” (an “EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As an EGC, for up to five years, we may elect to take advantage of certain specified exemptions from reporting and other regulatory requirements that are otherwise generally applicable to public companies. For example, these exemptions would allow us to:

| ● | present two, rather than three, years of audited financial statements with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this prospectus;
| ● | defer the auditor attestation requirement on the effectiveness of our system of internal control over financial reporting;
| ● | make reduced disclosures about our executive compensation arrangements;
| ● | forego the adoption of new or revised financial accounting standards until they would be applicable to private companies; and
| ● | be exempt from complying with any requirement that the Public Company Accounting Oversight Board or a supplement to the auditor’s report providing additional information about the audit and the financial statements.

We may take advantage of these exemptions for up to five years or such earlier time as we are no longer an “emerging growth company.” We will qualify as an “emerging growth company” until the earliest of:

| ● | the last day of our fiscal year following the fifth anniversary of the date of completion of this offering;
| ● | the last day of our fiscal year in which we have annual gross revenue of $1.235 billion or more;
| ● | the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or
| ● | the last day of the fiscal year in which we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which means the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the end of the prior fiscal year’s second fiscal quarter.

Additionally, the JOBS Act enables EGCs to take advantage of an extended transition period for complying with new or revised accounting standards, which allows an EGC to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have taken advantage of certain reduced reporting obligations available to EGCs in this prospectus. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock. For more information, see “Risk Factors—Risk Factors Related to Being and Reported as a Public Company—We are an “emerging growth company” and a “smaller reporting company,” and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common shares less attractive to investors.”

Certain of these reduced reporting requirements and exemptions were already available to us due to the fact that we also qualify as a “smaller reporting company” under SEC rules. For instance, smaller reporting companies are not required to obtain an auditor attestation and report regarding internal control over financial reporting, are not required to provide a compensation discussion and analysis, are not required to provide a pay-for-performance graph or CEO pay ratio disclosure, and may present only two years of audited financial statements and related MD&A disclosure.

9

THE OFFERING

Securities Offered |  | 1,200,000 shares of Common Stock

Capital Stock Outstanding Immediately After this Offering |  | Immediately after this offering, our issued and outstanding capital stock will consist of the following:
|  | ● | 383,656 shares of Class B Non-Voting Common Stock;
|  | ● | 37,273,215 shares of Common Stock; and
|  | ● | 0 shares of Preferred Stock.

Over-Allotment Option |  | We have granted the representative of the underwriters an option for a period of 45 days from the date of this prospectus to purchase up to an additional 180,000 shares of Common Stock from us at the initial public offering price, less the underwriting discounts payable by us.
Voting Rights |  | Each holder of our Common Stock is entitled to one vote per share held. Except as required by law, holders of our Class B Non-Voting Common Stock have no voting power with respect to their shares held and are not entitled to vote on matters submitted to shareholders. Holders of our Preferred Stock would have the voting rights established by our Board in accordance with the Colorado Business Corporations Act (the “CBCA”). As determined in accordance with the beneficial-ownership provisions of Rule 13d-3 and Item 403 of Regulation S-K under the Securities Exchange Act of 1934, as amended, immediately after this offering, our officers and directors will beneficially own approximately 37% of our Common Stock and may act in concert to significantly influence matters requiring shareholder approval. See “Principal Shareholders.”
Use of Proceeds |  | We estimate that the net proceeds to us from the sale of shares of our Common Stock in this offering will be approximately $10.7 million (or approximately $12.3 million if the representative of the underwriters exercises its over-allotment option in full), at the initial public offering price of $10.00 per share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We currently intend to use the net proceeds from this offering, together with our existing cash, for corporate level expenditures as follows: (i) approximately $3.0 million for sales, marketing, investor relations and business development expenses; (ii) approximately $5.0 million for costs and expenses related to market expansion and related due diligence activities, and (iii) the remainder, if any, for working capital and other general corporate purposes.
|  | We cannot specify with certainty all of the uses of the net proceeds that we will receive from this offering. Accordingly, we will have broad discretion in the application of these proceeds, and our investors will be relying on the judgment of our management regarding the application of the net proceeds of this offering.
Lock-Up and Leak-Out Agreements |  | Our executive officers and directors have agreed with the underwriters not to sell, transfer or dispose of any shares of their Common Stock or similar securities for 90 days following the effective date of the registration statement for this offering without the prior written consent of the representative of the underwriters. In addition, our officers and directors are subject to certain “leak-out” restrictions with respect to the majority of their shares of Common Stock, which during the first three years of our Common Stock being listed on a stock exchange contractually cap the number of shares they may sell or transfer at defined intervals. See “Shares Eligible for Future Sale—Lock-Up and Leak-Out Agreements” on page 101.
Risk Factors |  | You should read the “Risk Factors” section beginning on page 12 and the other information included herein for a discussion of factors to consider prior to deciding to invest in our Common Stock.

10

Proposed Trading Market Listing and Ticker Symbol |  | Our Common Stock has been approved for listing on the NYSE American LLC (the “NYSE American”) under the symbol “VENU.,”
Transfer Agent |  | The transfer agent and registrar for our Common Stock is Colonial Stock Transfer.

Unless we specifically state otherwise or the context otherwise requires, the number of shares of Common Stock to be outstanding after this offering is based on there being 36,073,215 shares of our Common Stock outstanding as of the date of this prospectus and excludes:

| ● | up to 1,000,000 shares of our Common Stock that are issuable upon conversion of a convertible promissory note at the rate of $10.00 per share;
| ● | 5,391,291 shares of Common Stock that are issuable upon the exercise of outstanding warrants;
| ● | 2,500,000 shares of Common Stock that are available for future issuance under our Amended and Restated 2023 Omnibus Incentive Compensation Plan;
| ● | 383,656 shares of Class B Non-Voting Common Stock; and

| ● | 60,000 shares of Common Stock issuable upon exercise of the representative’s warrants.

Except as otherwise indicated, all information in this prospectus assumes:

| ● | no exercise of the representative’s warrants; and
| ● | no exercise of the over-allotment option.

Summary Financial Information

The following tables summarize our consolidated financial data for the periods and as of the dates indicated. We have derived the summary financial data from the years ended December 31, 2023 and 2022 from our audited consolidated financial statements and related notes included elsewhere in this prospectus. The summary data for the six months ended June 30, 2024 and 2023 is derived from our unaudited consolidated financial statements appearing elsewhere in this prospectus. Our historical results are not necessarily indicative of results that may be expected in the future. You should read the following summary consolidated financial data together with our audited and unaudited consolidated financial statements and related notes, as well as the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” appearing elsewhere in this prospectus.

Consolidated Statements of Operations Data

|  | Years Ended |  |  | Unaudited Six Months Ended |
|  | December 31, |  |  | June 30, |
|  | 2023 |  |  | 2022 |  |  | 2024 |  |  | 2023 |
Total revenues |  | $ | 12,597,664 |  |  | $ | 8,656,867 |  |  | $ | 8,114,981 |  |  | $ | 4,774,196 |
Operating costs |  |  | 23,729,832 |  |  |  | 13,420,955 |  |  |  | 25,433,989 |  |  |  | 10,159,229 |
Loss from operations |  |  | (11,132,168 | ) |  |  | (4,764,088 | ) |  |  | 17,319,008 |  |  |  | (5,385,033 | )
Total other expense, net |  |  | (254,625 | ) |  |  | (3,254,245 | ) |  |  | (3,766,176 | ) |  |  | (51,785 | )
Net loss |  | $ | (11,386,793 | ) |  | $ | (8,018,333 | ) |  | $ | (21,085,184 | ) |  | $ | (5,436,818 | )

Balance Sheet Data

|  | As of |
|  | June 30, |
|  | 2024 |
|  | Unaudited |
|  | Actual (1) |  |  | Pro Forma (2) |  |  | Pro Forma as Adjusted (3) |
Cash |  |  | 42,755,893 |  |  |  | 49,200,983 |  |  |  | 60,215,983 |
Other Current Assets |  |  | 448,980 |  |  |  | 448,980 |  |  |  | 448,980 |
Operating lease right-of-use assets, net |  |  | 1,368,661 |  |  |  | 1,368,661 |  |  |  | 1,368,661 |
Investments in related parties |  |  | 550,000 |  |  |  | 550,000 |  |  |  | 550,000 |
Property and equipment, net |  |  | 96,398,677 |  |  |  | 96,398,677 |  |  |  | 96,398,677 |
Total other assets |  |  | 295,514 |  |  |  | 295,514 |  |  |  | 295,514 |
Total assets |  |  | 141,817,725 |  |  |  | 148,262,815 |  |  |  | 159,277,815 |
Accounts payable |  |  | 10,418,510 |  |  |  | 10,418,510 |  |  |  | 10,418,510 |
Accrued expenses |  |  | 555,841 |  |  |  | 555,841 |  |  |  | 555,841 |
Accrued payroll and payroll taxes |  |  | 233,308 |  |  |  | 233,308 |  |  |  | 233,308 |
Deferred revenue |  |  | 1,270,459 |  |  |  | 1,270,459 |  |  |  | 1,270,459 |
Operating lease liability |  |  | 1,401,807 |  |  |  | 1,401,807 |  |  |  | 1,401,807 |
Short-term and Long-term debt |  |  | 8,088,752 |  |  |  | 8,088,752 |  |  |  | 8,088,752 |
Convertible debt |  |  | 7,733,240 |  |  |  | 7,733,240 |  |  |  | 7,733,240 |
Licensing liability |  |  | 4,500,000 |  |  |  | 4,500,000 |  |  |  | 4,500,000 |
Total liabilities |  |  | 34,201,917 |  |  |  | 34,201,917 |  |  |  | 34,201,917 |
Common Stock |  |  | 35,862 |  |  |  | 36,457 |  |  |  | 37,657 |
Additional paid in capital |  |  | 110,077,062 |  |  |  | 118,021,557 |  |  |  | 129,035,357 |
Accumulated deficit |  |  | (37,141,490 | ) |  |  | (37,141,490 | ) |  |  | (37,141,490 | )
Treasury Stock, at cost |  |  | (76 | ) |  |  | (1,500,076 | ) |  |  | (1,500,076 | )
Non-controlling interest |  |  | 34,644,450 |  |  |  | 34,644,450 |  |  |  | 34,644,450 |
Total stockholders’ equity |  |  | 107,615,808 |  |  |  | 114,060,898 |  |  |  | 125,075,898 |
Total liabilities and stockholders’ equity |  |  | 141,817,725 |  |  |  | 148,262,815 |  |  |  | 159,277,815 |

(1) | The actual consolidated balance sheet data includes the issued and outstanding shares of all classes of common stock as of June 30, 2024 (being 383,656 Class B shares and 35,478,706 Class D shares).
(2) | The pro forma consolidated balance sheet data gives effect to the issued and outstanding shares of all classes as of June 30, 2024 (being 383,656 Class B shares and 35,478,706 Class D shares), and subsequent issuances of 794,509 shares of Common Stock for aggregate net proceeds of $7,945,090, and the redemption of 100,000 shares of Common Stock previously held by Roth Industries, LLC, of which JW Roth, the Chairman, Chief Executive Officer, and a principal shareholder of Venu, is the Chairman, for an aggregate purchase price of $500,000, along with a redemption of 100,000 shares of Common Stock previously held by a non-affiliate shareholder for an aggregate purchase price of $1,000,000.
(3) | The pro forma as adjusted consolidated balance sheet data gives effect to the pro forma adjustments and the sale of shares of our Common Stock in this offering at the public offering price of $10.00 per share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted consolidated balance sheet data discussed above is illustrative only and will depend on the actual public offering price and other terms of this offering determined at pricing.

11

RISK FACTORS

Investing in our Common Stock involves a high degree of risk. You should carefully consider the following information about these risks, together with the other information appearing elsewhere in this prospectus, before deciding to invest in our Common Stock. The occurrence of any of the following risks could have a material and adverse effect on our business, reputation, financial condition, results of operations, and future growth prospects, as well as our ability to accomplish our strategic objectives. As a result, the market value of our Common Stock could decline, and you could lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations and market value.

General Risks Related to Venu

Venu will likely require additional capital to support its business plan and potential growth, and this capital might not be available on favorable terms, or at all.

Venu’s operations will likely require substantial additional financial, operational, and managerial resources. Venu may have insufficient cash to fund its working capital or other capital requirements and may be required to raise additional funds to continue or expand its operations. If Venu is required to obtain additional funding in the future, it may have to seek debt financing or obtain additional equity capital. Additional capital may not be available to Venu or may only be available on terms that adversely affect existing shareholders or restrict Company operations. For example, if Venu raises additional funds through issuances of equity, its existing shareholders could suffer significant dilution and any new equity securities issued by Venu could have rights, preferences, and privileges superior to those of existing shareholders. There can be no assurance that financing will be available to Venu on reasonable terms, if at all. The inability to raise additional funds will materially impair Venu’s ability to grow its revenues. Further, as a result of the ongoing volatility of the global markets, a general tightening of lending standards, and a general decrease in equity financing (and similar type) transactions, it could be difficult for Venu to obtain funding to allow Venu to continue to develop and implement its business.

Venu has incurred net losses and anticipates that it will continue to incur net losses for the near-term future and may never achieve profitability.

Venu is a hospitality and entertainment business that was formed in 2017. Venu is continuing to implement its business plan of opening, and then operating restaurants, venues and amphitheaters in new markets. Venu’s business plan is speculative as the development of its venues entails substantial upfront capital expenditures and the risk that the development and opening of its venues may be delayed or otherwise prove not to perform as projected. Although Venu has generated increasing revenues since its inception, to date Venu has not been profitable and has incurred net losses in each of 2022 and 2023. Venu expects to continue to spend significant resources to develop, open, and then operate its planned restaurants, venues, and amphitheaters. Venu also expects that it will incur an operating loss in 2024. Venu may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect its business. The size of Venu’s future net losses (if any) and its ability to generate a profit will depend, in part, on the rate of future growth of expenses and its ability to generate additional revenues. It is possible Venu may never be profitable and, if it does achieve profitability, Venu may not be able to sustain or increase profitability on a quarterly or annual basis.

Venu had an accumulated deficit of $17,021,453 as of December 31, 2023 and incurred net losses of $11.4 million and $8.0 million, respectively, during the years ended December 31, 2023 and 2022. Venu expects that it will incur an operating loss in 2024. These conditions raised substantial doubt about Venu’s ability to continue as a going concern; however, based on Venu’s management’s plan, Venu believes that such substantial doubt has been alleviated. Venu believes that cash on hand, the improved profitability in 2024 from its operating entities in Colorado Springs, Colorado and Gainesville, Georgia, the opening of Ford Amphitheater in August 2024, as well as the proceeds of this offering and additional capital raising and debt financing in 2024 will allow Venu to continue its business operations for at least 12 months from the date of this prospectus. Nonetheless, Venu’s continued implementation of its business plan to add additional locations is dependent on its future engagement in strategic locations, real estate transactions, capital raising, and debt financing. There is no guarantee that we will be able to execute on our business plan.

12

Venu’s business plan is based on numerous assumptions and estimates that may not prove accurate.

When evaluating where and when to attempt to open new venues Venu has to evaluate and make assumptions regarding potential demand in a given market and location, and the ability to attract events and acts to its venues. Venu needs to make estimates and forecasts regarding numerous factors, such as, the number of events that can be booked into a particular venue in a particular market, average attendance at these events, potential partnership revenue, likely ticket prices operating costs, and other potential revenue streams (such as parking). Venu makes these evaluations and estimates based on a variety of factors including industry and market data, as well as its experience to date. Estimates regarding the number and timing of future venue openings is based on various factors, such as the status of projects under construction, the entitlement status for certain projects, and discussions and negotiations with various municipalities. These estimates and assumptions are limited by, among other things, the fact that any data and estimates Venu has, or will utilize, for its projects are based on other venues, projects and circumstances, and as with all modeling and forecasts, these other venues, projects and circumstances may not exactly correlate with the venues Venu is, and plans, to develop. These estimates and assumptions are not an assurance that Venu will achieve any certain revenue targets with respect to a venue or when and whether a particular venue will be in operation, as the opening of music, live entertainment venues, restaurants and campuses are subject to numerous risks, and uncertainties, many of which are out of Venu’s control. As a result, Venu’s business plan is based on numerous assumptions and estimates that Venu believes are reasonable but which may prove to be incorrect. No assurance can be given regarding Venu’s ability to open a particular venue or execute on all facets of its plans, or whether any particular venue or campus will ultimately prove to be profitable for Venu or the reliability of the assumptions and estimates upon which various aspects of Venu’s business plan are based. Venu’s ability to adhere to and implement its business plan will depend upon Venu’s ability to successfully raise funds and a variety of other factors, many of which are beyond Venu’s control.

Venu’s debt obligations may adversely affect cash flow and impose restrictions on the ability to operate its business.

Venu from time to time utilizes credit and debt facilities in its operations and to acquire assets. As of November 27, 2024, Venu had $22,946,834 of outstanding indebtedness, primarily under mortgage loans, loans to municipalities in connection with land acquisitions, and a revolving debt financing note with KWO, LLC. For example, certain of the real property assets owned by certain of Venu’s subsidiaries are subject to a mortgage, including the two properties that are owned by Hospitality Income & Asset, LLC, which are the sites of Venu’s Bourbon Brothers Presents restaurant and the Bourbon Brokers Smokehouse & Tavern venue in Colorado Springs. Venu’s indebtedness could have significant adverse effects on the Company, including with respect to the following:

| ● | Venu must use a portion of its cash flow from operations to pay interest on debt obligations, which will reduce the funds available to use for operations and other purposes including other financial obligations;
| ● | Certain of Venu’s debt obligations are secured by significant company assets, including the real property on which the BBP CO and BBST CO sit in Colorado Springs, Colorado, and the BBP GA and BBST GA sit in Gainesville, Georgia;
| ● | Venu’s ability to obtain additional financing for working capital, capital expenditures, strategic acquisitions or general corporate purposes may be impaired; and
| ● | Venu may be more vulnerable to economic downturns and adverse developments in its business.

Venu expects to obtain the funds to pay its day-to-day expenses and to repay its indebtedness primarily from operations. Venu’s ability to meet expenses and make these payments therefore depends on its future performance, which will be affected by financial, business, economic and other factors, many of which the Company cannot control. Venu’s business may not generate sufficient cash flow from operations in the future, and its currently anticipated growth in revenues and cash flow may not be realized, either or both of which could result in the Company being unable to repay indebtedness, or to fund other liquidity needs. If Venu does not have enough funds, it may be in breach of debt covenants and/or be required to refinance all or part of its then existing debt, sell assets or borrow more funds, which Venu may not be able to accomplish on terms favorable to the Company, or at all. In addition, the terms of existing or future debt agreements may restrict Venu from pursuing any of these alternatives. If Venu defaults on its obligations, that could lead the lender to foreclose and Venu could lose its investment in the applicable asset.

13

Certain subsidiaries of Venu that own, or are expected to own, key real property assets are not wholly owned, and as a result, third parties have rights in certain assets and operations of those subsidiaries.

Venu holds certain of its real property assets and projects in limited liability companies that are not wholly owned, with third parties, in certain cases owning a membership interest greater than 50%. For example, Venu’s membership interest in The Sunset Amphitheater LLC (which owns Ford Amphitheater) is 10%, however, the governing document for this entity provide that the equity held by third-party investors do not afford those members with voting rights. In addition, the governing documents for The Sunset Amphitheater LLC provide that in the case of distributions of available cash resulting from events held at the venue, the third-party investors are only entitled to receive a defined portion of that distribution. As such, the economic rights of those third-party investors is not necessarily equivalent to their ownership interest. In connection with their membership interests, third-party investors are typically afforded certain other rights, such as rights to use the firepit suites located at planned outdoor amphitheater venues. Venu has, and expects to have, third-party investors hold non-voting interests in other subsidiaries, such as Sunset at Mustang Creek LLC and Sunset at Broken Arrow LLC, in each case subject to terms that are similar in nature to those in the governing documents of The Sunset Amphitheater LLC. As a result of these subsidiaries being less than wholly owned, a portion of the revenues or other value generated by the operations and assets of the applicable subsidiaries will be for the benefit of third parties and not for the benefit of, or distributed to, Venu. In addition, owning and operating assets through subsidiaries that are not wholly owned inherently raises other risks, such as an increased potential for decision-making conflicts with minority owners, diminished control over the subsidiary’s operations, increased likelihood of shareholder misalignment regarding the subsidiary’s operational strategies and priorities, dilution of financial returns, and increased governance complexity. Whether or not Venu holds a majority interest or maintain voting and operational control in such arrangements, third-party members and stakeholders may, for example, (1) have economic or business interests or objectives that are inconsistent with or contrary to those of Venu; (2) regardless of the terms of the governing documents of the subsidiary attempt to, or threaten to, seek to block or impede actions that Venu believes are in its and the subsidiary’s best interests; (3) act contrary to Venu policies or objectives; or (4) be unable or unwilling to fulfill or comply any obligations or restrictions related to their rights to utilize certain assets (such as suites).

For an overview of Venu’s economic versus ownership interests in each of its subsidiaries, see “Business – Venu’s Subsidiaries and Properties.”

The agreements specifying the terms of Venu’s public-private partnerships with local municipalities impose various conditions, obligations, restrictions, and covenants related to Venu’s ownership, use, development, and operation of the properties it acquires and the venues it constructs. Venu’s failure to comply with such restrictions could subject Venu to various consequences, ranging from the payment of monetary fees to the clawback of purchased property, any of which could have a materially adverse impact on Venu’s business and financial condition.

One of Venu’s key business-expansion strategies is forming public-private partnerships with local municipalities to acquire land at lower prices and on better terms than Venu likely could have negotiated in open-market sales or to obtain financial incentives that offset the costs of constructing and operating new venues. In exchange for the financial benefits that motivate Venu’s property acquisition and venue development within a given municipality, the agreements specifying the terms of Venu’s public-private partnership with the municipality, which may include development, parking, facilities-use, or similar agreements, often contain conditions, obligations, and covenants (collectively, “Restrictions”) related to the financial incentives for a project and that restrict Venu’s ownership, use, and development of the land it acquires and the venues it constructs and operates and impose potential monetary penalties on Venu if certain milestones are not achieved. Venu’s failure to comply with any Restrictions could pose a material risk to Venu’s financial condition and business operations. The Restrictions described below are among the Restrictions that have been included in the terms of public-private partnerships Venu has entered into to date, and also depict the types of Restrictions that Venu may be subject to under future public-private partnerships it enters.

| ● | Project Deadlines and Monetary Penalties: The Restrictions in the public-private partnership agreements to date have included, and in the future will likely impose, specific deadlines and milestones that, if not met, subject Venu to monetary penalties. By way of example, pursuant to the agreement between Sunset at Broken Arrow LLC (“Sunset BA”), one of Venu’s subsidiaries, and the City of Broken Arrow, Oklahoma (“Broken Arrow”), Sunset BA must complete the amphitheater’s construction by December 31, 2025, subject to certain conditions and exceptions. If the amphitheater is not fully constructed by December 31, 2025, Sunset BA must pay Broken Arrow $10,000 per month for each month in which construction of the amphitheater remains incomplete. Similarly, the terms of the public-private partnership agreements with the City of McKinney, Texas (“McKinney”) entered into in March 2024 related to a planned open-air amphitheater and entertainment complex (the “McKinney Complex”) in McKinney impose a $250,000 termination fee on Venu if it is unable to close on the property acquisition within 30 days of the date of entitlement (“Entitlement”) and impose fees on Venu if it does not obtain a temporary certificate of occupancy within 36 months of Entitlement and a final certificate of occupancy within 42 months of Entitlement.

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| ● | Conditions Related to Public Financing Incentives: Project financing under the public-private partnership arrangements impose various restrictions and obligations on Venu in order to receive certain public accommodations and financial incentives. For example, in connection with the public-private partnership of GA HIA, LLC (“GA HIA”), a subsidiary of Venu, with the City of Gainesville, Georgia (“Gainesville”) and the Gainesville Redevelopment Authority, GA HIA was approved to participate in Gainesville’s tax-allocation district redevelopment program (the “TAD Program”). GA HIA’s continued receipt of financial incentives and benefits through the TAD Program is conditioned on its maintenance of the applicable projects as tourism attractions used for the operation of a restaurant and entertainment venue and its ongoing compliance with both the applicable TAD Development Agreement and any loan agreements entered into to finance construction of the projects. Similarly, the public-private partnership between Sunset BA and the City of Broken Arrow, Oklahoma contemplates that the Broken Arrow Economic Development Authority (“BAEDA”) will issue tax-apportionment bonds and notes (“TIF Notes”) and will use the proceeds of the TIF Notes to fund approximately $17.81 million of project-site improvements that are required for the construction and operation of The Sunset BA and to pay for certain other project costs described in the project plan. If Sunset BA is unable to operate The Sunset BA in a manner that generates sufficient tax increment revenue to pay the TIF Bonds issued BAEDA to fund the project-site improvements, BAEDA will be unable to pay for the project-site improvements or the project costs contemplated in the project plan, causing Sunset BA not to receive the benefit of one of the material financial incentives that induced its entry into the public-private partnership.
| ● | Operating Covenants and Monetary Penalties: The Restrictions to date have included, or in the future will likely include, obligations that require Venu to operate the venues in certain manners or to host a minimum number of events per year at a given venue. For example, Sunset BA must host a minimum of 45 scheduled events at The Sunset BA amphitheater each calendar year and may be subject to monetary penalties if it is unable to do so. Similarly, once construction of the McKinney Complex is complete, Venu is required to present at least 45 commercial events per year at The Sunset McKinney amphitheater. Venu or its operator must pay McKinney a ticket fee equal to $1.00 per manifested ticket sold. If Venu hosts at least 45 commercial events annually, with a paid attendance of at least 400,000 manifested tickets annually, McKinney or a related party will pay Venu certain financial incentives and contributions all of which will not be paid, and will be subject to repayment through subsequent-year reductions, in any year in which less than 45 commercial events are held. Accordingly, Venu faces the risk that it will not receive the material financial incentives that partly induced its entry into the public-private partnership with McKinney if it fails to meet the 45-event requirement each year.
| ● | Clawback Rights: Certain public-private partnerships may require Venu to surrender or reconvey assets or rights if project milestones are not achieved by a defined date. For example, Venu and the City of Murfreesboro, Tennessee (“Murfreesboro”) entered into a Development Agreement in August 2022 pursuant to which Murfreesboro agreed to sell land to Venu upon which Venu previously intended to construct an entertainment campus. Thereafter, Venu assigned its interests under the Development Agreement to Sunset on the Stones River, LLC (“Sunset SR”), one of Venu’s subsidiaries. The Development Agreement imposed certain operational requirements, transfer restrictions, and construction deadlines, which Sunset SR had to comply with to avoid various financial penalties and other consequences, including a clawback provision that would have enabled Murfreesboro to claw back the land it sold to Sunset SR if Sunset SR failed to obtain a land-disturbance permit by June 1, 2023 and to begin construction of the entertainment campus within 60 days thereafter. After Sunset SR failed to meet those permit and construction deadlines, Murfreesboro could have required Sunset SR to transfer back the land and to lose its investment. Because the parties entered into a “stand-still” letter agreement in May 2023 before mutually deciding in July 2024 to terminate their public-private partnership without seeking or imposing any termination fees or other penalties, Sunset SR did not ultimately suffer the loss of its investment that it would have suffered had Murfreesboro enforced its clawback right. Nonetheless, the clawback provision in the Development Agreement demonstrates a type of Restriction that Venu could be subject to in connection with future public-private partnerships that it enters into.

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Risks Related to Venu’s Industry and Current and Planned Operations

Venu’s ability to open new amphitheaters and venues on schedule and in accordance with targets may be adversely affected by delays or problems associated with acquisition and construction delays, recruiting and training qualified employees to operate the venues and by other factors, some of which are beyond Venu’s control and the timing of which is difficult to forecast accurately.

Venu’s goal is to open up to eight additional venues from 2024 through 2026. To achieve that goal, Venu, or a subsidiary, must successfully acquire the underlying land or satisfy all conditions to close on its land acquisitions, and then, among other things, oversee the construction of the improvements and build-out of those locations. Venu may not accurately predict the timing or ultimate success of its ability to timely open its proposed new venues. Delays encountered in negotiating, or the inability to finalize to Venu’s satisfaction, the development and installation of any necessary improvements may cause a significant variance in Venu’s financial targets. In addition, Venu’s anticipated schedule of opening any new venue may be adversely affected by other factors, some or all of which are beyond Venu’s control, including but not limited to the following:

| ● | The availability of adequate financing;
| ● | Delays in acquiring land and property rights;
| ● | The ability to secure governmental approvals and permits, including land-use approvals and building and operating permits, and any necessary licenses;
| ● | The ability to successfully and timely construct the applicable buildings and facilities;
| ● | Construction and development costs;
| ● | Costs overruns;
| ● | Labor shortages or disputes with outside contractors;
| ● | Any unforeseen engineering or environmental problems with venue location(s);
| ● | Resolution of any litigation or other regulatory proceedings that could serve to prolong the development or opening of any venue or facility, such as compliance with local noise ordinances, and complaints and concerns raised by local property owners;
| ● | The ability to hire, train and retain sufficient personnel;
| ● | The ability to successfully promote the new venues and compete in the market(s) in which they will be are located;
| ● | Weather conditions or natural disasters;
| ● | Criminal activity that affects Venu’s development and operations of venues; and
| ● | Local and general economic conditions.

Venu’s inability to open up to eight new venues from 2024 through 2026 would adversely affect Venu’s projected results of operations and financial condition.

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The success of Venu’s amphitheater and venue projects depends on the popularity of guest experiences at those venues, as well as Venu’s ability to attract advertisers, marketing partners, operating partners, audiences and artists to concerts at other events at those locations. If The Sunset Amphitheater and other venues owned by Venu do not appeal to customers, or if Venu is unable to attract advertisers and marketing partners, there will be a material negative effect on the Company’s business and results of operations.

The financial results of Venu planned amphitheater venues are largely dependent on the popularity of visitor experiences at The Sunset Amphitheater(s), which are intended to provide a high-end experience to visitors. Venu has marketed its venues as being distinct from other amphitheaters and venues, and there is an inherent risk that Venu may be unable to achieve the level of success appropriate for the significant investment involved. Fan and consumer tastes also change frequently, and it is a challenge to anticipate what will be successful at any point in time. Should the popularity of Venu’s Sunset Amphitheater venues not meet expectations, Venu’s revenues from ticket sales, and concession and merchandise sales would be adversely affected, and the Company might not be able to replace the lost revenue with revenues from other sources. As a result of any of the foregoing, Venu may not be able to generate sufficient revenues to cover its costs, which could adversely impact its business and results of operations and the price of the Company’s Common Stock.

Additionally, Venu’s amphitheater and entertainment venue focused business is dependent on its ability to attract advertisers and marketing partners to its signage, digital advertising and partnership offerings. Advertising revenues depend on a number of factors, such as the reach and popularity of Venu’s venue(s) (including risks around consumer reactions to advertisers and marketing partners), the health of the economy in the markets in which Venu’s venues are located and in the nation as a whole, general economic trends in the advertising industry and competition with respect to such offerings. Should the popularity of Venu’s advertising assets not meet expectations, its revenues would be adversely affected, and Venu might not be able to replace the lost revenue with revenues from other sources, which could adversely impact its business and results of operations and the price of its Common Stock.

The success of Venu’s amphitheater and entertainment venue focused business will also depend upon its ability to offer and attract live entertainment that is popular with guests. While the Company believes that its venues will enable new experiences for audiences in its markets, there can be no assurance that guests, artists, promoters, advertisers and marketing partners will embrace the Company’s venues. Venu facilities will contract with promoters and others to provide performers and events at its venues. There may be a limited number of popular artists, groups or events that are willing to take advantage of the immersive experiences and next generation technologies (which cannot be re-used in other venues) or that can attract audiences to the Sunset Amphitheater venues, and Venu’s business would suffer to the extent that that it is unable to attract such artists, groups and events willing to perform at its venues.

Venu’s construction of its first outdoor amphitheater project in Colorado Springs required, and future amphitheater facilities that Venu intends to open will require, significant capital investments by Venu with no assurance that the venues will be successful.

Venu is progressing with its venue strategy to create, build, and own new music and entertainment-focused outdoor amphitheater venues — its Sunset Amphitheater collection. There is no assurance that this initiative will be successful. Venu completed construction of its first Sunset Amphitheater in Colorado Springs in August 2024 and intends to open additional venues in Oklahoma and Texas. The costs to develop and then build Sunset Amphitheaters are substantial and substantially in excess of currently available funds. For example, Venu has committed $70 million of private investments to the construction of The Sunset BA, which will require Venu directly, or indirectly through a subsidiary that will own the venue, to seek and execute on one or more outside sources of capital, as Venu’s current cash flows and resources alone likely would not support a development of this magnitude. There is no assurance that Venu will ultimately be able to secure outside capital that will be necessary to fund various of its planned projects and developments. Any inability to raise outside capital timely, or at all, could delay the development and opening of planned venues, or lead to their termination either by Venu or the applicable municipality or counter party.

In addition, it is always difficult to provide a definitive construction cost estimate for large-scale construction projects. Venu’s estimates and projections with respect to opening dates, costs estimates, event scheduling, or other matters inherent in the development and ownership of amphitheater venues may not prove wholly accurate as it rolls out additional venue projects across varying markets. In light of the design of The Sunset Amphitheater collection, including the use of technologies and features that are associated with many entertainment venues, the risk of delays and higher than anticipated costs are elevated. Although Venu completed construction of Ford Amphitheater in August 2024, Venu may face unexpected project delays and other complications with respect to the operation of other projects planned for development.

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Venu has not finalized certain plans and specifications for many of its proposed new venue locations, and as a result Venu’s costs may be higher than anticipated, resulting in possible additional capital requirements, additional debt, or less favorable operating results than projected.

Planning for the design and construction of Venu’s in-development or future Bourbon Brothers Presents, Bourbon Brothers Smokehouse & Tavern, and The Sunset Amphitheater venue locations is ongoing. Until the final planning and development for each venue is complete, any cost estimates contained in Venu’s budget are subject to change. Since the Company’s development costs have not yet been finalized for many of its ongoing and planned projects, Venu may require additional capital in the form of shareholder contributions, additional debt or equity financing, or both. If Venu’s costs are higher than projected, the operating results contained in the Company’s projections may be less favorable.

Venu may suffer project delays, increased costs, and financial losses if city councils or other local governmental bodies oppose Venu’s land-purchase and venue-construction proposals or reject purchase and development agreements that Venu has negotiated with other regulatory bodies within a given city.

Venu’s business model involves entering into public-private partnerships with local municipalities that offer various financial and tax incentives to Venu in exchange for Venu’s agreement to construct a venue in the city. These partnerships may require approval from several levels of local government, including local city councils that may have the authority to vote on and approve or oppose our proposed land purchases and venue-construction projects. In some cases, we may negotiate with one local regulatory body and enter into a binding purchase and sale agreement that makes the closing of our land purchase contingent on receiving the local city council’s final approval. Similarly, we may enter into operating or development agreements with other third parties that include city-council approval as a condition precedent. Despite having a purchase agreement in place and having received the approval of another local governmental body, there is a risk that the local city council may vote down our purchase and construction proposals or binding agreements. That could occur due to changes in political priorities, public opposition, a misalignment between local regulatory bodies in their strategic objectives for a city, or other factors beyond on our control. This risk was exemplified by our attempted purchase of land in Oklahoma City, Oklahoma in June 2023, when we entered into a binding purchase and sale agreement with the Oklahoma City Planning Commission that was ultimately rejected by local city council, which is discussed in more detail on page 68.

The rejection by a local city council of our proposed land acquisition or construction plan could result in significant project delays and increased costs as we attempt to address the city council’s concerns, negotiate alternative arrangements, or pursue the purchase of other land. Such a rejection could also lead to a loss of our investment in the preliminary stages of development, including the planning and design process. While we strive to mitigate this risk by engaging with local governmental officials early on when attempting to expand our operations to a new city, conducting thorough due diligence of the properties we are evaluating for purchase, and negotiating contractual protections to minimize any financial losses or penalties we would incur if our contemplated purchase of land or venue construction is opposed by a local city council, we cannot predict how a city council will vote, and we cannot assure that we will be successfully in overcoming any such opposition.

Potential development and construction delays could cause Venu’s estimate of future income, expenses, and development costs to be inaccurate.

Venu has fully developed and constructed each of its operating or under construction venues to date, and expects to do so for its planned new projects. Properties that require development and construction involve more risk than other properties, typically do not generate operating revenue while costs are incurred to develop the properties, and may also generate certain expenses such as property taxes and insurance costs. In addition, market conditions may change during the course of development that may make the plan of development less attractive than at the time it was conceived. Development activities include the risks that such projects may be abandoned after expending capital and other resources, the construction costs of such projects may exceed original estimates, and the construction of a property may not be completed on schedule. Development activities are also subject to risks relating to the inability to obtain, and delays in obtaining, all necessary entitlement, zoning, land-use, building, occupancy, and other required governmental permits and authorizations. Delays in construction will delay the opening of new venues. Management’s estimate of future income, expenses, and development costs that are necessary to allow Venu to market this offering as originally intended may prove to be inaccurate. Contingencies in development activities beyond the control of Venu may occur.

The success of Venu’s business operations depends in part on its ability to acquire, develop, lease, and maintain live-music venues, and if it is unable to do so on acceptable terms, or at all, its results of operations could be adversely affected.

The Company’s business requires access to venues to generate revenue from live music concerts and other events. The Company has entered into a number of leasing and operating agreements for its venues. If the Company is unable to renew these agreements or to obtain new agreements on favorable, acceptable terms that are compatible with the Company’s existing operations, the Company’s operations may be negatively impacted.

The Company’s ability to continue expanding its operations through the development of new, and the expansion of existing, live music venues and restaurants is subject to a number of risks, including that (i) the construction of live music venues may result in cost overruns, delays, or unanticipated expenses; (ii) desirable sites for music venues may be unavailable or too costly; and (iii) the attractiveness of our existing venue locations may deteriorate over time. Growing or maintaining the Company’s existing revenue depends in part in making consistent investments in its venues. To meet long-term, increasing demand, improve value, and grow revenue, the Company may have several capital-improvement projects underway at any given time. Numerous factors, many of which are beyond the Company’s control, may influence the ultimate costs and timing of various capital improvements.

The amount of capital expenditures can vary significantly from year to year. In addition, actual costs could vary materially from the Company’s estimates if its assumptions about the quality of materials, equipment, or workmanship required or the cost of financing such expenditures were to change. Construction is also subject to governmental permitting processes, which, if modified, could materially affect the Company’s ultimate costs.

Additionally, the market potential of the Company’s live music venues, concerts, and restaurants cannot be precisely determined. The Company may face competition in markets from unexpected sources. Because of that competition, the Company may be unable to add to or maintain its collection of live music venues and concert and restaurant offerings on terms it considers acceptable.

Venu’s reliance on third-party operators to manage and operate Ford Amphitheater and future amphitheater locations exposes Venu to risks, including profit sharing, limited operational control, non-compete restrictions, indemnification obligations, and potential disruptions from the termination or renewal of operating agreements.

We rely, or may rely, on third-party operators to manage and operate certain of our live-music and entertainment venues. For example, Venu partnered with AEG Presents — Rocky Mountains, LLC (“AEG”) to operate Ford Amphitheater in Colorado pursuant to an exclusive operating agreement between the parties. Our agreements with third-party operators typically include provisions regarding the sharing of profits, indemnification requirements, non-compete restrictions, and other limitations on our control over the venue’s operations. As a result, our reliance on third-party operators subjects us to certain unique risks.

Our profitability from venues for which we use a third-party operator depends, in part, on the operator’s performance and success. Any failure by an operator to effectively operate our venue may negatively impact our ticket sales and financial results. Any requirement to share profits with a third-party operator may limit our realization of the full financial benefits of our venues.

The use of third-party operators also inherently reduces Venu’s operational control over a venue and may impair Venu’s expansion capabilities in a given area due to non-compete restrictions. Lack of operational control over one of our venues may lead to inconsistencies in service quality, brand reputation, and overall customer experience, which may adversely impact our business.

Our exclusive operating agreement with AEG, for example, grants AEG the exclusive right to operate and use Ford Amphitheater for events, subject to limited exceptions such as Venu having the right to use and reserve the venue for local events or performances by bands that are not nationally recognized or promoted. In addition, the agreement provides for a defined split of the venue’s profits and losses between Venu and AEG in a range between 45% to 55% between the two parties, but gives each party certain opt-out rights for events such that a party may not be responsible for any losses that may result from certain events held at the venue (but will also not be entitled to any profits that may result from such events). The agreement also imposes restrictions on AEG from operating venues that are comparable to Ford Amphitheater within a defined radius of the venue and imposes restrictions on Venu from owning, operating, or developing a competing venue within a defined radius. Non-competition and development restrictions may limit our ability to expand our business in certain key markets, which could hinder our growth opportunities and competitive positioning.

Our exclusive operating agreement with AEG also includes renewal and termination provisions. If AEG fails to renew the agreement or if the agreement is terminated, Venu may face disruptions in the operation of Ford Amphitheater, unexpected costs to find a replacement operator, or the inability to continue operating Ford Amphitheater under terms similar to those defined in the AEG exclusive operating agreement.

Any of the foregoing risks, if realized, could have a material adverse effect on our business, financial condition, and results of operations. Further, any negative publicity or events concerning an operator or other locations it operates may adversely affect public perception of our venues operated by such operator.

Venu was previously engaged in litigation related to its construction and operation of Ford Amphitheater in a lawsuit that was ultimately dismissed by the district and appellate courts. If the plaintiffs were to appeal to the Colorado Supreme Court, an adverse outcome for Venu in the appeal could negatively affect Venu’s business operations and prevent Venu from fulfilling certain contractual obligations related to scheduled events at Ford Amphitheater. Venu may face similar lawsuits in other municipalities where it is constructing, or plans to construct, Sunset Amphitheaters.

The planning, construction, and development of Venu’s venues requires the Company to obtain and various governmental approvals and permits. As disclosed under “Venu Business — Legal Proceedings,” Venu, Venu Real Estate, LLC, and the City of Colorado Springs, Colorado (the “City”) were defendants in a lawsuit filed in the El Paso County District Court of Colorado on September 26, 2023 by a neighborhood association and an individual who sought to enjoin Venu’s construction and operation of Ford Amphitheater based on allegations that the venue would emit “unlawful noise pollution” in violation of state law. Venu filed a motion to dismiss, which the El Paso County District Court granted on January 11, 2024. The plaintiffs then filed an appeal to the Colorado Court of Appeals, which affirmed the dismissal of all claims against Venu on September 12, 2024.

Although Venu believes it complied with all applicable codes and procedures required to obtain the City of Colorado Springs’ approval to construct Ford Amphitheater, and is encouraged by the El Paso County District Court’s dismissal of the lawsuit and the Colorado Court of Appeals’ affirmation of the dismissal in September 2024, there is no assurance that the plaintiffs will not appeal to the Colorado Supreme Court or attempt to pursue other legal recourse. Any reversal of the dismissal affirmed by the Colorado Court of Appeals, the suspension, revocation, or rejection by the City of any of the permits or waivers required for Venu to continue its construction of and eventual operation of Ford Amphitheater, or any other unfavorable outcome from the appeal and litigation could subject Venu to adverse commercial ramifications and negatively impact Venu’s business operations, financial condition, construction timeline, and ability to comply with its contractual obligations to host scheduled concerts and events at Ford Amphitheater that began in August 2024. If Venu loses on appeal or if the process or outcome of the appeal delays Venu’s completion of Ford Amphitheater’s construction and delays the opening of that venue, Venu may be required to cancel or reschedule certain concerts and events, which would increase Venu’s costs for the events, could negatively impact attendance and food-and-beverage sales at the events and delay or decrease Venu’s ability to generate revenues through events scheduled at the venue.

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Venu could face similar lawsuits in other locations where it is constructing, or plans to construct, Sunset Amphitheaters based on similar laws or other local ordinances. An adverse outcome of the appeal in Colorado could serve as precedent for claims to be brought by other potential plaintiffs in other jurisdictions, thereby exposing Venu to greater litigation risk. Any litigation of this nature, regardless of outcome, could result in substantial costs being incurred by Venu, management’s focus and resources being diverted, Venu’s expected timelines for construction, operations, and event hosting being impeded, and loss of revenues. Any of the foregoing risks and adverse outcomes could materially impact Venu’s business, financial condition, results of operations, and/or cash flows.

If Venu fails to execute its business strategy, which includes identifying, acquiring, and then developing new restaurant, amphitheater, and entertainment venue locations, and opening locations that are profitable, Venu’s business could suffer.

Venu’s primary means of achieving growth objectives is opening and operating new and profitable restaurants and entertainment venues, and its outdoor amphitheaters. This strategy involves numerous risks, and Venu may not be able to open all planned new venues, and the new locations that do open may not be profitable or as profitable as existing locations.

A significant risk in executing Venu’s business strategy is locating, securing, and then profitably operating suitable new locations for restaurants and music venues. Many of the larger projects Venu has undertaken, and, expects to undertake (being outdoor amphitheater projects), require a significant land footprint to locate the building, parking and other ancillary improvements. Locating, and then acquiring suitable sites is subject to numerous challenges, and there can be no assurance that Venu will be able to find sufficient suitable locations or negotiate suitable purchase or lease terms for planned expansion in any future period. Economic conditions may also reduce commercial development activity and limit the availability of attractive sites for new locations. New locations that open may experience an adjustment period before sales levels and operating margins normalize, and even sales at successful newly opened locations likely will not make a significant contribution to profitability in their initial months of operation. Venu’s ability to open and operate new locations successfully also depends on numerous other factors, some of which are beyond our control, including, among other items discussed in other risk factors, the following: ability to control construction and development costs of new restaurants and venues; ability to manage the local, state or other regulatory approvals and permits, zoning and licensing processes in a timely manner; ability to appropriately train employees and staff the venues; consumer acceptance of venues in new markets; and ability to manage construction delays related to the opening of a new venue. Delays or failures in opening new locations or achieving lower than expected sales in new locations could materially adversely affect business strategy and could have an adverse effect on business and results of operations.

Expansion into new geographic markets may present increased risks due to relative unfamiliarity with these markets.

Certain new venues, amphitheater and restaurant locations may be in areas in which Venu has not previously had a presence. Those new markets may have different competitive conditions, consumer tastes, and discretionary spending patterns than current markets where Venu has operations, which may cause new locations to be less successful than restaurants and venues in Venu’s core market. An additional risk of expanding into new markets is the potential for lower or lacking market awareness of the Venu brand. Restaurants and venues opened in new markets may open at lower average weekly sales volumes than locations opened in Venu’s core market and may have higher facility-level operating expense ratios than in existing markets. Restaurants and venues opened in new markets may take longer to reach average unit volume and margins, if at all, thereby affecting our overall profitability.

The catastrophic loss of a facility could adversely affect business.

The catastrophic loss of any of Venu’s facilities, venues, or restaurant location due to unanticipated events, such as fires, an act of terrorism or violent weather, would likely reduce revenues during the affected period, and such reduction would likely have a material adverse impact on Venu’s operating results, at least until Venu is operating a significant number of facilities.

Venu’s operational costs may be greater than projected due to factors beyond Venu’s control that slow project development and may adversely impact Venu’s profitability.

The costs in the restaurant and music venue industries are often underestimated and may increase by reason of factors beyond Venu’s control. Such factors may include weather conditions, legal costs, labor disputes, governmental regulations, equipment breakdowns, property availability, governmental regulatory interference, insurance costs and other disruptions. While Venu intends to manage these costs diligently, the risk of running over budget is always significant and may have a substantial adverse impact on the profitability of Venu. In such event, additional sales of any of Venu’s equity securities or additional financing may be required to continue the business of Venu, and there can be no guarantee that Venu could successfully conclude such additional sales or obtain such additional financing at all or on terms that were acceptable to Venu, which could have a materially adverse effect on Venu and its operations.

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Venu’s restaurants and live-music venues face intense competition, and if Venu is unable to continue to compete effectively, its business, financial condition, and results of operations would be adversely affected.

The restaurant industry is intensely competitive, and Venu faces many well-established competitors. Venu competes within each market with national and regional restaurant and retail chains and locally owned restaurants and retailers. Competition from other regional or national restaurant and retail chains typically represents the more important competitive influence, principally because of their significant marketing and financial resources. Venu also faces competition as a result of the convergence of grocery, deli, retail, and restaurant services, particularly in the supermarket industry. It also faces competition from various off-premise meal replacement offerings including but not limited to home meal kits delivery, third-party meal delivery, and catering, and the rapid growth of these channels by competitors. Moreover, competitors can harm business even if they are not successful in their own operations by taking away customers or employees through aggressive and costly advertising, promotions, or hiring practices. Venu competes primarily on the quality, variety, and perceived value of menu and retail items. The number and location of restaurants, the growth of e-commerce, type of concept, quality and efficiency of service, attractiveness of facilities, and effectiveness of advertising and marketing programs also are important factors. Venu anticipates that intense competition will continue with respect to all of these factors. It also competes with other restaurant chains and other retail businesses for quality site locations, management and hourly employees, and other competitive pressures that could affect both the availability and cost of these important resources. If Venu is unable to continue to compete effectively, its business, financial condition, and results of operations would be adversely affected.

Venu may face challenges in building name recognition, developing its reputation, and protecting its brand and reputation from adverse events that may not be within Venu’s control, which could adversely impact its expansion efforts, its operating results, and its ability to attract talented performers, generate audience enthusiasm, sell tickets, and generate revenue from its venues.

To date, we have opened a limited number of restaurants and two indoor music venues in a total of two markets, and we opened our first outdoor amphitheater in August 2024 in one of our existing markets. As a company with limited history and operations, to date, our name and brand is not widely known. We believe that growing, protecting, maintaining and enhancing our name and brand recognition, and greater market awareness for our venues, is integral to our success in our current markets, particularly as we open Ford Amphitheater and as we seek to expand into new markets. Growing, protecting, maintaining and enhancing our brand will depend largely on our ability to develop and maintain venues that are desirable for performers and attendees both at the time of their opening and over time. This will depend on, other things, our ability to develop and maintain venues with features and amenities that are desirable for performers and attendees, and differentiate our venues from others, which we may not do successfully. The value of our name and brand may decline if we are unable to maintain our brand and venues as being disruptive, high quality and unique in the live music industry. Successfully growing and maintaining our brand will depend largely on the effectiveness of our marketing efforts, our ability to open venues that prove successful and desirable in the industry (both for performers and attendees), and our ability to continue to open, develop and successfully differentiate our venues from competing facilities. Delays in opening venues, cancellations of planned shows (for various reasons), security and safety concerns related to our venues, negative publicity or reviews, negative experiences of performers or attendees, needed infrastructure upgrades and repairs that will occur from time to time, or other operational challenges may harm our reputation and brand. Unfavorable media coverage, negative publicity, or negative public perception about us or our venues, our industry, or actual or perceived negative experiences of performers or attendees at our venues may also harm our reputation and our brand. If events occur that damage our reputation and brand, our ability to grow revenues from our existing venues and to expand into new markets may be impaired, and our business, financial condition and results of operations may be harmed.

We also believe that the importance of name and brand recognition will increase as competition in our current or prospective markets increases, and the promotion of our venues, name, and brand may require substantial expenditures. We have invested, and expect to continue to invest, resources to increase our name and brand awareness, both generally and in specific geographies and to specific intended customer groups. There can be no assurance that our brand development strategies and investment of resources will enhance recognition of the Venu (or Venu) brand or name, or lead to increased demand for our venues. If our efforts to protect and promote our name and brand are not successful, our business, financial condition and results of operations may be adversely affected. In addition, even if our name and brand recognition and loyalty increases, revenue may not increase at a level commensurate with our marketing spend.

The entertainment business in which Venu operates is highly sensitive to customer tastes. The success of Venu’s business depends on Venu’s (and its contractual partners’) ability to attract popular artists and other live events to its venues. Venu and its partners may be unable to book events that generate demand, or anticipate or respond to changes in consumer preferences, which may result in decreased attendance at concerts and events hosted at Venu’s venues.

The success of Venu’s business depends, in part, upon its ability to offer live entertainment venues that are popular with customers. Moreover, Venu expects to rely, in part, on third parties (such as AEG Presents — Rocky Mountains, LLC, with whom Venu has entered into an operating agreement for Ford Amphitheater in Colorado Springs) to book events and acts at Venu’s venues. Although the agreements include performance targets as it relates to show and attendance numbers, the parties entry into these agreements do not assure that AEG or any other operator will be successful in booking a specific number of events at a particular venue in a given year. In addition, as described elsewhere in this prospectus, Venu is obligated to split certain venue and event costs and revenues with these third-party operators, and may also be required to make other accommodations to those parties in connection with their agreement to serve as operator of a venue, such as providing the operator with a right of first offer for future venues that Venu constructs. There may be a limited number of popular artists, groups, or events that can attract audiences to venues and Venu’s business would suffer to the extent that its venues are unable to attract such artists, groups, and events to perform at its venues, or its third-party contractual partners are unable to perform under their agreements with Venu or fulfil the parties expectations.

Moreover, the live music industry competes with other forms of entertainment for consumers’ discretionary spending and within this industry Venu competes with other venues to book artists in the markets in which it currently (or plans to) promotes music concerts, Venu faces competition from other promoters and venue operators. Competitors compete with Venu for key employees who may have relationships with popular music artists and who have a history of being able to book such artists for concerts and tours. These competitors may engage in more extensive development efforts, undertake more far-reaching marketing campaigns, adopt more aggressive pricing policies, and make more attractive offers to existing and potential artists. Competitors may develop services, advertising options, or music venues that are equal or superior to those Venu provides or that achieve greater market acceptance and brand recognition. Across the live music industry, it is possible that new competitors may emerge and rapidly acquire a significant market share.

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Venu’s success depends, in significant part, on entertainment and leisure events and economics, and other factors adversely affecting such events could have a material adverse effect on business, financial condition, and results of operations.

A decline in attendance at or reduction in the number of live entertainment and leisure events may have an adverse effect on revenue and operating income. In addition, during periods of economic slowdown and recession, many consumers have historically reduced their discretionary spending and advertisers have reduced their advertising expenditures. The impact of economic slowdowns on business is difficult to predict, but they may result in reductions in ticket sales, sponsorship opportunities and Venu’s ability to generate revenue. The risks associated with Venu’s businesses may become more acute in periods of a slowing economy or recession, which may be accompanied by a decrease in attendance at live entertainment, sporting, and leisure events. Many of the factors affecting the number and availability of live entertainment and leisure events are beyond Venu’s control. Venu’s success depends, in significant part, on entertainment and leisure events and economic and other factors adversely affecting such events could have a material adverse effect on business, financial condition and results of operations. A decline in attendance at or reduction in the number of live entertainment and leisure events may have an adverse effect on revenue and operating income. In addition, during periods of economic slowdown and recession, many consumers have historically reduced their discretionary spending and advertisers have reduced their advertising expenditures. The impact of economic slowdowns on business is difficult to predict, but they may result in reductions in ticket sales, sponsorship opportunities and Venu’s ability to generate revenue. The risks associated with its businesses may become more acute in periods of a slowing economy or recession, which may be accompanied by a decrease in attendance at live entertainment, sporting, and leisure events.

Venu’s business depends on discretionary consumer and corporate spending, which may be impacted by market volatility and challenging economic conditions.

Many factors related to corporate spending and discretionary consumer spending, including economic conditions affecting disposable consumer income, unemployment levels, fuel prices, interest rates, changes in tax rates and tax laws that impact companies or individuals, and inflation can significantly impact Venu’s operating results. Business conditions, as well as various industry conditions, including corporate marketing and promotional spending and interest levels, can also significantly impact Venu’s operating results. These factors can affect attendance at Venu’s events, sponsorship, advertising and hospitality spending, concession and merchandise sales, as well as the financial results of any sponsors of Venu’s venues, events, and the industry. Negative factors such as challenging economic conditions and public concerns over terrorism and security incidents, particularly when combined, can impact corporate and consumer spending, and one negative factor may impact Venu’s results more than another. There can be no assurance that consumer and corporate spending will not be adversely impacted by current economic conditions, or by any future deterioration in economic conditions, thereby possibly impacting Venu’s operating results and growth.

Portions of Venu’s business are subject to seasonal fluctuations and its operating results and cash flow likely will vary from period to period.

A significant portion of Venu’s future growth projections stem from the suite of outdoor amphitheaters it intends to construct and own. Those venues will hold larger, and more consistent events in the second and third fiscal quarters. As a result Venu’s revenues and expenses are expected to be seasonal in nature and operating results and cash flow likely will reflect significant variation from period to period. Consequently, period-to-period comparisons of our operating results may not necessarily be meaningful and the operating results of one period are not indicative of our financial performance during a full fiscal year. This variability may adversely affect Venu’s business, results of operations and financial condition.

Poor weather adversely affects attendance at live music events, which could negatively impact Venu’s financial performance from period to period.

A significant portion of Venu’s business is the hosting and promotion of live music events. Weather conditions surrounding these events affect sales of tickets, concessions, and merchandise, among other things. Poor weather conditions can have a material impact on results of operations particularly because Venu can only promote and/or ticket a finite number of events. Increased weather variability due to climate change exacerbates weather-related issues. Due to weather conditions, Venu may be required to cancel or reschedule an event to another available day or a different venue, which would increase costs for the event and could negatively impact the attendance at the event as well as concession and merchandise sales. Poor weather can affect current periods as well as successive events in future periods.

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There is a risk of personal injuries and accidents in connection with live music events, which could subject Venu to personal injury or other claims and increase expenses, as well as reduce attendance at its live music events, causing a decrease in revenue.

There are inherent risks involved with organizing and producing live music (and other entertainment) events. As a result, personal injuries and accidents may occur in the future, from time to time, which could subject Venu to claims and liabilities for personal injuries. Incidents in connection with Venu’s live music events at any of its venues that its owns or rents could also result in claims, reducing operating income or reducing attendance at its events, which could cause a decrease in revenue. In addition, while Venu has security protocols in place at its events, illegal drug use or alcohol consumption at events could result in negative publicity, adverse consequences (including illness, injury, or death) to the persons engaged in such activities or others, and litigation against Venu. While Venu maintains insurance policies that provide coverage within limits that are sufficient, in management’s judgment, to protect it from material financial loss for personal injuries sustained by persons at its venues or events or accidents in the ordinary course of business, there can be no assurance that such insurance will be adequate at all times and in all circumstances.

The sale of food and prepared food products for human consumption involves a risk of injury to customers.

Such injuries may result from tampering by unauthorized third parties, product contamination or spoilage, including the presence of foreign objects, substances, chemicals, other agents, or residues introduced during the growing, storage, handling, and transportation phases. Additionally, many of the food items on the restaurants Venu owns contain beef and chicken. The preferences of customers toward beef and chicken could be affected by changes in consumer health or dietary trends and preferences regarding meat consumption or health concerns and publicity concerning food quality, illness, and injury generally. In recent years there has been publicity concerning E. Coli bacteria, hepatitis A, “mad cow” disease, “foot-and-mouth” disease, salmonella, African swine fever, peanut and other food allergens, and other public health concerns affecting the food supply, including beef, chicken, pork, dairy and eggs. In addition, government regulations or the likelihood of government regulation could increase the costs of obtaining or preparing food products. A decrease in guest traffic to venues, a change in mix of products sold or an increase in costs as a result of these health concerns either in general or specific to operations could result in a decrease in sales or higher costs to venues that would materially harm business.

The price and availability of food, ingredients, retail merchandise, transportation, distribution, and utilities used by Venu’s venues could adversely affect revenues and results of operations.

Venu is subject to the general risks of inflation, and Venu’s operating profit margins and results of operations depend significantly on its ability to anticipate and react to changes in the price, quality and availability of food and other commodities, ingredients, retail merchandise, transportation, distribution, utilities, and other related costs over which Venu has limited control. Fluctuations in economic conditions, weather, demand, and other factors affect the availability, quality and cost of the ingredients and products that Venu buys. Furthermore, many of the products that Venu uses and their costs are interrelated. Changes in global demand for corn, wheat and dairy products could cause volatility in the feed costs for poultry and livestock. The effect of, introduction of, or changes to tariffs or exchange rates on imported retail products or food products could increase costs and possibly affect the supply of those products. Changes in demand for over the road transportation and distribution services could cause volatility, increase costs, and affect operating margins. In addition, food safety concerns, widespread outbreaks of livestock and poultry diseases, such as, among other things, the avian flu and African swine fever, and product recalls, all of which are out of Venu’ control, and, in many instances, unpredictable, could also increase costs and possibly affect the supply of livestock and poultry products. Venu’s operating margins are also affected, whether as a result of general inflation or otherwise, by fluctuations in the price of utilities such as natural gas and electricity, on which Venu’s locations depend for much of their energy supply. Venu’s inability to anticipate and respond effectively to one or more adverse changes in any of these factors could have a significant adverse effect on its results of operations.

Recent inflationary pressures have materially impacted our business operations, particularly in connection with increased supply costs, labor cost pressures, and changes in consumer behavior and discretionary spending, all of which have impacted our business decisions and profitability. The costs for essential ingredients needed for our restaurants and entertainment venues have substantially increased over the past year. According to the Bureau of Labor Statistics and the National Restaurant Association, wholesale food prices have risen across a broad spectrum of commodities. For example, looking at producer prices for commodities from July 2023 to July 2024, the prices of tomatoes have increased 185.8%, eggs have increased 155%, frozen fruits, juices, and aides have increased 27.0%, butter has increased 15.7%, pork products have increased 12.8%, sugar and confectionary have increased 9%, and dairy products have increased 7.6%. As a result of the widespread upward pressure on the prices of essential commodities, we have had to pay higher prices to our suppliers for food, beverage, and other materials necessary for our operations. Although we have passed a portion of these costs onto our customers through increases in our menu prices, because we provide moderately priced products, Venu may not seek to or be able to pass along price increases to our customers sufficient to completely offset the cost increases we have incurred. Our ability to fully pass on increased costs to consumers is restricted by the potential for reduced customer demand. As a result, we have absorbed some of the cost increases, which negatively affects our margins and puts further pressure on our bottom line.

We have also seen changes in consumer behavior that we attribute to inflationary pressures, particularly impacting consumers’ discretionary-spending behaviors. We have observed that customers are more cautious about the overall costs of food, beverages, and spending on non-essential items and activities such as dining at restaurants, purchasing tickets for live entertainment concerts and shows, and purchasing food and drinks during events. If persistent, this shift in consumer-spending pattern may result in lower demand for both our restaurant offerings and live entertainment events, which would negatively affect our revenue.

If inflationary pressures are persistent or worsen, Venu’s business could be further negatively impacted by rising supply costs and changes in consumer behavior, which could result in additional price increases, reduced demand for our restaurant and event offerings, and continued pressure on our profitability. Any of those negative results could materially adversely affect our financial condition and results of operations

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Venu and its venues may be adversely affected by the occurrence of extraordinary events, such as terrorist attacks or disease epidemics.

The occurrence and threat of extraordinary events, such as terrorist attacks, intentional or unintentional mass-casualty incidents, public health concerns such as contagious disease outbreaks, natural disasters, or similar events, may deter artists from touring and/or substantially decrease the use of and demand for services and the attendance at live music events, which may decrease revenue or expose Venu to substantial liability. The terrorism and security incidents in the past, military actions in foreign locations, periodic elevated terrorism alerts and fears from publicized contagious disease outbreaks have raised numerous challenging operating factors, including public concerns regarding air travel, military actions and additional national or local catastrophic incidents, causing a nationwide disruption of commercial and leisure activities.

In the event of actual or threatened terrorism events, some artists may refuse to travel or book tours, which could adversely affect business. Attendance at events may decline due to fears over terrorism and contagious disease outbreaks, which could adversely impact operating results. While it is constantly evaluating the security precautions for events in an effort to ensure the safety of the public, no security measures can guarantee safety and there can be no assurances that it won’t face liabilities, which could be substantial and materially impact our operating results, in connection with such terrorist attacks at events.

While Venu has health and safety programs designed to mitigate the risks that are inherent in the staging of concerts and other events, as well as those associated with extraordinary occurrences or actions that may take place at events, there can be no assurances that these programs will be sufficient to fully cover every possibility. Despite Venu’s best efforts, some occurrences or actions are difficult to foresee and adequately plan for, which could lead to fan, vendor, or employee harm resulting in fines, penalties, legal costs, and reputational risk that could materially and adversely impact our business and results of operations.

Health concerns, government regulation relating to the consumption of food products, and widespread infectious diseases could impact consumer preferences and negatively affect results of operations.

Much like the COVID-19 pandemic, the United States and other countries have experienced, or may experience in the future, outbreaks of other viruses, such as norovirus, the bird/avian flu, or other diseases. As experienced with the COVID-19 pandemic, if a regional or global health pandemic occurs, depending upon its location, duration, and severity, Venu’s business could be severely affected. In the event a health pandemic occurs, customers might avoid public places, and local, regional, or national governments might limit or ban public gatherings to halt or delay the spread of disease. Jurisdictions in which we have restaurants and venues may impose mandatory closures or impose restrictions on operations. If a virus is transmitted by human contact or respiratory transmission, employees or guests could become infected, or could choose, or be advised, to avoid gathering in public places, any of which would adversely affect restaurant guest traffic or perform functions at the corporate level. A regional or global health pandemic might also adversely affect business by disrupting or delaying production and delivery of materials and products in supply chain and causing staffing shortages in our stores.

Risks Related to Governmental Regulation

Venu is subject to extensive governmental regulation and changes in these regulations and its failure to comply with them may have a material negative effect on the Company’s business and results of operations.

Venu’s business is subject to the general powers of federal, state and local governments.

| ● | Venue-related Permits/Licenses. Venu’s venues, like all public spaces, are subject to building and health codes and fire regulations imposed by state and local government as well as zoning and outdoor advertising and signage regulations. Venu also requires a number of licenses in multiple jurisdictions to operate, including, but not limited to, occupancy permits, exhibition licenses, food and beverage permits, liquor licenses, signage entitlements and other authorizations. Failure to receive or retain, or the suspension of, liquor licenses or permits could interrupt or terminate our ability to serve alcoholic beverages at our venue. Additional regulation relating to liquor licenses may limit our activities in the future or significantly increase the cost of compliance, or both. Venu is subject to “dram shop” statutes in certain states, which generally provide that serving alcohol to a visibly intoxicated or minor patron is a violation of the law and may provide for strict liability for certain damages arising out of such violations. Venu’s liability insurance coverage may not be adequate or available to cover any or all such potential liability. Any failure to maintain these permits or licenses could have a material negative effect on Venu’s business and results of operations.

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| ● | Public Health and Safety. As a result of government mandated assembly limitations and closures implemented in response to the COVID-19 pandemic, Venu’s revenues declined substantially in 2020 and 2021. There can be no assurance that some or all of these restrictions will not be imposed again in the future due to future outbreaks of COVID-19 (including variants) or another pandemic or public health emergency. Venu is unable to predict what the long-term effects of these events, including renewed government regulations or requirements, will be. For example, future governmental regulations adopted in response to a pandemic may impact the revenue we derive and/or the expenses we incur from the events that we choose to host, such that events that were historically profitable would instead result in losses.
| ● | Environmental Laws. The amphitheaters and venues Venu develops are subject to federal, state, and local environmental laws and regulations relating to the use, disposal, storage, emission and release of hazardous and non-hazardous substances, as well as zoning and noise level restrictions which may affect, among other things, the operations of our venues. Compliance with these regulations and the associated costs may be heightened as a result of the purchase, construction or renovation of a venue. Additionally, certain laws and regulations could hold the Company strictly, jointly and severally responsible for the remediation of hazardous substance contamination at its facilities or at third-party waste disposal sites, as well as for any personal injury or property damage related to any contamination. Venu’s commercial general liability and/or the pollution legal liability insurance coverage may not be adequate or available to cover any or all such potential liability.
| ● | Data Privacy. Venu is subject to various data privacy and protection laws, regulations, policies and contractual obligations that apply to the collection, transmission, storage, processing and use of personal information or personal data, which among other things, impose certain requirements relating to the privacy and security of personal information. The variety of laws and regulations governing data privacy and protection, and the use of the internet as a commercial medium, are rapidly evolving, extensive and complex, and may include provisions and obligations that are inconsistent with one another or uncertain in their scope or application.

The data protection landscape is rapidly evolving in the United States. As Venu’s operations and business grow, it may become subject to or affected by new or additional data protection laws and regulations and face increased scrutiny or attention from regulatory authorities. For example, California has passed a comprehensive data privacy law, the California Consumer Privacy Act of 2018 (the “CCPA”), and a number of other states, including Virginia, Colorado, Utah and Connecticut, have also passed similar laws, and various additional states may do so in the near future. Further, there are several legislative proposals in the United States, at both the federal and state level, that could impose new privacy and security obligations. Venu has not yet determined the impact that these future laws and regulations may have on its business.

In addition, governmental authorities and private litigants continue to bring actions against companies for online collection, use, dissemination and security practices that are unfair or deceptive.

Venu’s business is, and may in the future be, subject to a variety of other laws and regulations, including licensing, permitting, working conditions, labor, immigration and employment laws; health, safety and sanitation requirements; and compliance with the Americans with Disabilities Act (and related state and local statutes).

Any changes to the legal and regulatory framework applicable to Venu’s business could have an adverse impact on its businesses and its failure to comply with applicable governmental laws and regulations, or to maintain necessary permits or licenses, could result in liability or government actions that could have a material negative effect on Venu’s business and results of operations.

Zoning and governmental approvals could hinder, delay, or completely inhibit Venu’s ability to own, develop, lease, and construct upon the real estate upon which it intends to build new restaurants and venues.

Real estate development and ownership is subject to extensive regulation related to zoning, land use, building design, taxation, construction materials, warranties, environmental protection, and workplace safety, among others. Projects may be subject to legal challenges brought by governmental authorities or private parties. Local governments may enact growth control initiatives, annexation or building restrictions, impose moratoriums to restrict development or other adverse economic or monetary policies, impose nuisances and other conditions on development of particular sites, and increase the fees imposed on developers to fund roads, schools, open spaces, or affordable housing. Any of the foregoing could prevent Venu from undertaking or completing a particular project, impair its ability to sell or dispose of certain properties, force it to implement design changes, increase the cost of obtaining the necessary approvals, and/or cause delays in the approval process.

Various components of the construction and development of new venue locations will require approvals from local government officials or agencies. Land-use regulations, construction permits, and other regulatory requirements at the state and local level can require significant time and knowledge to obtain. There is no assurance that these regulatory requirements can be satisfied or will not be delayed due to factors beyond Venu’s control or otherwise. Failure to obtain the required approvals in a timely manner, or at all, may result in delays or abandonment of site locations Venu is developing or plan to develop. Any funds spent by Venu prior to that determination may be lost.

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Venu’s ability to meet labor needs while controlling costs is subject to external factors such as unemployment levels, minimum wage legislation, health care legislation, payroll taxes and changing demographics.

Many employees are hourly workers whose wages are affected by increases in the federal or state minimum wage or changes to tip credits. Tip credits are the amounts an employer is permitted to assume an employee receives in tips when the employer calculates the employee’s hourly wage for minimum wage compliance purposes. Increases in minimum wage levels and changes to the tip credit have been made and continue to be proposed at both federal and state levels. As minimum wage rates increase, the Company may need to increase not only the wages of minimum-wage employees but also the wages paid to employees at wage rates that are above minimum wage. If competitive pressures or other factors prevent the Company from offsetting increased labor costs by increases in prices, profitability may decline.

The restaurant business is subject to a significant amount of regulation and licensing requirements that could adversely affect our business or require changes to our business practices.

The Company’s proposed business is subject to various federal, state, and local government regulations, including those relating to food safety and disclosure, alcoholic beverage sale and control, public accommodations, and public health and safety. These regulations are subject to continual changes and updating. Difficulties or failures in obtaining or maintaining the required licenses and approvals or maintaining compliance with existing or newly enacted requirements could delay the opening or affect the continued operation and profitability of one or more restaurants in a particular area.

The regulatory environment surrounding information security and privacy is increasingly demanding, with the frequent imposition of new and constantly changing requirements.

Compliance with consumer-privacy laws, payment-card security standards, data-storage regulations, and other laws and regulations that aim to protect customers’ data privacy may result in cost increases due to necessary system changes and the development of new administrative processes. In addition, customers and employees have a high expectation that Venu will adequately protect their personal information. For example, in connection with credit and debit card sales, Venu transmits confidential card information. Third parties may have the technology or know-how to breach the security of this customer information, and security measures and those of its technology vendors may not effectively prevent others from obtaining improper access to this information. If Venu fails to comply with the laws and regulations regarding privacy and security or experience a security breach, it could be exposed to risks of data loss, regulatory investigations and/or penalties, a loss of the ability to process credit and debit card payments, substantial inconvenience or harm to guests, litigation, and serious disruption of operations. Additionally, any resulting negative publicity could significantly harm Venu’s reputation and damage its relations with guests. As privacy and information security laws, regulations and practices change and cyber risks continue to evolve, Venu may incur additional costs to ensure it remains in compliance and protect guest, employee, and Company information.

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Various federal and state employment laws govern the relationship between the Company and its employees and affect the Company’s operating costs.

State and federal employment laws govern minimum wage requirements, overtime pay, meal and rest breaks, unemployment tax rates, workers’ compensation rates, citizenship or residency requirements, labor relations, child labor regulations, and discriminatory conduct. Additional government-imposed increases in federal and state minimum wages, overtime pay, paid leaves of absence, and mandated health benefits, increased tax reporting and tax payment requirements for employees who receive tips or a reduction in the number of states that allow tips to be credited toward minimum wage requirements could harm operating results.

General Business and Personnel Risks

A material disruption in information technology, network infrastructure and telecommunication systems could adversely affect business and results of operations.

Venu relies extensively on information technology across operations, including, but not limited to, point of sales processing, supply chain management, retail merchandise allocation and distribution, labor productivity and expense management. Its business depends significantly on the reliability, security, and capacity of information technology systems to process these transactions, summarize results, manage, and report on business and supply chain. Its information technology systems are subject to damage or interruption from power outages, computer, network, cable system, internet and telecommunications failures, computer viruses, security breaches, catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, acts of war or terrorism, and usage errors by our employees. If Venu’s information technology and telecommunication systems are damaged or cease to function properly, it may have to make a significant investment to repair or replace them and could suffer loss of critical data and interruptions or delays in operations in the interim. Any material interruption in information technology and telecommunication systems could adversely affect business or results of operations. In addition, some of these essential technology-based business systems are outsourced to third parties. While Venu makes efforts to ensure that its outsourced providers are observing proper standards and controls, it cannot guarantee that breaches, disruptions, or failures caused by these providers will not occur.

A privacy breach or cybersecurity attack could adversely affect Venu’s business and operations.

The protection of customer, employee, and Company data is critical to Venu. It is subject to laws relating to information security, privacy, cashless payments, consumer credit, and fraud. Additionally, an increasing number of government and industry groups have established laws and standards for the protection of personal and health information. As a merchant and service provider of point-of-sale services, Venu is also subject to the Payment Card Industry Data Security Standard issued by the Payment Card Industry Council.

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Failure to maximize or to successfully protect and assert Venu’s intellectual property rights could adversely affect business and results of operations.

Venu relies on trademark, unfair competition, trade secret, and copyright laws to protect its intellectual property rights. Venu has registered certain trademarks and service marks with appropriate governmental authorities, but there can be no guarantee that these intellectual property rights will be maximized or that they can be successfully asserted. There is a risk that Venu will not be able to obtain and perfect its own intellectual property rights, or, where appropriate, to license intellectual property rights necessary to support new product introductions or other brand extensions. There is no guarantee that these rights, if obtained, will not be invalidated, circumvented, or challenged in the future. Venu’s failure to protect or successfully assert its intellectual property rights could make it less competitive and could have an adverse effect on Venu’s business and results of operations.

We may be subject to claims that we infringed upon certain third-party intellectual property rights, which, even if meritless, could be costly to defend and could adversely affect our business, results of operations, financial condition, and prospects.

The success of our business depends, in part, on our success in developing and marketing our products and services without infringing, misappropriating, or otherwise violating the intellectual property rights of third parties. However, from time to time, we may be subject to legal proceedings and other claims in the ordinary course of business alleging infringement of third-party intellectual property rights. Third parties may be able to successfully challenge, oppose, invalidate, render unenforceable, dilute, misappropriate, or circumvent our trademarks and other intellectual property rights, even if we were unaware that our products or services are infringing, misappropriating, or otherwise violating third-party intellectual property rights.

We cannot predict the outcome of lawsuits and cannot ensure that the results of any such claims will not adversely affect our business, results of operations, financial condition, or prospects. Our failure to protect our intellectual property rights in a meaningful manner could damage our reputation, erode our brand names and other IP, and strain or harm our business relationships. Accordingly, litigation may be necessary to determine the validity and scope of proprietary rights claimed by third parties, assert and enforce our intellectual property rights, and defend against third-party infringement claims. Defending against such claims would be costly and time-consuming. Any such litigation or claims, regardless of merit or outcome, could cause us to incur significant expenses and could divert our management and resources. If successfully asserted against us, such claims could inhibit our ability to offer certain products or services, require us to pay substantial costs and damages, force us to obtain licenses to continue our operations, compel us to adopt costly re-designs or modifications, or subject us to other unfavorable terms.

Venu is involved in a number of related-party transactions.

Many of the officers, directors, and principal shareholders of Venu (and its subsidiaries) are involved in Venu’s management and operations, including in roles as officers, directors, managers, and/or equity holders of Hospitality Income & Asset, LLC and 13141 BP, LLC, and landlords to three of Venu’s operating subsidiaries: BBST, BBP, and Notes. Furthermore, several shareholders are members of Venu’s landlords in Gainesville, Georgia. Additionally, many of the founders, officers, directors, and shareholders of Venu (and its subsidiaries) are involved as officers, directors, and executives of Roth Industries, the parent company of Roth Premium Foods, LLC, which is the licensee of the counterparty to the Bourbon Brothers licensing agreement. For a description of the related-party transactions involving Venu, its subsidiaries, and its management, see the “Certain Relationships and Related-Party Transactions” section of this prospectus.

Venu is dependent on its key personnel and will need to hire additional personnel. Venu’s hiring abilities may be strained by current employment trends and economic conditions.

Venu’s future successes depend on its ability to identify, attract, hire, train, retain and motivate highly skilled executive, technical, sales and marketing, business development, and store level personnel including restaurant managers and kitchen managers. Venu is currently particularly dependent on the efforts of JW Roth. The loss of Mr. Roth would likely have a significant negative impact on Venu’s operations and growth strategies. Competition for qualified personnel may be intense. If Venu fails to successfully attract, assimilate, and retain a sufficient number of such personnel, its business will suffer.

Venu’s officers, directors, and principal shareholders will collectively own a substantial portion of our Common Stock following this offering.

Collectively, Venu’s officers and directors will beneficially own approximately 37% of our outstanding Common Stock following this offering. Specifically, JW Roth, our Chairman, Chief Executive Officer, and founder, will beneficially own approximately 31% of the voting power of our Common Stock; Robert Mudd, our Senior Vice President of Construction and Market Expansion, will beneficially own approximately 1.8%; Heather Atkinson, our Chief Financial Officer, Secretary, and one of our directors, will beneficially own approximately 1.3%; Mitchell Roth, one of our directors, will beneficially own approximately 1.6%; and each of our other directors will beneficially own less than 1%. As a result, investors may face challenges in affecting matters involving our Company, including:

| ● | the composition of our Board of Directors and, through it, any determination with respect to our business direction and policies, including the appointment and removal of officers;
| ● | any determinations with respect to mergers or other business combinations;

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| ● | our acquisition or disposition of assets; and
| ● | our corporate financing activities.

Our officers, directors, and principal shareholders may act in concert to significantly influence these and other matters requiring shareholder approval. Furthermore, this concentration of voting power could have the effect of delaying, deterring, or preventing a change of control or other business combination that might otherwise be beneficial to our shareholders. This significant concentration of share ownership may also adversely affect the trading price for our Common Stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of shareholders.

Venu’s officers and directors do not owe a duty of exclusivity to Venu.

Venu’s officers and directors are not required to devote all of their business time to Venu as their sole and exclusive function or business. Members of our management team have other business interests and may engage in other activities and pursue other business opportunities in addition to those relating to Venu. Neither Venu nor any shareholder has any right to share or participate in such other investments or activities of management or to the income or proceeds derived therefrom.

Venu is dependent on attracting and retaining qualified employees while also controlling labor costs.

Venu’s business is dependent on attracting and retaining a large and growing number of qualified employees. Availability of staff varies widely from location to location. Many staff members are in entry-level or part-time positions, typically with high turnover rates. High turnover of store management and staff would cause Venu to incur higher direct costs associated with recruiting, training, and retaining replacement personnel. Management turnover as well as general shortages in the labor pool can cause venues to operate with reduced staff, which negatively affects the ability to provide appropriate service levels to customers. The market for the most qualified talent continues to be competitive and Venu must provide competitive wages, benefits, and workplace conditions to maintain the most qualified employees. Competition for qualified employees exerts upward pressure on wages paid to attract such personnel, resulting in higher labor costs, together with greater recruiting and training expenses.

Global economic and market uncertainty may adversely impact Venu’s business and operating results.

Uncertain global and macro-economic conditions have in the past and may in the future adversely impact Venu’s business. The current uncertainty in the worldwide economic environment together with other unfavorable changes in economic conditions, such as heightened inflation and interest rate increases currently being experienced or implemented by most developed economies, as well as recessions that have affected major countries, may negatively impact consumer confidence and spending, ultimately causing Venu’s customers to postpone purchases and may ultimately impact our profitability. Inflation and rapid fluctuations in inflation rates have had in the past, and may in the future have, negative effects on economies and financial markets. Venu could experience period-to-period fluctuations in operating results due to general industry or economic conditions and volatile or uncertain economic conditions can adversely impact sales and profitability and make it difficult for Venu to accurately forecast and plan its future business activities. Furthermore, inflationary pressure and increases in interest rates may negatively impact revenue, earnings and demand for Venu’s service and venue offerings. During challenging economic times, Venu’s current or potential future customers may experience cash flow problems and as a result may modify, delay or cancel plans to visit Venu’s restaurants and venues.

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Risks Related to Ownership of Our Common Stock

There has been no prior public market for our Common Stock, the stock price of our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell your Common Stock at or above the initial public offering price.

There has been no public market for our Common Stock prior to this offering. The initial public offering price for our Common Stock was determined through negotiations between the underwriter and us and may vary from the market price of our Common Stock following this offering. If you purchase shares of our Common Stock in this offering, you may not be able to resell those shares at or above the initial public offering price. An active or liquid market in our Common Stock may not develop upon the completion of this offering or, if it does develop, it may not be sustainable. Further, an inactive market may also impair our ability to raise capital by selling shares of our Common Stock and may impair our ability to enter into strategic partnerships or acquire companies or products by using our shares of Common Stock as consideration.

We do not expect to pay dividends in the foreseeable future. Any return on investment may be limited to the value of our Common Stock.

We do not anticipate paying cash dividends on our Common Stock in the foreseeable future. The payment of dividends on our Common Stock will depend on earnings, financial condition, and other business and economic factors affecting it at such time as the Board of Directors may consider relevant. If we do not pay dividends, our Common Stock may be less valuable because a return on your investment will occur only if our stock price appreciates.

Management has broad discretion in directing the Company’s use of proceeds from this offering and may not use them effectively or in ways that increase the value of our share price.

While the Company intends to allocate proceeds from this offering primarily for marketing investor relations expenses as well as market expansion costs and expenses and other general working capital purposes, the Company has not definitively allocated the net proceeds of this offering to any specific purpose. Accordingly, investors will entrust their funds to the Company and its management, whose judgment investors must depend on with only limited information about the Company’s specific intentions with respect to the proceeds of this offering. The Company has broad discretion as to all aspects of the use and in the application of the net proceeds, including to apply such proceeds for working capital and other general corporate purposes, and you and other shareholders may disagree with how we spend or invest these proceeds. If the Company’s management diverts funds raised in this offering from the use originally intended in the Company’s business plan, the result could be that the Company is not as successful as originally anticipated. The failure by our management to apply these funds effectively could adversely affect our business and financial condition. Investors will be required to rely on the Company and its management as to the best allocation of the Company’s assets. Pending our use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value. These investments may not yield a favorable return to our investors.

An investment in our Common Stock carries a high degree of risk and is highly speculative, illiquid, and suitable only for persons who are able to bear a total loss of their investment.

An investment in the Common Stock being offered by the Company is highly speculative and carries a high degree of risk. No assurance can be given that investors will realize a substantial return, if any, from their purchase of Common Stock in this offering. Furthermore, no assurance can be given that an investor will not lose its investment completely.

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If certain communications used to market certain exempt offerings of membership interests conducted by the Company’s subsidiaries are deemed to have been an “offer” with respect to the initial public offering being conducted by the Company in violation of Section 5 of the Securities Act, the Company may be subject to claims for rescission by investors that are participating in this offering. You should rely only on statements made in this prospectus in determining whether to purchase our shares of Common Stock.

Certain of the Company’s special purpose entity (“SPE”) subsidiaries have conducted exempt private offerings of membership interests (“Subsidiary Offerings”). The Subsidiary Offerings have often been generally referenced by the Company as “firepit suite” sales (with a key focus being on a holder’s right to use and “own” a specific firepit suite in a specific amphitheater and on the real property asset owned by the particular SPE subsidiary). Having third parties own certain stakes or rights in SPE assets, and being afforded various in-kind rights and benefits for their use at specific venues, has lent to the Company’s general mantra of being “fan owned.”

In connection with these Subsidiary Offerings, the Company’s SPE subsidiaries marketed the Subsidiary Offerings through various general solicitation efforts and communications (“Subsidiary Communications”), including posting references to, or information about the Subsidiary Offering investment opportunities to the Company’s website, which described the type of security being offered by each specific subsidiary, the venue and geographic location each such Subsidiary Offering related to, and the anticipated benefits to prospective investors in each SPE subsidiary, as well as forms of print or other broadcast media that was generally geographically targeted to prospective investors in a given market where a venue was set to be developed.

The Subsidiary Communications related or eluded solely to opportunities in certain of the Company’s SPE subsidiaries and, unlike this initial public offering to be conducted by the Company pursuant to the registration statement of which this prospectus is a part, did not in any way relate to a prospective investment in the Company as a whole, or to the Company’s initial public offering of Common Stock at the parent corporation level.

The Company does not believe that the Subsidiary Communications and marketing efforts described above constitute a violation of Section 5 of the Securities Act or of applicable provisions of state securities laws. However, if such communications were held by a court to be “offers” with respect to the initial public offering being conducted by the Company in violation of Section 5 of the Securities Act or applicable provisions of state securities laws, purchasers of shares of Common Stock in this offering may have rescission rights or claims for damages. Upon exercise of any such rescission rights, the Company could be required to repurchase the shares sold to investors in this offering, for any consideration determined to have been paid for such shares, with interest thereon, less the amount of any income received therefrom, or for damages if the shares are no longer owned by any such investor, for a period of one year following the date of the violation. Similar remedies could be available to investors under state securities laws. The amount of any such potential liability is uncertain. The Company would contest vigorously any claim that a violation of the Securities Act or applicable provisions of state securities law occurred.

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If you purchase our Common Stock in this offering, you will incur immediate and substantial dilution in the book value of your shares.

The initial public offering price per share of Common Stock will be substantially higher than the net tangible book value per Common Share immediately after this offering. Investors purchasing Common Stock in this offering will pay a price per share that substantially exceeds the book value of our tangible assets after subtracting our liabilities. Based on the public offering price of $10.00 per share of our Common Stock, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us, if you purchase shares of Common Stock in this offering, you will suffer immediate dilution of $6.69 per share with respect to the net tangible book value of Common Stock. Furthermore, investors purchasing shares of Common Stock in this offering will contribute approximately 13.1% of the total amount invested by shareholders since our inception but will own only approximately 3.2% of the total number of shares of our Common Stock outstanding after this offering.

This dilution is due to a minority of our investors who purchased shares prior to this offering having paid substantially less when they purchased their shares than the public offering price offered to the public in this offering. For example, approximately 4,272,786 shareholders acquired shares of Common Stock for $3.00 per share. As of the date of this prospectus, we have a convertible promissory note outstanding that, upon conversion, would result in the issuance of 1,000,000 shares of Common Stock. We also have 5,391,291 warrants outstanding, which are each exercisable to purchase one share of Common Stock. Approximately 1,907,575 warrants are exercisable at a price below the initial public offering price of $10.00 per share of Common Stock in this offering, with the exercise prices for such warrants ranging from $0.12 to $7.00. To the extent that our convertible note is converted into Common Stock, our outstanding warrants are exercised, or we otherwise issue additional shares of Common Stock in each case at per-share prices below the initial public offering price in this offering, there will be further dilution to new investors purchasing shares of Common Stock in this offering, reducing their ownership percentages and relative stakes in Venu.

As a result of the dilution to investors purchasing shares of Common Stock in this offering, investors may receive significantly less than the purchase price they paid in this offering, if anything, in the event of our liquidation. Dilution in investors’ ownership percentages will dilute their relative influence over company matters. Furthermore, future issuances of Common Stock at per-share prices below the initial public offering price in this offering could depress the market price of our Common Stock, even if our business performance improves and our business-expansion efforts continue on a positive trajectory. Such market-price depression may significantly reduce the value of an investment in this offering, particularly if there is market perception that Venu is issuing large amounts of shares of Common Stock at prices substantially lower than the initial offering price in this offering. The potential for significant dilution could also make it more challenging to Venu to raise additional capital in the future, which could adversely affect your investment in this offering. For a further description of the dilution that you will experience immediately after this offering, see “Dilution.”

The financial and operational projections that we may make from time to time are subject to inherent risks.

The projections that our management may provide from time to time will reflect numerous assumptions made by management, including assumptions with respect to our specific as well as general business, regulatory, economic, market, and financial conditions and other matters, all of which are difficult to predict and many of which are beyond our control. Accordingly, there is a risk that the assumptions made in preparing the projections, or the projections themselves, will prove inaccurate. There may be differences between actual and projected results, and actual results may be materially different from those contained in the projections.

The market price of our Common Stock may be subject to fluctuation, and you could lose all or part of your investment.

The initial public offering price has been arbitrarily determined by us and may not be indicative of prices that will prevail in the trading market. The price of our Common Stock may decline following this public offering. The stock market in general has been, and the market price of our Common Stock in particular will likely be, subject to fluctuation, whether due to or irrespective of our operating results and financial condition. The market price of our Common Stock may fluctuate as a result of a number of factors, some of which are beyond our control, including, but not limited to:

| ● | actual or anticipated variations in our and our competitors’ results of operations and financial condition;
| ● | market acceptance of our restaurant, music, and entertainment venue concepts;
| ● | changes in earnings estimates or recommendations by securities analysts if our shares are covered by analysts;
| ● | development of technological innovations or new competitive products by others in the hospitality and entertainment industry;
| ● | our failure to achieve a publicly announced milestone;
| ● | delays between our expenditures to develop, construct, and market new entertainment venues and restaurants and the generation of revenue from those venues and restaurants;
| ● | developments concerning intellectual property rights, including our involvement in litigation;
| ● | regulatory developments and the decisions of regulatory authorities;
| ● | changes in the amounts that we spend to develop, acquire, permit, and promote new venues, technologies, or businesses;
| ● | our sale or proposed sale, or the sale by our significant shareholders, of shares of our Common Stock or other securities in the future;

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| ● | changes in key personnel;
| ● | success or failure of our research and development projects or those of our competitors;
| ● | the trading volume of our Common Stock;
| ● | general economic and market conditions; and
| ● | other factors, including those unrelated to our operating performance.

These factors and any corresponding price fluctuations may materially and adversely affect the market price of our Common Stock and result in substantial losses being incurred by our investors.

Widespread market volatility and fluctuations in the share price of our Common Stock could expose us to costly securities litigation.

In the past, following periods of market volatility, public company shareholders have often instituted securities class action litigation. If we were involved in securities litigation, it could impose a substantial cost upon us and divert the resources and attention of our management from our business.

An investment in the Company may involve tax implications, and you are encouraged to consult your own advisors as neither we nor any of our related parties is offering any tax assurances or guidance regarding the Company or your investment.

The formation of and an investment in the Company involve complex federal, state, and local income tax considerations. Neither the Internal Revenue Service nor any state or local taxing authority has reviewed the transactions described in this prospectus and may take different positions than the ones contemplated by our management. You are strongly urged to consult your own tax and other advisors prior to investing, as neither we nor any of our officers, directors, or related parties can offer tax or similar advice, nor are any such persons making any representations and warranties regarding such matters.

Our ability to use our net operating loss carry-forwards and certain other tax attributes may be limited.

Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change” (generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period), the corporation’s ability to use its pre-change net operating loss carry-forwards and other pre-change tax attributes (such as research tax credits) to offset its post-change income may be limited. We may experience ownership changes in the future as a result of subsequent shifts in our stock ownership, including the completion of this offering taken together with other transactions we may consummate in the succeeding three-year period. As a result, if we earn net taxable income, our ability to use our pre-change net operating loss carry-forwards to offset U.S. federal taxable income may be subject to limitations, which could result in increased future tax liability.

Our Articles of Incorporation permit “blank check” Preferred Stock, which can be designated by our Board of Directors without shareholder approval.

Our Amended and Restated Articles of Incorporation (our “Articles of Incorporation”) authorize the Board to issue up to 5,000,000 shares of Preferred Stock, which may be issued from time to time in one or more series, each of which will have a distinctive designation or title as determined by our Board. To date, we have not denominated any series of Preferred Stock. Our Articles of Incorporation authorize the Board to establish the designations, preferences, limitations, restrictions, and relative rights of the Preferred Stock and any variations in the relative rights and preferences as between different series of Preferred Stock in accordance with the CBCA. As such, the Board could establish a series of Preferred Stock with enhanced dividend rights, rights of redemption, sinking funds to pay dividends, liquidation, and other rights that would be different than, and preferential to, the rights of the holders of our Common Stock. Because our Board is able to designate the powers and preferences of the Preferred Stock without the vote of a majority of our shareholders, holders of our Common Stock will have no control over what designations and preferences any newly designated Preferred Stock will have.

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Certain provisions in our Governance Documents could make a merger, acquisition, other change in control, tender offer, or proxy contest more difficult and may prevent shareholder attempts to replace or remove our current management, which could depress the trading price of our Common Stock.

Certain provisions in our Articles of Incorporation and our Bylaws (our “Bylaws”; together with our Articles of Incorporation, our “Governance Documents”) could depress the trading price of our Common Stock by acting to discourage, delay, or prevent a merger, acquisition, tender offer, proxy contest, or other change in control of us or change in our management that our shareholders may deem favorable or advantageous, including transactions in which shareholders might otherwise receive a premium for their shares. These provisions could limit the price that investors are willing to pay in the future for our Common Stock, thereby depressing the market price of our Common Stock. In addition, because our Board is responsible for appointing the members of our management team, these provisions may frustrate or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders to replace members of our Board. Among other things, these provisions:

| ● | permit the Board to establish and change the authorized number of directors and to fill any vacancies and newly created directorships;
| ● | authorize the issuance of “blank check” Preferred Stock that our Board could use to implement a shareholder rights plan, or so-called “poison pill,” that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by our Board;
| ● | establish advance notice requirements for nominations for election to our Board or for proposing matters that can be acted upon by shareholders at annual shareholder meetings; and
| ● | authorize the Board to adopt, amend, or repeal our Bylaws.

Any provision in our Governance Documents that has the effect of delaying or deterring a change in control could limit the opportunity for our shareholders to receive a premium for their shares of Common Stock and could also affect the price that some investors are willing to pay for our Common Stock.

Certain limitation-of-liability and indemnification provisions in our Governance Documents may discourage shareholders from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties, may reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit the Company and other shareholders, and may adversely impact shareholders’ investments to the extent that the Company pays the costs of settlement and damage awards against directors and officers as required by these indemnification provisions.

Our Articles of Incorporation contain provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by the CBCA. Consequently, our directors will not be personally liable to us or our shareholders for monetary damages for any breach of fiduciary duties as directors, except liability for:

| ● | any breach of the director’s duty of loyalty to us or our shareholders;
| ● | any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; or
| ● | any transaction from which the director derived an improper personal benefit.

Our Bylaws require us to indemnify our directors and officers, and allow us to indemnify other employees and agents, to the fullest extent permitted by the CBCA. Subject to certain limitations and limited exceptions, our Bylaws require us to advance expenses incurred by our directors and officers for the defense of any action for which indemnification is required or permitted.

While we believe that including the limitation-of-liability and indemnification provisions in our Governance Documents and indemnification agreements is necessary to attract and retain qualified persons such as directors, officers, and key employees, those provisions may discourage shareholders from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit the Company and other shareholders. Further, a shareholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers and advance expenses as required by these indemnification provisions.

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If equity research analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business or our market, our stock price and trading volume could decline.

The trading market for our Common Stock will be influenced by the research and reports that equity research analysts publish about us and our business. As a newly public company, we may have only limited research coverage by equity research analysts. Equity research analysts may elect not to provide research coverage of our Common Stock, and such lack of research coverage may adversely affect the market price of our Common Stock. In the event we do have equity research coverage, we will not have any control over the analysts or the content and opinion included in their reports. The price of our stock could decline if one or more equity research analysts downgrade our stock or issue other unfavorable commentary or research. If one or more equity research analysts ceases coverage of the Company or fails to publish reports on us regularly, demand for our stock could decrease, which in turn would cause our stock price or trading volume to decline.

Risks Related to Being and Reporting as a Public Company

If we fail to establish and maintain an effective system of internal control or disclosure controls and procedures are not effective, we may not be able to report our financial results accurately and timely or to prevent fraud. Any inability to report and file our financial results accurately and timely could harm our reputation and adversely impact the trading price of our Common Stock.

Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) requires us to evaluate and report on our internal controls over financial reporting and, depending on our future growth, may require our independent registered public accounting firm to annually attest to our evaluation, as well as issue its own opinion on our internal controls over financial reporting. The process of implementing and maintaining proper internal controls and complying with Section 404 is expensive and time consuming. We cannot be certain that the measures we will undertake will ensure that we will maintain adequate controls over our financial processes and reporting in the future. Furthermore, if we are able to rapidly grow our business, the internal controls that we will need may become more complex, and significantly more resources will be required to ensure our internal controls remain effective. Failure to implement required controls or difficulties encountered in their implementation could harm our operating results or cause us to fail to meet our reporting obligations. If we or our auditors discover a material weakness in our internal controls, the disclosure of that fact, even if the weakness is quickly remedied, could diminish investors’ confidence in our financial statements and harm our stock price. In addition, non-compliance with Section 404 could subject us to a variety of administrative sanctions, including the suspension of trading, ineligibility for future listing on the NYSE American or other national securities exchanges, and the inability of registered broker-dealers to make a market in our Common Stock, which may reduce our stock price.

We are an “emerging growth company” and a “smaller reporting company,” and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Common Stock less attractive to investors.

We are an “emerging growth company” as defined in the JOBS Act, and we intend to take advantage of some of the exemptions from reporting requirements that are applicable to other public companies that are not emerging growth companies, including:

| ● | being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure;
| ● | not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting;
| ● | not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board or a supplement to the auditor’s report providing additional information about the audit and the financial statements;
| ● | reduced disclosure obligations regarding executive compensation; and
| ● | not being required to hold a non-binding advisory vote on executive compensation or obtain shareholder approval of any golden parachute payments not previously approved.

In addition, as an “emerging growth company” the JOBS Act allows us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, unless we later irrevocably elect not to avail ourselves of this exemption. We have elected to use this extended transition period under the JOBS Act. As a result, our financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies, which may make comparison of our financials to those of other public companies more difficult. We will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year (1) following the fifth anniversary of the completion of this offering, (2) in which we have total annual gross revenue of at least $1.235 billion, or (3) in which we are deemed to be a large accelerated filer, which means the market value of our Common Stock that is held by non-affiliates exceeds $700.0 million as of June 30 of the prior year; and (ii) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

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We are also a “smaller reporting company,” meaning that the market value of our Common Stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result of this offering is less than $700 million, and our annual revenue was less than $100 million during the most recently completed fiscal year. We are therefore entitled to rely on certain reduced disclosure requirements for as long as we remain a smaller reporting company, including, among other things, providing only two years of audited financial statements in our Annual Report on Form 10-K, and, similar to emerging growth companies, providing reduced disclosure obligations regarding executive compensation. In addition, for as long as we are a smaller reporting company with less than $100 million in annual revenue, we would be exempt from the requirement to obtain an external audit on the effectiveness of internal control over financial reporting provided in Section 404(b) of the Sarbanes-Oxley Act. These exemptions and reduced disclosures in our SEC filings due to our status as a smaller reporting company make it harder for investors to analyze our results of operations and financial prospects. To the extent we take advantage of the reduced disclosure obligations available for smaller reporting companies, it may be difficult or impossible to compare our financial statements with other public companies. We will remain a smaller reporting company until the last day of the fiscal year in which (i) the market value of shares of our Common Stock held by non-affiliates exceeds $250 million as of the end of that year’s second fiscal quarter, or (ii) our annual revenues exceed $100 million during such completed fiscal year and the market value of our Common Stock held by non-affiliates exceeds $700 million as of the end of that year’s second fiscal quarter.

Investors may find our find our Common Stock less attractive to the extent we will rely on these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active trading market for our Common Stock, and our stock price may be more volatile.

We could be subject to securities class action litigation.

In the past, securities class action litigation has often been brought against companies following a decline in the market price of their securities. This risk is especially relevant for us because biotechnology companies have experienced significant share price volatility in recent years. If we face such litigation, it could result in substantial costs and a diversion of management’s attention and resources, which could harm our business.

We will incur significantly increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.

As a public company, and particularly after Venu is no longer an emerging growth company (or, to a lesser extent, a smaller reporting company), Venu will incur significant legal, accounting, and other expenses that it did not incur as a private company. The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of the NYSE American, and other applicable securities rules and regulations implemented by the SEC and the NYSE American have imposed various requirements on public companies, including requiring that they establish and maintain effective disclosure and financial controls and corporate governance practices. As an “emerging growth company,” Venu is permitted by legislation to implement many of these requirements over a longer period of time and up to five years from the pricing of this offering. Although Venu intends to take advantage of this legislation, Venu will still incur additional expenses to comply with the demands of being a public company.

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We expect that Venu will likely need to hire additional accounting, finance, and other personnel in connection with Venus becoming, and Venu’s efforts to comply with the requirements of being, a public company, and Venu’s management and other personnel will need to devote a substantial amount of time towards maintaining compliance with these requirements. These requirements will increase Venu’s legal and financial compliance costs and will make some activities more time-consuming and costly. For example, Venu expects that the rules and regulations applicable to it as a public company may make it more difficult and more expensive for it to obtain director and officer liability insurance, which could make it more difficult for it to attract and retain qualified members of Venu’s Board of Directors. Venu is currently evaluating these rules and regulations and cannot predict or estimate the amount of additional costs Venu may incur or the timing of such costs. These rules and regulations are often subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices.

Shareholder activism, the current political environment and the current high level of government intervention and regulatory reform may lead to substantial new regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in which we operate our business in ways we cannot currently anticipate. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costlier. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to incur substantial costs to maintain our current levels of such coverage.

Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.

Upon the completion of this offering, we will become subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. For example, our directors or executive officers could inadvertently fail to disclose a new relationship or arrangement causing us to fail to make any related-party transaction disclosures. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected.

Future changes in financial accounting standards or practices may cause adverse and unexpected revenue fluctuations and adversely affect our reported results of operations.

Future changes in financial accounting standards may cause adverse, unexpected revenue fluctuations and affect our reported financial position or results of operations. Financial accounting standards in the United States are constantly under review and new pronouncements and varying interpretations of pronouncements have occurred with frequency in the past and are expected to occur again in the future. As a result, we may be required to make changes in our accounting policies. Those changes could affect our financial condition and results of operations or the way in which such financial condition and results of operations are reported. We intend to invest resources to comply with evolving standards, and this investment may result in increased general and administrative expenses and a diversion of management time and attention from business activities to compliance activities. See the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Recent Accounting Pronouncements.”

Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

Our Governance Documents provide that we are required to indemnify our directors and officers to the fullest extent permitted by Colorado law. Our Governance Documents also provide that, on satisfaction of certain conditions, we will advance expenses actually and reasonably incurred by a director or officer in advance of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer or director, for any liability arising out of the actions of any such officer or director in such capacity regardless of whether we would otherwise be permitted to indemnify such person under the provisions of Colorado law. We believe that the indemnification provisions in our Governance Documents are necessary to attract and retain qualified persons as directors and officers.

While we maintain directors’ and officers’ liability insurance, such insurance may not be adequate to cover all liabilities that we may incur, which may reduce our available funds to satisfy third-party claims and may adversely impact our cash position.

There are many risks associated with forward-looking information in this prospectus.

Much of the information presented in this prospectus contains forward-looking statements. Although the Company believes the forward-looking statements have reasonable bases, it cannot offer any assurance that it will be able to conduct the operations as contemplated. You should carefully review all of the information and assumptions contained in this prospectus with your legal, tax, financial, investment, and accounting advisors with these risks in mind. Please review the “Cautionary Note Regarding Forward-Looking Statements.”

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements regarding future events and the Company’s future results. These statements are based on current expectations, estimates, forecasts, and projections about the industry in which the Company operates and the beliefs and assumptions of the Company’s management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “could,” “would,” “should,” “will,” “may,” variations of such words, and similar expressions of a forward-looking nature are intended to identify such forward-looking statements. In addition, any statements that refer to projections of the Company’s future financial performance, the Company’s anticipated growth and potential in its business, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified in the “Risk Factors” section of this prospectus and elsewhere herein.

Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements, and readers are cautioned not to place undue reliance upon such statements in making an investment decision. The Company disclaims any obligation to update factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

In addition, statements such as “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus and, although we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted a thorough inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. You should carefully read the factors set forth in the “Risk Factors” section of this prospectus and other cautionary statements made throughout this prospectus, and you should interpret such factors and cautionary statements as being applicable to all forward-looking statements wherever appearing in this prospectus. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances, or otherwise, unless required by law. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

USE OF PROCEEDS

We estimate that the net proceeds to us from the sale of shares of Common Stock in this offering will be approximately $10.7 million (or approximately $12.3 million if the underwriters exercise in full their option to purchase up to 180,000 additional shares), assuming an initial public offering price of $10.00 per share, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

We currently intend to use the net proceeds from this offering, together with our existing cash, for corporate level expenditures as follows: (i) approximately $3.0 million for sales, marketing, investor relations and business development expenses; (ii) approximately $5.0 million for costs and expenses related to market expansion and related due diligence activities; and (iii) the remainder, if any, for working capital and other general corporate purposes.

We cannot specify with certainty all of the uses of the net proceeds that we will receive from this offering. Accordingly, we will have broad discretion in the application of these proceeds and our investors will be relying on the judgment of our management regarding the application of the net proceeds of this offering.

Pending use of the net proceeds from this offering, we may invest in short- and intermediate-term interest-bearing obligations, investment-grade instruments, certificates of deposit, or direct or guaranteed obligations of the U.S. government, which will adjust based on the actual initial public offering price and other terms of this offering determined at pricing.

Dividend Policy

We do not currently intend to pay dividends on our Common Stock. The declaration, amount and payment of any future dividends on shares of our Common Stock, if any, will be at the sole discretion of our Board, which may take into account general and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by us to our shareholders or by our subsidiaries to us, business prospects, and any other factors that our Board may deem relevant.

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CAPITALIZATION

The following table sets forth our cash and cash equivalents and our capitalization as of June 30, 2024 on:

● | an actual basis;
● | a pro forma basis to reflect all issued and outstanding shares as common stock of June 30, 2024 (being 383,656 Class B shares and 35,478,706 Class D shares), and subsequent issuances of 794,509 shares of Common Stock for aggregate net proceeds of $7,945,090, and the redemption of 100,000 shares of Common Stock previously held by Roth Industries, LLC for an aggregate purchase price of $500,000, along with the redemption of 100,000 shares of Common Stock previously held by a non-affiliate shareholder for an aggregate purchase price of $1,000,000; and
● | a pro forma as-adjusted basis, giving effect to the pro forma adjustments and the sale of shares of our Common Stock in this offering at the public offering price of $10.00 per share, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted consolidated balance sheet data discussed above is illustrative only and will depend on the actual public offering price and other terms of this offering determined at pricing.

You should read the information in this table together with the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes included elsewhere in this prospectus.

|  | June 30, 2024 |
|  | Actual (unaudited) (1) |  |  | Pro Forma (unaudited) (1) |  |  | Proforma as Adjusted (unaudited) (1) |
Cash |  | $ | 42,755,893 |  |  | $ | 49,200,983 |  |  | $ | 60,215,983 |
Current portion of long-term debt |  | $ | 489,043 |  |  | $ | 489,043 |  |  | $ | 489,043 |
Convertible debt |  |  | 7,733,240 |  |  |  | 7,733,240 |  |  |  | 7,733,240 |
Long-term debt, net of current portion |  |  | 7,599,709 |  |  |  | 7,599,709 |  |  |  | 7,599,709 |
Shareholders’ equity (deficit): |  |  |  |  |  |  |  |  |  |  |  |
Preferred Stock, par value 0.001 per share, 5,000,000 shares authorized, none issued and outstanding |  |  | - |  |  |  | - |  |  |  | - |
Class A Voting Common Stock, par value 0.001 per share, 5,000,000 shares authorized, none issued and outstanding |  |  | - |  |  |  | - |  |  |  | - |
Class B Non-Voting Common Stock, par value 0.001 per share, 30,000,000 shares authorized, 383,656 shares issued and outstanding |  |  | 383 |  |  |  | 383 |  |  |  | 383 |
Class C Voting Common Stock, par value 0.001 per share, 50,000,000 shares authorized, 0 shares issued and outstanding |  |  | - |  |  |  | - |  |  |  | - |
Class D Voting Common Stock, par value 0.001 per share, 60,000,000 shares authorized, 35,478,706 shares issued and outstanding |  |  | 35,479 |  |  |  | 36,074 |  |  |  | 37,274 |
Additional paid-in capital |  |  | 110,077,062 |  |  |  | 118,021,557 |  |  |  | 129,035,357 |
Accumulated deficit |  |  | (37,141,490 | ) |  |  | (37,141,490 | ) |  |  | (37,141,490 | )
|  |  | 72,971,434 |  |  |  | 80,916,524 |  |  |  | 91,931,524 |
Treasury Stock, at cost – 76,245 shares at June 30, 2024 |  |  | (76 | ) |  |  | (1,500,076 | ) |  |  | (1,500,076 | )
Non-controlling interest |  |  | 34,644,450 |  |  |  | 34,644,450 |  |  |  | 34,644,450 |
Total stockholders’ equity (deficit) |  |  | 107,615,808 |  |  |  | 114,060,898 |  |  |  | 125,075,898 |
Total capitalization |  | $ | 123,437,800 |  |  | $ | 129,882,890 |  |  | $ | 140,897,890 |

(1) | Such information excludes, as of June 30, 2024:

| ● | up to 1,000,000 shares of Common Stock that are issuable upon the potential conversion of a convertible promissory note at the rate of $10.00 per share;
| ● | 5,025,083 shares of Common Stock that are issuable upon the exercise of certain outstanding warrants;
| ● | 2,500,000 shares of Common Stock that are available for future issuance under our Amended and Restated 2023 Omnibus Incentive Compensation Plan; and
| ● | 60,000 shares of Common Stock issuable upon exercise of the representative’s warrants.

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dilution

If you invest in our Common Stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share of our Common Stock and the pro forma as adjusted net tangible book value per share of our Common Stock immediately after this offering. Net tangible book value dilution per share to new investors represents the difference between the amount per share paid by purchasers of shares of Common Stock in this offering and the pro forma as adjusted net tangible book value per share of Common Stock immediately after completion of this offering. Net tangible book value per share represents the book value of our total tangible assets less the book value of our total liabilities divided by the number of shares of Common Stock then issued and outstanding. As of June 30, 2024, our net tangible book value (unaudited) was $107,371,172, or $2.99 per share of Common Stock, which represents the amount of our total tangible assets less total liabilities, divided by the number of shares outstanding at June 30, 2024.

After giving effect to (i) on a pro forma as-adjusted basis, the issuance of 794,509 shares of Common Stock for net proceeds of $7,945,090 since June 30, 2024, the redemption of 100,000 shares of Common Stock previously held by Roth Industries, LLC for an aggregate purchase price of $500,000, and the redemption of 100,000 shares of Common Stock previously held by a non-affiliate shareholder for an aggregate purchase price of $1,000,000, and (ii) our sale of 1,200,000 shares of Common Stock in this offering at the initial public offering price of $10.00 per share, and after deducting any commissions to the underwriters and any estimated offering expenses payable by us, our pro forma as-adjusted net tangible book value as of the date of this prospectus would have been $124,831,262, or $3.31 per share. This represents an immediate increase in our pro forma net tangible book value of $0.19 per share to new investors purchasing shares of Common Stock in this offering. The following table illustrates this dilution per share:

Initial public offering price per share |  | $ | 10.00 |
Net tangible book value per share as of June 30, 2024 |  | $ | 2.99 |
Increase in pro forma net tangible book value per share attributable to pro forma adjustments |  | $ | 0.13 |
Increase in pro forma net tangible book value per share attributable to this offering |  | $ | 0.19 |
Pro forma as adjusted net tangible book value per share immediately after this offering |  | $ | 3.31 |
Dilution per share to new investors in this offering |  | $ | 6.69 |

The following table summarizes, on a pro forma as-adjusted basis as of November 27, 2024, the differences between the number of shares of Common Stock purchased from us, the total price and the average price per share paid by existing shareholders, and the total price and the average price per share paid by the new investors in this offering, before deducting underwriters commissions and estimated offering expenses payable by us at the initial public offering price of $10.00 per share:

|  | Shares Purchased |  |  | Total Consideration |  |  | Average Price |
|  | Number |  |  | Percent |  |  | Amount |  |  | Percent |  |  | per Share |
Existing shareholders |  |  | 36,456,871 |  |  |  | 97 | % |  | $ | 79,937,946 |  |  |  | 87 | % |  | $ | 2.19 |
New investors |  |  | 1,200,000 |  |  |  | 3 | % |  | $ | 12,000,000 |  |  |  | 13 | % |  | $ | 10.00 |
Totals |  |  | 37,656,871 |  |  |  | 100 | % |  | $ | 91,937,946 |  |  |  | 100 | % |  | $ | 2.44 |

Except as otherwise indicated, the above discussion and tables assume no exercise of the representative’s over-allotment option to purchase additional shares of Common Stock in this offering. If the representative exercises its option to purchase additional shares of Common Stock in full from us, our existing shareholders would own approximately 96% and our new investors would own approximately 4% of the total number of shares of our Common Stock outstanding upon the completion of this offering.

The above discussion and tables are based on there being an aggregate of 36,456,871 shares of Common Stock and Class B Non-Voting Common Stock outstanding as of the date of this prospectus and excludes:

| ● | up to 1,000,000 shares of our Common Stock that are issuable upon conversion of a convertible promissory note at the rate of $10.00 per share;
| ● | 5,391,291 shares of Common Stock that are issuable upon the exercise of outstanding warrants;
| ● | 2,500,000 shares of Common Stock that are available for future issuance under our Amended and Restated 2023 Omnibus Incentive Compensation Plan; and
| ● | 60,000 shares of Common Stock issuable upon exercise of the representative’s warrants.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of Venu’s financial condition and results of operations together with our audited consolidated financial statements as of and for the fiscal years ended December 31, 2023 and 2022, and our unaudited condensed consolidated financial statements as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023, in each case together with the related notes thereto, all of which appear at the end of this prospectus. Some of the information contained in this discussion and analysis or set forth at the end of this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the section entitled “Risk Factors,” actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. You should carefully read the section of this prospectus entitled “Risk Factors” to gain an understanding of the important factors that could cause actual results to differ materially from forward-looking statements. Please also see the section entitled “Cautionary Note Concerning Forward-Looking Statements.” Forward-looking statements may be identified by words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions. Future operating results, however, are impossible to predict, and no guarantee or warranty is to be inferred from those forward-looking statements.

MD&A Overview

This section presents management’s perspective on the financial condition and results of operations of Venu Holding Corporation. Unless otherwise noted, for purposes of this section, the terms “we,” “us,” “our,” “Company,” and “Venu” refer to Venu Holding Corporation and its consolidated subsidiaries. The following discussion and analysis (this “MD&A”) is intended to highlight and supplement data and information presented elsewhere in this prospectus and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal years ended December 31, 2023 and 2022, and our unaudited condensed consolidated financial statements as of June 30, 2024 and for the three months ended June 30, 2024 and 2023, in each case together with the related notes thereto at the end of this prospectus. Results for any period or year should not be construed as an inference of what our results would be for any full fiscal year or future period. This MD&A is also intended to provide you with information that will facilitate your understanding of our consolidated financial statements, the changes in key items in those consolidated financial statements from year to year, and the primary factors that accounted for those changes. To the extent that this discussion describes prior performance, the descriptions relate only to the periods listed, which may not be indicative of our future financial outcomes. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties, and assumptions that could cause results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections titled “Cautionary Note Concerning Forward-Looking Statements” and “Risk Factors.” Our MD&A is organized as follows:

| ● | Business Overview — Discussion of our business plan and strategy in order to provide context for the remainder of this MD&A.
| ● | Consolidated Results of Operations — Analysis of our financial results comparing the years ended December 31, 2023 to December 31, 2022 and the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023.
| ● | Liquidity and Capital Resources — Analysis of changes in our cash flows, and discussion of our financial condition and potential sources of liquidity.
| ● | Significant Accounting Policies and Use of Estimates — Accounting policies that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.

Business Overview

Business

Venu is a Colorado-based hospitality and entertainment corporation that builds, owns, and operates luxury, live-entertainment venue campuses, which consist of music halls, outdoor amphitheaters, restaurants, and bars. As a growing entertainment and hospitality company, we continue to expand our portfolio of indoor and outdoor music venues and entertainment campuses where music, dining, and luxury converge in strategically selected markets.

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Key Milestones and Recent Developments

Our investments and operations to date have enabled us to achieve strong growth and the following key milestones:

| ● | March 2017: Venu was founded as Bourbon Brothers Restaurants, LLC, which converted into Notes Live, Inc. in April 2022 and changed its name to Venu Holding Corporation in September 2024.
| ● | April 2017: Venu opened its flagship restaurant, Bourbon Brothers Smokehouse & Tavern, in Colorado Springs, Colorado.
| ● | March 2019: Venu opened its first live-entertainment, indoor music hall in Colorado Springs, Colorado, which was originally known as “Boot Barn Hall” but, as of August 2024, is known as “Phil Long Music Hall at Bourbon Brothers.”
| ● | June 2021: GA HIA, LLC, a subsidiary of Venu, agreed to purchase land from the Gainesville Redevelopment Authority and entered into a public-private partnership with the City of Gainesville, Georgia pursuant to which Venu agreed to develop its second Bourbon Brothers Presents venue in Gainesville, Georgia.
| ● | September 2022: Venu opened its first live music and social bar, known as “Notes”, in Colorado Springs, Colorado.
| ● | May 2022 – March 2023: The development of Venu’s first outdoor amphitheater, Ford Amphitheater, in Colorado Springs, Colorado, was funded, in part, through the sale of non-voting membership units in a subsidiary which entitle holders to various in-kind benefits, such as rights to lifetime use of VIP firepit suites at Ford Amphitheater as well as certain preferential economic rights.
| ● | May 2023: Venu broke ground on Ford Amphitheater in Colorado Springs, Colorado.
| ● | June 2023: Venu entered into an operating agreement with AEG with respect to the operation of Ford Amphitheater, which Venu opened in August 2024.
| ● | June 2023: Venu opened in second Bourbon Brothers venue and its second BBST restaurant in Gainesville, Georgia.
| ● | June 2023: Venu entered into a term sheet to purchase 21 acres of land in Oklahoma City, Oklahoma with the intent of building The Sunset at Mustang Creek, a 12,500-person outdoor amphitheater. In April 2024, the Mustang Creek amphitheater was not approved by city council and Venu is reviewing other properties in the area for development.
| ● | October 2023: Venu entered into an Economic Development Agreement with the City of Broken Arrow, Oklahoma, pursuant to which the parties are forming a public-private partnership and intend to open The Sunset BA, a 12,500-capacity amphitheater, by fall 2025.
| ● | April 2024: Venu and the City of McKinney, Texas, together with the McKinney Economic Development Corporation and the McKinney Community Development Corporation, entered into a Chapter 380, Grant, and Development Agreement, pursuant to which Venu will develop The Sunset McKinney. The Chapter 380, Grant, and Development Agreement was amended in October 2024.
| ● | June and July 2024: Venu and the City of El Paso, Texas formed a public-private partnership by entering into a Purchase and Sale Agreement in June 2024 and a Chapter 380 Economic Development Program Agreement in July 2024. Pursuant to the agreements, Venu is acquiring approximately 17 acres of land from the City of El Paso where it will construct and manage The Sunset El Paso, a 12,500-person amphitheater. The parties amended the Purchase and Sale Agreement in August and October 2024.
| ● | August 2024: Venu opened its first amphitheater, Ford Amphitheater, in Colorado Springs, Colorado, and began hosting live concerts and events at the venue.
| ● | September 2024: Venu legally changed its name from Notes Live, Inc. to Venu Holding Corporation by filing its Amended and Restated Articles of Incorporation with the Colorado Secretary of State.

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Venue Ownership

Venu primarily generates revenue through restaurant operations, event rentals, and hosting concerts and events. Our business involves owning and operating the following types of venues and entertainment spaces:

Music Halls — Music halls are indoor, intimate music and event venues that can accommodate up to approximately 1,400 guests. This venue category includes our Bourbon Brothers Presents venues, which are designed to host approximately 1,400 concertgoers at general admission concerts featuring national-touring artists or to seat between 500 and 700 guests around eight-top tables at more intimate events such as concerts featuring tribute bands or dueling pianos, corporate functions, or weddings. Our BBP music halls can quickly be transitioned from one configuration to the next. This operational flexibility is intended to maximize our event-rental opportunities by expanding the types of events we can host while minimizing the time it takes to stage one event to the next, allowing us, for example, to host a premier concert one night and a wedding the following afternoon.

Amphitheaters — Amphitheaters are typically outdoor venues that accommodate between 8,000 and 20,000 concertgoers and will primarily be operated during the summer through fall seasons. Amphitheaters are designed with special acoustics, premium seat packages, and luxurious suites intended to amplify guests’ music and entertainment experiences. Our first amphitheater venue is the Ford Amphitheater in Colorado Springs, Colorado, which is an open-air, 8,000-person venue. In addition to lawn and stadium-style seating that allows us to offer tickets at an array of price points, Ford Amphitheater has firepit suites that deliver premium hospitality and a more luxurious, personalized concert experience. Each firepit suite can accommodate up to eight guests. Ford Amphitheater, which opened in August 2024, is designed with 92 VIP firepit suites, accommodating a total of 736 VIP guests. Ford Amphitheater will primarily host concerts from May through October each year. The amphitheaters planned for development in Oklahoma and Texas will also have firepit suites.

Certain of the entities which own and develop Venu’s venues are not wholly owned by Venu. For example, Venu has a 10% ownership interest in The Sunset Amphitheater LLC (which is the owner and developer of the Sunset CO amphitheater venue) but holds a 100% voting interest. Venu anticipates it will own 60% of Sunset Hospitality Collection, LLC (which is a company designed to own the building to lease to Roth Seafood & Chophouse and Notes Hospitality Collection) but hold 100% of the voting interest. In addition, the Company expects to own 30% of Sunset at Broken Arrow LLC and Sunset at Mustang Creek LLC (which, respectively, will own and operate the planned amphitheaters in Broken Arrow, Oklahoma and the greater Oklahoma City area) while, in each case, holding a 100% voting interest. With respect to its subsidiaries that own and develop amphitheaters, third-party members, in exchange for their capital contributions, receive an interest in the exclusive use of a specific suite at the applicable venue and also in their capacity as equity owners receive financial interests in their pro rata portion of a defined portion of the revenues generated by the venue for each event. Similarly, third-party members in Sunset Hospitality Collection LLC, receive, in exchange for their capital contribution, distributions from revenues resulting from lease payments received on the property owned by the entity.

Restaurants — Bourbon Brothers Smokehouse & Tavern is Venu’s flagship, full-service restaurant concept. BBST serves American classics and Southern staples out of a scratch kitchen, accompanied by a selection of rare bourbons, ryes, whiskies, and local craft beers. Venu develops its BBST restaurants and BBP music halls in close proximity to one another, which allows BBST to serve as the exclusive caterer for BBP events.

Fine Dining, Hospitality, and Entertainment Campuses — In May 2025, Venu will open Roth’s Seafood & Chophouse, a fine-dining restaurant in a mixed-use development adjacent to Ford Amphitheater. Framing either side of Roth’s will be two, approximately 5,000-square-foot configurable hospitality spaces intended to be used for hosting corporate events, weddings, trade shows, conventions, and other events. On the top floor above Roth’s and Notes Hospitality Collection will be a “top-shelf” bar and lounge called Brohan’s, which will offer unobstructed views of the surrounding area Venu intends to monetize during marquee shows at Ford Amphitheater.

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The following table summarizes the types of venues we are constructing or plan to develop, describing each by venue type, location, expected opening date, and current status.

Venue Type |  | Location |  | Current Status
Music Halls |  |  |  |
BBP CO |  | Colorado Springs, CO |  | Opened in March 2019
BBP GA |  | Gainesville, GA |  | Opened in June 2023
Outdoor Amphitheaters |  |  |  |
Ford Amphitheater |  | Colorado Springs, CO |  | Opened in August 2024
The Sunset OKC |  | Mustang Creek, OK |  | Expected to open in 2026*
The Sunset BA |  | Broken Arrow, OK |  | Expected to open in August 2025
The Sunset McKinney |  | McKinney, TX |  | Expected to open in second quarter of 2026
The Sunset El Paso |  | El Paso, TX |  | Expected to open in second quarter of 2026
Restaurants |  |  |  |
BBST CO |  | Colorado Springs, CO |  | Opened in April 2017
BBST GA |  | Gainesville, GA |  | Opened in June 2023
Notes Eatery |  | Colorado Springs, CO |  | Opened in September 2022
Fine Dining & Hospitality Collection |  |  |  |
Roth’s Seafood & Chophouse |  | Colorado Springs, CO |  | Expected to open in May 2025
Notes Hospitality Collection |  | Colorado Springs, CO |  | Expected to open in May 2025
Bars |  |  |  |
Brohan’s |  | Colorado Springs, CO |  | Expected to open in May 2025

* | Venu has not entered into a public-private partnership or secured a location for The Sunset OKC but is actively pursuing potential municipalities to partner with and locations for The Sunset OKC’s development. See “The Sunset at Mustang Creek — Oklahoma City, Oklahoma” beginning on page 68 for more information regarding Venu’s ongoing efforts with respect to The Sunset OKC.

Business Segment

We consider our restaurant and event center operations as similar, in close proximity, and have aggregated them into a single reportable segment. Revenue from our customers is primarily derived from food and beverage (“F&B”) services (our “Restaurant Operations”) with a portion being served contemporaneously with live entertainment during the events and concerts that we promote and host (our “Event Operations”).

Event Operations. The Event Operations portion of our business involves the promotion of live music and events in our owned or operated venues, the operation and management of our venues, the creation of content from concerts and events hosted in our venues, and the provision of management and other services to artists. We promoted and held approximately 156 live music and other events in 2022, during which we had one music hall, BBP CO, operating in Colorado Springs, Colorado. In June 2023, we opened our second music hall, BBP GA, in Gainesville, Georgia. Between BBP CO and BBP GA, we promoted and held 231 live music and other events in 2023. Our Event Operations business generated $1,335,761, or 32%, of our total revenue during the three months ended June 30, 2024, and $2,660,656, or 33%, of our total revenue during the six months ended June 30, 2024. Our Event Operations business generated $3,075,141, or 24%, of our total revenue during 2023, and $1,847,649, or 21%, of our total revenue in 2022.

Within our Events Operations, we generate revenues through: (i) ticket sales and fees on tickets sold directly by us or through the ticketing business that we contract with for our events; (ii) fees collected on tickets sold by other third-party platforms, such as convenience and order-processing fees and service charges; (iii) venue rentals, which occur for a variety of corporate and personal events; (iv) pre-selling naming rights to our live-entertainment venues by partnering with industry-leading brands under naming-rights agreements; and (v) sponsorship sales, which allow brands to advertise at our venues by showcasing their names and logos on a variety of sponsorship inventory curated for each of our venues and at each event we promote and host.

Restaurant Operations. Revenues generated through restaurant operations included F&B sales at our BBST restaurants and Notes bar (known as Notes Eatery as of May 2024). F&B sales include all revenues recognized with respect to stand-alone F&B sales. Our Restaurant Operations business generated $2,824,092, or 68%, of our total revenue for the three months ended June 30, 2024, and $5,404,194, or 67%, for the six months ended June 30, 2024. The increase in our Restaurant Operations business period over period is primarily due to increased revenues from our BBST GA restaurant continuing to grow its number of patron visits, along with increased revenues from our BBST CO restaurant. Our Restaurant Operations business generated $9,522,523, or 76%, of our total revenue during 2023. In 2022, our Restaurant Operations business generated $6,809,218, or 79%, of our total revenue. The increase of $2,713,305 in revenue generated from Restaurant Operations from 2022 to 2023 was primarily attributable to the opening of our second BBST restaurant location in June 2023, BBST GA in Gainesville, Georgia.

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Financial

Private Equity Offerings

Since our formation in 2017, we have funded our operations, in part, through proceeds from private sales of our equity securities.

During the first six months of 2024, we raised $29,143,410 in a private offering of our Common Stock. We have used, and expect to use, the proceeds of that offering primarily to fund pre-opening costs for Ford Amphitheater, Roth’s Seafood and Chophouse, and Notes Hospitality Collection restaurant venues in Colorado Springs, Colorado, and for other working capital needs.

We anticipate raising additional cash needed through the private or public sales of equity securities, private sales of membership interests in certain of our subsidiary entities (including interests in our firepit suites) at our amphitheater locations, collaborative arrangements, or a combination thereof, to continue to fund our operations and construct our venues. There is no assurance that any such collaborative arrangement will be entered into or that financing will be available to us when needed in order to allow us to continue our operations, or if available, on terms acceptable to us. If we do not raise sufficient funds in a timely manner, we may be forced to curtail operations or revise the timeline of our business plan.

Overview of Year-to-Year Financial Comparison

For the years ended December 31, 2023 and 2022:

| ● | We generated total revenue of $12,597,664 and $8,656,867, respectively, representing year-over-year growth of $3,940,797 or approximately 46%;
| ● | We had a net loss of $11,386,793 and $8,018,333, respectively, representing a year-over-year increase in net loss of $3,368,460 or approximately 42%;
| ● | Our net cash used in operating activities was $4,876,172 and $700,748, respectively, representing year-over-year increase in cash used in operating activities of $4,175,424 or approximately 596%, respectively;
| ● | Our net cash used in investing activities was $31,165,063 and $4,426,307, respectively, representing year-over-year increase in cash used in investing activities of $26,738,756, respectively or approximately 604%; and
| ● | Our net cash provided by financing activities was $32,771,605 and $24,404,703, respectively, representing year-over-year increase in cash provided by financing activities of $8,366,902 or approximately 34%.

Overview of the Year-to-Year Second-Quarter Interim Financial Comparison

For the three-month period ended June 30, 2024 and 2023:

| ● | We generated total revenue of $4,175,238 and $2,674,076, respectively, representing growth of $1,501,162 or approximately 56% as compared to the prior-year period; and
| ● | We had a net loss of $(5,269,165) and $(2,558,309) respectively, representing an increase in net loss of $(2,710,856) or approximately 106% as compared to the prior-year period.;

Overview of the 2024 Six-Month Interim Period Financial Comparison

For the six-month period ended June 30, 2024 and 2023:

| ● | We generated total revenue of $8,114,981 and $4,774,196, respectively, representing growth of $3,440,785 or approximately 70% as compared to the prior-year period;
| ● | We had a net loss of $(21,085,184) and $(5,436,818) respectively, representing an increase in net loss of $(15,648,366) or approximately 288% as compared to the prior-year period;
| ● | Our net cash provided by (used in) operating activities was $6,117,758 and $(3,601,390), respectively, representing an increase in cash provided by operating activities of $9,719,148 or approximately 270% as compared to the prior-year period;
| ● | Our net cash used in investing activities was $(31,185,229) and $(18,612,512), respectively, representing an increase in cash used in investing activities of $(12,572,717) or approximately 68% as compared to the prior-year period; and

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| ● | Our net cash provided by financing activities was $47,622,260 and $19,712,220, respectively, representing an increase in cash provided by financing activities of $27,910,040 or approximately 142% as compared to the prior-year period.

Consolidated Results of Operations

Comparison of the Years Ended December 31, 2023 and 2022

Our results of operations have varied significantly from year to year and may vary significantly in the future. The following table sets forth our results of operations for the years ended December 31, 2023 and 2022, respectively.

|  | For the year ended December 31, |
|  | 2023 |  |  | 2022 |
Revenues |  |  |  |  |  |  |  |
Restaurant including food and beverage revenue |  | $ | 9,522,523 |  |  | $ | 6,809,218 |
Event center ticket and fees revenue |  |  | 2,152,826 |  |  |  | 1,137,169 |
Rental and sponsorship revenue |  |  | 922,315 |  |  |  | 710,480 |
Total revenues |  |  | 12,597,664 |  |  |  | 8,656,867 |
Operating costs |  |  |  |  |  |  |  |
Food and beverage |  |  | 2,216,359 |  |  |  | 1,491,951 |
Event center |  |  | 1,072,909 |  |  |  | 767,065 |
Labor |  |  | 3,667,095 |  |  |  | 2,421,444 |
Rent |  |  | 815,233 |  |  |  | 676,175 |
Operating expenses |  |  | 14,081,000 |  |  |  | 6,887,768 |
Depreciation and amortization |  |  | 1,877,236 |  |  |  | 1,176,552 |
Total operating costs |  |  | 23,729,832 |  |  |  | 13,420,955 |
Loss from operations |  | $ | (11,132,168 | ) |  | $ | (4,764,088 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | (331,674 | ) |  |  | (397,120 | )
Interest income |  |  | 20,152 |  |  |  | 12,149 |
Shuttered Venue Grant |  |  | — |  |  |  | 210,378 |
Loss on extinguishment of debt |  |  | — |  |  |  | (3,395,046 | )
(Loss) gain on sale of investments, net |  |  | (75,603 | ) |  |  | 197,812 |
Other income |  |  | 132,500 |  |  |  | 117,582 |
Total other expense, net |  | $ | (254,625 | ) |  | $ | (3,254,245 | )
Net loss |  | $ | (11,386,793 | ) |  | $ | (8,018,333 | )
Net loss attributable to non-controlling interests |  |  | (862,320 | ) |  |  | (1,094,584 | )
Net loss attributable to common shareholders |  | $ | (10,524,473 | ) |  | $ | (6,923,749 | )
Weighted average number of shares of Class A common stock, outstanding, basic and diluted* |  |  | 136,301 |  |  |  | 275,000 |
Basic and diluted net income (loss) per share of Class A common stock |  | $ | (0.39 | ) |  | $ | (0.45 | )
Weighted average number of shares of Class B common stock, outstanding, basic and diluted* |  |  | 16,640,620 |  |  |  | 15,008,238 |
Basic and diluted net income (loss) per share of Class B common stock |  | $ | (0.39 | ) |  | $ | (0.45 | )
Weighted average number of shares of Class C common stock, outstanding, basic and diluted* |  |  | 10,106,179 |  |  |  | — |
Basic and diluted net income (loss) per share of Class C common stock |  | $ | (0.39 | ) |  | $ | — |

45

Comparison of the Three Months Ended June 30, 2024 and 2023

The following table sets forth our results of operations for the three months ended June 30, 2024 and 2023, respectively.

NOTES LIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in US Dollars)

Unaudited

|  | For the three months ended |
|  | June 30, |
|  | 2024 |  |  | 2023 |
Revenues |  |  |  |  |  |
Restaurant including food and beverage revenue |  | $ | 2,824,092 |  |  | $ | 2,187,461 |
Event center ticket and fees revenue |  |  | 1,335,761 |  |  |  | 436,230 |
Rental and sponsorship revenue |  |  | 15,385 |  |  |  | 50,385 |
Total revenues |  |  | 4,175,238 |  |  |  | 2,674,076 |
Operating costs |  |  |  |  |  |  |  |
Food and beverage |  |  | 643,857 |  |  |  | 467,635 |
Event center |  |  | 700,188 |  |  |  | 130,344 |
Labor |  |  | 1,138,564 |  |  |  | 820,684 |
Rent |  |  | 421,678 |  |  |  | 363,036 |
Operating expenses |  |  | 5,013,845 |  |  |  | 3,027,271 |
Depreciation and amortization |  |  | 609,329 |  |  |  | 390,776 |
Total operating costs |  |  | 8,527,461 |  |  |  | 5,199,746 |
Loss from operations |  | $ | (4,352,223 | ) |  | $ | (2,525,670 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | (1,150,221 | ) |  |  | (74,878 | )
Other expense |  |  | - |  |  |  | - |
Loss on sale of investments |  |  | - |  |  |  | - |
Interest income |  |  | 200,779 |  |  |  | 6,738 |
Other income |  |  | 32,500 |  |  |  | 35,501 |
Total other expense, net |  | $ | (916,942 | ) |  | $ | (32,639 | )
Net loss |  | $ | (5,269,165 | ) |  | $ | (2,558,309 | )
Net loss attributable to non-controlling interests |  |  | (748,066 | ) |  |  | (126,032 | )
Net loss attributable to common stockholders |  | $ | (4,521,099 | ) |  | $ | (2,432,277 | )
Weighted average number of shares of Class A common stock, outstanding, basic and diluted |  |  | - |  |  |  | 272,526 |
Basic and diluted net loss per share of Class A common stock |  | $ | - |  |  | $ | (0.10 | )
Weighted average number of shares of Class B common stock, outstanding, basic and diluted |  |  | 383,737 |  |  |  | 21,949,810 |
Basic and diluted net loss per share of Class B common stock |  | $ | (0.13 | ) |  | $ | (0.10 | )
Weighted average number of shares of Class C common stock, outstanding, basic and diluted |  |  | 64,115 |  |  |  | 1,784,238 |
Basic and diluted net loss per share of Class C common stock |  | $ | (0.13 | ) |  | $ | (0.10 | )
Weighted average number of shares of Class D common stock, outstanding, basic and diluted |  |  | 34,901,392 |  |  |  | - |
Basic and diluted net loss per share of Class D common stock |  | $ | (0.13 | ) |  | $ | - |

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Comparison of the Six Months Ended June 30, 2024 and 2023

The following table sets forth our results of operations for the six months ended June 30, 2024 and 2023, respectively.

(in US Dollars)

Unaudited

|  | For the six months ended |
|  | June 30, |
|  | 2024 |  |  | 2023 |
Revenues |  |  |  |  |  |
Restaurant including food and beverage revenue |  | $ | 5,404,194 |  |  | $ | 3,814,637 |
Event center ticket and fees revenue |  |  | 2,660,656 |  |  |  | 877,514 |
Rental and sponsorship revenue |  |  | 50,131 |  |  |  | 82,045 |
Total revenues |  |  | 8,114,981 |  |  |  | 4,774,196 |
Operating costs |  |  |  |  |  |  |  |
Food and beverage |  |  | 1,248,412 |  |  |  | 818,081 |
Event center |  |  | 1,291,470 |  |  |  | 226,479 |
Labor |  |  | 2,205,962 |  |  |  | 1,383,808 |
Rent |  |  | 642,564 |  |  |  | 500,818 |
Operating expenses |  |  | 18,829,788 |  |  |  | 6,515,888 |
Depreciation and amortization |  |  | 1,215,793 |  |  |  | 714,155 |
Total operating costs |  |  | 25,433,989 |  |  |  | 10,159,229 |
Loss from operations |  | $ | (17,319,008 | ) |  | $ | (5,385,033 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | (1,555,186 | ) |  |  | (130,560 | )
Other expense |  |  | (2,500,000 | ) |  |  | - |
Loss on sale of investments |  |  | - |  |  |  | (11,947 | )
Interest income |  |  | 226,510 |  |  |  | 20,153 |
Other income |  |  | 62,500 |  |  |  | 70,569 |
Total other expense, net |  | $ | (3,766,176 | ) |  | $ | (51,785 | )
Net loss |  | $ | (21,085,184 | ) |  | $ | (5,436,818 | )
Net loss attributable to non-controlling interests |  |  | (965,147 | ) |  |  | (504,426 | )
Net loss attributable to common stockholders |  | $ | (20,120,037 | ) |  | $ | (4,932,392 | )
Weighted average number of shares of Class A common stock, outstanding, basic and diluted |  |  | - |  |  |  | 274,861 |
Basic and diluted net loss per share of Class A common stock |  | $ | - |  |  | $ | (0.23 | )
Weighted average number of shares of Class B common stock, outstanding, basic and diluted |  |  | 1,069,348 |  |  |  | 20,451,328 |
Basic and diluted net loss per share of Class B common stock |  | $ | (0.59 | ) |  | $ | (0.23 | )
Weighted average number of shares of Class C common stock, outstanding, basic and diluted |  |  | 13,427,266 |  |  |  | 897,048 |
Basic and diluted net loss per share of Class C common stock |  | $ | (0.59 | ) |  | $ | (0.23 | )
Weighted average number of shares of Class D common stock, outstanding, basic and diluted |  |  | 19,733,631 |  |  |  | - |
Basic and diluted net loss per share of Class D common stock |  | $ | (0.59 | ) |  | $ | - |

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Ford Amphitheater in Colorado Springs was not open as of June 30, 2024, but subsequently opened in August 2024. A fine-dining restaurant, Roth’s, and a rooftop bar, Brohan’s, along with premier event rental space and suites known as Notes Hospitality Collection surrounding that development are expected to open in May 2025. Even though this amphitheater will have a shortened 2024 season, we expect it to positively impact Venu’s financial performance in 2024.

Revenue

Total revenue increased $3,940,797 during the year ended December 31, 2023, as compared to the prior year. As components of our single reportable business segment, revenues generated from our “Restaurant including food and beverage” component, our “Event center ticket and fees” component and our “Rental and sponsorship” component increased $2,713,305, $1,015,657 and $211,835, respectively, during the year ended December 31, 2023, as compared to the prior year.

Total revenue increased $1,501,162 for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. Revenues generated from our “Restaurant including food and beverage,” “Event center ticket and fees,” and “Rental and sponsorship” revenue components increased 1,501,162 during the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. Total revenue increased $3,340,785 for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023. Revenues generated from our “Restaurant including food and beverage,” “Event center ticket and fees,” and “Rental and sponsorship” revenue components increased $3,340,785 during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

With respect to these increases, management believes this year-over-year increase in revenue was primarily driven by the opening of our BBST restaurant and BBP venue in Gainesville, Georgia in June 2023, which collectively contributed over $3,738,536 for their partial-year revenues in 2023. Likewise, the increase in revenue generated during the three and six months ended June 30, 2024, compared to the same periods in 2023 was primarily attributable to our BBST GA restaurant and BBP GA venue being open and fully operational during the first two quarters of 2024 while still being under construction until June 2023 and thus not open and operational until late in our second quarter of 2023.

Operating Expenses

Food and Beverage Costs. Our F&B costs increased $724,408 during the year ended December 31, 2023, as compared to the prior year, and increased $176,222 and $430,331 during the three and six months ended June 30, 2024, respectively, as compared to the same periods in the prior year. In each case, those cost increases were primarily driven by our increase in sales volumes, along with increased raw ingredient and food costs due to inflation. According to the United States Department of Agriculture Economic Research Service, food prices increased 5.8% during 2023 and were 2.2% higher in June 2024 than in June 2023.

Event Center Costs. The costs attributed to our event centers increased $305,844 during the year ended December 31, 2023, as compared to the prior year and increased $569,844 and $1,064,991 during the three and six months ended June 30, 2024, respectively, as compared to the same periods in the prior year. In each case, this primarily due to the added costs of operating our BBP GA venue in Gainesville, Georgia beginning in June 2023.

Labor Costs. Our labor costs increased $1,245,651 during the year ended December 31, 2023, as compared to the prior year and increased $317,880 and $822,154 during the three and six months ended June 30, 2024, respectively, as compared to the same periods in the prior year. Management believes this increase was driven by inflationary pressures. Beginning in June 2023, we also incurred additional labor costs to train and employ the individuals who operate our BBST GA and BBP GA restaurant and venue with these two locations contributing $1,269,640 in partial-year labor costs in 2023. The BBST GA and BBP GA restaurant and venue contributed $494,114 and $952,382, respectively, in labor costs during the three and six months ended June 30, 2024, while contributing no labor costs during the three and six months ended June 30, 2023 due to the restaurant and venue not opening until June 2023.

Rent Costs. Our rent costs increased $139,058 during the year ended December 31, 2023, as compared to the prior year and increased $58,642 and $141,746 during the three and six months ended June 30, 2024, respectively, as compared to the same periods in the prior year. In each case, this was primarily due to the added costs of operating and paying rent costs for our BBST GA and BBP GA restaurant and venue in Gainesville, Georgia beginning in June 2023.

Operating Expenses. Our operating expenses increased $7,193,232 during the year ended December 31, 2023 as compared to the prior year, representing approximately 70% of our increases in expenses during 2023 compared to 2022.

Our operating expenses increased $1,986,574 during the three months ended June 30, 2024, as compared to the same period in the prior year, and increased $12,313,900 during the six months ended June 30, 2024, as compared to the same period in the prior year. In each case, our increase in operating expenses was primarily the result of stock-based compensation expenses and opening our Gainesville, Georgia restaurant and venue locations in June 2023, which contributed partial-year operating expenses totaling $1,043,500 in 2023, and incurring additional expenses related to the efforts to expand the Company’s growth to the additional states of Oklahoma and Texas. Comparing the operating expenses during the three and six months ended June 30, 2024 to the same periods in 2023, the increase in operating expenses was specifically attributable to stock-based compensation expenses and the operating of our BBST GA and BBP GA restaurant and venue during the first quarter of 2024, which had not opened until late in June 2023, and expending operating costs to negotiate the public-private partnership agreements with the cities of Broken Arrow, Oklahoma and McKinney, Texas during the six months ended June 30, 2024, which had not commenced during the first or second quarter of 2023. Our general and administrative expenses are also included in operating expenses and consist primarily of expenditures related to compensation, legal, accounting and tax, other professional services, and general operating.

Depreciation and Amortization Costs. Our depreciation and amortization costs increased $700,684 during the year ended December 31, 2023 as compared to the prior year, increased $218,553 during the three months ended June 30, 2024, as compared to the same period in the prior year, and increased $501,638 during the six months ended June 30, 2024, as compared to the same period in the prior year. Management primarily attributes our increase in depreciation and amortization costs during 2023 compared to 2022 to two operational developments: (1) Venu incurring increased capitalization costs upon opening BBST GA and BBP GA in June 2023 totaling $203,217 in 2023; and (2) Venu incurring a full year of intangibles amortization in 2023 of $66,720 compared to a partial year in 2022 of $55,599. The increase in depreciation and amortization costs during the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 was primarily attributable to our BBST GA and BBP GA restaurant and venue being open and operational during the first and second quarters of 2024 but not until late in the second quarter of 2023.

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Other Expense

Other expense totaled $254,625 and $3,254,245 during 2023 and 2022, respectively. The decrease in other expense during 2023 compared to 2022 was primarily due to the loss on extinguishment of debt during 2022, which did not reoccur in 2023.

For the three months ended June 30, 2024 and 2023, other expense totaled $916,942 and $32,639, respectively. This increase for the three months ended June 30, 2024, was primarily due to the financing expense the Company recognized on a convertible promissory note issued in January 2024.

For the six months ended June 30, 2024 and 2023, other expense totaled $3,766,176 and $51,785, respectively. This increase for the six months ended June, 2024, was primarily due to the financing expense the Company recognized on a convertible promissory note issued in January 2024.

Interest Expense

We had net interest expense of approximately $331,674 and $397,120 for the years ended December 31, 2023 and 2022, respectively. The decrease of $65,446 for 2023 compared to 2022 was primarily attributable to the satisfaction in full of previously outstanding promissory notes during 2022 through their conversion to equity.

We had net interest expense of approximately $1,150,221 and $74,878 for the three months ended June 30, 2024 and 2023, respectively. This increase is primarily due to the addition of the mortgage on the BBST GA and BBP properties, along with the amortization of the debt discount fees on the convertible debt.

We had net interest expense of approximately $1,555,186 and $130,560 for the six months ended June 30, 2024 and 2023, respectively, which is primarily due to the addition of the mortgage on the BBSTGA and BBP properties, along with the amortization of the debt discount fees on the convertible debt.

Shuttered Venue Grant

In 2022, we obtained a Shuttered Venue Operators Grant (the “SVOG”) in the amount of $210,378 from the U.S. Small Business Administration (the “SBA”) as part of the SBA’s COVID-19 Relief Program given the impact of the COVID-19 pandemic on the Company’s business. Under the terms of the SVOG, we were not required to repay the grant amount as long we used the funds for eligible uses by the dates specified by the program. We did not obtain an SVOG or any similar government-funded grants during the 2023 fiscal year or during the three or six months ended June 30, 2024.

Loss on Extinguishment of Debt

Prior to the conversion of the Company from a limited liability company to a corporation that was effected in April 2022, ownership interests in the Company were denotated as “units” of membership interests. Prior to such conversion, we incurred a loss on extinguishment of debt of $3,395,046 in connection with the conversion of $4,243,807 in convertible promissory notes that we issued into 8,487,615 Class B non-voting units of B Entertainment LLC at a conversion price of $0.50 per unit and the 1-for-20 split of those units in February 2022, which adjusted the value of the units to $10.00 per unit. Our gain (loss) on extinguishment of debt during the 2023 fiscal year was $0.

(Loss) Gain on Sale of Investments, net

During the 2023 fiscal year, we realized a loss on the sale of investments of $75,603, resulting from the sale of our 20% interest in War Hippies, LLC in December 2023. During the 2022 fiscal year, we realized a gain on the sale of investments of $197,812, which resulted from the sale of our 9.1% interest in Jet Stream, LLC in June 2022.

Other Income

During the 2023 and 2022 fiscal years, we received other income totaling $132,500 and $117,582, respectively, from Roth Industries, LLC (“Roth Industries”). Roth Industries paid Venu those amounts pursuant to a license granted by Venu to Roth Industries to use the trademark, tradename, and likeness of the Bourbon Brothers brand, which Venu exclusively owns, on packaged and prepared food products sold in retail grocery stores and other retail outlets where food products are sold. The licensing fee paid by Roth Industries to Venu is in the form of a royalty equal to $10,000 per month, which did not change from 2023 to 2024. Accordingly, during each of the six-month periods ended June 30, 2024 and 2023, Roth Industries paid Venu $60,000 in royalty payments.

JW Roth, Venu’s Chairman, CEO, and founder and a principal shareholder of Venu, is also the founder and Chairman of Roth Industries and holds an approximate 20% membership interest in Roth Industries. Mitchell Roth, a director of Venu, is also the CEO and President of Roth Industries and holds an approximate 10% membership interest in Roth Industries. Heather Atkinson, the CFO, Secretary, and a director of Venu, is also the Treasurer and a director of Roth Industries. Additionally, Robert Mudd, Venu’s Senior Vice President of Construction and Market Expansion, and Steve Cominsky, a director of Venu, are also members of Roth Industries. Ms. Atkinson, Mr. Mudd, and Mr. Cominsky each own less than a 1% membership interest in Roth Industries.

Factors that May Influence Future Results of Operations

Impact of Macroeconomic Conditions

We continue to monitor the impact of macroeconomic conditions, including inflationary pressure, potential for recession, instability of capital markets, consumer-spending habits, costs of goods, changes to fiscal and monetary policies, heightened interest rates, access to capital, the favorability of lending terms, prolonged supply-chain constraints, and geopolitical trends, on all aspects of our business, including how those factors may impact our operations, workforce, suppliers, ability to raise additional capital to fund operating and capital expenditures, sales, and profitability.

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The extent of the impact of these factors on our business will depend on future developments that are highly uncertain and cannot be confidently predicted at this time. To date, these factors have not had a material impact to our results of our operations or development efforts. However, if macroeconomic conditions deteriorate or there are unforeseen developments, our results of operations, financial condition, and cash flows may be adversely affected.

Rising Interest Rates

A prevailing trend that has impacted our business since 2022 is rising and steadily high interest rates. Since March 2022, the Federal Reserve has increased interest rates a total of eleven times, with the last hike occurring in July 2023 when target interest rates reached a range of 5.25% to 5.50%, with a benchmark rate at about 5.4%, the highest level in more than two decades. In September 2024, the Federal Reserve lowered the benchmark rate by 50 basis points, reducing the rate to the range of 4.75% to 5.00%. Although the Federal Reserve has indicated that additional rate reductions could occur in the remainder of 2024 and in 2025, the timing and extent of those rate cuts are uncertain. Although Venu was fortunate to have access to attractive debt capital and to purchase land to be developed into entertainment campuses on favorable terms by negotiating with various municipalities and forming public-private partnerships, had those lending opportunities not been available, volatility in interest rates would have increased the cost of borrowing and required us to agree to loan terms that were less favorable for borrowers. Furthermore, interest-rate increases may reduce the affordability of our land-development projects due to increased debt-servicing costs. Volatility in interest rates affect the demand for, and price of real estate. A rise in interest rates increases the cost while lowering the availability of debt financing. Increased borrowing costs would drive the costs of our development projects and inflate our project budgets.

Inflation

Another trend that impacted our business throughout 2022 and 2023 and that has continued to impact our business during 2024 has been the increase in inflation nationwide, which has gone hand in hand with the rising interest rate environment. With respect to project execution, inflation increased the cost of building materials and labor types, creating upward pressure on the costs of constructing and developing our event venues. Third parties that we contracted with, such as developers and contractors, were impacted by rising inflation rates and the corresponding rise in the costs of goods and services used in their businesses. Their ability to do business with us could be impacted by steadily high rates of interest and inflation, which could impact our profitability.

In addition to impacting our project construction and development costs, inflation also lead to higher costs for ingredients, supplies, utilities, and labor, all of which are essential components of operating restaurants and venues. While we were able to offset some of those costs by adjusting menu prices at our restaurants, we had to balance those adjustments with consumer sentiment to ensure that we did not deter customers from dining with us and in turn impact our overall sales volume. Inflation also impacts consumer-spending habits. As the costs of everyday goods and services rise, customers may become more hesitant to spend discretionary funds on restaurant dining.

We continue to monitor the impacts of high interest rates and inflation on our business and will continue to proactively seek cost-saving measures, negotiate with municipalities to purchase land without being burdened by increased borrowing costs and unfavorable lending terms.

Liquidity and Capital Resources

We have devoted substantially all of our efforts to developing our business plan, raising capital, and opening and operating our restaurants and event venues in Colorado and Georgia and planning venues in new markets, such as Oklahoma and Texas. We had an accumulated deficit of $17,021,453, and $6,496,980 as of the years ended December 31, 2023 and 2022, respectively, and generated negative cash flows from operations of $4,876,172 and $700,748 during the years ended December 31, 2023 and 2022, respectively. Similar trends are seen when comparing our year-after-year interim financials, as we had an accumulated deficit of $37,141,490 and $17,021,453 as of June 30, 2024 and 2023, respectively, with cash flows provided by (used in) operations of $6,117,758 and $(3,601,390) as of the six months ended June 30, 2024 and 2023, respectively. Additionally, we experienced an increase in net loss from $2,558,309 to $5,269,165 for the three-month period ended June 30, 2024, compared to the same period in 2023, and we experienced an increase in net loss from $5,436,818 to $21,085,184 for the six-month period ended June 30, 2024, compared to the same period in 2023. The Company believes the net loss in the 2024 year periods are largely due to equity-based compensation, issued for services and non-cash financing with these considered to be non-recurring expenses.

50

During the first six months of 2024, we closed a private placement and sold 2,914,341 shares of Common Stock and received gross proceeds of $29,143,410 in that offering.

On January 17, 2024, the Company entered into a convertible promissory note (the “Note”) with KWO, LLC (“KWO”), to accrue interest at 8.75% per annum, for draws of up to an aggregate of $10,000,000 to occur between March 2024 to May 2024 to be used towards Sunset Colorado construction. The outstanding balance of the Note as of June 30, 2024, was $10,000,000. Interest is to be paid monthly and the maturity date is one year from the date of the first draw. The first draw commenced March 1, 2024, in the amount of $3,860,582.40, and the maturity date of the Note’s principal balance is March 1, 2025. The second and third draws occurred on April 10, 2024, in the amount of $3,738,030.37, and on May 10, 2024, in the amount of $2,401,387.23. At any time during the period commencing June 1, 2024, and continuing until the date on which the Note is paid in full, KWO may convert the outstanding Note into Company shares of equivalent value, and the Company shares are deemed to have a fixed value of $10 per share.

Kevin O’Neil, a minority stockholder of Venue and owner of the holder of the Note, KWO, along with Mr. JW Roth, both personally guarantee the Note at a fee equal to 1% of the promissory note balance. The holder of the Note financed the asset purchase and paid the draw to the Sunset Colorado general contractor directly thus became a personal guarantor to the Note. The Company recognized a debt discount for the personal guarantee fee of $100,000 with $25,000 and $33,333 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining debt discount to be expensed to interest expense over the life of the Note. As consideration of the personal guarantee fee, the Company granted a three-year warrant to purchase 500,000 Venu shares at $10 per share for both the holder and Mr. Roth, with the Company recognizing a debt discount of $3,000,140 with $750,034 and $1,000,047 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining to be expensed over the life of the Note. In accordance with ASC 815-10, Derivatives and Hedging, the warrants were recorded at relative fair value within stockholder’s equity in the Condensed Consolidated Balance Sheet. A loan origination fee of $100,000 is recognized as debt discount with $25,000 and $33,333 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining to be expensed over the life of the Note. The Company leased KWO a suite at the Ford Amphitheater with a fair market value of $200,000 without additional payment or consideration, and is subject to and consistent with the schedule, rights, terms and conditions applicable to other suites offered to the public. The Company treated this leased suite as a debt discount with $50,000 and $66,666 expensed to interest expense in the three and six months ended June 30, 2024, with the remining to be expensed over the life of the Note. The convertible debt balance of $10,000,000 net by the cumulative debt discounts of $2,266,760 agree to the net of $7,733,240 shown as convertible debt on the Condensed Consolidated Balance Sheet. In addition, KWO in a related agreement, purchased 500,000 shares of stock from Mr. Roth at a discount as part of this transaction. Per ASC paragraph 718-10-15-4, the economic interest holder makes a capital contribution to the reporting entity, and the reporting entity makes a share-based payment to its grantee in exchange for goods or services provided to the reporting entity. In the Company’s instance, Mr. Roth paid the holder on behalf of the Company. The Company recognized a $0 and $2,500,000 charge in other expense and additional paid in capital related to the exchange for the three and six months ended June 30, 2024, as Mr. Roth completed this stock transaction on behalf of the Company for KWO completing the Note transaction.

We believe that (i) cash on hand, (ii) improved profitability in 2024 from operating venues and restaurants in Colorado Springs, Colorado and Gainesville, Georgia, (iii) opening Ford Amphitheater in Colorado Springs, Colorado in August 2024 and revenues expected to be generated by that project, (iv) the net cash expected to be received from this offering, and (v) additional capital raising efforts either at the parent corporation level and through sales of interests in our subsidiaries that own and operate our planned amphitheater projects (i.e., our firepit suite related sales and capital raising efforts), and debt financing available to us (being the KWO, LLC promissory note or other lenders), will allow us to continue our business operations. Our ability to continue implementing our business plan to add new locations to our portfolio for the purpose of developing entertainment campuses depends on our future engagement in strategic locations, real-estate transactions, capital raising, and debt financing.

Cash Flows

The following information reflects cash flows for continuing operations for the years presented:

|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
|  | (amounts in thousands) |
Cash and cash equivalents at beginning of year |  | $ | 23,470,734 |  |  | $ | 4,193,086 |
Net cash used in operating activities |  |  | (4,876,172 | ) |  |  | (700,748 | )
Net cash used in investing activities |  |  | (31,165,063 | ) |  |  | (4,426,307 | )
Net cash provided by financing activities |  |  | 32,771,605 |  |  |  | 24,404,703 |
Cash and cash equivalents at end of year |  | $ | 20,201,104 |  |  | $ | 23,470,734 |

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The following information reflects cash flows for continuing operations for the six-month periods presented:

|  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (amounts in thousands) |
Cash and cash equivalents at beginning of period |  | $ | 20,201,104 |  |  | $ | 23,470,734 |
Net cash used in operating activities |  |  | (6,117,758 | ) |  |  | (3,601,390 | )
Net cash used in investing activities |  |  | (31,185,229 | ) |  |  | (18,612,512 | )
Net cash provided by financing activities |  |  | 47,622,260 |  |  |  | 19,712,220 |
Cash and cash equivalents at end of period |  |  | 42,755,893 |  |  |  | 20,969,052 |

Net Cash Used in Operating Activities

Net cash used in operating activities was $4,876,172 and $700,748 during the years ended December 31, 2023 and 2022, respectively. The increase of $4,175,424 in cash used during 2023 compared to 2022 was primarily attributable to an increase of $3,368,460 in our loss from operations.

Net cash provided by (used in) operating activities was $6,117,758 and $(3,601,390) during the six months ended June 30, 2024 and 2023, respectively. The increase of $9,719,148 in cash used during the first quarter of 2024 compared to the first quarter of 2023 was primarily attributable to the increases in accounts payable and licensing liabilities.

Net Cash Used in Investing Activities

Net cash used in investing activities was $31,165,063 and $4,426,307 during the years ended December 31, 2023 and 2022, respectively. The increase of $26,738,756 in cash used during 2023 compared to 2022 was primarily attributable to purchase of property and equipment.

Net cash used in investing activities was 31,185,229 and $18,612,512 during the six months ended June 30, 2024 and 2023, respectively. The increase of $12,572,717 in cash used during the first six months of 2024 compared to the first six months of 2023 was primarily attributable to the increase in the purchase of property and equipment quarter over period.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $32,771,605 and $24,404,703 during the years ended December 31, 2023 and 2022, respectively. The increase of $8,366,902 in cash provided during 2023 compared to 2022 was primarily attributable to proceeds from a private placement of our Common Stock private sales and our pre-sales of rights and interests in our Sunset at Broken Arrow LLC, Sunset Hospitality Collection LLC, and Sunset at Mustang Creek LLC subsidiaries.

Net cash provided by financing activities was $47,622,260 and $19,712,220 during the six months ended June 30, 2024 and 2023, respectively. The increase of $27,910,040 in cash provided during the first six months of 2024 compared to the first six months of 2023 was primarily attributable to issuance of shares of Common Stock and the increased in proceeds from the sale of non-controlling interest equity.

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Significant Accounting Policies and Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make significant judgments and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Management bases these significant judgments and estimates on historical experience and other assumptions it believes to be reasonable based on information presently available. Actual results could differ from those estimates under different assumptions, judgments, or conditions.

Significant estimates made by management include, but are not limited to: economic lives of leased assets; impairment assessment of long-lived assets; depreciable lives of property, plant, and equipment; useful lives of intangible assets; accruals for contingencies including tax contingencies; valuation allowances for deferred income-tax assets; estimates of fair value of identifiable assets and liabilities acquired in business combinations; and estimates of fair value used in the private stock valuations used for equity-based compensation and warrants.

Revenue Recognition

We recognize revenue in accordance with the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which requires us to allocate the transaction price received from our customers to separate and distinct performance obligations and to recognize revenue upon the satisfaction of our performance obligations. We recognize revenue from our sale to customers of F&B products at our restaurants when the F&B products are transferred to the customer. We recognize revenue from the rental of our venues and from tickets and related fees for concerts or shows performed at our venues when the event, concert, or show occurs. We recognize naming rights and sponsorship revenue over the life of the naming rights and sponsorship agreements.

We record amounts collected prior to the event as deferred revenue until the event occurs. We record amounts collected from our sponsorship agreements, which do not relate to a single event, as deferred revenue and recognize those amounts over the term of the agreements as the sponsorship benefits are provided to our sponsors. As of December 31, 2023 and 2022, our deferred revenue totaled $764,081 and $127,291, respectively.

Investments in Related Parties

We have non-controlling interest investments in related parties. We account for certain of our investments in related parties using a practical expedient to measure those investments that do not have a readily determinable fair value in accordance with ASC 321, Investments — Equity Securities; ASC 325, Investments — Other; ASC 810, Consolidation; and ASC 820, Fair Value Measurement. Our investments in related parties are initially recognized at cost, and any income or loss resulting from such investments are recognized on our consolidated statements of operations, net of operating expenses. The carrying value of our related-party investments are assessed for indicators or impairment at each balance-sheet date, such that each investment is derecognized upon the sale or impairment of our interest in the investment. See “Non-controlling Interest and Variable Interest Entities” for further discussions of the entities that are majority-owned subsidiaries and variable interest entities. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method.

We had one investment that we accounted for using the equity method described in ASC 323, Investments — Equity Method and Joint Ventures, prior to disposing of that investment on December 31, 2023. Pursuant to that accounting method, we initially recorded the investment as an asset on the balance sheet at its initial cost and then adjusted the investment each reporting period through the income statement for the income or loss for our proportionate share of the investment.

We own 550,000 preferred units, or 2%, of Roth Industries, of which JW Roth, the founder, manager, and chairman, is Venu’s chairman and chief executive officer. Our officers and directors are also minority equity owners of Roth Industries. We currently account for our investment in Roth Industries using ASC 325, Investments — Other.

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Leases

We account for our leases in accordance with ASC 842, Leases, pursuant to which our leases are classified as either operating or financing leases and recorded in our consolidated balance sheets as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term, including any renewal options that are likely to be exercised, at the rate set forth or implied in the lease. In calculating the right-of-use asset and lease liability, we elect to combine lease and non-lease components as permitted under ASC 842. As an accounting-policy election, we exclude short-term leases having initial terms of 12 months or less and expense payments on those short-term leases as they are made.

Business Combinations

In April 2022, we purchased 99% of the voting and non-voting units of Hospitality Income & Asset, LLC (“HIA”) from its members for a total purchase price of $10,383,445 using a combination of cash and equity. HIA owns the land and buildings for the BBST CO and BBP CO venues in Colorado Springs, Colorado. We accounted for this asset acquisition under ASC 805, Business Combinations, pursuant to which the purchase price we paid for the HIA units was allocated to the acquired asset based on their proportionate fair values.

On June 26, 2024, Notes Live Real Estate, LLC, a wholly owned subsidiary of Venu, purchased 100% of the membership units of 13141 BP, LLC from its members for an aggregate purchase price of $2,761,000, which Venu paid to the members on a pro-rata basis through the issuance of 276,100 shares of Common Stock, valued at their current fair market value of $10.00 per share.

Warrants

On a rolling basis from July 2021 through January 2022, we issued lenders an aggregate of $3,775,000 in convertible promissory notes (the “July 2021 Notes”) and 377,500 warrants (exercisable for a three-year term from their date of issuance), which by their original terms are exercisable at the option of the holder to purchase non-voting units of B Entertainment LLC for $2.50 per share (and after our conversion to a corporation in April 2022, and after giving effect to subsequent forward-stock splits, are exercisable to acquire shares of Class B Non-Voting Common Stock for $10.00 per share) prior to the warrants’ expiration. We accounted for the warrants in accordance with ASC 815-10, Derivatives and Hedging, pursuant to which the warrants were recorded at relative fair value within stockholders’ equity in our consolidated balance sheets.

During the six months ended June 30, 2024, we granted a total of 2,279,250 warrants, consisting of 1,279,250 warrants granted to employees and directors and 1,000,000 warrants granted as part of the convertible promissory note. As of June 30, 2024, there was a total of 3,320,329 warrants exercisable with an aggregate intrinsic value of $14,446,066. For the total warrants outstanding of 5,025,583 as of June 30, 2024, the aggregate intrinsic value was $21,142,098.

As of June 30, 2024, there was $4,633,745 of unrecognized compensation cost related to non-vested warrants. The equity-based compensation cost, related to warrants included as a charge to operating expenses in the condensed consolidated statements of operations, was $10,254,806 and $184,006 for the periods ended June 30, 2024 and June 30, 2023, respectively. The cost is expected to be recognized over a weighted-average period of less than five years.

As of December 31, 2023, there was a total of 1,669,124 warrants exercisable with an aggregate intrinsic value of $11,807,464. As of December 31, 2023, the outstanding warrants totaling 3,029,830 had an aggregate intrinsic value of $22,434,974.

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Non-controlling Interest and Variable Interest Entities

The non-controlling interest (“NCI”) represents capital contributions and distributions, income and loss attributable to the owners of less than wholly owned consolidated entities and are reported in equity. NCIs are evaluated by the Company and are shown as permanent equity. Net income (loss) attributable to NCIs reflects the portion of the net income (loss) of consolidated entities applicable to the NCI shareholders in the accompanying Condensed Consolidated Statements of Operations. The net income (loss) attributable to NCIs is classified in the Consolidated Statements of Operations as part of consolidated net income (loss) and deducted from total consolidated net income (loss) to arrive at the net income (loss) attributable to the Company. The Company has evaluated its investments in unconsolidated entities in order to determine if they qualify as variable interest entities (“VIEs”). The Company monitors these investments and, to the extent it has determined that it owns a majority of the controlling class of securities of a particular entity, analyzes the entity for potential consolidation. The Company will continually analyze investments, including when there is a reconsideration event, to determine whether such investments are VIEs and whether such VIE should be consolidated. These analyses require considerable judgment in determining the primary beneficiary of a VIE and could result in the consolidation of an entity that would otherwise not have been consolidated or the non-consolidation of an entity that would have otherwise been consolidated.

The Company accounts for the change in its ownership interest while it retains its controlling financial interest in its majority-owned subsidiaries or VIEs as equity transactions. The carrying value of the NCI should be adjusted to reflect the change in the Company’s ownership interest in the subsidiary, and differences between the fair value of the consideration received and the amount by which the NCI is adjusted should be recognized in equity attributable to the Company. This may be shown as NCI and as additional paid in capital to the Company when combined agree to the non-controlling issuance of shares as shown in the Condensed Consolidated Statement of Change in Stockholders’ Equity.

If a change in ownership of a consolidated subsidiary results in a loss of control or deconsolidation, any retained ownership interests are remeasured with the gain or loss reported to net earnings. These may be majority-owned subsidiaries or variable interest entities that the Company has 100% voting control of.

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of June 30, 2024:

|  | BBPCO |  |  | GA HIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  | 314,454 |  |  |  | 66,338 |  |  |  | 19,835 |  |  |  | 1,727,432 |  |  |  | - |  |  |  | 1,971,116 |  |  |  | 1,590,136 |  |  |  | 8,682,146 |  |  |  | 13,356,849 |  |  |  | 27,728,306 |
Property and equipment, net |  |  | 31,740 |  |  |  | 10,812,419 |  |  |  | 10,797,059 |  |  |  | 38,153,227 |  |  |  | - |  |  |  | 36,725 |  |  |  | 4,064,056 |  |  |  | 5,006,864 |  |  |  | 274,079 |  |  |  | 69,176,169 |
Other assets |  |  | 216,932 |  |  |  | 144,612 |  |  |  | 769,897 |  |  |  | (4,063,392 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (15,472 | ) |  |  | 542,193 |  |  |  | (2,405,230 | )
Total assets |  |  | 563,126 |  |  |  | 11,023,369 |  |  |  | 11,586,791 |  |  |  | 35,817,267 |  |  |  | - |  |  |  | 2,007,841 |  |  |  | 5,654,192 |  |  |  | 13,673,538 |  |  |  | 14,173,121 |  |  |  | 94,499,245 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 3,391 |  |  |  | - |  |  |  | 71,834 |  |  |  | 4,945,961 |  |  |  | - |  |  |  | 1,225 |  |  |  | 2,883,809 |  |  |  | 984,341 |  |  |  | 136,581 |  |  |  | 9,027,142 |
Accrued expenses and other |  |  | 254,681 |  |  |  | 38,984 |  |  |  | 64,269 |  |  |  | 40,600 |  |  |  | - |  |  |  | - |  |  |  | 869 |  |  |  | 16,516 |  |  |  | 130,252 |  |  |  | 546,171 |
Other long-term liabilities |  |  | 1,073,136 |  |  |  | 4,265,718 |  |  |  | 3,323,034 |  |  |  | 9,866,667 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 169,916 |  |  |  | 18,698,471 |
Total Liabilities |  |  | 1,331,208 |  |  |  | 4,304,702 |  |  |  | 3,459,137 |  |  |  | 14,853,228 |  |  |  | - |  |  |  | 1,225 |  |  |  | 2,884,678 |  |  |  | 1,000,857 |  |  |  | 436,749 |  |  |  | 28,271,784 |
Stockholders’ Equity & NCI |  |  | (768,082 | ) |  |  | 6,718,667 |  |  |  | 8,127,654 |  |  |  | 20,964,039 |  |  |  | - |  |  |  | 2,006,616 |  |  |  | 2,769,514 |  |  |  | 12,672,681 |  |  |  | 13,736,372 |  |  |  | 66,227,461 |
Total liabilities and equity |  |  | 563,126 |  |  |  | 11,023,369 |  |  |  | 11,586,791 |  |  |  | 35,817,267 |  |  |  | - |  |  |  | 2,007,841 |  |  |  | 5,654,192 |  |  |  | 13,673,538 |  |  |  | 14,173,121 |  |  |  | 94,499,245 |

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2023:

|  | BBPCO |  |  | GA HIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 409,973 |  |  | $ | 49,643 |  |  | $ | 110,314 |  |  | $ | 1,281,934 |  |  | $ | 52,462 |  |  | $ | 1,657,511 |  | $ |  | 677,742 |  |  | $ | 6,418,199 |  |  |  | - |  |  | $ | 10,657,778 |
Property and equipment, net |  |  | 19,956 |  |  |  | 10,993,207 |  |  |  | 11,334,305 |  |  |  | 13,373,408 |  |  |  | 3,506,517 |  |  |  | 120,766 |  |  |  | 48,988 |  |  |  | 269,137 |  |  |  | - |  |  |  | 39,666,284 |
Other assets |  |  | 1,254,602 |  |  |  | 76,104 |  |  |  | 733,332 |  |  |  | 10,008,993 |  |  |  | 1,795 |  |  |  | 399,594 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,474,420 |
Total assets |  | $ | 1,684,531 |  |  | $ | 11,118,954 |  |  | $ | 12,177,951 |  |  | $ | 24,664,335 |  |  | $ | 3,560,774 |  |  | $ | 2,177,871 |  |  | $ | 726,730 |  |  | $ | 6,687,336 |  |  |  | - |  |  | $ | 62,798,482 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 35,045 |  |  | $ | 1,103 |  |  | $ | - |  |  | $ | 2,168,812 |  |  | $ | 44,270 |  |  | $ | 36,989 |  |  | $ | 47,681 |  |  | $ | 32,308 |  |  |  | - |  |  | $ | 2,366,208 |
Accrued expenses |  |  | 264,979 |  |  |  | 41,520 |  |  |  | 192,354 |  |  |  | 83,293 |  |  |  | - |  |  |  | 20,962 |  |  |  | 24,925 |  |  |  | - |  |  |  | - |  |  |  | 628,033 |
Other long-term liabilities |  |  | 1,054,770 |  |  |  | 4,336,093 |  |  |  | 3,404,225 |  |  |  | - |  |  |  | 3,267,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,062,088 |
Total Liabilities |  | $ | 1,354,794 |  |  | $ | 4,378,716 |  |  | $ | 3,596,579 |  |  | $ | 2,252,105 |  |  | $ | 3,311,270 |  |  | $ | 57,951 |  |  | $ | 72,606 |  |  | $ | 32,308 |  |  |  | - |  |  | $ | 15,056,329 |
Stockholders’ Equity & NCI |  | $ | 329,737 |  |  | $ | 6,740,238 |  |  | $ | 8,581,372 |  |  | $ | 22,412,230 |  |  | $ | 249,504 |  |  | $ | 2,119,920 |  |  | $ | 654,124 |  |  | $ | 6,655,028 |  |  |  | - |  |  | $ | 47,742,153 |
Total liabilities and equity |  | $ | 1,684,531 |  |  | $ | 11,118,954 |  |  | $ | 12,177,951 |  |  | $ | 24,664,335 |  |  | $ | 3,560,774 |  |  | $ | 2,177,871 |  |  | $ | 726,730 |  |  | $ | 6,687,336 |  |  |  | - |  |  | $ | 62,798,482 |

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The following table provides a summary of the Company’s non-controlling interests for the three- and six-month periods ended June 30, 2024:

|  | BBPCO |  |  | GA HIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
Balance at December 31, 2023 |  |  | (118,444 | ) |  |  | 6,733,243 |  |  |  | 601,110 |  |  |  | 21,620,755 |  |  |  | - |  |  |  | 288,653 |  |  |  | 47,106 |  |  |  | 2,053,440 |  |  |  | - |  |  |  | 31,225,863 |
Net income (loss) attributable to Non-Controlling Interest 1/1-3/31/24 |  |  | 15,652 |  |  |  | 82,506 |  |  |  | (3,000 | ) |  |  | (245,133 | ) |  |  | - |  |  |  | (28,043 | ) |  |  | (14,036 | ) |  |  | (24,839 | ) |  |  | (188 | ) |  |  | (217,081 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 33,078 |  |  |  | 235,993 |  |  |  | 1,993,498 |  |  |  | 98,818 |  |  |  | 2,361,387 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | (123,141 | ) |  |  | (909 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (124,050 | )
Balance at March 31, 2024 |  |  | (102,792 | ) |  |  | 6,692,608 |  |  |  | 597,201 |  |  |  | 21,375,622 |  |  |  | - |  |  |  | 293,688 |  |  |  | 269,063 |  |  |  | 4,022,099 |  |  |  | 98,630 |  |  |  | 33,246,119 |
Net income (loss) attributable to Non-Controlling Interest 4/1-6/30/24 |  |  | 11,469 |  |  |  | 94,097 |  |  |  | (3,107 | ) |  |  | (364,690 | ) |  |  | - |  |  |  | (38,086 | ) |  |  | (97,866 | ) |  |  | (325,036 | ) |  |  | (24,847 | ) |  |  | (748,066 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 338,742 |  |  |  | - |  |  |  | (130,839 | ) |  |  | 77,419 |  |  |  | 752,789 |  |  |  | 1,255,368 |  |  |  | 2,293,479 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | (146,173 | ) |  |  | (909 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (147,082 | )
Balance at June 30, 2024 |  |  | (91,323 | ) |  |  | 6,640,532 |  |  |  | 593,185 |  |  |  | 21,349,674 |  |  |  | - |  |  |  | 124,763 |  |  |  | 248,616 |  |  |  | 4,449,852 |  |  |  | 1,329,151 |  |  |  | 34,644,450 |

The following table provides a summary of the Company’s non-controlling interests for the periods ended December 31, 2023 and December 31, 2022:

|  | BBPCO |  |  | Notes |  |  | GA HIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Total |
Balance at December 31, 2021 |  | $ | (189,510 | ) |  | $ | (7,684 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (197,194 | )
Net loss attributable to Non-Controlling Interest 1/1/22-4/5/22 |  | $ | 11,294 |  |  | $ | — |  |  | $ | (26,321 | ) |  | $ | — |  |  | $ | (27,127 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (42,154 | )
Conversion from LLC to C Corp |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 239,348 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 239,348 |
Net loss attributable to Non-Controlling Interest 4/6/22-12/31/22 |  | $ | 33,881 |  |  | $ | — |  |  | $ | (440,000 | ) |  | $ | (8,540 | ) |  | $ | (625,824 | ) |  | $ | (11,947 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,052,430 | )
Interest in Subsidiaries |  | $ | 3 |  |  | $ | 7,684 |  |  | $ | 7,107,320 |  |  |  | 395,437 |  |  |  | 16,050,000 |  |  |  | 285,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 23,845,444 |
Balance at December 31, 2022 |  | $ | (144,332 | ) |  | $ | — |  |  | $ | 6,640,999 |  |  | $ | 626,245 |  |  | $ | 15,397,049 |  |  | $ | 273,053 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 22,793,014 |
Net income (loss) attributable to Non-Controlling Interest 1/1-12/31/23 |  | $ | 25,888 |  |  | $ | — |  |  | $ | 76,621 |  |  | $ | (11,131 | ) |  | $ | (899,567 | ) |  | $ | — |  |  | $ | (34,512 | ) |  | $ | (5,678 | ) |  | $ | (13,941 | ) |  | $ | (862,320 | )
Non-controlling interest issuance of shares |  | $ | — |  |  | $ | — |  |  | $ | 260,355 |  |  | $ | — |  |  | $ | 7,123,273 |  |  | $ | — |  |  | $ | 323,165 |  |  | $ | 52,784 |  |  | $ | 2,067,380 |  |  | $ | 9,826,958 |
Distributions to non-controlling shareholders |  | $ | — |  |  | $ | — |  |  | $ | (244,732 | ) |  | $ | (14,004 | ) |  | $ | — |  |  | $ | (273,053 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (531,789 | )
Balance at December 31, 2023 |  | $ | (118,444 | ) |  | $ | — |  |  | $ | 6,733,243 |  |  | $ | 601,110 |  |  | $ | 21,620,755 |  |  | $ | — |  |  | $ | 288,653 |  |  | $ | 47,106 |  |  | $ | 2,053,439 |  |  | $ | 31,225,863 |

Off-Balance Sheet Arrangements

We do not engage in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, as a part of our ongoing business. Accordingly, we did not have any off-balance sheet arrangements during any of the periods presented.

Going Concern

Our consolidated financial statements for the years ended December 31, 2023 and 2022 were prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities, and commitments in the normal course of business. Our consolidated financial statements do not reflect any adjustments that might result if we are unable to continue as a going concern. As of the issuance of our consolidated financial statements, we have concluded that there is no substantial doubt about our ability to continue as a going concern for the next twelve months. Any doubt regarding our ability to continue as a going concern was alleviated by our plan to add additional venue locations and to continue our business operations. Venu believes that cash on hand, the improved profitability in 2024 from its operating entities in Colorado Springs, Colorado and Gainesville, Georgia, the opening of Ford Amphitheater in August 2024, as well as the proceeds of this offering will allow Venu to continue its business operations for at least 12 months from the date of this prospectus. Nonetheless, Venu’s continued implementation of its business plan to add additional locations is dependent on its future engagement in strategic locations, real estate transactions, capital raising, and debt financing. However, there is no guarantee that we will be able to execute on our business plan.

Stockholders’ Equity

The Company had two membership classes of units while it was a limited liability company: Class A Voting and Class B Non-Voting Units. Upon the Company’s conversion on April 6, 2022 from a Colorado limited liability company to a Colorado C corporation, the Company’s Class A Voting Units became its Class A Common Stock, and the Class B Non-Voting Units became its Class B Non-Voting Common Stock.

On October 25, 2022, Venu amended its Articles of Incorporation to increase the number of shares of its capital stock authorized for issuance, change the voting rights of its Class A Common Stock, and add its Class C Common Stock as a class of stock.

On August 7, 2023, Venu allowed its shareholders to convert their shares of Class A Common Stock into shares of Class C Common Stock on a 1-for-25 basis and to convert their shares of Class B Non-Voting Common Stock into shares of Class C Common Stock on a 1-for-1 basis. The Company has 76,245 shares of treasury stock that it acquired through the acquisition of HIA.

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On November 3, 2023, Venu amended its Articles of Incorporation to increase the number of shares of its capital stock authorized for issuance and to effect a 5-for-1 forward stock split of the issued and outstanding shares of its Class C Common Stock. On that same date, Venu also began a private placement offering of its shares of Class C Common Stock for $10.00 per share on November 3, 2023. In connection with that offering, Venu issued 2,535,000 Class C shares during the six months ended June 30, 2024. Venu also issued 700,000 shares of Class C Common Stock as payment for services to Sunshine Advisors, LLC, an outside consultant.

On November 15, 2023, Venu amended its Articles of Incorporation to effect a 5-for-1 forward stock split of the issued and outstanding shares of its Class B Non-Voting Common Stock.

On March 5, 2024, Venu and its Class C Common Stock shareholders authorized the creation and issuance of up to 60,000,000 shares of Class D Common Stock. Venu amended its Articles of Incorporation to increase the number of shares of its capital stock authorized for issuance and to add its Class D Common Stock as a class of stock. At that time, Venu allowed shares of Class B Non-Voting Common Stock and of Class C Common Stock to be exchanged for shares of Class D Common Stock on a 1-for-1 basis.

On September 6, 2024, Venu amended and restated is Articles of Incorporation to change its legal name to “Venu Holding Corporation” and cause all outstanding shares of its previously outstanding Class C Common Stock and Class D Common Stock to be converted on a one-for-one basis to shares of “Common Stock.” As of the filing of the Amended and Restated Articles of Incorporation, the Company’s authorized capital does not include Class A Voting Common Stock. As of June 30, 2024, the Company has 383,656 shares of Class B Non-Voting Common Stock and 35,478,706 shares of Common Stock issued and outstanding.

Except for any differences in voting privileges or in the contractual rights or limitations assigned or afforded to a specific series of stock in connection with a merger, acquisition, or strategic transaction, the shares of Common Stock and Class B Non-Voting Common Stock have the same preferences, limitations, and relative rights. Each holder of Common Stock is entitled to one vote per share of Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Except as required by law, holders of the Class B Non-Voting Common Stock have no voting power with respect to their shares of Class B Non-Voting Common Stock, and the shares of Class B Non-Voting Common Stock are not entitled to vote on any matter submitted to the shareholders.

Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Item 10 of Regulation S-K and are not required to provide the information otherwise required under this item.

JOBS Act Accounting Election

In April 2012, the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” (an “EGC”) may take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an EGC under the JOBS Act, the extended transition period provided in Section 7(a)(2)(B) of the Securities Act allows us to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an EGC, or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public-company effective dates.

Other exemptions and reduced reporting requirements under the JOBS Act for EGCs include presentation of only two years of audited financial statements in a registration statement for an initial public offering, an exemption from the requirement to provide an auditor’s report on internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, an exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board, along with less extensive disclosure about our executive compensation arrangements. We plan to take advantage of these reduced disclosure requirements and exemptions until we are no longer considered an EGC.

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BUSINESS

Overview of Venu’s Business

Business Overview

Venu is an entertainment and hospitality holding company based in Colorado Springs, Colorado that designs, develops, owns, and operates (whether directly or through third-party operators) up-scale music venues, outdoor amphitheaters, and full-service restaurants and bars where music, dining, and luxury experiences converge. Venu was founded in 2017. Since its inception, Venu has strived to set a new standard in the hospitality and entertainment industry through its entertainment-campus venue concept and to meet the growing demand for live entertainment by developing new venues in strategically selected, rapid-growth, entertainment-underserved markets. Venu takes pride in being a catalyst for memorable experiences, a champion of local entertainment, and a contributor to vibrant communities.

To date, Venu has developed, or is in the process of developing, three restaurant concepts and one bar concept, as well as live music indoor venues that accommodate approximately 1,400 guests and outdoor amphitheaters that accommodate 8,000 guests. Currently, Venu operates indoor venues and restaurants in Colorado and Georgia, but it is in varying levels of planning or development to open venues in Oklahoma and Texas by 2026. Venu forecasts meaningful economic and cultural impacts in communities targeted for expansion across the United States.

Venu is a growing entertainment and hospitality company. Venu attributes its growth capabilities, in part, to its key partnerships with leaders in the music and entertainment industries, its experienced management team with prior success in hospitality and entertainment, and its strategic public-private partnerships that support ongoing economic growth. Venu believes that its venues offer patrons memorable experiences through a variety of music acts, high-end venues, desired food menu options, and exceptional hospitality. Venu is exploring business-expansion opportunities to meet the growing demand for live entertainment and touring acts by artists and fans alike.

Venu believes that its strategic development of venues in rapid-growth areas, experience in building partnerships with local governments and managing the elevated regulatory standards associated with public-private projects, and ability to negotiate naming and sponsorship rights with ubiquitous brands make it a highly sought-after entertainment and hospitality company by municipalities across the United States.

Venu’s principal executive office is located at 1755 Telstar Drive, Suite 501, Colorado Springs, Colorado 80920. (telephone: 719-895-5483). Venu’s principal website is https://venu.live. Information contained on, or accessible through, Venu’s website is not a part of this prospectus.

Corporate History

Venu was originally formed in Colorado on March 13, 2017, as Bourbon Brothers Restaurants, LLC, a Colorado limited liability company. On May 24, 2018, the Company filed Articles of Amendment, changing its name to Bourbon Brothers Entertainment, LLC, and on March 1, 2021, the Company filed Articles of Amendment changing its name to B Entertainment LLC. On April 6, 2022, B Entertainment LLC filed a Statement of Conversion with the Colorado Secretary of State to convert into a Colorado profit corporation and changed its name to Notes Live, Inc. Venu is governed by its Articles of Incorporation, which were filed with the Colorado Secretary of State on April 6, 2022, and amended pursuant to Articles of Amendment filed on: (i) October 25, 2022, pursuant to which Venu increased the number of shares of its capital stock authorized for issuance, changed the voting rights of its Class A Voting Common Stock, and added its “Class C Voting Common Stock” class of stock; (ii) November 3, 2023, pursuant to which Venu increased the number of shares of its capital stock authorized for issuance and effected a 5-for-1 forward stock split of the issued and outstanding shares of its Class C Voting Common Stock; (iii) November 15, 2023, pursuant to which Venu effected a 5-for-1 forward stock split of the issued and outstanding shares of its Class B Non-Voting Common Stock; and (iv) March 5, 2024, pursuant to which Venu increased the number of shares of its capital stock authorized for issuance and added its “Class D Voting Common Stock” class of stock. On September 6, 2024, Venu adopted Amended and Restated Articles of Incorporation to change its legal name to “Venu Holding Corporation” and cause any and all outstanding shares of its Class A Voting Common Stock, Class C Voting Common Stock, and Class D Voting Common Stock to be converted on a one-for-one basis into shares of “Common Stock.” Under the Amended and Restated Articles of Incorporation, Venu’s authorized classes of Common Stock now consist solely of “Common Stock” and “Class B Non-Voting Common Stock.

After opening its first restaurant in Colorado Springs, Colorado in 2017 followed by its first indoor music hall venue adjacent to the restaurant in 2019, Venu expanded to Georgia, where it opened its second restaurant and indoor music venue in Gainesville, Georgia in June 2023. Venu is now in the process of expanding to markets in Oklahoma and Texas through 2026. Venu also opened its first amphitheater, the Ford Amphitheater, in August 2024.

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Overview of Venu’s Venues

Venu has two music venue concepts: (1) an indoor, more intimate music hall venue known as Bourbon Brothers Presents (“BBP”), which currently operates under the names of Phil Long Music Hall at Bourbon Brothers with respect to the Colorado venue and The Hall at Bourbon Brothers or Boot Barn Hall with respect to the Georgia venue in accordance with the naming rights of the BBP venues; and (2) an outdoor amphitheater venue known as The Sunset Amphitheater, which will offer higher-end amenity options to patrons that will vary depending on location but will generally include offerings such as firepit suites, VIP suites, and access to an adjoining restaurant and/or rooftop bar. Venu has operated a BBP in Colorado Springs, Colorado (“BBP CO”) since 2019 and in Gainesville, Georgia (“BBP GA”) since June 2023. Venu’s debut outdoor Sunset Amphitheater venue opened in Colorado Springs, Colorado, in August 2024, which is called Ford Amphitheater pursuant to a naming-rights agreement (“Ford Amphitheater”).

Venu has three restaurant concepts: (1) a flagship, full-service restaurant concept known as Bourbon Brothers Smokehouse & Tavern (“BBST”); (2) an upscale, five-star, fine-dining restaurant concept known as Roth’s Seafood & Chophouse (“Roth’s”); and (3) a full-service restaurant featuring live music called Notes Eatery (“Notes Eatery”). Venu opened a BBST in Colorado Springs, Colorado (“BBST CO”) in 2017 and in Gainesville, Georgia (“BBST GA”) simultaneously with its BBP GA indoor music hall in June 2023. Venu is expected to open Roth’s adjacent to Ford Amphitheater in May 2025.

Venu expanded its live-music and entertainment footprint in Colorado Springs in September 2022 when it opened “Notes” bar-restaurant, which featured upscale bar fare and dive-bar specials, before expanding to the full restaurant “Notes Eatery” in May 2024. Notes Eatery is within walking distance of BBP CO and BBST CO.

Venu has one bar concept, which is an elevated, craft-cocktail bar experience called Brohan’s (“Brohan’s”). Brohan’s is anticipated to open in May 2025 and will operate on the rooftop of Roth’s overlooking the Ford Amphitheater.

Lastly, Venu has a hospitality suite concept called Notes Hospitality Collection (“NHC”), which consists of hospitality suites intended to be used for hosting large events such as corporate conferences, weddings, expos, galas, trade shows, and conventions. Venu’s first NHC development is expected to open in May 2025 as part of the mixed-use development where Roth’s and Brohan’s will operate adjacent to the Ford Amphitheater. That first NHC will offer a total of 10,000 square feet of configurable hosting and entertainment space, with two, suites on the first floor with 1,100 and 2,400 square feet respectively, one on either side of Roth’s, and four, suites on the second floor including two 700 square feet dining and hospitality suites and two 2,365 square feet rooftop patio suites one on either side of Brohan’s rooftop bar.

Venu typically constructs and operates its music, restaurant, and bar venues concurrently and in close proximity to one another, creating an entertainment campus that enhances guests’ dining, social, and live-entertainment experiences.

Music Industry Insights

The music industry has been revolutionized over the past two decades by the rapid digitalization of the ways in which music is produced, distributed, marketed, and consumed. Physical music sales have been largely displaced by a drastic shift to, and rise in, music streaming, digital downloads, and consumer preference for subscription-based, on-demand music services. The proliferation of social media has been equally disruptive to the traditional music industry, as the potential virality of engagement that can be achieved through social media platforms has made it possible for up-and-coming artists to launch full-time music careers and to broadcast their talents on a global scale without needing to rely on the backing and legitimacy of the record labels that have long held artists and their tours captive.

While those structural changes have made the music industry more accessible for artists, they have also led to diminishing album-sale revenues, decreasing radio royalties, and difficultly for artists to monetize the streaming platforms that now dominate the industry. In response, artists have become increasingly incentivized to tour. For artists who achieved fame through social-media visibility, touring and performing live gives artists the opportunity to establish their brands offline, grow their audiences beyond their social-media following, connect with fans in person, and generate additional sales channels such as ticket and merchandise sales. Touring has also become an attractive opportunity for established artists and legacy acts who have been in the industry for decades. Unable to rely on traditional, over-the-radio royalties, many headliners from the ‘70s, ‘80s, and ‘90s have reignited their touring acts as a way to supplement their incomes and reconnect with audiences.

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Venu’s Mission and Strategy

Venu’s mission is to revolutionize entertainment and hospitality by offering dynamic entertainment campuses where music, dining, and luxury converge. Venu carries out its mission by leveraging its:

| ● | exclusive collection of premium restaurants and luxury venue properties, designed to enhance the customer experience through thoughtfully designed spaces and a spectrum of ticket and menu offerings that accommodate the needs and desires of a wide range of customers, whether their priority is to enjoy an outing that maximizes both fun and affordability or to be treated to a decadent, VIP type of experience;
| ● | management team with years of experience and prior success in hospitality and entertainment, venue and infrastructure development, and venue and restaurant management;
| ● | operational and brand partnerships with well-known industry leaders that create brand recognition for Venu’s venues and enable them to be operated efficiently and effectively to provide a seamless experience for customers while maximizing the returns of shareholders;
| ● | institutional knowledge of the entertainment landscape, insight regarding which artists and entertainers drive audience engagement, and strong industry relationships that make it possible to route those acts to Venu venues;
| ● | community ties and relationship leads in the markets that Venu focuses its development efforts in, which enhances its capital-raising efforts and advances its ability to deliver the types and genres of entertainment that complement the desires and demographic of the community being served;
| ● | optimization of the functionality and use of its venues, which can be rented for both personal and corporate events with a range of seating capacities and spaces that can accommodate intimate gatherings or large, table-top events for 500-700 seated guests;
| ● | financing and acquisition strategy that catalyzes growth while minimizing future dilution, as discussed in more detail under “Financing and Acquisition Strategy” below; and
| ● | strict criteria for evaluating business-expansion opportunities and ensuring that any new markets for its venues meet specific demographic profiles, are undersaturated with entertainment options, and have local governments that recognize the value of investing in an entertainment campus to drive local economic growth and to build community culture, as discussed in more detail under “Financing and Acquisition Strategy.”

Financing and Acquisition Strategy

A key factor to Venu’s current and future success is its ability to continue growing through venue and infrastructure development while attempting to minimize future dilution. The financing and acquisition strategy of Venu and its subsidiaries include three primary components: (1) partnering with municipalities that attract local development by offering financial incentives; (2) conducting pre-sales of naming rights, sponsorships, and suite ownership at its venues; and (3) accessing attractive debt capital.

Financial Partnerships with Municipalities

When deciding where to develop new venues, Venu focuses on high-growth areas that it believes are materially underserved of premium music and entertainment options and are located in cities that are willing to partner with, and offer financial incentives to, Venu in exchange for Venu’s agreement to develop a venue in the partnering city. Often, those financial incentives are made possible through economic-development funds (“EDFs”), which enable local governments to fund projects and programs intended to spur the local economy or to induce local property development by offering investments such as below-market land sales, land grants, tax abatements and rebates, and/or property-tax refunds. Venu is experienced in obtaining land for new venue developments by negotiating favorable land-sale contracts with cities who use EDFs to sell the land to Venu for substantially less than market value in exchange for Venu’s agreement to develop and operate an entertainment campus on the land, which will in turn drive local economic growth, foster a community-wide culture, and attract other developments.

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As an example of this strategy, Venu introduced its restaurant and music venue concepts to Gainesville, Georgia in January 2022 by negotiating a Purchase and Sale Agreement between one of its subsidiaries, GA HIA, LLC (“GA HIA”), and the Gainesville Redevelopment Authority (the “GRA”), pursuant to which the GRA agreed to sell approximately 1.7 acres of land to GA HIA for $800,000 to incentivize the development of the BBST GA restaurant and the BBP GA music hall that Venu opened on the property approximately 18 months later in June 2023. The GRA viewed its public-private partnership with GA HIA as an opportunity to induce and stimulate redevelopment and investment in one of Gainesville’s tax-allocation districts that was in need of improvement. Similarly, in April 2024, Venu and the City of El Paso, Texas (“El Paso”) agreed to a term sheet defining the terms of the proposed definitive Chapter 380 Economic Development Program Agreement and Contract of Sale to be entered into between the parties, pursuant to which El Paso intends to incentivize Venu’s construction of a 12,500-person amphitheater by conveying approximately 17 acres of city-owned land to Venu, issuing Venu an eight-year, no-interest, forgivable promissory note, and providing annual rebates to Venu for up to 20 years on real and business personal property, sales and use, and mixed beverage taxes. Through its agreements with the Cities of Gainesville, Georgia and El Paso, Texas, Venu has negotiated more than $2 million in tax incentives through property-tax rebates and sales-tax abatements that will flow through to the bottom line over the term of the rebates via reduced occupancy expenses. As Venu plans its Texas and Oklahoma expansion, it has entered into public-private partnerships and incentive packages for the McKinney, Texas and Broken Arrow, Oklahoma markets as described in this prospectus. See “Business – Public-Private Partnership Obligations.”

While Venu’s public-private partnerships with local municipalities enable Venu to acquire land on terms more favorable than Venu could likely negotiate in open-market sales, or to obtain other financial incentives that offset Venu’s costs of constructing and operating new venues, the agreements specifying the terms of Venu’s public-private partnerships with a given municipality also impose certain conditions, obligations, and covenants (collectively, “Restrictions”) that restrict Venu’s ownership, use, and development of the land it acquires and the venues it constructs and operates. Venu is typically subjected to those Restrictions pursuant to the Development Agreements that Venu and a local municipality enter into in connection with the purchase and development of the land. Certain immaterial obligations may also be imposed on Venu under the ancillary agreements to its public-private partnerships, which could include, for example, parking or facilities-use agreements. The material terms of its public private partnership agreements and the Restrictions on Venu’s ownership and use of the real property it has acquired through public-private partnerships are described in more detail under “Subsidiaries and Properties — Public-Private Partnership Obligations” below. For a review of the material risks Venu faces as a result of the Restrictions Venu and in connection with its public-private partnerships, see “Risk Factors — The agreements specifying the terms of Venu’s public-private partnerships with local municipalities impose various conditions, obligations, restrictions, and covenants related to Venu’s ownership, use, development, and operation of the properties it acquires and the venues it constructs.”

Pre-Sales of Naming Rights, Sponsorships, and Suite Ownership

The second component of Venu’s financing and acquisition strategy consists of pre-selling the naming rights to its venues and generating capital that can be used to finance development-related costs. The cost of naming rights for each of Venu’s venues range from approximately $140,000 per year for an indoor concert venue such as Bourbon Brothers Presents music hall to up to $2,000,000 per year for a large outdoor amphitheater like The Sunset Amphitheater that Venu anticipates opening in McKinney, Texas in the second quarter of 2026. Venu’s first naming-rights sponsor was Boot Barn (NYSE: BOOT), which agreed to acquire the naming rights for a three-year term to Venu’s first indoor music venue in Colorado Springs, BBP CO, prior to its opening in 2019 along with the naming rights of Venu’s next two BBP venues. Since the initial agreement, Boot Barn extended its agreement for the Colorado Springs location, acquired the rights to the Georgia location, and committed to buying the naming rights for up to ten BBP locations total. On July 31, 2024, Phil Long Dealerships, Inc. purchased the naming rights to BBP CO pursuant to an Agreement for Naming and Sponsorship Rights. Pursuant to the agreement’s five-year term, BBP CO will be called “Phil Long Music Hall at Bourbon Brothers.”

Sunset Operations, LLC, a wholly owned subsidiary of Venu, also entered into a naming and sponsorship rights agreement with Mountain States FDAF, which agreed to acquire the naming rights to Venu’s first outdoor amphitheater in Colorado Springs. During the duration of the agreement’s ten-year term, the amphitheater will be called “Ford Amphitheater.”

Venu also enters into product-specific sponsorship agreements.

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Certain of Venu’s subsidiaries also accumulate financing and acquisition capital for the specific assets and properties held by that subsidiary by selling non-voting membership units, which entitle holders to various in-kind benefits, such as rights to use a firepit suite at a specific outdoor music amphitheater as well as certain preferential economic rights. The rights associated with the non-voting membership units are set forth in the applicable subsidiary’s operating agreement, which provides that any distributions of available cash that is attributable to a defined portion of revenues generated by ticket sales for an event held at a specific venue project will be distributed to the non-voting members (which include all members except Venu and its subsidiaries), with the excess to be distributed to the voting member (which is Venu or a wholly-owned subsidiary). At Ford Amphitheater in Colorado Springs, Venu incorporated 90 firepit suites, which will each accommodate eight VIP guests per show and will be located on the concourse between the stadium-style seating in front of the stage and the lawn. Prior to breaking ground on Ford Amphitheater, in this manner Venu pre-sold lifetime ownership of each firepit suite, raising a total of $22,500,000 that was deployed to fund most of the amphitheater’s construction-related expenses. Based on the reception and success Venu had in its pre-sale and total sellout of the Colorado Springs firepit suites, Venu expects that those subsidiaries that will own its amphitheater assets will replicate this financing strategy in the markets where there are plans to develop outdoor amphitheaters, which currently include Broken Arrow, Oklahoma, Oklahoma City, Oklahoma, McKinney, Texas, and El Paso, Texas. Because the development and market of each amphitheater is unique, pricing for firepit suites will vary depending on venue location.

In addition to pre-selling the naming rights to its venues, Venu has developed a menu of sponsorship inventory at each BBP location, which primarily consists of table and show sponsorships. A table sponsor’s logo is painted on the surface of the sponsored table, which makes for an excellent advertising opportunity for corporate sponsors. The average value of a table sponsorship is $6,250 per year, generating three-year revenue of approximately $18,750. Additionally, Venu sells “Presenting Show” sponsorships for several of its promoted shows. Cumulatively, Venu expects table and show sponsorships to generate additional revenue of approximately $250,000 annually per venue.

Debt Financing

The final component of Venu’s acquisition and financing strategy is accessing attractive debt capital. Based on the land sales that Venu has previously negotiated with various municipalities, Venu believes it can acquire land inexpensively through continuing to strategically partner with municipalities. Venu also believes it is equipped to fund portions of its construction expenses using funds generated from pre-sales of its naming rights, firepit suites, and sponsorships. Those abilities make Venu believe it is uniquely positioned to access debt on attractive terms to finance any other unfunded construction costs.

Other

In addition to the financing strategies outlined generally described above Venu’s financing strategy includes other components, such as continued revenue growth and that certain of its subsidiaries such as GA HIA, LLC, have raised sold membership interests to third parties as a component of the financing for the specific real property asset and development they hold, as described further below under “Venu’s Subsidiaries and Properties”. Further, with respect to certain of its real property assets and interests Venu, may from time to time, elect to hold title to a particular asset through a Delaware Statutory Trust and permit third parties to acquire beneficial interests in the trust in a tax advantaged manner (such as through “1031 exchanges”) and realize certain tax benefits. Under such an arrangement a wholly owned subsidiary would serve as the trustee of the trust and control all decisions with respect to the property (including its potential sale). This structure is similar to a sale-leaseback arrangement in that Venu could in part monetize an otherwise illiquid asset, yet, retain full control over the asset and have the power and authority to repurchase the applicable property in full if deemed appropriate under the market conditions and the Company’s liquidity at any given time. For example, the real property upon which the Ford Amphitheater was constructed, and, is now operated is leased to Sunset Amphitheater LLC under a ground lease, was conveyed to a Delaware Statutory Trust and it is expected that a portion (but in no event all) of the beneficial interests in that trust will be sold to third parties.

Site-Selection Strategy

Venu has developed criteria and a disciplined process for expanding its live-music venues and restaurant properties. Venu searches for markets that meet its strict criteria and in which there are few or no competing entertainment properties. To date, Venu has focused on markets in warmer weather locations, metro areas that have expanded substantially and where there are few entertainment venues in the outer lying areas (such as the greater Atlanta, Georgia market), or mid-market metro areas that Venu believes have been overlooked with respect to live-music entertainment opportunities (such as Tulsa, Oklahoma).

When evaluating potential markets to expand to and local municipalities to partner with, Venu looks for markets that meet the site-selection criteria for The Sunset Amphitheater and BBP venues described below:

| ● | The market is materially underserved of premium, indoor or outdoor venues for live music and entertainment.
| ● | The municipality is willing to partner financially with Venu to attract the type of entertainment amenities that Venu offers and has focused on investments in entertainment districts as part of its long-term city plans.
| ● | The demographic profile of the community meets the age and household-income markers that Venu believes are most conducive to establishing a successful, well-attended music and entertainment venue.
| ● | There are sites available that are adjacent to high-traffic-count roadways with visibility for digital marketing.
| ● | There are physical locations suitable from a zoning, sound, parking, and traffic perspective.
| ● | The location is conducive to Venu’s overall act-routing strategy.
| ● | Venu has relationship leads in the market, which drives financing strategy.

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Venu carries out its site-selection process in three stages:

| ● | Site Selection. Based on the expansion criteria above, Venu identifies specific regions that serve as target markets for its venue concepts. Venu works to identify experienced commercial real estate leads for each market, establishes the specific criteria for expansion, and works alongside those leads to identify, assess, and negotiate contracts for new locations.
| ● | Site Acquisition. The site-selection lead for each market identifies target properties that meet the base criteria. A team led by Venu’s Chief Executive Officer, JW Roth, engages with the market lead to assess and, if deemed suitable, negotiate a purchase and sale agreement that meets Venu’s financial framework.
| ● | Site Development. Once the purchase and sale agreement is complete, Venu’s real estate development team manages entitlement, closing, finalizing municipal financial incentives, architecture, and construction.

Venu’s Sources of Revenue

Venu’s primary revenue streams consist of the following:

| ● | Ticket Sales and Fees. Venu promotes tickets for the concerts and events it hosts through the location-specific websites of its BBP venues. Tickets are primarily sold online through third-party, full-service ticketing businesses that Venu contracts with to promote and sell tickets for BBP events. Venu retains a portion of the revenue generated from each ticket sale. Venu also generates ticket revenue from walk-up sales at its BBP locations.
| ● | Fee Income. Venu also generates revenue through collecting fees on tickets sold by third-party platforms, including convenience and order-processing fees and service charges.
| ● | Venue Rentals. Venu’s BBP venues are rented for a variety of events, including corporate gatherings, conferences, seminars, benefit concerts, fundraisers, weddings, and holiday parties. Each BBP venue can be easily transitioned to different configurations, which allows for operational flexibility and maximization of venue use. The BBP team of event staff is exceptionally experienced in managing each aspect of the event-planning process.
| ● | Naming Rights. Venu generates a portion of its revenue by partnering with industry-leading brands under naming-rights agreements. By selling the naming rights to its venues, Venu benefits from the name recognition of its sponsors and can offset its development, operational, and occupancy costs through its collection of naming-rights fees. The naming-rights sponsors, in turn, strengthen their brand recognition and visibility, heighten their exposure, and benefit from being associated with the world-class events that a hospitality and entertainment company like Venu makes possible. In addition to negotiating the naming rights to its venues themselves, Venu negotiates naming rights for specific segments within its venues and restaurants, such as patio spaces and the backstage area where artists conduct meet-and-greet events. The naming rights sponsor is Phil Long Dealerships, Inc. for BBP CO and Boot Barn for BBP GA. The naming rights sponsor for our amphitheater in Colorado Springs is Mountain States FDAF, pursuant to which the amphitheater is called Ford Amphitheater. Our future amphitheater locations are expected to have a naming rights sponsor when they open.
| ● | Sponsorships. Venu’s sponsorship opportunities enable sponsors to advertise and connect to customers at Venu’s entertainment and restaurant properties. Venu provides a marketing and communications platform that caters to the specific needs of each sponsor’s unique brand. Venu offers: (i) foundational partnerships, which allow companies to enjoy exclusive benefits and recognition as founding partners of Venu venues; (ii) industry-exclusive partnerships, which enable companies to gain exclusive rights to represent their industries and stand out among their competitors; (iii) show and event sponsorships, which allow companies to associate their brands with specific shows and events and to capture the attention of a targeted audience; and (iv) VIP sponsorship packages, which allow companies to offer their clients and customers with a top-notch, VIP experience at Venu’s venues. While Venu’s primary sponsorships are for tables and shows, it has a curated menu of sponsorship inventory at each of its venues that is available for sponsors to showcase their brands. Venu’s seasoned sales leader spearheads its sales efforts nationally and manages the sponsorship sales inventory at each entertainment property.

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| ● | Food and Beverage Sales. Venu’s collection of restaurants and bars are designed to provide guests with an elevated dining experience featuring unique menu offerings, craft cocktails, and southern hospitality. Venu’s BBST restaurants, known for their selection of rare bourbons, ryes, and whiskies, serve American classics and southern staples from a scratch kitchen and act as the exclusive caterer for BBP concerts and events. Roth’s, upon its opening expected in May 2025, will provide an elevated, fine-dining culinary experience. In 2023, Venu’s BBST CO and BBP CO locations were opened for the full year, and its BBST GA and BBP GA locations opened in June 2023. In 2024, Venu expects to generate revenues based on its BBST and BBP locations in Colorado and Georgia both being operational for the full year and its Roth’s restaurant expected to open in May 2025.
| ● | Parking Fees. Venu generates revenue from the development of parking lots at its amphitheater locations. These lots are over and above the amphitheater operators parking that is shared between Venu and the operators. These premium parking lots are controlled exclusively by the Company. Venu began recognizing this revenue with the opening of Ford Amphitheater in Colorado Springs in August 2024.

Venu’s Venues

Music Venues — Bourbon Brothers Presents (Indoor Music Hall)

BBP Overview

BBP is Venu’s indoor, intimate music and event venue known for promoting a mix of national-touring, legendary acts as well as up-and-coming artists and premier local bands and performers. BBP is dedicated to bringing musical acts from the country music and rock and roll genres as well as entertainment from a variety of other performance categories, including comedy, magic, and inspirational speakers, to growing suburban markets. Venu currently operates a BBP venue in Colorado Springs, Colorado, BBP CO, which opened in 2019, and a second BBP venue in Gainesville, Georgia, BBP GA, which opened in June 2023. Venu also previously explored expanding its BBP venue concept to Murfreesboro, Tennessee, and took various steps to acquire land to develop where a campus would have been developed; however, in July 2024 Venu terminated its pursuit of that project.

Promoting live entertainment is the foundation of the BBP revenue model. Each BBP location is designed to flexibly accommodate approximately 1,400 concertgoers at each general-admission concert featuring national-touring artists or to comfortably accommodate approximately 500-700 people for fully seated events complete with eight-top tables that are suited for intimate concerts, dueling piano shows, tribute bands, and private events. In addition to promoting and hosting live concerts, BBP also generates incremental revenue through event rentals and sponsorship sales. BBP rental rates vary depending on several factors, including the type, size, and date of the event. Typically, event rentals is a high-margin revenue channel, as there are very few variable expenses associated with renting the venue.

Venu’s designs for its BBP venues seek to showcase Venu’s attention to hospitality, care for artists’ comfort, and pursuit of delivering the ultimate concert experience. Each BBP location features an expansive stage, arena-quality audio and visual systems, and an unparalleled ambiance driven by a grand dance floor and video wall. In addition to the indoor music hall, each BBP venue is built with an outdoor patio that features exterior bar access, an abundance of firepits, and unobstructed views of the surrounding areas.

BBP — Colorado Springs, Colorado

Venu opened its first BBP location in March 2019 in Colorado Springs, Colorado. BBP CO is built on roughly 3.5 acres adjacent to BBST CO. The BBP CO property consists of 15,000 square feet and features a 100-foot bar, a Bottoms Up Draft Beer System, more than 50 bourbons and whiskeys, and a menu of Southern fare served tableside, catered by BBST CO. The BBP CO venue accommodates up to 1,875 concertgoers for general-admission concerts, 1,700 seated patrons in a banquet-style configuration, and 96 trade-show booths. BBP CO originally sold its naming rights to Boot Barn, but on July 31, 2024, BBP CO sold its naming rights to Phil Long Dealerships, Inc. and is now known as Phil Long Music Hall at Bourbon Brothers.

BBP CO has hosted performances by the likes of Randy Travis, The Bellamy Brothers, Diamond Rio, Easton Corbin, Aaron Watson, and classic rock legends from the bands Journey, Kansas, and Lynyrd Skynyrd.

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In addition to its concert and event schedule, BBP CO has become a rental venue for private events. In the past, a multitude of organizations and businesses have rented BBP CO, including school districts for prom and homecoming dances, the State of Colorado for an event at which Governor Jared Polis gave the State of the State address, political organizations for fundraising dinners, several companies for corporate parties and events, and families who have held weddings at BBP CO. The venue is capable of being transitioned from one configuration to another, which allows for a maximization of venue uses. That operational flexibility make it possible, for example, for the BBP CO event team to host a concert one night and then stage a wedding the following afternoon. Venu aims for the BBP CO venue to be rented for events up to 100 times per year. Since 2021, BBP CO has met or exceeded this goal, being rented for 108 events in 2021, 114 events in 2022, 182 events in 2023, and 150 events year to date as of October 31, 2024.

BBP — Gainesville, Georgia

The initial success of BBP CO piqued the interest of stakeholders in markets outside of Colorado Springs who noticed the economic-development value of having a modern music venue established as a focal point of the community. In early 2021, a Georgia municipality reached out to gauge its interest in building a venue like BBP CO in Gainesville, Georgia, a growing city located roughly an hour north of downtown Atlanta. That same year, Venu negotiated with the City of Gainesville and ultimately agreed to build its second BBP venue there, BBP GA, which opened in June 2023. The land on which BBP GA was developed was purchased from the Gainesville Redevelopment Authority by GA HIA, a subsidiary of Venu that is subject to Venu’s total voting control. BBP GA promotes music acts similar to BBP CO. Like BBP CO did originally, BBP GA sold its naming rights to Boot Barn and thus does business under the name of Boot Barn Hall. BBP GA assigns the revenue generated from Boot Barn’s naming rights to its landlord, GA HIA, effectively reducing the occupancy cost related to the construction of the campus and subsequent lease.

The BBP GA venue accommodates up to 1,700 concertgoers for general-admission concerts and 500 seated patrons for full-seated shows. BBP GA built upon the design of BBP CO and features two full-service bars instead of one along with a mezzanine that offers spectacular, elevated views of the stage. BBP GA is connected to BBST GA via a shared kitchen, which allows BBP GA to provide food and beverage service for shows that is catered by BBST GA.

Venu’s management was optimistic about establishing the BBP concept in the Gainesville market because the greater Hall County area of which Gainesville is considered by many to be a hotbed for country music, as many of today’s biggest country music stars hail from Georgia, yet Gainesville and the other suburbs surrounding Atlanta, Georgia were considered by many to be an “entertainment desert,” devoid of premier live-music venues. Furthermore, the lack of mid-size and more intimate venues other than in downtown Atlanta was inconvenient for residents living and working outside of the city center. Management predicted that BBP GA would fill that opportunity gap by offering a new entertainment venue to the approximately 1.2 million residents of the Northeast Georgia region.

Since opening in June 2023, BBP GA has hosted concerts and live entertainment events and has attracted both up-and-coming and more established names in country and rock music. BBP GA hosted 73 events from June through December 2023 and has hosted 240 events year to date as of October 31, 2024. In addition to maintaining its event schedule and continuing to bring talent to the Northeast Georgia region, Venu continues to pursue its venue-rental and sponsorship-sales channels to augment revenue generated for BBP GA by promoted concerts, duplicating its revenue strategies at the comparable venue in Colorado Springs.

Music Venues — The Sunset Amphitheater (Outdoor Amphitheater)

The Sunset Amphitheater Overview

The largest projects Venu has planned are the development of its open-air amphitheaters, including The Sunset Amphitheater in Colorado Springs, Colorado, which will be called “Ford Amphitheater” pursuant to the sale of the venue’s naming rights, and planned amphitheaters in Broken Arrow, Oklahoma and the McKinney and El Paso markets of Texas. The developments of those locations have been approved by the respective city governments. Venu finalized the construction of its Colorado amphitheater, Ford Amphitheater, in August 2024. Prior to its expected opening, multiple dates after August 2024 had been booked for artists’ events, and ticket sales are ongoing. During the six-month peak season each year, Venu expects each amphitheater to host up to 50 concerts and generate north of $50 million in full-season revenue.

Venu previously explored and took steps to own and develop an amphitheater project in Murfreesboro, Tennessee. However, in July 2024, Venu definitively decided not to pursue that project and the agreements with the City of Murfreesboro were terminated. Venu is also pursuing the development of an amphitheater in Oklahoma City, Oklahoma. Venu expected to close on property in Oklahoma City and to begin construction of a 12,500-person amphitheater in the spring of 2024, but the project was ultimately voted down by city council in April 2024 due to the property’s location, so Venu is pursuing new potential locations in the Oklahoma City market to construct the amphitheater.

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With each planned iteration of The Sunset Amphitheater, Venu is attempting to pioneer the concept of music and entertainment investing. A feature of each amphitheater is its private firepit suite lifetime ownership rights that Venu offers certain investors. In addition to the luxury firepit suites, each amphitheater location will offer reserved seating, open seating on a landscaped grass berm, and premium hospitality offerings that will enable concertgoers to experience shows in a world-class environment. Venu’s goal for The Sunset Amphitheater is to serve as one of the most desirable venues in the world for artists to play and fans to experience live music.

Venu believes the naming rights for The Sunset Amphitheater venues will be the most valuable naming rights of any of its properties. Venu estimates that the naming rights for each of The Sunset Amphitheater venues will be acquired for between $1.0 million to $2.0 million per year, per venue, depending on the venue’s capacity and market, pursuant to contracts with five- to ten-year terms. As such, the tradename of each amphitheater location is expected to change to feature the naming-rights sponsor.

As it relates to Venu’s outdoor amphitheater projects, Venu does not expect to directly operate those venues, and to instead utilize a third-party operator to, among other things, book acts and events at those venues. In June 2023, Venu entered into an exclusive operating agreement with AEG Presents — Rocky Mountains, LLC (“AEG”) pursuant to which AEG will operate Ford Amphitheater.

The exclusive operating agreement with AEG grants AEG the exclusive right to operate and use Ford Amphitheater for events, subject to limited exceptions such as Venu having the right to use and reserve the venue for local events or performances by bands that are not nationally recognized or promoted. The agreement sets forth the parties’ various obligations with respect to the ownership and use of the venue. In addition, the agreement provides for a defined split of the venue’s profits and losses between Venu and AEG in a range between 45% to 55% between the two parties, but gives each party certain opt-out rights for events such that a party may not be responsible for any losses that may result from certain events held at the venue (but will also not be entitled to any profits that may result from such events). The agreement also imposes restrictions on AEG from operating venues that are comparable to Ford Amphitheater within a defined radius of the venue and imposes restrictions on Venu from owning, operating, or developing a competing venue within a defined radius. The agreement also provides that Venu is entitled to secure sponsorship rights for the venue, and sponsorship fees are included in the factors that determine the venue losses and profits that are split between the parties also in a range between 45% to 55% between the two parties.

Venu expects to partner with a third-party operator and to enter into third-party operating agreements for the operations of its Sunset Amphitheater locations planned for development in Texas and Oklahoma.

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The Sunset Amphitheater — Colorado Springs, Colorado

In May 2023, Venu broke ground on its first outdoor amphitheater, The Sunset Amphitheater in Colorado Springs, Colorado, which is called Ford Amphitheater pursuant to a sale of the venue’s naming rights. Venu opened Ford Amphitheater in August 2024. Sunset Operations, LLC, a wholly owned subsidiary of Venu, is the operative entity that holds assets associated with Ford Amphitheater.

Ford Amphitheater is an open-air, 8,000-person amphitheater that offers concertgoers views of Pikes Peak, the Rocky Mountains, and the United States Air Force Academy. Venu hopes that Ford Amphitheater will draw certain comparisons to the Red Rocks Amphitheater in Morrison, Colorado, which is one of the most attended music venues in the country. Ford Amphitheater was designed by industry-renowned architects to be among the state-of-the-art open-air venues in the country. Ford Amphitheater features luxurious firepit suites and other design configurations original to Venu, advanced audio technology, and “white-glove” service for its premium suites.

Ford Amphitheater complements the first music hall venue Venu developed in Colorado, BBP CO, and the venues together fill an entertainment gap in the Pikes Peak region. Venu believes Ford Amphitheater will be capable of hosting the nation’s largest touring acts, many of whom have not played Colorado Springs in the past due to a lack of suitable venues. Ford Amphitheater expects to host shows during the peak concert season from the beginning of May through the end of October. Ford Amphitheater is operated by AEG, a subsidiary of the Anschutz Entertainment Group, a major music and entertainment events presenter, pursuant to the operating agreement between Venu and AEG generally described above.

In addition to stadium-style seating and lawn seating, Ford Amphitheater delivers a premium hospitality experience with a total of 90 VIP firepit suites, each featuring a private fireplace that can accommodate up to eight guests for a luxurious concert experience unlike any other. A total of 90 firepit suites are privately owned and were sold to lifetime owners by Venu over a ten-month period before construction of Ford Amphitheater commenced. In addition, 40 of the firepit suites are being offered to lease for a 99-year term in exchange for the licensee’s payment of a one-time lease execution fee of $200,000 due at the inception of the lease. Each suite offers the licensee the option to purchase up to eight tickets per event hosted at Ford Amphitheater, but licensees are not obligated to purchase unused tickets, which can be privately sold or listed for sale on Venu’s ticketing-sales platform.

Alongside Ford Amphitheater, the campus will include Roth’s Seafood and Chophouse, a fine-dining restaurant, and Brohan’s, a top-shelf, rooftop bar, which are expected to open in May 2025. In addition, Notes Hospitality Collection will have 40 VIP firepit suites, each featuring a private fireplace, along with 1,200 stadium style seats for shows at the Ford Amphitheater. This entity will also include two owner’s club suites with upstairs and downstairs viewing and seating configurations that are available for venue rentals year-round on non-Sunset CO show evenings. Together, the three venues are intended to deliver a premier dining and entertainment experience for music lovers, fine diners, and bourbon enthusiasts alike.

Ford Amphitheater will also include a premium parking lot. On April 1, 2024, Venu, through one of its wholly owned subsidiaries, Venu Real Estate, LLC, purchased approximately 5.5 acres adjacent to Ford Amphitheater property for $3,621,210. Together with a 1.1-acre parcel that the Company owns on the south side of Ford Amphitheater, Venu intends to improve this new 5.5-acre tract into a parking lot. The lot will be used for premium parking and will contain approximately 740 total parking spaces.

In May 2024, Sunset Operations, LLC (“Sunset Ops”), a wholly owned subsidiary of Venu, entered into a Naming and Sponsorship Rights Agreement with Mountain States FDAF (“FDAF”) for the naming, sponsorship, advertising, and promotional rights for Ford Amphitheater. The term of the agreement is through June 30, 2034 and provides that FDAF is obligated to pay an annual fee (subject to defined escalations during the term of the agreement) together with certain costs related to sign production for the venue. Under the agreement, the amphitheater will be named “Ford Amphitheater” for the duration of the agreement’s ten-year term (subject to potential changes in accordance with the agreement). In addition to providing FDAF with the naming rights for the amphitheater itself, the agreement also provides that FDAF will be the official name and title partner of Ford Amphitheater with exclusivity in the automotive category and that FDAF will be the exclusive automobile of Ford Amphitheater along with the Hospitality Collection property and Roth’s restaurant in development. FDAF was also granted a right of first offer to purchase the naming and sponsorship rights for each new market in which Venu builds a Sunset Amphitheater.

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The operator of Ford Amphitheater, AEG, has also entered into various sponsorship agreements related to various product categories. On July 1, 2024, AEG entered into a Sponsorship Agreement with Anheuser-Busch, LLC (“AB”) that has a term through December 31, 2027, subject to AB’s right to extend the term by one year. For the duration of the agreement, AB will be the exclusive malt-beverage sponsor at Ford Amphitheater and will have the exclusive right in the malt-beverage category to use Ford Amphitheater’s trademarks for advertising, marketing, signage, and promotional purposes. AB also has the right under the agreement to refer to itself in all marketing materials as the “Official Beer Sponsor” and “Official RTD Sponsor” of Ford Amphitheater. In addition to securing those sponsorship rights, the agreement provides that AB will receive the following ticket and hospitality benefits: (i) one, eight-person luxury suite at Ford Amphitheater starting in 2025, which will include eight tickets and four parking passes to each concert held at Ford Amphitheater; (ii) a ticket-value bank worth $7,500 for 2024 and worth $15,000 for each year of the term of the agreement starting in 2025, with tickets subject to availability at the time of the request; and (iii) ten lawn tickets for each year of the term of the agreement. In exchange for the sponsorship and event-related rights that AB will receive under the agreement, AB is obligated to pay AEG a set annual fee each year of the agreement.

Venu’s exclusive operating agreement with AEG provides for a defined split between Venu and AEG of Ford Amphitheater’s profits and losses (in a range between 45% to 55% between the two parties) but gives each party certain opt-out rights, pursuant to which a party may not be responsible for any losses that may result from certain events held at the venue (in which case such party would also not be entitled to any profits that may result from such events). The agreement also provides that Venu is entitled to secure sponsorship rights for the venue, and sponsorship fees are included in the factors that determine the venue losses and profits that are split between the parties (in a range between 45% to 55% between the two parties).

The Sunset at Mustang Creek — Oklahoma City, Oklahoma

In June 2023, Venu entered into a binding purchase and sale agreement to acquire 21 acres of land and to lease an additional 30 acres for parking in Oklahoma City, Oklahoma (the “OKC Property”), with the intent to build a 12,500-person amphitheater on the OKC Property named The Sunset at Mustang Creek (“The Sunset OKC”). Venu had contracted with a local private developer and was in the entitlement process. After receiving a 7 – 0 approval for the development of The Sunset OKC by the Oklahoma City Planning Commission, Venu expected to close on the OKC Property in the spring of 2024 and anticipated that construction of The Sunset OKC would begin soon thereafter. However, on April 9, 2024, final approval for the development of The Sunset OKC was brought before a vote by city council, which ultimately voted the project down. Venu’s contract with its private developer expired on April 26, 2024, and pursuant to its terms, Venu’s good-faith deposit was returned. Venu is aggressively pursuing potential new locations in the Oklahoma City market to construct The Sunset OKC and is in the process of completing due diligence for a number of potential locations.

Although the location of The Sunset OKC will change, Venu does not expect to change its design and current plans for the amphitheater. Sunset at Mustang Creek LLC, a majority-owned subsidiary of Venu, will hold the fixed assets of The Sunset OKC. Venu also expects to form an operating entity, Sunset Operations at Mustang Creek LLC, which will partner with a third-party operator to operate The Sunset OKC. Venu expects The Sunset OKC to be comprised of six VIP 10-person luxury firepit suites, 58 VIP 8-person luxury firepit suites, 138 VIP 4-person luxury firepit suites, and an Owner’s Club Suite with lifetime ticket access for 156 memberships. Each firepit suite will feature a natural gas-powered firepit and fully configurable seats with abundant room for food and beverage, making an exceptional and private environment that will allows guests to be fully immersed in the show. To elevate the luxurious ambiance of the suites, each suite will include food and beverage service before and during the show. Investors will receive one or two parking passes and between two to ten tickets to all live-music events, depending on the investor’s investment level. Platinum and Diamond members also become owners of one of the four-, eight-, or ten-person firepit suites. The amphitheater will also include upper and lower bowl seating, a general-admission lawn, and ten ultra suites.

The Sunset at Broken Arrow — Broken Arrow, Oklahoma

In October 2023, Sunset at Broken Arrow LLC (“Sunset BA”), a subsidiary that Venu currently owns a majority equity interest in but anticipates owning a minority equity interest in, and that Venu currently exercises and will continue to exercise total voting control over, entered into an Economic Development Agreement with the City of Broken Arrow, Oklahoma (“Broken Arrow”), which is a suburb of Tulsa and the largest city in Tulsa County, and the Broken Arrow Economic Development Authority (the “Broken Arrow EDA”). Pursuant to the Economic Development Agreement, Sunset BA and the City of Broken Arrow are forming a public-private partnership and intend to open a 12,500-capacity amphitheater that will be named The Sunset at Broken Arrow (“The Sunset BA”). Sunset BA will hold the fixed assets of The Sunset BA. Venu also expects to form an operating entity, Sunset Operations at Broken Arrow LLC, which will partner with a third-party operator to manage The Sunset BA’s operations.

The Sunset BA will be constructed on a 13-acre property adjacent to the 165-acre Broken Arrow Events Park (“Events Park”), which frequently hosts community-wide Broken Arrow events and is a community focal point. To induce Venu’s development of The Sunset BA, Broken Arrow committed approximately 30 acres of land from Events Park to be used for parking and infrastructure needs along with $17.81 million in capital improvements to the infrastructure at Events Park, which will include the development of a 3,000-spot parking lot, the widening of roads entering and leaving the park area, and the improvement of stormwater and water lines. Venu has committed $70 million of private investments to the construction of The Sunset BA, which it expects to finance primarily from proceeds of sales of equity securities by Venu or Sunset BA, and anticipates opening The Sunset BA in August 2025. Pursuant to the Economic Development Agreement, Sunset BA must complete the amphitheater’s construction by December 31, 2025, subject to certain conditions and exceptions. If the amphitheater is not fully constructed by December 31, 2025, Sunset BA must pay Broken Arrow $10,000 per month for each month in which construction of the amphitheater remains incomplete.

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Starting 360 days after construction is complete, The Sunset BA must host a minimum of 45 scheduled events each calendar year, although Venu will aim to host closer to 60 events per year at The Sunset BA. Concertgoers can purchase reserved seats in the upper and lower bowl seating areas or enjoy general-admission turf seating built with hydro-chill technology, which will chill the turf to roughly 70°F. Additionally, The Sunset BA will have a total of 202 lifetime-ownership VIP firepit suites, accommodating groups of four, eight, or ten guests in each suite, plus four ultra suites. The Sunset BA will feature similar amenities and suite offerings as The Sunset OKC. Like The Sunset OKC, The Sunset BA offers three investment tiers, requiring an investment of $125,000 for a gold-level investment that provides access to the Owners Suite and two tickets to all live-music events hosted at The Sunset BA, $275,000 for a platinum-level investment that includes ownership of a four-seat luxury VIP firepit suite, and $500,000 or $650,000 for a diamond-level investment that includes ownership of an eight-person or a ten-person luxury VIP firepit suite.

On January 22, 2024, Venu and Live Nation entered into an Exclusive Operating Agreement, pursuant to which Live Nation intended to serve as the exclusive operator of The Sunset BA. Although the parties pursued their working partnership, in August 2024, Venu and Live Nation terminated the Exclusive Operating Agreement due to Venu determining that it is unable to construct the number of parking spaces originally contemplated by the Exclusive Operating Agreement. Venu is actively pursuing other third-party operators for The Sunset BA.

The Sunset Amphitheater — McKinney, Texas

In addition to its projects in the Colorado and Georgia markets, Venu is actively breaking into the Texas market with plans to bring The Sunset Amphitheater to McKinney, Texas (“The Sunset McKinney”). Venu partnered with retired Dallas Cowboys’ player Chad Hennings to help facilitate its Texas expansion efforts. In April 2024, Venu entered into a Chapter 380, Grant, and Development Agreement with the City of McKinney (“McKinney”) through a joint effort by McKinney, the McKinney Economic Development Corporation (the “MEDC”), and the McKinney Community Development Corporation (“MCDC”). The parties entered into a First Amendment to the Chapter 380, Grant, and Development Agreement in October 2024. Sunset at McKinney LLC, a majority-owned subsidiary of Venu that Venu exercises total voting control over, will hold the fixed assets of The Sunset McKinney.

Pursuant to Venu’s public-private partnership with McKinney, Venu will develop The Sunset McKinney on a 46-acre tract of land that is owned by the MEDC. Given that one of the MCDC’s strategic initiatives is to support the development of destination-entertainment facilities in McKinney, the MCDC has announced that it expects to make a financial investment in The Sunset McKinney’s development.

Venu anticipates that construction of The Sunset McKinney will begin in late January or early February 2025, with the amphitheater expected to be concert-ready in the second quarter of 2026. Sunset Operations at McKinney LLC, a wholly owned subsidiary of Venu, will be the operative entity for The Sunset McKinney that Venu expects will enter into an operating agreement with a third-party operator to run The Sunset McKinney’s operations. With a seating capacity of more than 20,000, The Sunset McKinney will be Venu’s largest venue to date. The Sunset McKinney is expected to feature 295 VIP luxury firepit suites that will be sold to lifetime owners, an Owner’s Club Suite that will accommodate 700 members, fully-covered seating areas, traditional reserved seating along with open-seating options on a landscaped grass area that will have temperature-cooling turf, a selection of gourmet food and drinks, state-of-the-art audio and technology enhancements, and a parking garage with 5,100 parking spaces designed to make entering and exiting the venue as efficient as possible. Venu expects to host between 50 to 65 shows per year at The Sunset McKinney.

Venu’s management believes McKinney will be a promising market for expanding its open-air amphitheater concept. The Sunset McKinney is expected to attract crowds from the Dallas and Fort Worth (“DFW”) areas of Texas, and to potentially rival the Toyota Music Factory that currently serves the DFW metroplex, a market that Venu considers to be a high priority for adding entertainment value. McKinney’s existing arts and recreation scene was one of the key factors that motivated Venu’s decision to develop an amphitheater in the city. In 2020, McKinney was designated as a Texas Music Friendly Community by the Texas Music Office within the Office of the Governor, certifying McKinney as part of a distinguished network of Texas cities that foster music-industry development and aim to attract and develop music-industry growth.

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For the City of McKinney, partnering with Venu to develop The Sunset McKinney will represent a potential investment in the community in excess of $220 million, which the city expects will drive local economic growth, catalyze commercial development, and enhance McKinney’s brand on a national level, while allowing Venu to expand its operations to another state and to capitalize on McKinney’s promising entertainment market. Based on the size of the venue and other factors, Venu and McKinney believe the construction and operation of The Sunset McKinney will directly or indirectly create approximately 1,300 jobs in the community and generate significant local and regional economic activity in the first ten years of operation.

The Sunset Amphitheater — El Paso, Texas

Venu further expanded its Texas market presence by forming a public-private partnership with the City of El Paso, Texas (“El Paso”) to bring The Sunset Amphitheater to El Paso (“The Sunset El Paso”). Sunset at El Paso, LLC, a subsidiary that Venu currently owns a majority equity interest in but anticipates owning a minority equity interest in, and that Venu currently exercises and will continue to exercise total voting control over, will hold the fixed assets of The Sunset El Paso.

In April 2024, Venu and El Paso entered into a term sheet to define the material terms of the parties’ intended public-private partnership and entry into a Chapter 380 Economic Development Program Agreement (the “Chapter 380 Agreement”), a Purchase and Sale Agreement, and related transaction documents (collectively, the “Definitive El Paso Agreements”). The El Paso City Council approved the term sheet on April 23, 2024. The parties finalized and executed a Purchase and Sale Agreement on June 24, 2024, and the Chapter 380 Agreement on July 2, 2024. The Purchase and Sale Agreement was amended on August 29, 2024 and October 28, 2024, in each case to extend the inspection period.

Pursuant to the terms of the Definitive El Paso Agreements, Venu will construct and manage The Sunset El Paso as a 12,500-person amphitheater on approximately 17 acres of land that El Paso will convey to Venu. Sunset Operations at El Paso LLC, a wholly owned subsidiary of Venu, will be the operative entity for The Sunset El Paso that Venu expects will enter into an operating agreement with a third-party operator to manage The Sunset El Paso’s operations.

In addition to the land conveyance, El Paso will incentivize Venu’s development of The Sunset El Paso by: (i) contributing cash towards Venu’s development costs by issuing an eight-year, no-interest, forgivable promissory note to Venu (the “El Paso Note”) that will be funded by the Texas Economic Development Fund; (ii) waiving all of the development, building permit, and inspection fees required to develop The Sunset El Paso; (iii) providing Venu with annual rebates on real and business personal property, sales and use, and mixed beverage taxes over up to a 20-year rebate period; and (iv) guaranteeing and/or funding parking facilities that will include a minimum of 3,600 spaces. In total, El Paso is offering Venu an approximately $30.9 million performance-based incentives package over the term of the Chapter 380 Agreement, demonstrating El Paso’s confidence that Venu’s construction of The Sunset El Paso will stimulate both regional and international tourism, generate commercial activity, diversify and expand the local tax base, create quality job opportunities, and promote local economic development in the city. If Venu completes construction of The Sunset El Paso within 36 months from the date Venu receives all government authorizations required to develop and construct the amphitheater (such process, “Entitlement”) and hosts a minimum of 25 events per year at The Sunset El Paso in years 3-5 of the rebate period, the El Paso Note will be forgiven. Recognizing the parties’ mutual intent to support The Sunset El Paso’s successful construction and operation, El Paso agreed that it would not develop a competing live-entertainment venue with a capacity of more than 4,000 persons within 60 miles of The Sunset El Paso; subject to El Paso’s unrestricted right to pursue voter-approved projects, projects affirmed by judicial decree, or regional projects that will not diminish The Sunset El Paso’s intent and operation. Furthermore, as allowable by law, El Paso agreed to give Venu a first right of refusal to develop and/or operate any voter-approved project as of the effective date of the Chapter 380 Agreement.

As part of its public-private partnership with El Paso and in exchange for incentives package that El Paso is offering under the Chapter 380 Agreement, Venu must, among other obligations: (i) invest at least $80 million in the acquisition, development, carrying costs, construction, and business personal property costs associated with developing The Sunset El Paso (such amount for such purposes, the “Minimum Investment”); (ii) commence construction of The Sunset El Paso within 90 days following Entitlement; (iii) obtain a Temporary Certificate of Occupancy no later than 36 months after Entitlement; (iv) secure a third-party venue operator to operate The Sunset El Paso for a 10-year term with two, five-year extensions prior to obtaining a Certificate of Occupancy; and (v) host a minimum of 40 national-touring events per year. Venu is also subject to various development and certification deadlines, including completing and providing El Paso with a final Traffic Impact Analysis and Parking Study by August 15, 2024, submitting documentation to El Paso to verify that it has expended the Minimum Investment and received the Temporary Certificate of Occupancy for the development of The Sunset El Paso within 36 months after Entitlement, and submitting documentation to verify that it has obtained the Certificate of Occupancy within 42 months after Entitlement or within six months after receiving the Temporary Certificate of Occupancy. El Paso’s Director of Economic and International Development may extend Venu’s development deadlines by up to six months, provided that Venu has made a good-faith effort to fulfill its obligations under the Definitive El Paso Agreements. If Venu defaults under the terms of the Chapter 380 Agreement and fails to timely and diligently cure such default, Venu must repay any rebates it received from El Paso during the five-year period prior to its default pursuant to a recapture schedule to be set forth in the Chapter 380 Agreement.

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Much like The Sunset McKinney, The Sunset El Paso will feature luxury firepit suites while offering a variety of seating options with both mid- and lower-bowl sections and a hydro-chill grass berm. For the ultimate entertainment experience, The Sunset El Paso will also feature a custom-built Owner’s Club where members will enjoy an exclusive, elevated view of the stage and premium dining and beverage options. The Sunset El Paso is expected to attract crowds not only from El Paso, Texas but also from Las Cruces, New Mexico and even across the border in Mexico from Ciudad Juarez, the largest city in the Mexican state of Chihuahua. Venu intends for The Sunset El Paso to mirror the multicultural tastes of its US and Latin audiences by showing acts from both markets.

On July 2, 2024, the El Paso City Council formally approved a resolution authorizing the El Paso City Manager to execute the Chapter 380 Agreement with Venu and two ordinances providing for El Paso’s conveyance of city-owned land to Venu in accordance with applicable Texas statutory code provisions and for El Paso’s amendment of a tax-increment reinvestment project and financing plan for the area where The Sunset El Paso will be developed to reflect the development assumptions set forth in the Chapter 380 Agreement. Pursuant to an amendment to the Purchase and Sale Agreement between Venu and the City of El Paso dated October 28, 2024, the parties extended the inspection period during which Venu may inspect the property to be acquired from the City of El Paso to December 31, 2024.

Restaurant Concepts — Bourbon Brothers Smokehouse & Tavern

BBST Overview

Bourbon Brothers Smokehouse & Tavern is Venu’s flagship, full-service restaurant concept. BBST serves American classics and Southern staples out of a scratch kitchen, accompanied by a selection of rare bourbons, ryes, and whiskies as well as local craft beers.

BBST — Colorado Springs, Colorado

Venu opened its first BBST location in April 2017 (“BBST CO”) in Colorado Springs, Colorado, adjacent to the land where Venu later opened its BBP CO music hall in 2019. The BBST CO location can serve up to 300 customers at a time across its two bars, primary dining areas, sunroom, and a private dining area known as the “Library.” The concept was conceived as a farm-house theme with an eclectic blend of dining areas that is intended to offer a unique foodie experience in an unparalleled setting. The Bourbon Bar is an attached, yet secluded, bar area, built to replicate a bourbon warehouse from the days of prohibition, complete with a full-size bar that is constructed from floorboards sourced from aging railroad cars. BBST CO’s close proximity to BBP CO allows for cross-selling between the businesses, as BBST CO serves as the exclusive caterer for all BBP CO events. In both venues, Venu strives to deliver high-quality, consistent food with exceptional service, which it believes is the key to restaurant success.

BBST — Gainesville, Georgia

In conjunction with Venu’s opening of BBP GA in June 2023, Venu opened its second BBST location in Gainesville, Georgia (“BBST GA”). Like its Colorado Springs counterpart, BBST GA serves American classics, Southern staples, local craft beers, and a selection of rare bourbons, ryes, and whiskies. Unlike BBST CO, the ambiance of the BBST GA restaurant replicates that of a 1930s-era, red brick industrial building, with seating spaced around an indoor square bar that integrates a 6,800-square-foot outdoor patio with four fireplaces. The restaurant accommodates up to 300 customers in its first-floor bar, primary dining areas, second-floor bourbon bar, and 1,500-square-foot walk-out rooftop bar and lounge. The distinctive dining configurations at BBST GA are meant to capture the ambience and aesthetic of the Gainesville Square.

Venu anticipates its BBST GA location will benefit from favorable foot traffic and a viable catering component through serving as BBP GA’s exclusive caterer. One advantage of the Gainesville location is that the BBST GA restaurant and BBP GA music venue were built simultaneously and are connected via a shared kitchen, which streamlines BBST GA’s ability to operate food and beverage service at BBP GA. The 4,400-square-foot kitchen serves the site’s more than 7,800-square-foot dining room and rooftop bar as well as the food and beverage needs for the 18,000-square-foot BBP GA music hall.

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Restaurant Concepts — Notes Eatery

“Notes Eatery,” formerly known as “Notes” bar, is Venu’s newest live music and restaurant concept. Notes Eatery serves breakfast, lunch, and dinner in a vibrant and eclectic environment. Notes Eatery originally opened in September 2022 as “Notes” bar in the same Colorado Springs campus where BBP CO and BBST CO operate. Notes bar featured upscale bar fare with dive-bar specials before expanding to the full restaurant, Notes Eatery, in May 2024. Notes Eatery features a full stage that is capable of hosting a four- to five-person band. Since opening, the Notes Eatery stage has been booked regularly with performances such as open mic nights, karaoke, dance bands, and even a unique live jazz band that performs at Notes Eatery’s weekend brunch. Year to date as of October 31, 2024, Notes Eatery has hosted 149 events. Notes Eatery’s unique live-music setting is complemented by music memorabilia and iconic photography throughout.

Restaurant Concepts — Roth’s Seafood & Chophouse and Notes Hospitality Collection

In May 2025, Venu expects to open Roth’s Seafood & Chophouse (“Roth’s”), an upscale, five-star restaurant that specializes in fine dining, in a mixed-use development that is being constructed adjacent to Ford Amphitheater. Roth’s and Ford Amphitheater will both sit on the 4.97-acre tract in Colorado Springs that Venu purchased in March 2023. Roth’s is intended to be a luxurious restaurant space and was designed to offer views of not only the Rocky Mountains but also the Ford Amphitheater concert stage, immersing guests in what Venu believes will be an unparalleled dining and concert experience.

Colorado Springs boasts a significant percentage of high-income households and a steady growing population. Despite being home to many multinational corporations and much of the defense contractor industry, customers seeking an elevated dining experience believe the city is sorely lacking in this pinnacle of the restaurant spectrum. Venu believes Roth’s can help fill that gap.

The prominence and features of Ford Amphitheater made that area a desirable and viable location for Roth’s, which is intended to cater to the more affluent populations in El Paso and Douglas Counties. Venu also believes Roth’s will be well suited for concertgoers looking for a premium dining experience to accompany their premium tickets. Roth’s will anchor the first floor of the mixed-use development being constructed at the eastern perimeter of Ford Amphitheater. On the top floor, Venu is opening a top-shelf bar and lounge named Brohan’s.

Notes Hospitality Collection (“NHC”) will feature two, approximately 1,500-square-foot configurable hospitality spaces framing either side of Roth’s on the first floor of the mixed-use development and two, approximately 2,500-square-foot suites framing either side of the Brohan’s rooftop bar. Venu envisions NHC being used to host corporate events, weddings, trade shows, conventions, galas, expos, and other large gatherings. Venu believes NHC will be a premier venue rental location in Colorado Springs.

Venu expects to open Roth’s, Brohan’s, and NHC in May 2025 after the grand opening of Ford Amphitheater that occurred in August 2024.

Bar Concept — Brohan’s

Venu is opening Brohan’s, a cocktail bar and lounge on the top floor of the mixed-use development where Roth’s and NHC are being constructed. Brohan’s is named in honor of Venu’s longtime business development executive, Gary Tedder, whose nickname is Brohan. The bar will have premium views into Ford Amphitheater, which can be monetized during marquee shows. Brohan’s will feature top-shelf liquors and fine wines from around the world served by a host of bartenders and sommeliers that will be employed by Venu. Venu foresees Brohan’s being a popular gathering spot for happy hour or evening cocktails in an elevated environment for personal or business use, complemented by exceptional service in a comfortable yet classy lounge space that will be enhanced by dramatic amphitheater lighting features and striking panoramas. Venu also envisions Brohan’s as being a go-to spot for concert-goers looking to elevate their experience with the premium libations and views that Brohan’s will offer. Along with Roth’s and NHC, Venu intends to open Brohan’s in May 2025.

Venu’s Subsidiaries and Properties

Subsidiaries

Venu conducts its operations and holds its assets through many wholly- and majority-owned (and controlled) subsidiaries. Certain of Venu’s subsidiaries have raised capital from third-party investors as a means to fund the specific projects and operations of those subsidiaries and received capital contributions from third-party investors, such as The Sunset Amphitheater LLC, and as a result, these subsidiaries are not wholly owned. In some instances, Venu owns a minority membership interest in a subsidiary but, under the terms of the governing documents for the applicable limited liability company, exercises 100% voting control because the membership interests issued to third-party investors represent non-voting interests, and otherwise retains economic rights in the revenue streams of a given project that may exceed its ownership percentage. For example, third-party investors have contributed capital to Sunset at Broken Arrow LLC and The Sunset Amphitheater LLC, with those capital contributions being used to help fund the development of the amphitheater projects owned and developed or to be developed by those specific limited liability companies. In each case, the operating agreement provides that any distributions of available cash that is attributable to a defined portion of revenues generated by ticket sales for an event held at the specific venue project are distributed to the Class B non-voting members (members other than Venu and its subsidiaries), and then the excess is distributed to the Class A voting member (Venu or a wholly-owned subsidiary of Venu). However, upon any liquidation, after the payment of creditors and the establishment of any reserves, distributions are made to the members in satisfaction of their respective capital accounts. For tax allocation purposes, the depreciation of company assets, in certain cases, are allocated to the Class B non-voting members. Membership interests in these limited liability companies afford the investors certain rights to use suites at the venue owned by the applicable limited liability company. Venu has used this model to help fund and develop certain of its amphitheater projects such as those of The Sunset Amphitheater LLC and Sunset at Broken Arrow LLC. In the case of GA HIA LLC and Sunset Hospitality Collection LLC, third-party investors hold non-voting membership interests under the terms of operating agreement of these subsidiaries and also are afforded certain in-kind benefits intended primarily for their personal use, such as, complimentary tickets to live events.

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The following table summarizes Venu’s current and projected ownership and voting interests in its subsidiaries, which Venu either owns directly or indirectly through one of its other subsidiaries. For subsidiaries that are not wholly owned by Venu or that Venu anticipates later not wholly owning, the table indicates which entity owns, or would be expected to own the remaining interest. In addition, for those subsidiaries in which certain of the non-voting members’ economic rights under the applicable operating agreement differ from their percentage interest in the limited liability as a whole, the economic rights of the non-voting members are outlined in the notes to the table.

Subsidiary |  | Venu or Subsidiary Owner |  | Current or Projected Company Ownership Percentage Interest |  | Owner of Remaining Interests
Bourbon Brothers Holdings LLC (“BBH”) |  | Venu Holding Corporation |  | 100% |  | Not applicable.
Notes Live Real Estate, LLC (“NLRE”) |  | Venu Holding Corporation |  | 100% |  | Not applicable.
Hospitality Income & Asset, LLC |  | Venu Holding Corporation |  | 99% (100% voting control) |  | Third-Party Investors
Notes Holding Company LLC (“NHC”) |  | Venu Holding Corporation |  | 100% |  | Not applicable.
Bourbon Brothers Licensing LLC |  | Venu Holding Corporation |  | 100% |  | Not applicable.
13141 BP, LLC |  | Venu Holding Corporation |  | 100% |  | Not applicable.
The Sunset Amphitheater LLC |  | Venu Holding Corporation |  | 10% (100% voting control) |  | Third-Party Investors(1)
GA HIA, LLC |  | Venu Holding Corporation |  | 16% (100% voting control) |  | Third-Party Investors(1), (4)
Roth’s Seafood & Chophouse LLC |  | BBH |  | 100% |  | Not applicable.
Notes Hospitality Collection LLC |  | BBH |  | 100% |  | Not applicable.
Sunset Hospitality Collection LLC |  | NLRE |  | 50% (as of September 30, 2024) 40% (projected ownership) (100% voting control) |  | Third-Party Investors(1), (4)
Sunset at Mustang Creek LLC |  | NLRE |  | 84% (as of September 30, 2024) 30% (projected ownership) (100% voting control) |  | Third-Party Investors(1)
Sunset at Broken Arrow LLC |  | NLRE |  | 78% (as of September 30, 2024) 35% (projected ownership) (100% voting control) |  | Third-Party Investors(1)
Sunset Ground at Broken Arrow, LLC |  | Venu Holding Corporation |  | 100% (as of September 30, 2024) 30% (projected ownership)(2) (100% voting control) |  | Third-Party Investors
Sunset at El Paso, LLC |  | NLRE |  | 100% (as of September 30, 2024) 35% (projected ownership)(2) (100% voting control) |  | Third-Party Investors
Sunset Ground at El Paso LLC |  | NLRE |  | 100% (as of September 30, 2024) 30% (projected ownership)(2) (100% voting control) |  | Third-Party Investors
Sunset Operations at El Paso LLC |  | NLRE |  | 100% |  | Not applicable
Sunset at McKinney LLC |  | NLRE |  | 85% (as of September 30, 2024) 60% (projected ownership)(3) (100% voting control) |  | Third-Party Investors(1)
Sunset Ground at McKinney LLC |  | NLRE |  | 100% (as of September 30, 2024) 60% (projected ownership)(3) (100% voting control) |  | Third-Party Investors
Sunset Operations at McKinney LLC |  | NLRE |  | 100% |  | Not applicable
Notes CS 1, DST |  | Notes CS I Holdings, LLC |  | 99% (as of November 1, 2024)(5) (projected ownership is not yet determined)(5) (100% voting control) |  | Third-Party Investors(5)
13141 Notes LLC d/b/a Notes |  | NHC |  | 100% |  | Not applicable.
Sunset Operations LLC |  | BBH |  | 100% |  | Not applicable.
Bourbon Brothers Presents, LLC d/b/a Boot Barn Hall at Bourbon Brothers |  | BBH |  | 89% |  | Third-Party Investors
Bourbon Brothers Smokehouse and Tavern CS, LLC |  | BBH |  | 100% |  | Not applicable.
Bourbon Brothers Smokehouse and Tavern GA LLC |  | BBH |  | 100% |  | Not applicable.
Bourbon Brothers Presents GA LLC |  | BBH |  | 100% |  | Not applicable.
Notes CS I Holdings, LLC |  | Venu Holding Corporation |  | 100% |  | Not applicable.
Notes CS I ST, LLC |  | Venu Holding Corporation |  | 100% |  | Not applicable.

(1) | Venu or NLRE, as applicable, has sold or intends to sell non-voting membership interests to third-party investors in this limited liability company. However, the governing documents for these subsidiaries provide that third-party investors who hold non-voting membership units are, in the case of distributions resulting from operations of the venue or restaurant owned by the limited company entitled to a defined portion of distributions of available cash that are attributable to certain revenue streams of the entities, such as ticket sales, or otherwise a targeted return. All other portions of distributions of available cash from facility operations, income and profits are distributed to Venu (or a wholly owned subsidiary of Venu) as the Class A member. Where the economic waterfall for the holders of non-voting membership units of a subsidiary is other than in accordance with the members’ percentage interest in the subsidiary as a whole, those economic rights, as of the date of this prospectus, are described below:

| ● | The Sunset Amphitheater LLC: In the event The Sunset Amphitheater LLC at any time makes a distribution of available cash to its members from operations, it will first distribute to the Class B members as a class an aggregate amount equal to the “rental profit” attributed to the venue. Class B members share in this amount on a pro rata basis determined solely with respect to the total number of Class B units outstanding. Class B members are only entitled to their pro rata share of any “rental profit,” and are not entitled to any other distributions of available cash from operations or any other income or profits of The Sunset Amphitheater LLC, which are distributable solely to the single Class A member (Venu). “Rental profits” are calculated on a per ticketed show basis, and the amount of “rental profits” distributable to the Class B members for each show is calculated by multiplying $5.00 by the number of tickets sold for the ticketed event at the venue owned by The Sunset Amphitheater LLC (excluding any other venue revenues or profits of any kind).
| ● | GA HIA, LLC: All distributions of net profits and available cash (other than Priority Proceeds, as defined below) to its members will be made to the Class A members, Class B members and Class C members on a pro rata basis. All amounts of cash received by GA HIA, LLC pursuant to the primary naming rights for the music venue operated on GA HIA, LLC’s property and tax rebates from or through the City of Gainesville, GA (collectively, “Priority Proceeds”) are distributable solely to the Class B members and Class C members on a pro rata basis. Notwithstanding the foregoing, the Class C members are capped at an 9% annual return on their capital contribution, after which they no longer participate in distributions for such year.
| ● | Sunset at Mustang Creek LLC: In the event Sunset at Mustang Creek LLC at any time makes a distribution of available cash to its members from operations, it will first distribute to the Class B members as a class an aggregate amount equal to the “rental profit” attributed to the venue. Class B members share in this amount on a pro rata basis determined solely with respect to the total number of Class B units outstanding. Class B members are only entitled to their pro rata share of any “rental profit,” and are not entitled to any other distributions of available cash from operations or any other income or profits of Sunset at Mustang Creek LLC, which are distributable solely to the single Class A member (a wholly owned subsidiary of Venu). “Rental profits” are calculated on a per ticketed show basis, and the amount of “rental profits” distributable to the Class B members for each show is calculated by multiplying $7.00 by the number of tickets sold for the ticketed event at the venue owned by Sunset at Mustang Creek LLC (excluding any other venue revenues or venue profits of any kind).
| ● | Sunset at Broken Arrow LLC: In the event Sunset at Broken Arrow LLC at any time makes a distribution of available cash to its members from operations, it will first distribute to the Class B members as a class an aggregate amount equal to the “rental profit” attributed to the venue. Class B members share in this amount on a pro rata basis determined solely with respect to the total number of Class B units outstanding. Class B members are only entitled to their pro rata share of any “rental profit,” and are not entitled to any other distributions of available cash from operations or any other income or profits of Sunset at Broken Arrow LLC, which are distributable solely to the single Class A member (a wholly owned subsidiary of Venu). “Rental profits” are calculated on a per ticketed show basis, and the amount of “rental profits” distributable to the Class B members for each show is calculated by multiplying $7.00 by the number of tickets sold for the ticketed event at the venue owned by Sunset at Broken Arrow LLC (excluding any other venue revenues or venue profits of any kind).
| ● | Sunset at McKinney LLC: In the event Sunset at McKinney LLC at any time makes a distribution of available cash to its members generated through ticketed events at the venue, the company will distributes to the Class B members, as a class and on a pro rata basis, an aggregate amount intended to cause the Class B members to realize an annual return equal to 3% of the amount of their respective capital contributions. All other distributions from venue operations, income or profits of any kind are distributed solely to the single Class A member (a wholly owned subsidiary of Venu).
| ● | Sunset Hospitality Collection LLC: In the event Sunset Hospitality Collection LLC at any time makes a distribution of available cash to its members attributable to lease payments made by the tenant of the property owned by Sunset Hospitality Collection LLC, it will distribute to the Class B members an amount intended to cause the Class B members to realize an annual return equal to 8% of the amount of the total capital contributions of the Class B members and to the Class C members an amount intended to cause the Class C members to realize an annual return equal to 4% of the amount of the aggregate capital contributions of Class C members. All other distributions of cash from venue operations, income or profits of any kind are distributed to the single Class A member (NLRE).

(2) | Venu or NLRE, as applicable, intends to sell up to 70% of the membership interests in this limited liability company to third-parties while retaining a 30% membership interest. Any interests sold to third-parties will be non-voting membership units, and therefore, NLRE would maintain 100% voting control. As it relates to Sunset Ground at Broken Arrow, LLC, Sunset at El Paso, LLC, Sunset Ground at El Paso LLC economic terms and rights to be afforded to third-party (non-voting) members have not yet been determined.
(3) | NLRE intends to sell up to 40% of the membership interests in this limited liability company to third-parties while retaining a 60% membership interest. Any interests sold to third-party investors will be non-voting membership units, and therefore, NLRE would maintain 100% voting control. Economic terms and rights to be afforded to third-party (non-voting) members in Sunset Ground at McKinney LLC have not yet been determined.
(4) | GIA HIA LLC, in addition to the voting Class A membership units held solely by Venu, has issued non-voting Class B membership units and non-voting Class C membership units to third parties. Sunset Hospitality Collection LLC, in addition to voting Class A membership units held solely by a wholly owned subsidiary of Venu, has issued non-voting Class B membership units and non-voting Class C membership units to third parties.
(5) | As of the date of this prospectus, the Company also holds its interest in one of its real property assets through a Delaware Statutory Trust. On August 22, 2024, NLRE conveyed the 9.41 acres of real property upon which the Ford Amphitheater is located to Notes CS I Holdings, LLC, a wholly owned subsidiary of Venu (“Holdings LLC”), and Holdings LLC conveyed that property to Notes CS I, DST, a Delaware Statutory Trust (the “Trust”) in exchange for a 100% of the beneficial interests in the Trust. The signatory trustee for the Trust is Notes CS I ST, LLC, a wholly owned subsidiary of Venu. Beneficial owners have no voting rights with respect to the affairs of the Trust and do not have legal title to any portion of the property held by the Trust. Instead, the signatory trustee has the sole power and authority to manage the activities and affairs of the Trust, including the power and authority to sell the property and the Trust holds legal title to the property. Under the documents governing the Trust, beneficial interest holders are entitled to distributions on a pro rata basis of the base rent payments made to the Trust from the ground tenant. Holdings, LLC is one of two beneficial interest holders of the Trust and holds an approximate 99% interest. The trust expects to from time to time sell additional beneficial interests to third parties but in no event is it expected that Holdings LLC would cease to hold a beneficial interest in the Trust.

As it relates to the larger Ford Amphitheater project in which certain Company subsidiaries have a direct or indirect interest the rights of stakeholders are summarized below and described elsewhere in this prospectus.

| ● | Operating Agreement: With respect to venue profits and venue losses generated at the Ford Amphitheater, those profits and losses are payable and allocated to AEG and Venu in accordance with the terms of the exclusive operating agreement between Venu and AEG described elsewhere in this prospectus. After its entry by the parties, this agreement was assigned by Venu to Venu’s wholly owned subsidiary Sunset Operations, LLC (as defined above, “SunsetOps”). SunsetOps is the Venu subsidiary that oversees the operations of Ford Amphitheater. Amounts due to SunsetOps under the exclusive operating agreement with AEG are based on a base fee derived from a portion of the tickets sold at public events held at the venue, and a percentage of venue profits (with such profit split between the two parties being in a range between 45% to 55%). Venue profits that are split and allocated between the parties take into account various revenues streams generated through venue events, including ticket sales, ticket rebates, VIP services, net food and beverage sales, net revenue commissions from artist merchandise sales, parking, and venue sponsorship fees (such as naming rights), but subject to certain limitations set forth in the agreement, and any profits that are divided between the parties are net of various venue operating expenses incurred by the AEG and certain insurance and property expenses incurred by the owner of the venue. Amounts due to SunsetOps from event and venue operations under the exclusive operating agreement with AEG are the primary source of funds utilized to pay lease payments due under the operations leases, and as further described below, “Event Fees” and the base rent due under the ground lease described below for the property on which Ford Amphitheater was developed, and with any excess retained by SunsetOps.
| ● | Ground Leases: The real property upon which the amphitheater was developed is owned by the Trust, and The Sunset Amphitheater LLC own all of the improvements (i.e., the amphitheater) on that property. The Trust leases that property to Notes CS I MT, LLC, a wholly owned subsidiary of Venu (and the “master tenant” for the property) pursuant to a “master lease”, which in turn leases the property to Sunset Amphitheater LLC under a ground lease having substantially the same economic terms to that of the master lease. Sunset Amphitheater, LLC is the guarantor of the ground lease. Pursuant to that ground lease, Notes CS I MT, LLC pays master tenant annual base rent of $3,222,000 (subject to escalation) which is paid monthly, and base rent is then remitted to the Trust and distributed pro rata to the holders of its beneficial interests.
| ● | Operations Leases: In connection with the operations of the Ford Amphitheater located at the property, Sunset Amphitheater LLC entered into an operations lease (which was amended on September 24, 2024) with Notes Live Foundation (a non-profit organization and operating under the trade name Venu Arts & Culture Foundation), a foundation formed, in part, to accommodate certain “public use” requirements of certain municipalities or quasi municipality entities and of which Venu is the sole member (the “Foundation”), and in turn, the Foundation has entered into an operations sublease agreement with SunsetOps, as such operations sublease was amended on September 24, 2024. During the term of that operations sublease, SunsetOps pays to the Foundation (a) annual base rent of $3,222,000.00 (subject to annual 2% annual increases), plus (b) a per-ticket amount to be determined by SunsetOps, multiplied by the total number of tickets sold for entry into “public events” at Ford Amphitheater, not to exceed $50,000 in total unless agreed to in writing by SunsetOps to be paid annually (the “Charitable Trust Contribution”), plus (c) $5.00 multiplied by the total number of tickets sold for entry into “public events” at Ford Amphitheater (“Event Fees”). In turn, under the operations lease, the Foundation remits all payments under the operations sublease to The Sunset Amphitheater LLC, except for the Charitable Trust Contribution (if any). Event Fees that get remitted to Sunset Amphitheater LLC ultimately are the source of the “rental profit” described above that is distributed by The Sunset Amphitheater LLC to its Class B members and the remainder of the payments received by The Sunset Amphitheater LLC under these operation leases and subleases are used to pay the base rent payments due to the master tenant and the Trust.

Bourbon Brothers Holdings LLC (“BBH”) is a holding company designed to own and manage each of Venu’s operating entities. In addition to the entities organized under BBH currently, Venu expects BBH will own 100% of future restaurant and event center operating companies for entertainment campuses that Venu may to develop around the country.

Venu’s current goal is that by 2028, it will have brought entertainment venues to a dozen markets where it will be operating up to ten entertainment campuses (including its campuses in Colorado Springs, Colorado and in Gainesville, Georgia) and three or more additional open-air amphitheaters. When developing a new entertainment campus or venue in a new market, Venu generally forms an operating company under BBH to manage the venue’s operations. The land and building for the venue is typically leased to the operating company by a landlord entity that Venu (or one of its subsidiaries) either wholly owns or acquires an interest in.

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Properties

Venu indirectly owns properties through certain of its subsidiaries or controlled entities. The table below summarizes Venu’s portfolio of real estate as of the date of this prospectus, indicating which of subsidiaries or entities owns each property. Venu is also party to certain agreements by which it (directly or through a subsidiary) expects to close upon and acquire real estate in Broken Arrow, Oklahoma (related to the Sunset at Broken Arrow), McKinney, Texas (related to the Sunset at McKinney), and El Paso, Texas (related to the Sunset at El Paso).

Subsidiary Owner |  | Size and Location |  | Status and Operations
Sunset Hospitality Collection LLC |  | 4.98 acres in Colorado Springs, CO |  | Site where Roth’s Seafood & Chophouse, Brohan’s bar, and Notes Hospitality Collection are being constructed; leased from Sunset Hospitality Collection LLC to Roth Seafood & Chophouse LLC and Notes Hospitality Collection LLC
Notes CS I DST |  | 9.41 acres in Colorado Springs, CO |  | Site where Ford Amphitheater is located; leased to The Sunset Amphitheater LLC pursuant to a ground lease
NLRE |  | 1.05 acres in Colorado Springs, CO |  | Vacant land open for development next to Ford Amphitheater
NLRE |  | ≈ 5.54 acres in Colorado Springs, CO |  | Developed as a parking lot in connection with the Ford Amphitheater
Hospitality Income & Asset, LLC |  | 1.5 acres in Colorado Springs, CO |  | Site where BBST CO restaurant operates; leased from Hospitality Income & Asset, LLC to Bourbon Brothers Smokehouse and Tavern CS, LLC
Hospitality Income & Asset, LLC |  | 3.2 acres in Colorado Springs, CO |  | Site where BBP CO indoor music hall operates; leased from Hospitality Income & Asset, LLC to Bourbon Brothers Presents, LLC
13141 BP, LLC |  | 0.73 acres in Colorado Springs, CO |  | Site where Venu-music bar operates; leased from 13141 BP, LLC to 13141 Notes LLC
GA HIA, LLC |  | 1.7 acres in Gainesville, GA |  | Site where BBP GA indoor music hall and BBST GA restaurant operate

Lease Obligations

Venu or its subsidiaries currently lease facilities as follows:

| ● | BBST CO leases its property from HIA, a majority-owned subsidiary. The lease is structured as a triple-net lease (an “NNN lease”) with annual rents of $441,190. Base rent increases by 10% every five years through rent escalators in the lease. The initial term of the lease is ten years with one, ten-year renewal option, which will give Venu the ability to extend the lease on identical terms and control the property for up to 20 years.
| ● | BBP CO leases its property from HIA, a majority-owned subsidiary. The lease is structured as an NNN lease with annual rents of $218,750. Base rent increases by 10% every five years through rent escalators in the lease. The initial term of the lease is ten years with two, five-year renewal options which will give Venu the ability to extend the lease on identical terms and control the property for up to 20 years.
| ● | 13141 Notes LLC in Colorado Springs leases its property from 13141 BP, LLC, a wholly owned subsidiary of Venu. The lease is structured as an NNN lease with annual rents of $218,750. Base rent increases by 10% every five years through rent escalators in the lease. The initial term of the lease is ten years with two, five-year renewal options which will give Venu the ability to extend the lease on identical terms and control the property for up to 20 years.
| ● | Roth’s and NHC will be leased from Sunset Hospitality Collection LLC, a majority-owned subsidiary of which Venu has full voting control. The lease will be structured as an NNN lease with annual rents equal to $2.0 million. Base rent will increase by 10% every five years throughout the initial 20-year lease term. The tenant will have four, five-year renewal options to extend the lease on identical terms.
| ● | Venu leases its principal executive office in Colorado Springs, Colorado from a third party pursuant to a lease that was assumed from the prior tenant and expires on November 29, 2029. Annual rent payments are $230,698, increasing by 1.3% annually.
| ● | BBST GA and BBP GA each leases property from GA HIA, a controlled subsidiary. The initial term of the lease is ten years with four, five-year renewal options, which will give Venu the ability to extend the lease on identical terms and control the property for up to 30 years. For the first five years of the initial term of the lease, BBST GA and BBP GA must pay GA HIA an annual base rent of $641,410 and $191,590, respectively.
| ● | Pursuant to a ground lease, The Sunset Amphitheater LLC leases the property on which the Ford Amphitheater is operated from Notes CS I MT, LLC a wholly owned subsidiary of Venu (and the “master tenant” for that property). The ground lease to which The Sunset Amphitheater LLC is a party is for a 25 year term and provides for annual base rent of $3,222,000 (subject to escalation) which is paid monthly. The ground lease is a triple net lease. The Sunset Amphitheater LLC is also a party to an operations lease with respect to this same property. That operations lease and a corresponding operations sublease is generally described above under the subheading “Venu’s Subsidiaries and Properties.”

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Long-Term Debt Obligations

To fund certain of its operations and property acquisitions Venu has, at times, borrowed funds from third-party lenders. The table below sets forth the outstanding current debt obligations (other than ordinary course obligations) of Venu or its subsidiaries as of November 27, 2024.

Debt Type |  | Date of Issue |  | Borrower |  | Lender |  | Principal Amount |  |  | Interest Rate |  |  | Maturity Date
Mortgage Loan |  | 05/06/2022 |  | GA HIA, LLC |  | Pinnacle Bank |  | $ | 4,344,410 |  |  |  | 3.95 | % |  | 05/26/2043
Mortgage Loan |  | 07/01/2021 |  | Hospitality Income & Asset, LLC |  | Integrity Bank & Trust |  | $ | 3,336,468 |  |  |  | 5.5 | % |  | 07/10/2031
Loan |  | 05/04/2020 |  | Venu f/k/a Bourbon Brothers Entertainment, LLC |  | U.S. Small Business Administration |  | $ | 500,000 |  |  |  | 3.75 | % |  | 05/04/2050
Convertible Promissory Note |  | 1/17/2024 |  | Venu and NLRE |  | KWO, LLC |  | $ | 10,000,000 | (1) |  |  | 8.75 | % |  | 03/01/2025(2)

(1) | As set forth in the promissory note and special stipulations thereto, dated January 17, 2024, payable by Venu and Venu Real Estate, LLC (together, the “NL Borrowers”) to KWO, LLC (the “KWO Note”), the funds borrowed by the NL Borrowers from KWO, LLC (the “KWO Loan”) were to be advanced to the NL Borrowers at any time between March 1, 2024 and May 31, 2024 in multiple draws (each, a “Draw”), the sum of which shall not exceed $10,000,000. As of the date of this filing, the KWO Note is fully drawn on and the $10,000,000 Draw amount is outstanding. The outstanding amount is convertible debt and obligations can be satisfied through the conversion to Venu shares at a value of $10.00 per share.
(2) | The maturity date of the KWO Note is March 1, 2025, the date that is one year after the NL Borrowers first received funds pursuant to the first Draw on the KWO Loan. Draws on the KWO Note occurred on (i) March 1, 2024, in the amount of $3,860,582.40; (ii) April 10, 2024, in the amount of $3,738,030.37; and (iii) May 10, 2024, in the amount of $2,401,387.23.

Public-Private Partnership Obligations

Venu evaluates which markets to expand to and to purchase properties to develop venues on according to a set of rigorous criteria that maximizes Venu’s potential for success and profitability. One of the key factors in Venu’s market-expansion assessment is the ability to leverage public-private partnerships, which are driven by local municipalities that demonstrate an interest in the development of entertainment venues as a way to catalyze economic development, attract community investment, and improve the community that the local government serves. Venu was able to acquire many of the real-property assets in its portfolio through public-private partnerships. In a public-private partnership, a local government or quasi-governmental entity, such as a local economic development corporation or redevelopment authority, offers financial incentives to Venu that enable Venu or one of its subsidiaries to acquire land on terms that are more favorable than Venu would be able to negotiate in a private sale on the open market.

The financial incentives that a local municipality may offer Venu in a public-private partnership include, for example: (i) granting land to be used for Venu’s construction of amphitheaters, entertainment venues, and parking; (ii) granting parking facilities to be used at Venu’s venues and, in some cases, allowing Venu to monetize parking; (iii) providing public financing for Venu’s venue-development projects; (iv) providing sales-tax abatements and/or refunds; (v) providing property-tax abatements and/or refunds; or (vi) publicly funding the construction of parking facilities, entry and exit roads, and utilities required to support the development and operation of Venu’s venues. In exchange for the financial incentives offered by the local municipality, Venu agrees to develop and operate one or more music and entertainment venues and restaurants in the community that Venu has partnered with, which advances Venu’s market-expansion objectives, drives local economic growth, and attracts other community investments.

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Although purchasing properties through public-private partnerships is a key component of Venu’s acquisition and financing strategy, the agreements that Venu negotiates when partnering with a local government or quasi-governmental entity typically subject Venu to burdensome conditions, restrictions, obligations, and covenants with respect to Venu’s ownership, use, and development of the land acquired from the municipality. Those restrictions are typically incorporated into ancillary agreements entered into by Venu and the local government that it is partnering with (such agreements, the “Restricting Agreements”), which may include, for example, a Development Agreement, a Parking Agreement, or a Facilities Use Agreement.

The Restricting Agreements typically require various levels of political and governmental approval, such as by the local city council, an economic-development council, or the secretary of state. The process of obtaining all required governmental approvals, permits, and entitlements can be time-consuming and costly for Venu. Even after obtaining those approvals, Venu’s ability to continue owning, holding, and developing the real-property asset that it acquires from a local municipality in a public-private partnership depends on its compliance with the restrictions and conditions set forth in the Restricting Agreements. Typical restrictions include requirements to satisfy minimum capital-investment obligations, to meet various project development and construction deadlines, to hold a minimum number of events per year once the venue is operating, or to sell a minimum number of tickets per season.

If Venu is unable to comply with the conditions, restrictions, and obligations set forth in Restricting Agreements, Venu may be subject to monetary penalties, lose the tax or economic incentives that initially induced Venu’s partnership with the municipality, or cause the land that Venu acquired in the public-private partnership to be recouped by the municipality. Project and construction delays that cause Venu to fall behind the timeline specified in a Development Agreement could cause the project to be terminated or obligate Venu to pay a fee.

Venu’s expansion into Gainesville, Georgia, Broken Arrow, Oklahoma, McKinney, Texas, and El Paso, Texas involve public-private partnerships.

A summary of our public-private partnerships, including our investment commitments, purchase prices for land and/or assets, and associated deadlines for each, is provided below.

Public-Private Partnership |  | Investment Commitment |  | Purchase Price for Land and/or Assets |  | Deadline for Making Investment or Purchasing Land/Assets
Broken Arrow, Oklahoma |  | Minimum Capital Investment: $70 million |  | Purchase Price: $577,314.62 |  | The closing and payment of Purchase Price occurred on May 23, 2024.
McKinney, Texas |  | $200 million |  | Purchase Price: $35 million, payable either (i) in full, in cash, or (ii) in $10 million cash and $25 million in a promissory note secured by a deed of trust and personally guaranteed. Upon obtaining a Certificate of Occupancy, the Company will be reimbursed by MEDC for all purchase monies paid by the Company to MEDC, up to the purchase price, and the Company and the guarantors will be released from their respective obligations under the deed of trust, note, and personal guaranties. |  | The latest date the Purchase Price will be paid by Venu is January 15, 2024, which is within 30 days after Entitlement must occur, as that term is defined in the Chapter 380, Grant, and Development Agreement.
El Paso, Texas |  | Minimum Qualified Expenditures: $80 million |  | Purchase Price: None—The land will be conveyed by the city for no cost. |  | Venu must submit documentation to the City of El Paso within 36 months after Entitlement, verifying the expenditure of a minimum of $80 million in Qualified Expenditures. Entitlement will occur on the date when all government authorizations required to develop and construct the project are received. Venu anticipates that Entitlement will occur by December 31, 2024.

Public-Private Partnership in Gainesville, Georgia

In connection with its development of the BBP GA indoor music hall and the BBST GA restaurant in Gainesville, Georgia, GA HIA, LLC (a subsidiary of Venu that Venu exercises total voting control over) partnered with the Gainesville Redevelopment Authority in January 2022. In addition to the Purchase and Sale Agreement that GA HIA negotiated with the GRA, which enabled GA HIA to purchase approximately 1.7 acres from the GRA for less than the fair-market value of the land, GA HIA and the GRA entered into a Development Agreement, a Parking Agreement, and a Facilities Use Agreement. The Development Agreement required GA HIA to develop and construct the BBP GA and BBST GA venues according to a detailed construction schedule and in conformance with the architectural renderings and budget submitted when GA HIA applied for funding through the City of Gainesville’s tax-allocation district redevelopment program (the “TAD Program”), to provide the City of Gainesville with construction and interim-progress reports, to satisfy various other reporting requirements related to GA HIA’s development of the venues, and to maintain the BBP GA and BBST GA properties in good repair and operating condition. GA HIA applied for and was approved to receive approximately $1.9 million in funding under the TAD Program, which is payable by the City of Gainesville in the form of reimbursement for costs incurred by GA HIA over up to a 15-year period. GA HIA’s eligibility to receive any TAD Program funding is conditioned on its maintenance of the property as a tourism attraction used for the operation of a restaurant and entertainment venue. GA HIA’s breach of the Development Agreement could result in the Development Agreement being terminated, GA HIA having to return all of the funds received from the GRA, the GRA pursuing injunctive relief against GA HIA, or GA HIA incurring other penalties to remedy any harm suffered by the City of Gainesville.

Pursuant to the Facilities Use Agreement, GA HIA’s use of the BBP GA venue is partially restricted by the City of Gainesville’s rights to use the venue up to seven Sundays and five weekdays per calendar year for any city-sponsored event. GA HIA must provide the City of Gainesville with access to a shared event calendar, and upon at least 45 days’ notice, the City of Gainesville can reserve any unreserved date on the calendar. In turn, the City of Gainesville is required to use GA HIA as its exclusive vendor for all food, beverage, catering, hospitality, and related services at events hosted at BBP GA.

Similarly, pursuant to the Parking Agreement entered into by GA HIA and the City of Gainesville, GA HIA was given certain rights to use a city-controlled park adjacent to the BBP GA and BBST GA venues for purposes of additional event parking up to sixteen times per year without charge. However, GA HIA’s parking rights are expressly subject to the priority and exclusive parking rights of the Gainesville Arts Council, which has the right to use the park up to sixteen times per year when parking is needed for Arts Council events.

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Public-Private Partnership in Broken Arrow, Oklahoma

In October 2023, Sunset BA, a subsidiary that Venu currently owns a majority equity interest in but anticipates owning a minority equity interest in, and that Venu currently exercises and will continue to exercise total voting control over, entered into an Economic Development Agreement with the City of Broken Arrow, Oklahoma (“Broken Arrow”) and the Broken Arrow EDA with the intent to develop The Sunset BA, a 12,500-capacity amphitheater that will be constructed on approximately 13 acres of land adjacent to the 165-acre Broken Arrow Events Park. The Economic Development Agreement required the approval of the Broken Arrow City Council. To incentivize Sunset BA to enter into the public-private partnership, Broken Arrow agreed to sell at least 13 acres but up to 20 acres of land to Sunset BA at a price of $38,462 per acre. Additionally, Broken Arrow committed approximately 30 acres of land from the adjacent Event Park to be used for parking and infrastructure needs for The Sunset BA and agreed to make $17.81 million in capital improvements to the Events Park infrastructure (the “Project Improvements”), which will be funded using TIF Bonds issued by the Broken Arrow EDA that will be paid using a portion of the sales and use tax, hotel tax, and other tax revenues that comprise the Tax Increment generated within the Increment District established by Broken Arrow.

In exchange for the financial incentives that Sunset BA is receiving under its public-private partnership with Broken Arrow, the Economic Development Agreement imposes various obligations and restrictions on Sunset BA’s ownership and development of the land it is acquiring from Broken Arrow. Under the terms of the original Economic Development Agreement, certain mutual conditions precedent were required to be completed by the parties by January 31, 2024 (the “Conditions Precedent Deadline”), but the Conditions Precedent Deadline was extended to June 30, 2024, through a series of amendments to the original Economic Development Agreement, including a First Amendment dated January 31, 2024, a Second Amendment dated February 21, 2024, a Third Amendment dated March 5, 2024 (the changes under which were unrelated to the extension of the Conditions Precedent Deadline), and a Fourth Amendment dated March 5, 2024. All of the mutual conditions precedent have been satisfied. Pursuant to the Purchase and Sales Agreement between Sunset BA and Broken Arrow, dated March 6, 2024, the closing of the sale was originally set to occur on April 10, 2024. However, the closing date was subsequently extended and Venu closed on the property on May 23, 2024.

Additionally, Sunset BA is required to: (i) make a minimum capital investment of $70 million towards the development of The Sunset BA; (ii) host a minimum of 45 scheduled events per calendar year; (iii) provide the Broken Arrow with periodic updates to The Sunset BA’s site plan and design documents; (iv) construct and maintain The Sunset BA in accordance with standards applicable to a first-class entertainment venue; (v) charge an additional 1% special assessment on all taxable sales directly associated with The Sunset BA venue; and (vi) provide Broken Arrow with monthly consolidated reports listing taxable transactions (such as ticket sales, concessions, and merchandise sales) completed by Sunset BA and/or its contract vendors. Furthermore, Sunset BA is required to complete its construction of The Sunset BA amphitheater by December 31, 2025, subject to the timely completion of all obligations owed by Broken Arrow and the Broken Arrow EDA. If Sunset BA fails to timely construct The Sunset BA amphitheater, it must pay Broken Arrow a fee of $10,000 per month for each month that the venue remains unfinished.

Sunset BA also faces certain risks related to the completion of the Project Improvements that Broken Arrow agreed to make. The costs of the Project Improvements will be funded using TIF Bonds issued by the Broken Arrow EDA. The payment of the TIF Bonds directly depends on Sunset BA’s success in developing and operating the Broken Arrow Amphitheater in a manner that generates sufficient Tax Increment revenue. Accordingly, Sunset BA agreed to timely remit, and to use commercially reasonable efforts to make its contractors timely remit, all legally required ad valorem and sales taxes. If Sunset BA fails to operate the Broken Arrow Amphitheater in a manner that generates sufficient Tax Increment revenue to pay the TIF Bonds, Broken Arrow would be unable to pay for the Project Improvements, and Sunset BA would not receive the benefit of one of the material financial incentives that induced its entry into the public-private partnership.

Public-Private Partnership in McKinney, Texas

In March 2024, Venu formed a public-private partnership with the City of McKinney, Texas (“McKinney”) with plans to construct The Sunset McKinney, a 20,000 seat, open-air amphitheater and entertainment complex. Pursuant to the Chapter 380, Grant, and Development Agreement that Venu entered into with McKinney, the MEDC, and the McKinney Community Development Corporation on April 16, 2024, Venu will construct The McKinney Complex on a 46-acre tract (the “McKinney Tract”) that MEDC has agreed to sell to Venu for an aggregate purchase price of $35,000,000 to be paid at the closing of the sale at Venu’s option either (i) in full, in cash, or (ii) with $10,000,000 paid in cash (the “McKinney Cash Payment”) and $25,000,000 represented by a secured promissory note to MEDC (the “McKinney Note”), which will bear no interest, be subject to prepayment without penalty, be secured by a Deed of Trust conveying a first-priority lien on the McKinney Tract (the “McKinney Deed of Trust”), and be personally guaranteed by our Chairman and a third party shareholder (such guaranty, the “McKinney Guaranty”). Closing must occur within 30 days after the entitlement of the McKinney Property (the “Entitlement Date”), which will occur on (i) the date Venu receives a Grading Only Permit if Venu’s application for such permit is submitted by December 12, 2024, (ii) December 15, 2024 if Venu has not submitted its Grading Only Permit application by December 12, 2024, or (iii) the date McKinney approves Venu’s Grading Only Permit if Venu submits the application for such permit but it has not been approved by McKinney by December 12, 2024.

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If Venu determined that the McKinney Property was not suitable for The Sunset McKinney’s construction, Venu had the right to terminate the McKinney Development Agreement by delivering written notice to the McKinney Parties on or before July 15, 2024. Thereafter, Venu’s failure to purchase the McKinney Property would constitute an event of default.

On October 15, 2024, the parties amended the Chapter 380, Grant, and Development Agreement to, among other things: (i) eliminate the “Letter of Credit” payment concept and instead provide for payment of the McKinney Purchase Price either fully in cash or with a combination of the $10,000,000 McKinney Cash Payment and the $25,000,000 McKinney Note, to be secured by the McKinney Deed of Trust and personally guaranteed by the McKinney Guaranty; (ii) require MEDC, if not paid fully in cash, to invest the McKinney Cash Payment in a public investment pool or other investment instrument, which will initially accrue interest at a rate of 4.75% (such interest, the “Accrued Interest”), all of which MEDC must pay to Venu until the earlier of December 15, 2027, the date the McKinney Cash Payment has been reimbursed to Venu, or the date the McKinney Cash Payment has been retained by MEDC following a default under the agreement by Venu; (iii) require Venu to repay all Accrued Interest to MEDC through a temporary adjustment to the ticket fee payable by Venu to MEDC; (iv) expand the list of permitted operators that Venu can enter into the required Operator Agreement with; (v) require Venu to use reasonable efforts to acquire right-of-way or easements required to install qualified public infrastructure for the McKinney Complex; and (vi) require Venu to modify its plans to construct The Sunset McKinney to include the construction of an enclosed stage, a sound-attenuating wall attached to the parking garage, sidewalks, an internal fire lane from the amphitheater, a barrier wall along the southern perimeter of the McKinney Complex, a redesigned “Owner’s Suite,” and an additional suite, as specified in the amended development plans.

One of the primary financial incentives offered to Venu through its public-private partnership with the McKinney Parties is the potential reimbursement of the McKinney Purchase Price that Venu must pay for the McKinney Property. If Venu receives a Temporary Certificate of Occupancy (a “TCO”) within the 36-month period following the Entitlement Date, or if Venu receives a Certificate of Occupancy (a “CO”) if it has not received a TCO within 36 months from the Entitlement Date, then within 30 days of Venu’s receipt of the TCO or the CO, MEDC will reimburse Venu for the McKinney Purchase Price, and Venu and the guarantors will be released from their respective obligations under the McKinney Note, the McKinney Deed of Trust, and the McKinney Guaranty. If Venu meets the conditions for reimbursement and paid the McKinney Purchase Price through a combination of cash, a promissory note, a deed of trust, and personal guaranties, then MEDC will reimburse Venu for the McKinney Cash Payment and will release Venu and the personal guarantors from their respective obligations under the McKinney Note, the McKinney Deed of Trust, and the McKinney Guaranty. If Venu fails to receive a TCO and to begin operations within 36 months from the Entitlement Date, Venu may still be reimbursed for the McKinney Purchase Price, but such reimbursement will be reduced by liquidated damages of $5,000 per day, which will accrue until Venu receives a TCO.

Venu is subject to a robust list of deadlines under the McKinney Development Agreement, pursuant to which Venu was obligated, among other things, to: (i) conduct a site plan and submit it to McKinney within 120 days of March 6, 2024; (ii) conduct a noise study and final traffic study of the McKinney Complex ingress and egress not less than one month before any public meetings regarding the required site plan for the McKinney Complex; (iii) submit the Preliminary Base Complex Plan (as defined in the Development Agreement) by July 15, 2024; (iv) provide McKinney with a financing plan, including projected sources and uses for financing proceeds, by September 1, 2024; (v) submit the Final Base Complex Plan (as defined in the Development Agreement) by December 15, 2024; (vi) enter into a fully executed, binding Operator Agreement, which must have a term of at least ten years with two, five-year renewals exercisable by and at the option of Venu, by December 15, 2024; (vii) receive a TCO and begin operations within 36 months from the Entitlement Date; and (viii) receive a CO within 42 months from the Entitlement Date.

As part of their public-private partnership, Venu and McKinney must prepare and adhere to a Complex Budget, which budgets the total costs of developing the McKinney Property and constructing the McKinney Complex. The anticipated Complex Budget is $220,000,000, subject to any increase or decrease in Venu’s sole discretion, provided that the McKinney Complex Budget cannot be reduced below $200,000,000 without McKinney’s consent. Venu is responsible for securing its portion of the McKinney Complex Budget required for the planning, development, and construction of the McKinney Complex and all Project Improvements. Venu will be responsible for the payment of any Cost Overruns in excess of the Complex Budget, provided that Cost Overruns will not include any excess costs and expenses that result from any acts, failures to act, or omissions of the McKinney Parties. Accordingly, any additional costs that result from Venu’s failure to adhere to the Project Construction Timeline would be borne by Venu.

Venu also must adhere to the Project Construction Schedule, the initial version of which is attached as Exhibit E to the Development Agreement, which specifies various timing expectations for steps in the construction process of The Sunset McKinney. Throughout the construction timeline, Venu must meet monthly with representatives of the McKinney Parties and other contractors to discuss the status of Venu’s efforts to comply with the foregoing conditions and must provide written monthly reports to a representative of McKinney regarding the status of Venu’s construction of the McKinney Complex and any material changes to the Project Construction Schedule or the Complex Budget.

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Once construction of the McKinney Complex is complete, Venu is required to present at least 45 commercial events per year at The Sunset McKinney amphitheater. Venu or its operator must pay McKinney a ticket fee equal to $1.00 per manifested ticket sold (the “Ticket Fee”), subject to adjustment as set forth in the First Amendment to the Chapter 380, Grant, and Development Agreement. If Venu hosts at least 45 commercial events annually, with a paid attendance of at least 400,000 manifested tickets annually, McKinney or a related party will pay Venu the list of financial incentives and contributions set forth in Section 9.8 of the Development Agreement (the “McKinney Incentives”), almost all of which will not be paid, and will be subject to repayment through subsequent-year reductions, in any year in which less than 45 commercial events are held. Accordingly, Venu faces the risk that it will not receive the material financial incentives that partly induced its entry into the public-private partnership with McKinney if it fails to meet the 45-event requirement each year.

If Venu fails to meet the foregoing deadlines, and there are no reasonable excuses for the delays, the McKinney Parties can exercise various remedies set forth in the Development Agreement. Depending on the cause of Venu’s breach, certain remedies that are exercisable by McKinney may result in Venu becoming ineligible to receive, or receiving a reduced amount, of McKinney Incentives. Upon the occurrence of any of the events listed below (an “Event of Default”), Venu will be subject to the penalties described with respect to each Event of Default:

| (i) | If Venu fails to acquire the McKinney Property and to pay the McKinney Purchase Price, the McKinney Parties may terminate the Development Agreement, and Venu must pay $250,000 to the McKinney Parties.
| (ii) | If Venu fails to enter into an Operator Agreement by December 15, 2024, Venu will become ineligible to receive any of the McKinney Incentives.
| (iii) | If Venu fails to obtain a TCO within 36 months from the Entitlement Date, Venu will become ineligible to receive any of the McKinney Incentives other than the reimbursement of the McKinney Purchase Price, subject to such reimbursement being reduced by $5,000 per day until Venu obtains a TCO.
| (iv) | If Venu fails to obtain a CO within 42 months from the Entitlement Date, then until Venu obtains a CO, Venu will be ineligible to receive any of the McKinney Incentives, other than the reimbursement of the McKinney Purchase Price, and Venu will be required to pay liquidated damages in the amount of $5,000 per day in the form of a reduction to, at the McKinney Parties’ option, one or more of the McKinney Incentives, which damages will accrue until Venu obtains a CO.
| (v) | If Venu becomes bankrupt, insolvent, subject to involuntary dissolution, subject to an assignment of all or substantially all of its assets for the benefit of creditors, or subject to similar actions involving bankruptcy or creditors’ rights described in the Development Agreement, the McKinney Parties may terminate the Development Agreement, Venu will become ineligible to receive any additional McKinney Incentives, and if Venu has already purchased the McKinney Property but has not been reimbursed for the McKinney Purchase Price by MEDC, then MEDC will retain the McKinney Purchase Price, including any amount of the McKinney Purchase Price already paid to MEDC, and may exercise any remedies provided by the McKinney Deed of Trust, Development Documents (as defined in the McKinney Deed of Trust), or applicable law.
| (vi) | If Venu breaches the Development Agreement by failing to keep, observe, or perform any of the terms, covenants, or agreements that it is required to keep, observe, or perform under the Development Agreement (other than those referred to in clauses (i) through (v) above), and fails to cure such breach within the time periods specified in Section 23.1.1(e) of the Development Agreement, then Venu must pay liquidated damages in the amount of $5,000 per day in the form of a reduction to, at the McKinney Parties’ option, one or more of the McKinney Incentives, which damages will accrue from the date Venu is notified of its default until Venu has cured such default; provided, that if such default is not cured within 180 days, Venu will thereafter not be entitled to receive any McKinney Incentives.

While Venu’s public-private partnership with McKinney gives Venu the potential to receive several material financial incentives, Venu may forfeit those incentives or received reduced incentives if it fails to comply with the various deadlines and expectations set forth in the Development Agreement. Any reduction or forfeiture of the McKinney Incentives would result in Venu paying for more of the costs of purchasing the McKinney Property and constructing the McKinney Complex than it anticipated when it entered the Development Agreement with the McKinney Parties.

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Public-Private Partnership in El Paso, Texas

On April 30, 2024, Venu executed a non-binding term sheet with the City of El Paso, Texas, which was approved by the El Paso City Council by a vote of 6-1. The term sheet defined a more detailed, negotiated Chapter 380 Economic Development Agreement and Purchase and Sale Agreement (the “El Paso Definitive Agreements”) between Venu and the City of El Paso. The El Paso Definitive Agreements were executed in June and July 2024, pursuant to which a public-private partnership was established between Venu and the City of El Paso. The Chapter 380 Economic Development Agreement defines the terms for the construction of The Sunset El Paso, a 12,500-person amphitheater to be developed by Venu. Pursuant to the El Paso Definitive Agreements, the City of El Paso will provide various financial incentives to Venu, including the conveyance of approximately 17 acres for the site location on the terms set forth in the Purchase and Sale Agreement, the guarantee and/or funding of all parking facilities, the waiver of all fees for the building permits and inspections required to develop The Sunset El Paso, and the provision of annual rebates on real and business personal property, sales and use, and mixed beverage taxes over up to a 20-year rebate period as part of an incentives package that will total approximately $30.9 million. Additionally, the City of El Paso expects to contribute $8 million in cash towards construction of the amphitheater via an eight-year, zero-interest, forgivable promissory note, which will be forgiven if Venu completes construction of The Sunset El Paso within 36 months from Entitlement and hosts a minimum of 25 events per year in years 3-5 of the rebate period. The Purchase and Sale Agreement was amended in August and October 2024 to extend Venu’s inspection period of the approximately 17-acre property to be acquired from the City of El Paso, ultimately to December 31, 2024.

As part of its proposed public-private partnership with El Paso and in exchange for El Paso’s incentives package, Venu must, among other obligations: (i) invest at least $80 million in the acquisition, development, carrying costs, construction, and business personal property costs associated with developing The Sunset El Paso; (ii) commence construction of The Sunset El Paso within 90 days following Entitlement; (iii) obtain a Temporary Certificate of Occupancy no later than 36 months after Entitlement; (iv) secure a venue operator to operate the amphitheater for a 10-year term with two, five-year extensions prior to obtaining a Certificate of Occupancy; and (v) host a minimum of 40 events per year. If Venu defaults under the terms of the term sheet or the Definitive El Paso Agreements and fails to timely cure such defaults, Venu must repay any rebates it received from El Paso pursuant to a recapture schedule to be defined in the Chapter 380 Economic Development Agreement.

Competition

The following factors contribute to the competitive environment that Venu faces in the live-entertainment and hospitality industry:

| ● | Within the live-entertainment and hospitality industry, Venu will compete against other live-music venues in the states in which Venu has expanded or plans to expand to, such as the Red Rocks Amphitheater in Morrison, Colorado, and the Toyota Music Factory near the DFW area of Texas.
| ● | The offerings in the live-entertainment and hospitality space are diverse. Not only does Venu compete against other music venues for bookings and ticket sales, Venu also competes against companies that offer other forms of media and entertainment, including sporting events, music festivals, theaters, and other live-entertainment venues.
| ● | Despite general trends indicating that consumers are willing to spend high-dollar prices to see their favorite artists perform live, many Americans are cutting back on their entertainment spending due to recessionary fears and exorbitant, inflationary costs.
| ● | Many of Venu’s planned venues are a drivable, though less convenient, distance from larger cities that commonly attract big names in entertainment, which could create an oversaturation of entertainment offerings and make it more difficult for Venu to route those artists to its venues. With an assortment of venue options, touring acts may be more inclined to perform at older, more established venues despite the updated features and amenities that Venu’s venues offer.
| ● | Given that Venu is less than a decade old, it may not have the brand recognition that other venues do, which could make it difficult to break into new markets. Venu may also have difficulty competing against larger companies that can allocate greater resources to marketing, technical operations, and brand recognition than Venus can.

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| ● | Venu operates in an industry that is affected by seasonality. The industry is frequently affected by external factors that are beyond Venu’s control but that may challenge Venu’s ability to operate, compete, and remain profitable. Those external factors may include weather incidents, natural disasters, geopolitical events, or public-health risks, all of which could lower attendance at Venu’s venues or disrupt Venu’s concert lineup.

Despite those factors, Venu believes it can compete in the live-entertainment and hospitality.

Venu’s approach to market expansion is subject to regimented criteria and a methodical site-selection plan for developing new properties and establishing itself in new markets. Venu only enters a new market that it believes it is relatively barren of other live-entertainment offerings or venues that would compete against Venu. Venu also seeks markets that its management team or real-estate leads have ties to, which facilitates Venu’s ability to raise capital and build relationships within the communities it is expanding in. For more information on Venu’s site-selection process and expansion strategy, see “Venu’s Mission and Strategy — Site-Selection Strategy.”

Additionally, even where there are existing live-music and entertainment venues in the general vicinity of where Venu plans to expand to, part of what is expected to attract audiences to Venu’s venues is that they are newly designed and updated venues with modern, premium features that older venues do not deliver.

Lastly, management believes that the strategic partnerships that Venu enters into give it a competitive edge. Venu partners with both public municipalities and other companies. By partnering with local governments that see the long-term value of Venu’s entertainment assets and choose to invest local resources into the construction and development of Venu’s venues, Venu positions itself as a potential top entertainment competitor within the local market. Through its private partnerships with other companies, Venu seeks to ensure that its venues are operated as efficiently and effectively as possible. This is demonstrated, for example, by Venu’s strategic partnership with AEG to operate Ford Amphitheater in Colorado Springs, Colorado.

Government Regulations

Venu is subject to an array of federal, state, and local laws. As part of the entertainment and hospitality industry, Venu is subject to substantial governmental and regulatory oversight. The laws and regulations that Venu is subject to govern matters such as:

| ● | Zoning and land use, which dictates where Venu can build venues, how its venues can be used, and what types of events can be hosted in them;
| ● | Infrastructure and safety standards, which require Venu to comply with building codes that ensure the soundness of the design, construction, and structural integrity of Venu’s venues and protect the public health and safety of Venu’s occupants by setting occupancy limits and imposing fire-safety standards;
| ● | Noise levels, which require Venu to comply with local noise ordinances to minimize disruptions to neighborhoods and businesses in close proximity of Venu’s live-music venues;
| ● | Labor and employment practices, which require Venu to adhere to labor laws regarding wages, work hours, working conditions, employee rights, and workplace safety;
| ● | Alcohol sales, service, and consumption, which regulate the licenses of each of Venu’s venues to serve alcohol, impose age restrictions for alcohol consumption, and ensure Venu upholds responsible alcohol-service standards;
| ● | Intellectual-property rights, which Venu must respect when booking, marketing, and hosting live-music concerts and when entering into sponsorship agreements with various companies and brands;
| ● | Privacy rights, which require Venu to protect sensitive and personal information collected from its customers or artists at its venues;

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| ● | Bribery and corruption, including the Unites States Foreign Corrupt Practices Act, which prohibits Venu and is agents and intermediaries from illegally paying, promising to pay, or receiving money or anything of value to or from any government or foreign public official for the purpose of directly or indirectly obtaining or retaining business;
| ● | Health and sanitation, which establish standards for the cleanliness and sanitariness of Venu’s restaurants and venues and require Venu to implement various precautionary measures to mitigate the spread of infectious diseases;
| ● | Food and beverage service operations, which govern Venu’s handling, preparation, and service of food and drinks, the hygiene of Venu’s food-handling personnel, Venu’s upholding of various food-safety regulations, and the cleanliness of Venu’s kitchen facilities;
| ● | Ticketing practices, which regulate Venu’s compliance with laws concerning primary ticket sales, ticketing resale services in secondary ticket markets, pricing and refunds, pricing transparency, scalping practices, and imposing ticket-related fees;
| ● | Venue accessibility, which requires Venu to comply with the Americans with Disabilities Act of 1990 and other laws or regulations concerning accessibility;
| ● | Environmental protection, which govern Venu’s use of materials when designing and constructing venues and impose requirements related to energy efficiency, waste management, and pollution control; and
| ● | Marketing activities, which limit Venu’s telephone and online marketing practices.

Venu believes that it is materially in compliance with all of the rules, laws, and regulations that it is subject to. From time to time, federal, state, and local authorities or individuals may commence investigations, inquiries, or litigation with respect to Venu’s compliance with applicable consumer protection, environmental, advertising, unfair business practice, antitrust (and similar or related laws) and other laws, particularly as related to noise levels, venue construction and development, and primary and secondary ticketing sales and services.

Employees and Human Capital

As of October 31, 2024, Venu has 37 full-time employees and 188 part-time employees. Venu’s compensation philosophy focuses on attracting and retaining top talent who contribute to its mission of revolutionizing the entertainment and hospitality industry, providing world-class service, and delivering exceptional entertainment experiences. Venu is able to accomplish its compensation philosophy by offering incentive-compensation awards to employees, consultants, or directors who are designated by the Board or its committees under the Company’s Amended and Restated 2023 Omnibus Incentive Compensation Plan or other forms of equity compensation warrants. Incentive-compensation awards can consist of compensatory warrants (issued outside of our Incentive Compensation Plan), incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards. In addition, prior to the adoption of our Incentive Compensation Plan, Venu historically has granted compensatory warrants to employees and service providers.

Venu anticipates increasing hiring activity as it continues to expand to new markets and open new venues.

Legal Proceedings

Venu from time to time may be become a party to legal proceedings in the ordinary course of its business.

On September 26, 2023, a neighborhood association and an individual filed a complaint against Venu, Notes Live Real Estate, LLC, and the City of Colorado Springs, Colorado, seeking to enjoin Venu’s construction and operation of Ford Amphitheater based on allegations that the venue would emit “unlawful noise pollution” in violation of state law, thereby harming residents in the neighborhood near the property where Ford Amphitheater is being constructed. Venu filed a motion to dismiss the lawsuit based on its belief that it had complied with all applicable codes and procedures required to obtain the City of Colorado Spring’s approval to construct Ford Amphitheater. On January 10, 2024, the El Paso County District Court dismissed the lawsuit. The plaintiffs filed a notice of appeal, and the parties had oral arguments before the Colorado Court of Appeals on September 3, 2024. On September 12, 2024, the Colorado Court of Appeals affirmed the dismissal of all claims against Venu. See Northside Neighbors Assoc. v. Notes Live, No. 2023CV31839 (El Paso Cnty. Dist. Ct. Jan. 10, 2024), dismissed; Colorado Court of Appeals Case No. 2024 CA 0072, dismissed.

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Intellectual Property Portfolio

Venu filed an application to trademark the name “Notes Live” with the U.S. Patent and Trademark Office (“USPTO”) on April 14, 2022, which it revised on March 7, 2023. The USPTO registered the trademark on August 8, 2023 (Registration No. 7130383).

Venu filed an application (U.S. Serial No. 97759523) to trademark the name “Sunset Amphitheater” with the USPTO on January 18, 2023. The USPTO published the pending trademark application for opposition on January 23, 2024, which allows the public the opportunity to oppose the trademark’s registration. The USPTO issued Venu a Notice of Allowance on March 19, 2024, and Venu was required to file a Statement of Use or an Extension Request within six months of that date, but filed for an extension related to that obligation. The status of this trademark application is still pending.

Hospitality Income & Asset, LLC (“HIA”), which is a majority-owned subsidiary of Venu, filed an application to trademark the name “Bourbon Brothers” with the USPTO on February 23, 2013, which was registered by the USPTO on September 30, 2014 (Registration No. 4614527).

Venu also registered three trade names with the Colorado Secretary of State by filing a Statement of Trade Name of a Reporting Entity on: (1) February 19, 2019 (File No. 20191101304) for “Boot Barn Hall at Bourbon Brothers,” a trade name for Bourbon Brothers Presents, LLC; (2) August 8, 2022 (File No. 20221772018) for “Notes,” a trade name for 13141 Notes LLC; and (3) May 29, 2024 for “VENU Holding Corporation,” a trade name for our former Company name, Notes Live, Inc.

In June 2024, Venu filed seven additional trademark applications with the USPTO to register the following trademarks:

| ● | BUY IN. ROCK ON., Application No. 98/585,965, filed on June 5, 2024;
| ● | BUY THE STOCK THAT ROCKS, Application No. 98/585,902, filed on June 5, 2024;
| ● | INVEST IN THE STOCK THAT ROCKS, Application No. 98/585,955, filed on June 5, 2024;
| ● | OWN THE STOCK THAT ROCKS, Application No. 98/585,964, filed on June 5, 2024;
| ● | FAN FOUNDED. FAN OWNED., Application No. 98/587,942, filed on June 6, 2024;
| ● | STOCK THAT ROCKS, Application No. 98/585,953, filed on June 6, 2024; and
| ● | VENU, Application No. 98/605,958, filed on June 18, 2024.

On July 2, 2024, Venu filed the following four Statements of Trademark Registration of a Reporting Entity with the Colorado Secretary of State to register the trademark “VENU” in four classes: (i) File No. 20241713474 (Class No. 016); File No. 20241713521 (Class No. 036); File No. 20241713551 (Class No. 037); and File No. 20241713564 (Class No. 041).

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MANAGEMENT

The Company’s executive officers, directors, significant employees, and advisory board members as of November 27, 2024 are listed below, all of whom are expected to continue serving in their current positions following the completion of this offering.

Executive Officers and Board of Directors

Name |  | Age |  | Position |  | Director Since
Executive Officers
JW Roth |  | 60 |  | Chairman and Chief Executive Officer |  | April 2021
William Hodgson |  | 50 |  | President |  | -
Heather Atkinson |  | 47 |  | Chief Financial Officer and Director |  | April 2021
Robert Mudd |  | 54 |  | Senior Vice President of Construction and Market Expansion |  | -
Non-Employee Directors
Chad Hennings |  | 58 |  | Director |  | January 2023
Steve Cominsky |  | 54 |  | Director |  | April 2021
Matt Craddock |  | 53 |  | Director |  | March 2023
David Lavigne |  | 63 |  | Director |  | December 2023
Mitchell Roth |  | 35 |  | Director |  | April 2021

Biographical Information

Executive Officers

JW Roth, a fifth-generation Colorado native, is the founder, Chairman, and Chief Executive Officer of Venu. Mr. Roth has been with the Company since its inception in May 2021 in his current role of founder and CEO. Mr. Roth became Chairman of the Company’s Board of Directors upon the Board’s inception on April 5, 2021. Mr. Roth is also the co-founder and Chairman of Roth Industries, LLC, an 85-ton-per-week prepared foods plant located in Colorado Springs, Colorado. Additionally, Mr. Roth is the sole manager and 50% shareholder of Centennial Standard Real Estate Company, LLC and co-manager of Touch 4 Partners, LLC, a venture capital investment fund. With more than 30 years of private and public company experience, Mr. Roth has been actively involved in helping take several companies public, including Aspen Bio, Inc. and Where Food Comes From Inc. Mr. Roth has been featured in such publications as The Wall Street Journal, Fortune Magazine, Venues Now, The New York Times, and more than 50 business journals throughout the United States. He has made multiple appearances on CNBC and Bloomberg Television and was named on the VenuesNow 2022 All-Stars list.

William Hodgson is the President of Venu, a position he has held since October 2024. Mr. Hodgson has extensive experience in the live music industry, spanning over 20 years. Prior to joining Venu, Mr. Hodgson worked at Live Nation Entertainment, Inc. (NYSE: LYV), a leading entertainment company, where he held various positions over more than 13 years, including as General Manager of venues in three states from August 2011 through February 2018, Regional General Manager of the West from February 2018 through May 2021, overseeing all of Live Nation’s House of Blues operations for the western region of the United States, and most recently as the Head of House of Blues Entertainment from May 2021 through October 2024, where he was responsible for the vision, brand direction, strategic growth, and overall operations of Live Nation’s House of Blues and Brooklyn Bowl divisions. Mr. Hodgson received a Bachelor of Arts in Economics from Wake Forest University, which he applied to various roles in investment banking, finance, and operations prior to entering the concert and hospitality industry.

Heather Atkinson has been the Chief Financial Officer, Secretary, and Treasurer of Venu since its inception in March 2017. She began serving as a director of Venu in April 2021. She also currently serves as a director and Treasurer of Roth Industries, LLC. In addition to Mrs. Atkinson’s role with Venu and Roth Industries, she serves as the Treasurer to Hospitality Income & Asset, LLC and 13141 BP, LLC, which own real property and lease that property to certain of subsidiaries of Venu’s. Prior to joining Venu and Roth Industries, LLC Mrs. Atkinson served as the Controller, Secretary, and Treasurer of Accredited Members Acquisition Corporation (previously quoted under the symbol ACCM on the OTCBB) and its predecessor, Accredited Members Holding Corporation. Mrs. Atkinson has over 25 years of accounting, finance, and financial reporting experience in both public and private companies including consolidations, shareholder relations, SEC reporting, internal and external financial statement reporting, budgeting, cash forecasting, mergers and acquisitions, and restructuring and international accounting while working closely with outside audit and legal firms. She is a licensed CPA and holds a Bachelor of Science degree in Accounting from Evangel University.

Robert Mudd is the Senior Vice President of Construction and Market Expansion. Mr. Mudd previously served as the President and Chief Operating Officer of Venu from February 2024 through October 2024 and as Senior Vice President of Real Estate and Development for Venu from January 2023 through January 2024 where he oversaw the company’s real property acquisitions, entitlement process and related matters for the Company’s real estate portfolio and projects. Prior to serving as Senior Vice President of Real Estate and Development, from June 2021 until January 2023, he served as the Company’s Chief Operating Officer and President and also served as a director of the Company from June 2021 until January 2023. Prior to joining Venu, from June 2014 until June 2021, Mr. Mudd served as the President of Adventures in Missions an interdenominational missions organization focused on discipleship. Mr. Mudd has over 30 years of business and management experience and, in addition to his roles at Venu, he has served in a number of executive roles for organizations from start-ups to groups with a benevolent purpose. The first 15 years of his career were spent in the technology and telecommunications industry where he was President of Correctional Billing Services, Executive Vice President of Operations at Securus Technologies, LLC, COO of Evercom Systems, Inc., and COO of TDM, Inc. Mr. Mudd has a bachelor’s degree in education from the University of Louisville.

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Non-Employee Directors

Mitchell Roth has served as a director of Venu since April 2021. In addition, he has also worked for Venu in a part-time capacity as Strategy Consultant since April 2022. Mr. Roth has been affiliated with Roth Industries, LLC since 2015, and currently serves as its President and CEO. Roth Industries is a leading consumer packaged goods company, specializing in prepared foods, based in Colorado Springs, Colorado with distribution in more than 8,000 retail supermarkets nationwide, including Costco, Walmart, Kroger, and others. Mr. Roth is also a 50% owner of Centennial Standard Real Estate Company, LLC, a real estate development and investment company. Prior to his tenure with Roth Industries Mr. Roth worked in an operational and advisory capacity within various companies owned or invested in by the Roth family. From May 2013 until January 2014, Mr. Roth worked at the investment-banking firm Laidlaw and Company, Ltd. in New York City. Mr. Roth received a Bachelor of Science degree in Business Finance and Economics from Liberty University in Lynchburg, VA.

Steve Cominsky has served as director of Venu since April 2021. Mr. Cominsky has over 30 years of experience in food, beverage, and hospitality operations and management. Mr. Cominsky founded CC Management & Development Corp LLC (“CC Management”) in 2013 and has worked with CC Management since its inception. CC Management is a boutique consulting and development firm that focuses on the restaurant and bar industry, and provides a range of services related to operations and strategic planning, and the company has worked with multiple existing and startup concepts in the greater Denver market on matters such as concept vision and development, re-branding and operations oversight. Mr. Cominsky is also currently involved in the oversight and operations of the Social Bar & Lounge an upscale bar and cocktail lounge located in suburban Denver, and which he founded in 2018. Mr. Cominsky has a Bachelor of Arts in Economics from Bloomsburg University of Pennsylvania.

Matt Craddock has served as a director of Venu since March 2023. He currently serves as the CEO of Craddock Commercial Real Estate, LLC and as the President of Craddock Development Company, Inc., a full-service real estate company founded by his father. In those roles, Mr. Craddock directs and manages a portfolio of $125 million in real estate assets in Colorado and New Mexico on behalf of the family and their strategic partners. Mr. Craddock has served on a number of local, non-profit boards, including Junior Achievement, The Boy’s and Girl’s Club, and Discover Goodwill. Mr. Craddock has over 28 years of experience in commercial real estate finance, development, and operations. He is a licensed Broker in the State of Colorado and carries an EMS and CCIM designation. He holds a Bachelor of Arts degree in Humanities from Pepperdine University.

Chad Hennings has served as a director of Venu since January 2023. Since 2012, Mr. Hennings has been a Partner of Rubicon Representation LLC (“Rubicon”), and serves as its Chief Operating Officer. Rubicon is a boutique commercial real estate company based in Dallas, Texas that provides a variety of consulting services to tenants and developers, and also engages in real estate investing. Mr. Hennings holds a Texas real estate license and has over 15 years of experience in tenant representation and principal sales. Prior to his current role in Rubicon, Mr. Hennings played in the NFL and spent nine years as a member of the Dallas Cowboys before retiring in 2000. Prior to his NFL career Mr. Hennings served as a fighter pilot flying the A-10 Thunderbolt II aircraft. He flew 45 missions in Operation Provide Comfort in the First Gulf War. Mr. Hennings has authored three books on leadership and character development, and he is a frequent speaker to Fortune 500 companies. Mr. Hennings is a graduate of the United States Air Force Academy.

Dave Lavigne has served as a director of Venu since December 2023. Mr. Lavigne spent the first 17 years of his career in the financial and investment industry primarily employed by small regional sell-side broker dealers/investment bankers. During that period, Mr. Lavigne acted in various capacities, including National Sales, Chief Executive Officer and Head of Research roles, and he held a variety of securities licenses and certifications. In 2001, Mr. Lavigne left the sell-side to set up an independent subscription-based microcap research firm called Edgewater Research where he served as the lead analyst until 2010. Since that time, he has provided research in a similar format under two subsequent labels, including his current company Trickle Research which he founded in 2016, and has served as the firm’s senior analyst since its inception. Over his career, Mr. Lavigne has evaluated hundreds of small public and private enterprises across dozens of industries and has provided extensive individual fundamental research and associated valuation models on well over 100 of those names. In addition, he has published financial newsletters covering both microeconomic and macroeconomic issues. In conjunction with his research platforms, Mr. Lavigne has also conducted dozens of research conferences across the country focusing primarily on microcap issuers and the capital markets. He is currently a research contributor to both the FactSet and the Alpha-Sense platforms. Mr. Lavigne graduated from the University of Idaho in 1984 with a B.S. in Finance.

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Director Independence

Applicable NYSE American listing rules require that our Board be comprised of a majority of independent directors. Based upon information requested from and provided by each of our directors concerning his or her background, employment, and affiliations, including family relationships, Venu expects that our Board will determine that each of our directors, except JW Roth, Mitchell Roth, Heather Atkinson, and Chad Hennings will qualify as an “independent director” as defined under applicable NYSE American listing rules. In making such determination, the Board will consider the current and prior relationships that each director has with Venu and all other facts and circumstances that the Board deems relevant in determining the independence of each director, including the interests of each director in this offering, any relevant related-party transactions, and each director’s beneficial ownership of Venu capital stock. See the sections of this prospectus entitled “Certain Relationships and Related-Party Transactions” and “Principal Shareholders” for additional information.

In addition, NYSE American listing rules require that, subject to specified exceptions, each member of Venu’s Audit, Compensation, and Nominating and Corporate Governance Committees be independent under the Exchange Act. Audit Committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act, and Compensation Committee members must also satisfy the independence criteria set forth in Rule 10C-1 under the Exchange Act. Under applicable NYSE American listing rules, a director will only qualify as an “independent director” if, in the opinion of the Board, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered independent for purposes of Rule 10A-3, a member of the Audit Committee may not, other than in his or her capacity as a member of the Audit Committee, the Board, or any other committee of the Board, accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the Company or any of its subsidiaries or otherwise be an affiliated person of the Company or any of its subsidiaries. In order to be considered independent for purposes of Rule 10C-1, the Board must consider, for each member of the Compensation Committee, all factors specifically relevant to determining whether a director has a relationship to the Company that is material to that director’s ability to be independent from management in connection with the duties of a Compensation Committee member, including, but not limited to: (1) the source of compensation of the director, including any consulting, advisory, or other compensatory fee paid by the Company to the director; and (2) whether the director is affiliated with the Company or any of its subsidiaries or affiliates.

Family Relationships

JW Roth and Mitchell Roth are father and son. Except for such relationship between JW Roth and Mitchell Roth, there are no other family relationships among any of the Company’s directors or officers.

Board of Directors Composition

Our business and affairs are managed under the direction of our Board.

Current Board of Directors

Our Articles of Incorporation and Bylaws provide for the business and affairs of the Company to be managed by our Board and authorize the Board to fix from time to time the number of directors serving on the Board, provided that the Board must have at least one director. Our Board currently consists of seven directors, being JW Roth, Heather Atkinson, Chad Hennings, Steve Cominsky, Matt Craddock, David Lavigne, and Mitchell Roth.

Each director on our Board will continue to serve until such director’s successor is duly elected and qualified, or until such director’s earlier death, resignation, retirement, disqualification, or removal from the Board.

Role of our Board Committees in Risk Oversight

We face a number of risks, including those described under the section titled “Risk Factors” included in this prospectus. One of the key functions of our Board is informed oversight of our risk management process. The Board does not have a standing risk management committee but rather administers this oversight function directly through the Board as a whole, as well as through its standing committees. Upon completion of this offering, the committees of the Board will assist our full Board in risk oversight by addressing specific matters within the purview of each committee.

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In particular, our Board is responsible for monitoring and assessing strategic risk exposure. Our Audit Committee has the responsibility to consider and discuss our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. The Audit Committee also monitors compliance with legal and regulatory requirements, in addition to oversight of the performance of our external audit function. Our Nominating And Corporate Governance Committee oversees our corporate governance framework and monitors the effectiveness of our corporate governance guidelines. Our Compensation Committee assesses and monitors whether any of our compensation policies and programs have the potential to encourage excessive risk-taking. While each committee will be responsible for evaluating certain risks and overseeing the management of such risks, our full Board will be regularly informed of such risks through committee reports and otherwise.

While the Board oversees our risk management, management is responsible for day-to-day risk management processes. We believe this division of responsibilities enables us to address our risks most effectively.

Committees of the Board

Our Board has established an Audit Committee, a Compensation Committee, and a Nominating And Corporate Governance Committee, each operating pursuant to a charter adopted by our Board and having the composition and responsibilities described below. Upon the effectiveness of the registration statement of which this prospectus forms a part, the composition and functioning of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002 and with the rules and regulations of the NYSE American and the SEC. In addition, from time to time, other committees may be established under the direction of our Board to facilitate the management of our business or when necessary to address specific issues.

The members of each of our committees will serve on such committees for such term or terms as the Board may determine or until their earlier removal, resignation, or death. At least annually, each committee must review its charter and recommend any proposed changes to the Board for approval. Each committee must conduct an annual evaluation of its performance of the duties described in the committee’s charter and must present the results of the evaluation to the Board.

Audit Committee

Our Audit Committee consists of Dave Lavigne and Steve Cominsky. Our Board has determined that all members of our Audit Committee are independent in accordance with the requirements of Rule 10A-3 of the Exchange Act and the NYSE American listing standards. Our Board has also determined that Mr. Lavigne is the “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K. All members of our Audit Committee are financially literate, as determined by our Board, and can read and understand fundamental financial statements, including the Company’s balance sheet, income statement, and cash flow statement.

Our Audit Committee is primarily responsible for overseeing our financial reporting and disclosure process. Among other matters, our Audit Committee has or will have the following responsibilities:

| ● | selecting, retaining, compensating, overseeing, and determining the retention of an independent registered public accounting firm to audit the Company’s annual financial statements, books, records, accounts, and internal controls over financial reporting and any other registered public accounting firm engaged to prepare or issue an audit report or to perform other audit, review, or attest services for the Company;
| ● | approving all audit engagement fees and terms and pre-approving all audit and permitted non-audit and tax services that the Company’s independent auditors or other registered public accounting firms may provide;
| ● | establishing policies and procedures for pre-approving permitted services to be completed by the Company’s independent auditors or other registered public accounting firms on an ongoing basis;
| ● | reviewing and discussing the results of a report prepared by the Company’s independent auditors concerning the accounting firm’s internal quality-control procedures; any material issues raised by the most recent internal quality-control review, peer review, or review by the Public Company Accounting Oversight Board (the “PCAOB”); and all relationships between the firm and the Company or any of its subsidiaries;

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| ● | reviewing and discussing with the Company’s independent auditors and management the Company’s annual audited financial statements; the adequacy and effectiveness of the Company’s internal controls; and any other matters required to be discussed by the applicable requirements of the SEC the PCAOB;
| ● | evaluating the qualifications, performance, and independence of the Company’s independent auditors and assuring the regulator rotation of the lead audit partner;
| ● | reviewing and discussing with the Company’s independent auditors the responsibilities of the auditors under generally accepted auditing standards; the overall audit strategy; the scope and timing of the annual audit; any significant risks identified during the auditors’ risk-assessment procedures; and the results of the annual audit;
| ● | reviewing and discussing with the Company’s independent auditors all critical accounting policies and practices to be used in the audit; all alternative treatments of financial information within generally accepted accounting principles; and other material written communications between the auditors and management;
| ● | reviewing and discussing with the Company’s independent auditors and management any major issues regarding accounting principles and financial-statement presentation;
| ● | reviewing, approving, and overseeing any transaction between the Company and any related person (as defined in Item 404 of Regulation S-K) on an ongoing basis;
| ● | informing the Company’s independent auditors of the Company’s significant relationships and transactions with related parties and reviewing and discussing with the Company’s independent auditors the auditors’ evaluation of the Company’s identification of, accounting for, and disclosure of its related-party relationships and transactions;
| ● | recommending to the Board that the audited financial statements be included in the Company’s annual report on Form 10-K and producing the Audit Committee report required to be included in the Company’s proxy statement;
| ● | setting the Company’s hiring policies for employees or former employees of the Company’s independent auditors that participated in any capacity in any Company audit;
| ● | establishing and overseeing procedures for the receipt, retention, and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters;
| ● | monitoring the Company’s compliance with, investigating any alleged breach of, and enforcing the Company’s Code of Business Conduct and Ethics;
| ● | reviewing with the Company’s General Counsel and outside legal counsel any legal and regulatory matters that could impact the Company’s financial statements;
| ● | retaining and obtaining the advice and assistance of independent outside counsel and such other advisors as the Audit Committee deems necessary to fulfill its duties and responsibilities; and
| ● | reporting regularly to the Board on the Audit Committee’s discussion and actions, including any significant issues or concerns that arise at the Audit Committee meetings.

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Compensation Committee

Our Compensation Committee consists of Dave Lavigne and Matt Craddock. Our Board has determined that each member of our Compensation Committee is independent in accordance with the rules of the NYSE American and the Company’s independence guidelines. Our Compensation Committee carries out the responsibilities delegated by the Board relating to the review and determination of executive compensation. In addition to other matters, our Compensation Committee is or will be responsible for:

| ● | reviewing and approving annually the corporate goals and objectives applicable to the compensation of the chief executive officer (the “CEO”); evaluating the CEO’s performance in light of those goals and objectives; and determining and approving the CEO’s compensation level based on the Compensation Committee’s evaluation;
| ● | reviewing and approving the compensation of all of the Company’s other executive officers;
| ● | reviewing, making recommendations to the Board regarding, and administering the Company’s incentive-compensation plans and equity-based plans, including designating the recipients, amounts, and terms and conditions applicable to the awards to be granted under each plan;
| ● | reviewing and discussing with management the Company’s Compensation Discussion and Analysis (“CD&A”); recommending that the CD&A be included in the Company’s annual report on Form 10-K and proxy statement; and producing the Compensation Committee report on executive-officer compensation required to be included in the Company’s annual report on Form 10-K and proxy statement;
| ● | reviewing the Company’s incentive-compensation arrangements to assess whether they encourage excessive risk-taking and evaluating compensation policies and practices that could mitigate any such risk;
| ● | reviewing and discussing at least annually the relationship between compensation and risk-management policies and practices;
| ● | reviewing at least annually all director compensation and benefits for service on the Board and Board committees and recommending any changes to the Board as necessary;
| ● | selecting, retaining, and obtaining the advice of a compensation consultant, outside legal counsel, and any other advisors as deemed necessary by the Compensation Committee to assist with the Compensation Committee’s execution of its duties and responsibilities as set forth in its charter; and
| ● | reporting regularly to the Board regarding the Compensation Committee’s actions and making recommendations to the Board as appropriate.

Nominating and Corporate Governance Committee

Our Nominating and Corporate Governance Committee consists of Dave Lavigne, Steve Cominsky, and Matt Craddock. Our Board has determined that each member of our nominating and corporate governance committee is independent in accordance with the rules of the NYSE American. Our nominating and corporate governance committee functions to carry out the responsibilities delegated by the Board relating to the Company’s director-nominations process and the development and maintenance of the Company’s corporate-governance policies. Among other matters, the responsibilities of our nominating and corporate governance committee include:

| ● | identifying and screening individuals qualified to become members of the Board, consistent with Board-approved criteria;
| ● | making recommendations to the Board concerning the selection and approval of director-nominees to be submitted to a shareholder vote at the annual meeting of shareholders, subject to the Board’s approval;

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| ● | identifying and making recommendations to the Board regarding the selection and approval of candidates to fill any vacancy on the Board or any Board committee either by the shareholders’ election or the Board’s appointment;
| ● | developing and recommending to the Board for approval standards for determining whether a director has a relationship with the Company that would impair the director’s independence;
| ● | selecting, retaining, and obtaining the advice of a director-search firm, outside counsel, and any other advisors deemed necessary to assist with the nominating and corporate governance committee’s execution of its duties and responsibilities as set forth in its charter; and
| ● | reporting regularly to the Board regarding the nominating and corporate governance committee’s actions and making recommendations to the Board as appropriate.

Code of Ethics and Business Conduct

Upon the date of this prospectus, we will have adopted a code of ethics and business conduct applicable to our principal executive, financial, and accounting officers and all persons performing similar functions. Our code of conduct will be available on our principal corporate website at https://venu.live Information contained on our website or connected thereto does not constitute a part of, and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.

Limitations on Director and Officer Liability and Indemnification

Our Articles of Incorporation contain provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by the CBCA. Consequently, our directors will not be personally liable to us or our shareholders for monetary damages for any breach of fiduciary duties as directors, except liability for:

| ● | any breach of the director’s duty of loyalty to us or our shareholders;
| ● | any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; or
| ● | any transaction from which the director derived an improper personal benefit.

Our Bylaws require us to indemnify our directors and officers to the fullest extent permitted by the CBCA. Subject to certain limitations and exceptions, our Bylaws require us to advance expenses actually and reasonably incurred by our directors and officers for the defense of any action for which indemnification is required or permitted.

We believe that these indemnification provisions in our Governance Documents and any indemnification agreements are necessary to attract and retain qualified directors and officers. We also maintain directors’ and officers’ liability insurance. The limitation of liability and indemnification provisions in our Governance Documents may discourage shareholders from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other shareholders. Further, a shareholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions.

EXECUTIVE COMPENSATION

Venu is currently considered an “emerging growth company,” within the meaning of the Securities Act, for purposes of the SEC’s executive compensation disclosure rules. In accordance with such rules, Venu is required to provide a Summary Compensation Table and an Outstanding Equity Awards at Fiscal Year End Table, as well limited narrative disclosures regarding executive compensation. Further, Venu’s reporting obligations extend only to its “named executive officers” (our “NEOs”), meaning its principal executive officer and Venu’s next two most highly compensated executive officers in respect of their service to Venu at the end of the last completed fiscal year. Accordingly, our NEOs are:

| ● | JW Roth, our Founder, Chief Executive Officer, and Chairman;

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| ● | Heather Atkinson, our Chief Financial Officer; and
| ● | Robert Mudd, our former President and Chief Operating Officer who is now our Senior Vice President of Construction and Market Expansion.

Subsequent to year end December 31, 2023, on October 4, 2024, the Company appointed Mr. William Hodgson as its President, with Mr. Hodgson beginning in that role on October 21, 2024. Where relevant in the discussion below, the Company has included information regarding Mr. Hodgson’s employment with and compensation from the Company.

Summary Compensation Table

The following table sets out the compensation for our NEOs for the years ended December 31, 2023 and December 31, 2022:

Name and Principal Position |  | Year |  |  | Salary ($) |  |  | Bonus ($) |  |  | Option Awards(1) ($) |  |  | All Other Compensation ($)(2) |  |  | Total ($) |
JW Roth |  | 2023 |  |  | $ | 386,234 |  |  | $ | 6,609 |  |  | $ | 133,112 |  |  | $ | 49,660 |  |  | $ | 575,615 |
Chief Executive Officer and Chairman |  | 2022 |  |  | $ | 182,912 |  |  | $ | 5,239 |  |  | $ | 101,662 |  |  | $ | 25,900 |  |  | $ | 301,462 |
Heather Atkinson |  | 2023 |  |  | $ | 217,594 |  |  | $ | 6,609 |  |  | $ | 33,893 |  |  | $ | 43,367 |  |  | $ | 293,962 |
Chief Financial Officer, Secretary and Treasurer |  | 2022 |  |  | $ | 129,994 |  |  | $ | 5,912 |  |  | $ | 26,029 |  |  | $ | 20,393 |  |  | $ | 182,328 |
Robert Mudd(3) |  | 2023 |  |  | $ | 209,908 |  |  | $ | 6,742 |  |  | $ | 33,497 |  |  | $ | 30,213 |  |  | $ | 280,360 |
Former President and Chief Operating Officer |  | 2022 |  |  | $ | 198,356 |  |  | $ | 5,785 |  |  | $ | 25,633 |  |  | $ | 22,059 |  |  | $ | 251,834 |

(1) | Amounts do not reflect compensation actually received by the officer. Values in this this table tie to compensatory warrants that are exercisable at the option of the holder. The grant fair value number for the “options” is computed in accordance with FASB ASC Topic 718. The fair value assumptions used for purposes of the valuation is cited in Footnote 11-Warrants to the Venu 2023 financials.
(2) | Each executive officer receives a car allowance from Venu, with Mr. Roth receiving $19,009 in 2023 and $12,395 in 2022; Ms. Atkinson receiving $12,715 in 2023 and $6,888 in 2022; and Mr. Mudd receiving $7,061 in 2023. Other benefits included in the “All Other Compensation” column include medical insurance benefits paid by the Company on behalf of these employees. In addition, for Mr. Roth and Ms. Atkinson, the “All Other Compensation” column for 2023 includes $7,500, which each of them received in their capacities as members of the Board of Directors, and fees payable for the attendance of board meetings in person.
(3) | Mr. Mudd served as the President and COO of Venu from June 1, 2021 through December 31, 2022, and thereafter he continued in a non-NEO role as Senior Vice President of Real Estate and Development. He began serving as the President and COO again starting February 28, 2024. On October 4, 2024, the Company appointed William Hodgson as its President, replacing Mr. Mudd in that position effective October 21, 2024. On November 1, 2024, Mr. Mudd’s position changed to Senior Vice President of Construction and Market Expansion.

Narrative to the Summary Compensation Table

Base Salaries

Venu uses base salaries to recognize the experience, skills, knowledge, and responsibilities required of all its employees, including our NEOs. Base salaries are reviewed annually and adjusted from time to time in an effort to realign salaries with market levels after taking into account individual responsibilities, performance, and experience. The base salary of Mr. Roth during 2023 was increased to $400,000 in accordance with the terms of the employment agreement described below. Prior to entering into that agreement, Mr. Roth’s base salary was $270,000.

Ms. Atkinson’s base salary as of December 31, 2023 was $200,000, having been increased from $180,000 on July 24, 2023. Mr. Mudd’s current base salary as of December 31, 2023 was $200,000, having been increased from $180,000 on July 24, 2023. In connection with Mr. Mudd’s new position as Senior Vice President of Construction and Market Expansion, which took effect on November 1, 2024, Mr. Mudd’s base salary continues to be $200,000 per year.

In Mr. Hodgson’s newly appointed role as President of the Company, effective October 21, 2024, his annual base salary is $500,000.

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Annual Bonus/Non-Equity Incentive Compensation

To date, Venu has not awarded its NEOs annual incentive compensation based on the satisfaction of individual and corporate performance objectives established by the Board of Directors. However, executive officers are eligible to receive discretionary cash bonuses as determined by the Board of Directors based on the financial performance of the Company and each officer’s contributions to the Company as a whole. The Board of Directors awarded each of Venu’s NEO’s a discretionary cash bonus in 2023 and 2022.

Equity-Based Incentive Awards

Equity-based awards give our executives and key employees a stake in Venu’s long-term performance and viability, thereby motivating them to be top performers. Equity-based awards enable Venu to attract key talent, encourage executive retention, establish an ownership culture, facilitate the achievement of the Company’s goals, and align the interests of our executives and our shareholders.

Equity-based awards are given in the form of warrant compensation during the past two years. These warrants are based on the dollar equivalent of a cash bonus in the warrants full value and approved by the board of directors.

Retirement Plans

Venu established a defined contribution plan for all employees aged 21 and older who have completed six months of service for payrolls as of January 1, 2024. The Company makes a matching contribution of 100% on the first 5% contributed.

Employee Benefits

Venu’s NEOs are eligible to participate in employee benefit plans and programs, including medical and dental benefit plans.

Pension Benefits

Venu’s NEOs did not participate in, or earn any benefits under, any pension or retirement plan sponsored by the Company during the year ended December 31, 2023.

Nonqualified Deferred Compensation

Venu’s NEOs did not participate in, or earn any benefits under, any non-qualified deferred compensation plan sponsored by the Company during the year ended December 31, 2023.

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Outstanding Equity Awards as of December 31, 2023

The following table presents information regarding outstanding equity awards held by our NEOs as of December 31, 2023.

|  | Outstanding Equity Awards at Fiscal Year End
|  | Stock Awards |  |  |
|  | Grant Date |  | Expiration Date |  | Number of Securities Underlying Unexercised Options Exercisable (#)(1) |  |  | Number of Securities Underlying Unexercised Options Unexercisable (#)(1) |  |  | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |  |  | Option Exercise Price ($)(1) |
JW Roth |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensatory Warrants |  | 10/11/2022 |  | 10/11/2027 |  |  | 250,000 | (2) |  |  | — |  |  |  | — |  |  | $ | 3.00 |
Compensatory Warrants |  | 4/19/2022 |  | 4/19/2029 |  |  | 125,000 | (3) |  |  | 375,000 |  |  |  | — |  |  | $ | 2.00 |
Compensatory Warrants |  | 4/5/2021 |  | 4/5/2026 |  |  | 33,333 | (4) |  |  | 33,333 |  |  |  | — |  |  | $ | 0.12 |
Heather Atkinson |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensatory Warrants |  | 10/11/2022 |  | 10/11/2027 |  |  | 150,000 | (5) |  |  | — |  |  |  | — |  |  | $ | 3.00 |
Compensatory Warrants |  | 4/11/2022 |  | 4/11/2029 |  |  | 31,250 | (6) |  |  | 93,750 |  |  |  | — |  |  | $ | 2.00 |
Compensatory Warrants |  | 4/5/2021 |  | 4/5/2026 |  |  | 8,333 | (7) |  |  | 8,333 |  |  |  | — |  |  | $ | 0.60 |
Compensatory Warrants |  | 5/27/2020 |  | 5/27/2025 |  |  | 33,335 | (8) |  |  | — |  |  |  | — |  |  | $ | 1.20 |
Robert Mudd |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensatory Warrants |  | 10/11/2022 |  | 10/11/2027 |  |  | 205,000 | (9) |  |  | — |  |  |  | — |  |  | $ | 3.00 |
Compensatory Warrants |  | 10/28/2021 |  | 10/28/2026 |  |  | 25,000 | (10) |  |  | 37,500 |  |  |  | — |  |  | $ | 0.12 |
Compensatory Warrants |  | 4/11/2022 |  | 4/11/2029 |  |  | 31,250 | (11) |  |  | 93,750 |  |  |  | — |  |  | $ | 2.00 |
Compensatory Warrants |  | 4/5/2021 |  | 4/5/2026 |  |  | 8,333 | (12) |  |  | 8,333 |  |  |  | — |  |  | $ | 0.60 |

(1) | Numbers in this table tie to compensatory warrants that are exercisable at the option of the holder. The grant fair value number for the “options” is to be computed in accordance with FASB ASC Topic 718. The fair value assumptions used for purposes of the valuation is cited in Footnote 11-Warrants to the 2023 financials.
(2) | This warrant is exercisable in full and is scheduled to expire on October 11, 2027.
(3) | This warrant vests ratably over a four-year term, with one-fourth of the warrant vesting on each annual anniversary from the date of issuance. This warrant is scheduled to expire on April 11, 2029.
(4) | This warrant vests ratably over a four-year term, with the first vesting date having occurred on the first annual anniversary of its issuance date. This warrant is scheduled to expire on April 5, 2026.
(5) | This warrant is exercisable in full and is scheduled to expire on October 11, 2027.
(6) | This warrant vests ratably over a four-year term, with one-fourth of the warrant vesting on each annual anniversary from the date of issuance. This warrant is scheduled to expire on April 11, 2029.
(7) | This warrant vests ratably over a four-year term, with the first vesting date having occurred on the first annual anniversary of its issuance date. This warrant is scheduled to expire on April 5, 2026.
(8) | This warrant is exercisable in full and is scheduled to expire on May 27, 2025.
(9) | This warrant is exercisable in full and is scheduled to expire on October 11, 2027.
(10) | This warrant vests ratably over a five-year term, with one-fifth of the warrant vesting on each annual anniversary from the date of issuance. This warrant is scheduled to expire on October 28, 2026.
(11) | This warrant vests ratably over a four-year term, with one-fourth of the warrant vesting on each annual anniversary from the date of issuance. This warrant is scheduled to expire on April 11, 2029.
(12) | This warrant vests ratably over a four-year term, with one-fourth of the warrant vesting on each annual anniversary from the date of issuance. This warrant is scheduled to expire on April 5, 2026.

Employment Arrangements

The following discussion contains a summary of the terms of the employment agreements currently in effect for JW Roth. Neither Ms. Atkinson, Mr. Mudd, nor Mr. Hodgson are parties to an employment agreement that provides a contractual right to severance payments upon a termination or change of control; instead, each is an employee at will.

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Roth Employment Agreement

The Company entered into an employment agreement with Mr. Roth on June 6, 2023, which sets forth the terms and conditions of his employment (the “Roth Agreement”). Pursuant to the Roth Agreement, Mr. Roth serves as our Chief Executive Officer and is entitled to an annual base salary of $400,000, with such base salary to be increased annually by no less than 2.5%. The Roth Agreement is for a term through November 6, 2028 and automatically renews for successive one-year terms thereafter unless not renewed by either Venu or Mr. Roth upon not less than six months’ advance written notice to the other party.

In the event Venu terminates Mr. Roth’s other than “for Cause” or Mr. Roth terminates his employment with Venu for “Good Reason” (each as defined in the Roth Agreement), Mr. Roth is entitled to receive the following payments and benefits, in addition to any accrued obligations: (a) a lump-sum payment, equal to one times the sum of (i) Mr. Roth’s then base salary and (ii) the bonus received in respect of performance during the year prior to the year of the termination date; (b) Venu’s reimbursement for the monthly premium paid to continue health-plan coverage for up to 18 months after the termination date or until otherwise specified in the Roth Agreement; and (c) all outstanding unvested stock options or other equity awards granted to Mr. Roth during the term of the Roth Agreement becoming fully vested and exercisable for the 12-month period after the termination date, irrespective of the terms of any equity incentive plan or award agreements (such benefits described in the preceding clauses (b) and (c), the “Other Termination Benefits”). In addition, if Mr. Roth’s employment is terminated by Mr. Roth for “Good Reason” or by Venu other than “For Cause” (other than on account of Mr. Roth’s death or total disability) within three months prior to, or two years following, a “Change in Control,” Mr. Roth is entitled to a lump-sum payment equal to two times the sum of his base salary and his bonus awarded during the year prior to the year of the transaction that constituted a Change of Control along with the Other Termination Benefits.

A “Change in Control” is defined to mean each of the following events: (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of Venu representing more than 50% of the total voting power represented by Venu’s then-outstanding voting securities; (ii) the sale or disposition by Venu of all or substantially all of its assets; (iii) the consummation of a merger or consolidation of Venu with or into any other entity, other than a merger or consolidation which would result in the voting securities of Venu outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than 50% of the total voting power represented by the voting securities of Venu or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) individuals who are members of Venu Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Incumbent Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election) of any new board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of the Roth Agreement, be considered as a member of the Incumbent Board.

Director Compensation

Venu has provided cash compensation for attendance at Board meetings held in person and equity-based compensation to its directors. The following table sets forth information regarding the compensation our non-employee directors earned for service on our Board during the year ended December 31, 2023.

Name |  | Fees Earned or Paid in Cash ($) |  |  | Stock Awards ($) |  |  | Option Awards ($)(1) |  |  | All Other Compensation ($) |  |  | Total ($) |
Mitchell Roth |  | $ | 7,500 |  |  | $ | — |  |  | $ | 33,019 |  |  | $ | 90,000 | (4) |  | $ | 130,519 |
Steve Cominsky |  | $ | 7,500 |  |  | $ | — |  |  | $ | 121 |  |  | $ | — |  |  | $ | 7,621 |
Matt Craddock |  | $ | 2,500 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,500 |
Chad Hennings |  | $ | 5,000 |  |  | $ | — |  |  | $ | 18,585 |  |  | $ | 55,000 | (4) |  | $ | 78,585 |
Greg Arend(2) |  | $ | 2,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,518 | (4) |  | $ | 13,018 |
Dave Lavigne(3) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |

(1) | Amounts do not reflect compensation actually received by the director. Values in this this table tie to compensatory warrants that are exercisable at the option of the holder. The grant fair value number for the “options” is computed in accordance with FASB ASC Topic 718. The fair value assumptions used for purposes of the valuation is cited in Footnote 11-Warrants to the Venu 2023 financials.

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(2) | Mr. Arend ceased serving on the Board in December 2023.
(3) | Mr. Lavigne was appointed to the Board in December 2023.
(4) | These amounts represent compensation received by certain directors for services rendered other than with respect to their services on the board of directors. Mr. Hennings has been a service provider to Venu since January 23, 2023, serving as a spokesperson and business-development promoter for the Company and earning $60,000 in cash annually (pro-rated for any partial year) for his services, along with 50,000 warrant shares granted at a $3.00 exercise price per warrant. Mr. Mitchell Roth provides corporate financial writing assistance and other investor relations duties and is compensated by Venu at $90,000 annually for these services. Venu contracted in 2023 with SOAR Partners to consult on real estate and entitlement projects within the state of Oklahoma. Mr. Arend, Venu’s director from March 20, 2023 until December 12, 2023, serves as the founder and CEO of SOAR Partners.

Narrative Disclosure to Director Compensation Table

During 2023, Venu paid each director a fee of $2,500 for each meeting of the board of directors that a director attended in-person and on-site. Otherwise, Venu does have a formal compensation program for its directors.

From time to time, Venu has awarded its directors compensatory warrants as a means to attempt to further align the interests of its directors with the Company and its shareholders. To date, these compensatory warrants have not been awarded on a set schedule or defined interval, however, typically a warrant has been granted on an annual basis (in each case subject to vesting conditions) although no compensatory warrants were granted during the 2023 fiscal year to any director in consideration for serving on the board of directors.

Formal Equity Incentive Plans

In October 2023, Venu’s Board adopted, and then its shareholders approved, the 2023 Omnibus Incentive Compensation Plan. In August 2024, the Board adopted and the Venu shareholders approved the Amended and Restated 2023 Omnibus Incentive Compensation Plan (the “A&R Plan”) to (i) increase the number of shares of Common Stock reserved for issuance under the A&R Plan from 1,000,000 shares to 2,500,000 shares, and (ii) remedy any ambiguity regarding the class of Common Stock underlying awards that may be made pursuant to the A&R Plan by replacing references to “Class C Common Stock” with references to “Common Stock” in accordance with the Company’s revised capital structure under its Amended and Restated Articles of Incorporation. The purpose of the A&R Plan is to advance the interests of our shareholders by enabling us to attract and retain the types of individuals who will contribute to our long-range success, provide incentives that align the interests of such individuals with those of our shareholders, and promote the success of our business. The A&R Plan is designed to provide us with flexibility to select from among various equity-based and performance compensation methods, and to be able to address changing accounting and tax rules and corporate governance practices by optimally utilizing performance-based compensation.

The A&R Plan permits awards of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards. Awards and grants under the A&R Plan are referred to as “Awards.” Those eligible for Awards under the A&R Plan are referred to as “Participants.” Participants include any employee, consultant, or director who is designated by the Board or a committee of the Board to receive one or more Awards under the A&R Plan. A total of 2,500,000 shares of our Common Stock are reserved for issuance of Awards under the A&R Plan.

As of December 31, 2023, and as of the date of this filing, no awards have been granted under the A&R Plan.

Rule 10b5-1 Sales Plans

Venu’s directors and executive officers may adopt written plans, known as Rule 10b5-1 plans, in which they will contract with a broker to buy or sell shares of our Common Stock on a periodic basis. Under a Rule 10b5-1 plan, a broker executes trades pursuant to parameters established by the director or executive officer when entering into the plan, without further direction from the director or officer. An insider that adopts a Rule 10b5-1 plan in good faith while not in the possession of material nonpublic information will be protected by the affirmative defense to insider trading liability under Rule 10b5-1 when pre-planned trades are carried out by a broker in accordance with the plan, even if the insider later becomes aware of material nonpublic information. The director or executive officer may amend a Rule 10b5-1 plan in some circumstances and may terminate a Rule 10b5-1 plan at any time. Our directors and executive officers also may buy or sell additional shares outside of a Rule 10b5-1 plan when they are not in possession of material nonpublic information subject to compliance with the terms of our insider trading policy and any applicable 10b5-1 guidelines.

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PRINCIPAL SHAREHOLDERS

The following table sets forth information known to us regarding beneficial ownership of shares of Venu’s Common Stock as of November 27, 2024 by:

| ● | each person known by us to be the beneficial owner of more than 5% of our outstanding Common Stock;

| ● | each of our executive officers and directors; and

| ● | all of our executive officers and directors as a group.

Beneficial ownership is determined according to the rules of the SEC, which generally provide that a security holder has beneficial ownership of a security if he, she, or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or exercisable within 60 days. In computing the number of shares beneficially owned by a person or entity and the percentage ownership of that person or entity in the table below, all shares subject to options and warrants were deemed outstanding if such securities are currently exercisable or would vest based on service-based vesting conditions within 60 days of November 27, 2024. These shares were not deemed outstanding, however, for the purpose of computing the percentage ownership of any other person or entity.

The beneficial ownership of each class or series of our voting capital stock below is based on the Company having, as of November 27, 2024, 36,073,215 shares of Common Stock issued and outstanding. Each share of Common Stock entitles its holder to one vote per share held.

Venu also has 383,656 shares of Class B Non-Voting Common Stock outstanding. However, those shares do not entitle the holders to any voting rights, and, by their terms, are not convertible at the volition of the holder to shares of voting Common Stock. Moreover, no officer, director, or 5% or greater beneficial holder of Venu holds any shares of Class B Non-Voting Common Stock.

Unless otherwise indicated, we believe that each person named in the table below has sole voting and investment power with respect to all shares beneficially owned by such person.

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Unless otherwise noted, the address of all of the listed shareholders is 1755 Telstar Drive, Suite 501, Colorado Springs, Colorado 80920.

|  | Common Stock |
Name and Address of Beneficial Owners |  | Number of Shares |  |  | Percent of Class |
Directors and NEOs: |  |  |  |  |  |  |  |
JW Roth(1) |  |  | 11,586,721 |  |  |  | 32.1 | %
William Hodgson |  |  | - |  |  |  | * |
Robert Mudd(2) |  |  | 656,874 |  |  |  | 1.8 | %
Heather Atkinson(3) |  |  | 471,026 |  |  |  | 1.3 | %
Mitchell Roth(4) |  |  | 602,896 |  |  |  | 1.7 | %
Steve Cominsky(5) |  |  | 72,143 |  |  |  | * |
Matthew Craddock |  |  | 75,000 |  |  |  | * |
Chad Hennings(6) |  |  | 12,500 |  |  |  | * |
Dave Lavigne(7) |  |  | 182,730 |  |  |  | * |
All Directors and Executive Officers as a Group (8 individuals)(8) |  |  | 13,659,888 |  |  |  | 37.9 | %

* | Less than 1%

(1) | Includes: (i) 1,216,666 shares underlying warrants that are vested or will be vested within 60 days; (ii) 1,022,665 shares held by KMR Living Trust dated November 19, 2012, for which JW Roth is a trustee; and (iii) 25,000 shares held by Mr. Roth’s daughter for whom Mr. Roth is a guardian.

(2) | Includes: (i) 404,999 shares underlying warrants that are vested or will be vested within 60 days; and (ii) 12,500 shares held by a trust for Mr. Mudd’s special needs minor children.

(3) | Includes 325,001 shares underlying warrants that are vested or will be vested within 60 days.

(4) | Includes 252,916 shares underlying warrants that are vested or will be vested within 60 days.

(5) | Includes 5,833 shares underlying warrants that are vested or will be vested within 60 days.

(6) | Consists of 12,500 shares underlying warrants that are vested or will be vested within 60 days.

(7) | Includes 7,240 shares owned directly by Mr. Lavigne’s spouse that Mr. Lavigne may be deemed to have indirect beneficial ownership of.

(8) | Includes 1,001,249 shares underlying warrants that are vested or will be vested within 60 days.

CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS

In addition to the compensation arrangements with directors and executive officers described under “Executive Compensation,” the following is a description of each transaction since January 1, 2021, and each currently proposed transaction in which:

| ● | the Company has been or is to be a participant;

| ● | the amount involved exceeds or will exceed the lesser of $120,000 or one percent of the average of the smaller reporting company’s total assets at year end for the last two completed fiscal years; and

| ● | any of the Company’s directors, executive officers, or beneficial holders of more than 5% of the Company’s capital stock, or any immediate family member of, or person sharing the household with, any of these individuals (other than tenants or employees), had or will have a direct or indirect material interest.

We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that we would pay or receive, as applicable, in arm’s-length transactions.

Leases

Venu leases properties from a majority-owned subsidiary, Hospitality Income & Asset, LLC (“HIA”), which owns the land and buildings used by (and leased to) Bourbon Brothers Smokehouse and Tavern CS, LLC to operate Venu’s Colorado Springs Bourbon Brothers and Bourbon Brother Presents venues. JW Roth owns less than 1% of HIA’s total ownership. In regard to the BBST CO and BBP CO leases, JW Roth, the Chairman, CEO, and founder of Venu, is also the founder and manager of HIA. Ms. Atkinson, the CFO and Secretary and a director of Venu, is also the Treasurer of HIA. The amounts paid by Venu to HIA for related-party rent transactions totaled $559,951 in 2021.

13141 Notes, LLC (“13141 Notes”) is the restaurant operating entity that manages the Notes Eatery in Colorado Springs. 13141 Notes leases its property from 13141 BP, LLC (“13141 BP”) (which in June 2024 became a wholly owned subsidiary of Venu). JW Roth is the founder and manager of 13141 BP. The amounts paid by Venu to 13141 BP under the lease totaled $218,748 in 2023, $218,750 in 2022, and $174,769 in 2021.

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Roth Industries

Venu owns 550,000 preferred units or 2.0% of Roth Industries, LLC (“Roth Industries”). JW Roth is also the founder and Chairman of Roth Industries and holds an approximate 20% membership interest in Roth Industries. Mitchell Roth, a director of Venu, is also the CEO and President of Roth Industries and holds an approximate 10% membership interest in Roth Industries. Heather Atkinson is also the Treasurer and a director of Roth Industries. Additionally, Robert Mudd, Venu’s Senior Vice President of Construction and Market Expansion, and Steve Cominsky, a director of Venu, are also members of Roth Industries. Ms. Atkinson, Mr. Mudd, and Mr. Cominsky each own less than a 1% membership interest in Roth Industries.

Roth Industries is the parent company to Roth Premium Foods, LLC (“Roth Premium”), which is the counterparty to the Bourbon Brothers licensing agreement. Under that licensing agreement, Venu, the exclusive owner and title holder of the Bourbon Brothers brand, granted a license to Roth Premium to use the brand for grocery products in exchange for Roth Premium’s payment of a royalty. Venu shares the advertising expenses for the Bourbon Brothers brand with Roth Industries. For Roth’s licensing use of the Bourbon Brothers brand in grocery products, since Venu holds the exclusive license to use the brand, Venu received funds totaling $32,500 for the six months ended June 30, 2024, and $132,500, $125,000, and $60,000 during the years ended December 31, 2023, 2022, and 2021, respectively.

In 2021, Venu paid Roth $210,500 for advertising expenses shared with Roth.

On August 12, 2024, Venu redeemed 100,000 shares of Common Stock previously held by Roth Industries, LLC for an aggregate purchase price of $500,000.

Interests in 1820 Jet Stream, LLC

As of December 31, 2021, Venu owned 9.1% and 33.3% of the voting units of 1820 Jet Stream, LLC (“Jet Stream”). Jet Stream’s assets consist of a single real estate holding from which the operating decisions are controlled via the operation agreement and by the property management. The majority tenant of this single real estate holding is Roth Industries. Venu does not use any of the real estate in its operations. Centennial Standard Real Estate Company, LLC (“Centennial”) is the manager of Jet Stream. Centennial is jointly owned by JW Roth and a director of Venu. On June 6, 2022, Venu sold its interest in Jet Stream to a third party for $700,000, realizing a gain on the investment of $200,000.

Interests in GA HIA, LLC and its Lease

Robert Mudd, the Company’s Senior Vice President of Construction and Market Expansion, is a member of GA HIA, LLC (“GA HIA”), and JW Roth and Robert Mudd are GA HIA’s co-managers. GA HIA is a real estate holding company that owns approximately 65% of the land and buildings on which the Company’s Bourbon Brothers Presents and Bourbon Brothers Smokehouse & Tavern venues in Georgia operate and is the landlord for those properties. GA HIA leases the property on which BBST GA operates the Bourbon Brothers Presents and Bourbon Brothers Smokehouse & Tavern venues in Georgia operate. For the first ten years of the lease, annual base rent payable by BBST GA and BBP GA to GA HIA is $641,410 and $191,590, respectively. Every five years of the term of the lease, the rent increases by 10%. The holders of the minority tenant-in-common interest for this property are Old Mill, LLC (30%) and a trust (5%). TIC owners are entitled to their pro rata portion of the net rent payments (after certain costs and expenses appurtenant to the ownership of the property are netted out, such as interest expenses and charges). Mr. Craddock, a director of Venu, is a manager and minority member of Old Mill, LLC and the trustee and beneficiary of the trust. Through these interests, together, Mr. Craddock has an indirect right to a portion of the net rents owed to GA HIA pursuant to the lease agreement between GA HIA and Bourbon Brothers Smokehouse and Tavern GA, LLC.

Interests in the Appraised Value of The Sunset McKinney

Chad Hennings is a director of the Company. Mr. Hennings is a member of Rubicon Representation, LLC (“Rubicon”). In January 2023, Venu engaged Rubicon to serve as its exclusive agent to find, negotiate, and acquire suitable land sites in the State of Texas. Upon Venu’s closing on the real property upon which The Sunset McKinney will be constructed, Venu has agreed to pay to Hennings Family Assets, LP (in which Mr. Hennings has a 49% interest), a fee equal to 1.5% of the appraised value of that property.

Guarantees

Venu and JW Roth guarantee Venu’s and its subsidiaries’ debt. In exchange for JW Roth personally guaranteeing $12,082,010 principal amount of Venu’s bank debt and promissory notes, Venu pays JW Roth a personal guarantee fee of 1% of the loan value per year. In 2023 and the six months ended June 30, 2024, these payments totaled $109,794 and $24,219, respectively.

JW Roth is expected to be personal guarantor of the $25,000,000 promissory note (the “McKinney Note”) that Venu may deliver to MEDC as partial payment of the $35,000,000 purchase price payable to acquire a 46-acre tract from MEDC to construct The Sunset McKinney. In exchange for Mr. Roth’s personal guarantee of the McKinney Note, Venu anticipates that it will pay Mr. Roth a personal guarantee fee, although such amount has not yet been determined as of the date of this prospectus.

Policies for Approval of Related-Party Transactions

Venu does not have a written policy regarding the review and approval of related-party transactions. Nevertheless, with respect to such transactions, it has been the practice of the Venu Board to consider the nature of and business reasons for such transactions, how the terms of such transactions compared to those which might be obtained from unaffiliated third parties, and whether such transactions were otherwise fair to and in the best interests of, or not contrary to, Venu’s best interests.

DESCRIPTION OF CAPITAL STOCK

The following summary describes the material terms of our capital stock and provisions of our Articles of Incorporation and Bylaws, as amended and currently in effect prior to the completion of this offering. This summary does not purport to be complete and is qualified in its entirety by reference to all of the provisions of our Articles of Incorporation and Bylaws, which are filed as exhibits to the registration statement of which this prospectus is a part.

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Authorized Capital Stock

Under our Articles of Incorporation, the Company is authorized to issue up to 150,000,000 shares of stock, par value $0.001 per share, of which (i) 144,000,000 shares are denominated Common Stock; (ii) 1,000,000 shares are denominated Class B Non-Voting Common Stock; (iii) 5,000,000 shares are denominated Preferred Stock. Except for any difference in voting privileges, or any differing contractual rights or limitations assigned or afforded to a specific series of stock in connection with a merger, acquisition, or strategic transaction, the shares of Common Stock and Class B Non-Voting Common Stock have the same preferences, limitations, and relative rights in all other respects.

As of November 27, 2024, the Company had the following shares of capital stock issued and outstanding: (i) 36,073,215 shares of Common Stock held by 587 shareholders; (ii) 383,656 shares of Class B Non-Voting Common Stock held by seven shareholders; and (iii) 0 shares of Preferred Stock.

Voting Rights

Each holder of our Common Stock is entitled to one vote per share held. Except as required by law, holders of our Class B Non-Voting Common Stock have no voting power with respect to their shares held and are not entitled to vote on matters submitted to shareholders. Holders of Preferred Stock would have the voting rights established by Venu’s Board in accordance with the CBCA.

Dividend Policy

We do not currently intend to pay dividends on our Common Stock. The declaration, amount, and payment of any future dividends on shares of our Common Stock, if any, will be at the sole discretion of our Board, which may take into account general and economic conditions, our financial condition and results of operations. our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by us to our shareholders or by our subsidiaries to us, and any other factors that our Board may deem relevant.

No Preemptive Rights

Holders of our capital stock are not entitled to preemptive rights. Our Common Stock is not subject to any redemption or sinking-fund provisions. All outstanding shares of our Common Stock are fully paid and non-assessable.

Anti-Takeover Effects of Provisions of Our Governance Documents

Certain provisions of our Governance Documents could have the effect of delaying, deferring, or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids. As a consequence, these provisions might also inhibit temporary fluctuations in the market price of our Common Stock that often result from actual or rumored hostile takeover attempts. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with our Board, and they might also have the effect of preventing changes in our Board or management. It is possible that these provisions could make it more difficult to accomplish transactions that shareholders might otherwise deem to be in their best interests. However, we believe that the advantages gained by protecting our ability to negotiate with any unsolicited and potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current market value of our Common Stock, because, among other reasons, the negotiation of such proposals could improve their terms. Provisions in our Governance Documents that may delay, defer, or discourage takeover attempts are described below.

Director Vacancies

Our Bylaws authorize the Board to fix from time to time the number of directors constituting our Board, provided that we must always have at least one director pursuant to our Articles of Incorporation. Furthermore, our Bylaws authorize the Board to fill director vacancies or newly created directorships. These provisions provide the Board with flexibility and control in determining the size and composition of the Board, which may deter a takeover attempt by challenging an acquirer’s ability to gain control of the Company and diluting any of the acquirer’s influence over the Company.

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Special Meetings of Shareholders

Our Bylaws provide that special meetings of our shareholders may only be called by the Board or by shareholders entitled to cast at least 25% of the votes at the meeting. The only business that may be conducted at a special meeting is the business covered by the matter or matters set forth in the notice of the special meeting, which must state the general nature of the business to be transacted.

Advance Notice Requirements

Our Bylaws establish advance notice requirements that shareholders must meet to make any nominations for election to our Board or to submit other business to be acted upon at shareholder meetings. To be timely for purposes of an annual meeting of shareholders, a shareholder’s notice must be received by the Company’s secretary at the Company’s principal executive offices (i) not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the anniversary date of the immediately preceding annual meeting of shareholders (if such meeting is to be held on a day which is not more than 30 days in advance of the anniversary of the previous year’s annual meeting or not later than 70 days after the anniversary of the previous year’s annual meeting), or (y) with respect to any other annual meeting of shareholders, including in the event that no annual meeting was held in the previous year, not earlier than the close of business on the 120th day prior to the annual meeting and not later than the close of business on the later of: (1) the 90th day prior to the annual meeting and (2) the tenth day following the date on which the Company first publicly announces the meeting date. To be timely for purposes of a special meeting of shareholders, a shareholder’s notice must be received not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the special meeting or the tenth day following the Company’s public announcement of the meeting date. Our Bylaws also specify certain requirements as to the form and content of shareholder meetings. These provisions may preclude our shareholders from bringing matters or making nominations for directors at our shareholder meetings.

Limitations on Liability and Indemnification of Officers and Directors

For a discussion of liability and indemnification, see the section entitled “Management—Limitations on Director and Officer Liability and Indemnification.”

shares eligible for future sale

Prior to this offering, there has been no public market for our Common Stock. Future sales of our Common Stock in the public market or the availability of such shares for sale in the public market could adversely affect market prices prevailing from time to time. As described below, only a limited number of shares of our Common Stock will be available for sale in the public market due to contractual and legal restrictions on resale. Nevertheless, sales of our Common Stock in the public market after such restrictions lapse or the perception that such sales may occur could adversely affect the prevailing market price at such time and our ability to raise equity capital in the future. Although our Common Stock has been approved for listing on the NYSE American, we cannot assure you that there will be an active market for our Common Stock.

Based on the number of shares of our Common Stock outstanding as of date of this prospectus, upon the closing of this offering, 37,273,215 shares of our Common Stock will be outstanding.

Of the shares of Common Stock to be outstanding immediately after the completion of this offering, we expect that all of the shares to be sold in this offering will be freely tradable without restriction under the Securities Act unless purchased by our “affiliates,” as that term is defined in Rule 144 under the Securities Act. All shares of our Common Stock held by existing shareholders immediately prior to the closing of this offering will be “restricted securities” as that term is defined in Rule 144. A portion of those restricted securities will be subject to lock-up agreements and leak-out restrictions described below and, subject to those restrictions, may be offered and sold to the public only if registered under the Securities Act or if an exemption from registration is available, including the exemptions provided by Rule 144 or Rule 701 under the Securities Act, summarized below.

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Lock-Up and Leak-Out Agreements

Pursuant to “lock-up” agreements, we and our executive officers and directors and their affiliates have agreed, without the prior written consent of the representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of) our common stock, enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of ours or publicly disclose the intention to do any of the foregoing, subject to customary exceptions, for a period ending 90 days following the effective date of the registration statement for this offering without the prior written consent of the representative of the underwriters.

In addition, our officers and directors, and certain other shareholders, that together hold an aggregate of 25,611,162 shares of Common Stock have entered into agreements that contractually restrict their ability to sell or transfer a portion of their shares during the first three-year period in which our Common Stock is listed on a national stock exchange or otherwise publicly quoted on the OTC. Of the 36,073,215 shares of Common Stock that are issued and outstanding as of November 27, 2024, 25,611,162 are subject to “leak-out” restrictions, of which 1,689,318 are to be released of these restrictions at the six-month anniversary of the commencement of the listing of our Common Stock in connection with this offering (a “Listing”); 5,754,111 are to be released of these restrictions at the 12-month anniversary of a Listing; 2,351,135 are to be released of these restrictions at the 24-month anniversary of a Listing; 15,813,099 are to be released of these restrictions at the 36-month anniversary of a Listing; and the remainder of 3,500 are to be released of these restrictions at the 48-month anniversary of a Listing. Of the aggregate of 11,434,971 shares owned by our officers and directors, 8,713,011 shares are subject to “leak-out” restrictions, of which 82,354 are to be released of these restrictions at the six-month anniversary of a Listing; 1,106,179 are to be released of these restrictions at the 12-month anniversary of a Listing; 941,481 are to be released of these restrictions at the 24-month anniversary of a Listing; and the remainder of 6,582,997 are to be released of these restrictions at the 36-month anniversary of a Listing. These leak-out restrictions terminate if, at any time in the first year of a Listing, the closing sales price of the Company’s Common Stock is at or above $25 for ten consecutive trading days.

With respect to non-affiliates who are subject to similar contractual leak-out restrictions, in most cases such persons are, absent a waiver from the Company, prohibited from selling or transferring greater than 10% of their shares in any twelve-month period through the third annual anniversary of a Listing. These leak-out restrictions terminate if, at any time in the first year of a Listing, the closing sales price of the Company’s Common Stock is at or above $25 for ten consecutive trading days.

Following the restrictive periods set forth in the agreements described above, and assuming that no parties are released from these agreements and that there is no extension of the restricted period, shares of our Common Stock will be eligible for sale in the public market in compliance with Rule 144 or another exemption under the Securities Act or pursuant to the registration statement of which this prospectus forms a part.

Rule 144

Affiliate Resales of Restricted Securities

Affiliates of ours must generally comply with Rule 144 if they wish to sell any shares of our Common Stock in the public market, whether or not those shares are “restricted securities.” “Restricted securities” are any securities acquired from us or one of our affiliates in a transaction not involving a public offering. All shares of our Common Stock issued prior to the closing of this offering made hereby are considered to be restricted securities. The shares of our Common Stock sold in this offering are not considered to be restricted securities.

Persons who have beneficially owned restricted shares of our Common Stock for at least six months, but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of either of the following:

| ● | 1% of the number of shares of our Common Stock then outstanding, which will equal approximately 367,726 shares immediately after the closing of this offering based on the number of shares of Common Stock outstanding as of the date of this prospectus and assuming no exercise of the underwriters’ option to purchase additional shares of our Common Stock; or
| ● | the average weekly trading volume of our Common Stock on the NYSE American stock exchange during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale;

provided, in each case, that we have been subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale. Such sales both by affiliates and by non-affiliates must also comply with the manner of sale, current public information, and notice provisions of Rule 144.

Non-Affiliate Resales of Restricted Securities

Any person or entity who is not an affiliate of ours and who has not been an affiliate of ours at any time during the three months preceding a sale is only required to comply with Rule 144 in connection with sales of restricted shares of our Common Stock. Subject to the leak-out agreements and lock-up agreements described above, those persons may sell shares of our Common Stock that they have beneficially owned for at least one year without any restrictions under Rule 144 immediately following the effective date of the registration statement of which this prospectus is a part.

Further, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, a person who is not an affiliate of ours at the time such person sells shares of our Common Stock, and has not been an affiliate of ours at any time during the three months preceding such sale, and who has beneficially owned such shares of our Common Stock for at least six months but less than a year, will be entitled to sell such shares so long as there is adequate current public information, as defined in Rule 144, available about us.

Resales of restricted shares of our Common Stock by non-affiliates are not subject to the manner of sale, volume limitation, or notice filing provisions of Rule 144.

Rule 701

Under Rule 701, a shareholder who purchased shares of our Common Stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of ours during the immediately preceding 90 days is generally permitted to sell its shares of Common Stock in reliance on Rule 144, but without being required to comply with the public information, holding period, volume limitation, or notice provisions of Rule 144.

Rule 701 also permits affiliates of ours to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until 90 days after the date of this prospectus before selling such shares pursuant to Rule 701 and until expiration of the lock-up and / or leak-out restrictions described below.

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MATERIAL u.s. federal income tax considerations TO NON-U.S. HOLDERS

The following discussion is a summary of the material U.S. federal income tax considerations applicable to non-U.S. holders (as defined below) with respect to their ownership and disposition of shares of our Common Stock issued pursuant to this offering. For purposes of this discussion, a non-U.S. holder means a beneficial owner of our Common Stock that is for U.S. federal income tax purposes:

| ● | a non-resident alien individual;

| ● | a foreign corporation or any other foreign organization taxable as a corporation for U.S. federal income tax purposes; or

| ● | a foreign estate or trust, the income of which is not subject to U.S. federal income tax on a net income basis.

This discussion does not address the tax treatment of partnerships or other entities that are pass-through entities for U.S. federal income tax purposes or persons that hold their common stock through partnerships or other pass-through entities. A partner in a partnership or other pass-through entity that will hold our Common Stock should consult his, her, or its tax advisor regarding the tax consequences of holding and disposing of our Common Stock through a partnership or other pass-through entity, as applicable.

This discussion is based on current provisions of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), existing and proposed U.S. Treasury Regulations promulgated thereunder, current administrative rulings, and judicial decisions, all as in effect as of the date of this prospectus and, all of which are subject to change or to differing interpretation, possibly with retroactive effect. Any such change or differing interpretation could alter the tax consequences to non-U.S. holders described in this prospectus. There can be no assurance that the Internal Revenue Service (the “IRS”) will not challenge one or more of the tax consequences described herein. We assume in this discussion that a non-U.S. holder holds shares of our Common Stock as a capital asset within the meaning of Section 1221 of the Code, generally property held for investment.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to a particular non-U.S. holder in light of that non-U.S. holder’s individual circumstances including the alternative minimum tax, or the Medicare tax on net investment income, the rules regarding qualified small business stock within the meaning of Section 1202 of the Code and any election to apply Section 1400Z-2 of the Code to gains recognized with respect to shares of our Common Stock. This discussion also does not address any U.S. state, local or non-U.S. taxes or any other aspect of any U.S. federal tax other than the income tax. This discussion also does not consider any specific facts or circumstances that may apply to a non-U.S. holder and does not address the special tax rules applicable to particular non-U.S. holders, such as:

| ● | insurance companies;

| ● | tax-exempt or governmental organizations;

| ● | financial institutions;

| ● | brokers or dealers in securities;

| ● | regulated investment companies;

| ● | pension plans;

| ● | “controlled foreign corporations,” “passive foreign investment companies,” and corporations that accumulate earnings to avoid U.S. federal income tax;

| ● | “qualified foreign pension funds,” or entities wholly owned by a “qualified foreign pension fund;”

| ● | partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and partners and investors therein);

| ● | persons deemed to sell our Common Stock under the constructive sale provisions of the Code;

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| ● | persons that hold our Common Stock as part of a straddle, hedge, conversion transaction, synthetic security, or other integrated investment;

| ● | persons who have elected to mark securities to market;

| ● | persons who have a functional currency other than the U.S. dollar;

| ● | persons who hold or receive our Common Stock pursuant to the exercise of any employee stock option or otherwise as compensation;

| ● | certain U.S. expatriates; and

| ● | persons subject to special tax accounting rules as a result of any item of gross income with respect to the common stock being taken into account in an applicable financial statement under Section 451(b) of the Code.

This discussion is for general information only and is not tax advice. Accordingly, all prospective non-U.S. holders of our Common Stock should consult their tax advisors with respect to the U.S. federal, state, local, and non-U.S. tax consequences of the purchase, ownership, and disposition of our Common Stock.

Distributions on Our Common Stock

As discussed under “Dividend Policy” above, we do not currently expect to make distributions on our Common Stock. In the event that we do make distributions of cash or other property on our Common Stock, those distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed our current and accumulated earnings and profits, they will constitute a return of capital, which will first reduce a Non-U.S. Holder’s basis in our Common Stock, but not below zero, and then will be treated as gain from the sale of our Common Stock, as described below under “Gain on Sale or Other Taxable Disposition of Our Common Stock.” Any such distributions will also be subject to the discussions below under the sections titled “Informational Reporting and Backup Withholding” and “Additional Withholding and Information Reporting Requirements—FATCA.”

Dividends paid to a Non-U.S. Holder generally will be subject to withholding tax at a 30% rate or a reduced rate specified by an applicable income tax treaty. In order to obtain a reduced rate of withholding (subject to the discussion below), a Non-U.S. Holder will be required to provide a properly executed applicable IRS Form W-8BEN or W-8BEN-E (or other applicable or successor form) certifying the Non-U.S. Holder’s entitlement to benefits under a treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder’s conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States), the Non-U.S. Holder will generally be taxed on the dividends on a net income basis at regular rates applicable to a U.S. person. In this case, the Non-U.S. Holder will be exempt from the withholding tax discussed in the preceding paragraph, although the Non-U.S. Holder will be required to provide a properly executed IRS Form W-8ECI in order to claim an exemption from withholding. Non-U.S. Holders should consult their tax advisors with respect to other U.S. tax consequences of the ownership and disposition of our Common Stock, including the possible imposition of a branch profits tax at a rate of 30% (or a lower treaty rate) for corporations.

Gain on Sale or Other Taxable Disposition of Our Common Stock

A Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Common Stock unless:

| ● | the gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable);

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| ● | the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

| ● | our Common Stock constitutes a U.S. real property interest by reason of our status as a U.S. real property holding corporation (a “USRPHC”) for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of our U.S. real property interests relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC or will not become a USRPHC in the future. Even if we were to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U.S. Holder of our Common Stock will not be subject to U.S. federal income tax if our Common Stock is “regularly traded,” as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder owned, actually and constructively, 5% or less of our Common Stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the Non-U.S. Holder’s holding period.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

Informational Reporting and Backup Withholding

Payments of dividends on our Common Stock will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know the holder is a U.S. person and the holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any dividends on our Common Stock paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld. In addition, proceeds of the sale or other taxable disposition of our Common Stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such holder is a U.S. person, or the holder otherwise establishes an exemption. Proceeds of a disposition of our Common Stock conducted through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

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Additional Withholding and Information Reporting Requirements—FATCA

Provisions of the Code commonly referred to as the Foreign Account Tax Compliance Act, or FATCA, generally impose a U.S. federal withholding tax at a rate of 30% on payments of dividends on our Common Stock paid to a foreign entity unless: (i) if the foreign entity is a “foreign financial institution,” such foreign entity undertakes certain due diligence, reporting, withholding, and certification obligations; (ii) if the foreign entity is not a “foreign financial institution,” such foreign entity identifies certain of its U.S. investors, if any; or (iii) the foreign entity is otherwise exempt under FATCA. Under applicable U.S. Treasury regulations, withholding under FATCA currently applies to payments of dividends on our Common Stock. Currently proposed U.S. Treasury Regulations provide that FATCA withholding does not apply to gross proceeds from the disposition of property of a type that can produce U.S. source dividends or interest; however, prior versions of the rules would have made such gross proceeds subject to FATCA withholding. Taxpayers (including withholding agents) can currently rely on the proposed Treasury Regulations. Under certain circumstances, a non-U.S. holder may be eligible for refunds or credits of this withholding tax. An intergovernmental agreement between the United States and an applicable foreign country may modify the requirements described in this paragraph. Non-U.S. holders should consult their tax advisors regarding the possible implications of this legislation on their investment in our Common Stock and the entities through which they hold our Common Stock, including, without limitation, the process and deadlines for meeting the applicable requirements to prevent the imposition of the 30% withholding tax under FATCA.

underwriting

ThinkEquity LLC is acting as representative of the underwriters. Subject to the terms and conditions of an underwriting agreement between us and the representative, we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of Common Stock listed next to its name in the following table:

Underwriters |  | Number of Shares |
ThinkEquity LLC |  |  | 1,200,000 |
Total |  |  | 1,200,000 |

The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares of Common Stock offered by this prospectus are subject to various conditions and representations and warranties, including the approval of certain legal matters by their counsel and other conditions specified in the underwriting agreement. The shares of Common Stock are offered by the underwriters, subject to prior sale, when, as and if issued to and accepted by them. The underwriters reserve the right to withdraw, cancel or modify the offer to the public and to reject orders in whole or in part. The underwriters are obligated to take and pay for all of the shares of Common Stock offered by this prospectus if any such shares of Common Stock, other than those shares of Common Stock covered by the over-allotment option described below.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

Over-Allotment Option

We have granted a 45-day option to the representative of the underwriters to purchase up to 180,000 additional shares of our Common Stock at the initial public offering price less the underwriting discount, solely to cover over-allotments, if any. The representative may exercise this option for 45 days from the date of this prospectus solely to cover sales of shares of Common Stock by the underwriters in excess of the total number of shares of Common Stock set forth in the table above. If any of these additional shares are purchased, the underwriters will offer the additional shares on the same terms as those on which the shares are being offered.

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Discounts, Commissions and Reimbursement

The underwriters propose initially to offer the shares of Common Stock to the public at the initial public offering price set forth on the cover page of this prospectus and to dealers at that price less a concession not in excess of $0.35 per share. If all of the shares of Common Stock offered by us are not sold at the initial public offering price, the underwriters may change the offering price and other selling terms by means of a supplement to this prospectus.

The following table shows the public offering price, underwriting discounts, and commissions and proceeds, before expenses, to us. The information assumes either no exercise or full exercise of the over-allotment option we granted to the representative of the underwriters.

|  |  |  |  | Total Without |  |  | Total With |
|  |  |  |  | Over-allotment |  |  | Over-allotment |
|  | Per Share |  |  | Option |  |  | Option |
Public offering price |  | $ | 10.00 |  |  | $ | 12,000,000 |  |  | $ | 13,800,000 |
Underwriting discounts and commissions (7.0%) |  | $ | 0.70 |  |  | $ | 840,000 |  |  | $ | 966,000 |
Proceeds, before expenses, to us |  | $ | 9.30 |  |  | $ | 11,160,000 |  |  | $ | 12,834,000 |

We have paid an expense deposit of $35,000 to the representative, which will be applied against the out-of-pocket accountable expenses that will be paid by us to the underwriters in connection with this offering, and will be reimbursed to us to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).

We have also agreed to pay certain of the representative’s expenses relating to the offering, including (i) all filing fees and communication expenses relating to the registration of the shares of Common Stock to be sold in the offering (including the securities subject to the representative’s over-allotment option) with the SEC; (ii) all filing fees and expenses associated with the review of the offering by FINRA; (iii) all fees and expenses relating to the listing of our Common Stock on the NYSE American, including any fees charges by The Depository Trust for new securities; (iv) all fees, expenses and disbursements relating to background checks of the Company’s officers, directors and entities in an amount not to exceed $5,000 in the aggregate; (v) all fees, expenses and disbursements relating to the registration or qualification of our Common Stock under the “blue sky” securities laws of such states, if applicable, and other jurisdictions as the representative may reasonably designate; (vi) all fees, expenses and disbursements relating to the registration, qualification or exemption of our securities under the securities laws of such foreign jurisdictions as the representative may reasonably designate; (vii) the costs of all mailing and printing of the underwriting documents (including, without limitation, the underwriting agreement, any blue sky surveys and, if appropriate, any agreement among underwriters, selected dealers’ agreement, underwriters’ questionnaire and power of attorney), registration statements, prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final prospectuses as the representative may reasonably deem necessary; (viii) the costs and expenses of our public relations firm; (ix) the costs of preparing, printing and delivering certificates representing our shares of Common Stock; (x) fees and expenses of the transfer agent for our Common Stock; (xi) stock transfer and/or stamp taxes, if any, payable upon the transfer of shares of our Common Stock from us to the representative; (xii) the costs associated with post-Closing advertising the offering in the national editions of the Wall Street Journal and New York Times; (xiii) the costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones, each of which the Company or its designee will provide within a reasonable time after the Closing in such quantities as ThinkEquity may reasonably request, in an amount not to exceed $3,000; (xiv) the fees and expenses of our accountants; (xv) the fees and expenses of our legal counsel and other agents and representatives; (xii) the fees and expenses of the underwriter’s legal counsel not to exceed $125,000; (xiii) the $29,500 cost associated with the use of Ipreo’s book building, prospectus tracking and compliance software for this offering; (xiv) $10,000 for data services and communications expenses; (xv) up to $10,000 of the representative’s actual accountable “road show” expenses; and (xvi) up to $15,000 of the representative’s market making and trading, and clearing firm settlement expenses for this offering; provided, however, that the total costs and expenses relating to this offering for which we will reimburse the underwriters shall not exceed $180,000.

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Our total estimated expenses of the offering, including registration and filing fees, printing fees and legal and accounting expenses, but excluding underwriting discounts and commissions, are approximately $ .

Representative’s Warrants

Upon completion of this offering, we have agreed to issue to the representative the representative’s warrants to purchase 60,000 shares of Common Stock, or 69,000 shares of Common Stock if the over-allotment option is exercised in full. The representative’s warrants will be exercisable at a per share exercise price of $12.50, which is equal to 125% of the public offering price per share in this offering. The representative’s warrants are exercisable at any time and from time to time, in whole or in part, during the four and one-half year period commencing 180 days following the commencement of sales of the securities issued in this offering.

The representative’s warrants have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(e)(1)(A) of FINRA. The representative (or permitted assignees under Rule 5110(e)(2)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days following the commencement of sales of the securities issued in this offering. In addition, the representative’s warrants provide for registration rights upon request, in certain cases. The sole demand registration right provided will not be greater than five years from the commencement of sales of the securities issued in this offering in compliance with FINRA Rule 5110(g)(8)(C). The piggyback registration rights provided will not be greater than seven years from the commencement of sales of the securities issued in this offering in compliance with FINRA Rule 5110(g)(8)(D). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the warrants other than underwriting commissions incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the representative’s warrants may be adjusted in certain circumstances including in the event of a stock dividend or our recapitalization, reorganization, merger or consolidation. However, the representative’s warrant exercise price or underlying shares will not be adjusted for issuances of shares of Common Stock at a price below the warrant exercise price.

Lock-Up and Leak-Out Agreements

Pursuant to “lock-up” agreements, we and our executive officers and directors and their affiliates have agreed, without the prior written consent of the representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of) our common stock, enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of ours or publicly disclose the intention to do any of the foregoing, subject to customary exceptions, for a period ending 90 days following the effective date of the registration statement for this offering without the prior written consent of the representative of the underwriters.

In addition, our officers and directors and certain other shareholders who collectively hold an aggregate of 25,611,162 shares of Common Stock have entered into Leak-Out Agreements with the Company, which, during the first three years of our Common Stock being listed on a stock exchange, contractually cap the number of shares they may sell or transfer at defined intervals.

See “Shares Eligible for Future Sale – Lock-Up and Leak-Out Agreements” on page 101 of this prospectus.

Determination of Offering Price

The initial public offering price of the shares of our Common Stock that we are offering was negotiated between us and the representative based on, among other things, our history and prospects, the stage of development of our business, our business plans for the future and the extent to which they have been implemented, an assessment of our management, general conditions of the securities markets at the time of the offering, and such other factors as were deemed relevant.

Right of First Refusal

In connection with this offering, the representative shall have an irrevocable right of first refusal for a period of 12 months after the date this offering is completed to act as sole and exclusive investment banker, sole and exclusive book-runner, sole and exclusive financial advisor, sole and exclusive underwriter and/or sole and exclusive placement agent, at the representative’s sole and exclusive discretion, for each and every future public and private equity and debt offering (excluding entering into a line of credit with a traditional bank), including all equity linked financings (each, a “Subject Transaction”), during such 12-month period, of the Company, or any successor to or subsidiary of the Company, on terms and conditions customary to the representative for such Subject Transactions (except that the terms of the engagement for such offering shall not include a right of first refusal or participation or similar rights or restrictions on lock-up terms less favorable to the Company than set forth in the underwriting agreement for this offering). For the avoidance of any doubt, the company shall not retain, engage or solicit any additional investment banker, book-runner, financial advisor, underwriter and/or placement agent in a Subject Transaction without the express written consent of the representative. The representative will have the sole right to determine whether or not any other broker-dealer will have the right to participate in any such offering and the economic terms of any such participation.

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NYSE American Listing

Our Common Stock has been approved for listing on the NYSE American under the symbol “VENU,” subject to official notice of issuance.

Other

From time to time, certain of the underwriters and/or their affiliates may in the future provide various investment banking and other financial services for us for which they may receive customary fees. In the course of their businesses, the underwriters and their affiliates may actively trade our securities or loans for their own account or for the accounts of customers, and, accordingly, the underwriters and their affiliates may at any time hold long or short positions in such securities or loans. Except for services provided in connection with this offering, no underwriter has provided any investment banking or other financial services to us during the 180-day period preceding the date of this prospectus and we do not expect to retain any underwriter to perform any investment banking or other financial services for at least 90 days after the date of this prospectus.

Price Stabilization, Short Positions and Penalty Bids

In connection with this offering, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of our Common Stock. Specifically, the underwriters may over-allot in connection with this offering by selling more shares than are set forth on the cover page of this prospectus. This creates a short position in our Common Stock for its own account. The short position may be either a covered short position or a naked short position. In a covered short position, the number of shares of Common Stock over-allotted by the underwriters is not greater than the number of shares of Common Stock that they may purchase in the over-allotment option. In a naked short position, the number of shares of Common Stock involved is greater than the number of shares Common Stock in the over-allotment option. To close out a short position, the underwriters may elect to exercise all or part of the over-allotment option. The underwriters may also elect to stabilize the price of our Common Stock or reduce any short position by bidding for, and purchasing, Common Stock in the open market.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter or dealer repays selling concessions allowed to it for distributing shares of Common Stock in this offering because the underwriter repurchases the shares of Common Stock in stabilizing or short covering transactions.

Finally, the underwriters may bid for, and purchase, shares of our Common Stock in market making transactions, including “passive” market making transactions as described below.

These activities may stabilize or maintain the market price of our Common Stock at a price that is higher than the price that might otherwise exist in the absence of these activities. The underwriters are not required to engage in these activities, and may discontinue any of these activities at any time without notice. These transactions may be effected on the national securities exchange on which our shares of Common Stock are traded, in the over-the-counter market, or otherwise.

In connection with this offering, the underwriters or their affiliates may engage in passive market making transactions in our Common Stock immediately prior to the commencement of sales in this offering, in accordance with Rule 103 of Regulation M under the Exchange Act. Rule 103 generally provides that:

| ● | a passive market maker may not effect transactions or display bids for our Common Stock in excess of the highest independent bid price by persons who are not passive market makers;
| ● | net purchases by a passive market maker on each day are generally limited to 30% of the passive market maker’s average daily trading volume in our Common Stock during a specified two-month prior period or 200 shares of Common Stock, whichever is greater, and must be discontinued when that limit is reached; and
| ● | passive market making bids must be identified as such.

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Indemnification

We have agreed to indemnify the underwriters against liabilities relating to this offering arising under the Securities Act and the Exchange Act, liabilities arising from breaches of some, or all of the representations and warranties contained in the underwriting agreement, and to contribute to payments that the underwriters may be required to make for these liabilities.

Electronic Distribution

This prospectus in electronic format may be made available on websites or through other online services maintained by one or more of the underwriters, or by their affiliates. Other than this prospectus in electronic format, the information on any underwriter’s website and any information contained in any other website maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

Selling Restrictions

No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of our Common Stock, or the possession, circulation or distribution of this prospectus or any other material relating to us or our Common Stock in any jurisdiction where action for that purpose is required. Accordingly, our Common Stock may not be offered or sold, directly or indirectly, and this prospectus or any other offering material or advertisements in connection with our Common Stock may be distributed or published, in or from any country or jurisdiction, except in compliance with any applicable rules and regulations of any such country or jurisdiction.

European Economic Area

In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive, each a “Relevant Member State”, with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State, or the “Relevant Implementation Date”, our securities will not be offered to the public in that Relevant Member State prior to the publication of a prospectus in relation to our securities that has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Directive, except that, with effect from and including the Relevant Implementation Date, an offer of our securities may be made to the public in that Relevant Member State at any time:

| ● | to any legal entity that is a qualified investor as defined in the Prospectus Directive;
| ● | to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the manager for any such offer; or
| ● | in any other circumstances which do not require the publication by the issuer of a prospectus pursuant to Article 3(2) of the Prospectus Directive, provided that no such offer of the securities shall require the issuer or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Directive.

For the purposes of this provision, the expression an “offer of securities to the public” in relation to any securities in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and securities to be offered so as to enable an investor to decide to purchase or subscribe securities, as the same may be varied in that Relevant Member State by any measure implementing the Prospectus Directive in that Relevant Member State and the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in each Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU.

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United Kingdom

In the United Kingdom, this document is being distributed only to, and is directed only at, and any offer subsequently made may only be directed at persons who are “qualified investors” (as defined in the Prospectus Directive) (i) who have professional experience in matters relating to investments falling within Article 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the Order), and/or (ii) who are high net worth companies (or persons to whom it may otherwise be lawfully communicated) falling within Article 49(2)(a) to (d) of the Order (all such persons together, the relevant persons). This document must not be acted on or relied on in the United Kingdom by persons who are not relevant persons. In the United Kingdom, any investment or investment activity to which this document relates is only available to, and will be engaged in with, relevant persons.

Canada

The offering of our Common Stock in Canada is being made on a private placement basis in reliance on exemptions from the prospectus requirements under the securities laws of each applicable Canadian province and territory where our Common Stock may be offered and sold, and therein may only be made with investors that are purchasing, or deemed to be purchasing, as principal and that qualify as both an “accredited investor” as such term is defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario) and as a “permitted client” as such term is defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any offer and sale of our Common Stock in any province or territory of Canada may only be made through a dealer that is properly registered under the securities legislation of the applicable province or territory wherein our Common Stock is offered and/or sold or, alternatively, where such registration is not required.

Any resale of our Common Stock by an investor resident in Canada must be made in accordance with applicable Canadian securities laws, which require resales to be made in accordance with an exemption from, or in a transaction not subject to, prospectus requirements under applicable Canadian securities laws. These resale restrictions may under certain circumstances apply to resales of the Common Stock outside of Canada.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser’s province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser’s province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 (or, in the case of securities issued or guaranteed by the government of a non- Canadian jurisdiction, section 3A.4) of National Instrument 33-105 Underwriting Conflicts (“NI 33-105”), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

Upon receipt of this prospectus, each Québec investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English language only. Par la réception de ce document, chaque investisseur québecois confirme par les présentes qu’il a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation d’achat ou tout avis) soient rédigés en anglais seulement.

legal matters

The validity of the shares of Common Stock offered hereby will be passed upon for us by Dykema Gossett PLLC, Milwaukee, Wisconsin. Blank Rome LLP has acted as counsel for the underwriters.

experts

Venu’s consolidated financial statements of as of December 31, 2023 and 2022, and for the years then ended, included in this registration statement of which it is a part, have been so included in reliance on the report of Grassi & Co., CPAs, P.C., an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

where you can find additional information

We have filed with the SEC a registration statement on Form S-1 relating to the shares of Common Stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement. For further information regarding us and the shares of Common Stock offered by this prospectus, we refer you to the full registration statement, including its exhibits and schedules, filed under the Securities Act.

The SEC maintains a website at http://www.sec.gov that contains reports, information statements, and other information regarding issuers that file electronically with the SEC. Our registration statement, of which this prospectus constitutes a part, and the exhibits and schedules thereto can be downloaded from the SEC’s website. After the completion of this offering, we will file with or furnish to the SEC periodic reports and other information. These reports and other information may be obtained from the SEC’s website as provided above.

Following the completion of this offering, our website will be located at https://venu.live We intend to make our periodic reports and other information filed with or furnished to the SEC available, free of charge, through our website, as soon as reasonably practicable after those reports and other information are electronically filed with or furnished to the SEC. Information on our website or any other website is not incorporated by reference into this prospectus and does not constitute a part of this prospectus.

110

Notes Live, Inc.

Index to the Consolidated Financial Statements

Unaudited Interim Consolidated Financial Statements of Notes Live, Inc.

| Page
Condensed Consolidated Balance Sheets (Unaudited) | F-4
Condensed Consolidated Statements of Operations (Unaudited) | F-5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) | F-6
Condensed Consolidated Statements of Cash Flows (Unaudited) | F-7
Notes to Condensed Consolidated Financial Statements (Unaudited) | F-8 — F-27

Audited Consolidated Financial Statements of Notes Live, Inc.

Report of Independent Registered Public Accounting Firm | F-28
Consolidated Balance Sheets as of December 31, 2023 and 2022 | F-29
Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2023 and 2022 | F-30
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2023 and 2022 | F-31
Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 | F-32
Notes to Consolidated Financial Statements | F-33

F-1

NOTES LIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED Financial Statements

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND JUNE 30, 2023

(UNAUDITED)

F-2

TABLE OF CONTENTS

| Page
Condensed Consolidated Balance Sheets (Unaudited) | F-4
Condensed Consolidated Statements of Operations (Unaudited) | F-5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) | F-6
Condensed Consolidated Statements of Cash Flows (Unaudited) | F-7
Notes to Condensed Consolidated Financial Statements (Unaudited) | F-8 — F-27

F-3

NOTES LIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in US Dollars)

|  | As of |
|  | June 30, 2024 |  |  | December 31, 2023 |
|  | Unaudited |  |  |  |
ASSETS |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | $ | 42,755,893 |  |  | $ | 20,201,104 |
Inventories |  |  | 211,668 |  |  |  | 185,746 |
Prepaid expenses and other current assets |  |  | 237,312 |  |  |  | 209,215 |
Total current assets |  | $ | 43,204,873 |  |  | $ | 20,596,065 |
Other assets |  |  |  |  |  |  |  |
Property and equipment, net |  | $ | 96,398,677 |  |  | $ | 57,737,763 |
Intangible assets, net |  |  | 244,636 |  |  |  | 277,995 |
Operating lease right-of-use assets, net |  |  | 1,368,661 |  |  |  | 3,685,980 |
Investments in related parties |  |  | 550,000 |  |  |  | 550,000 |
Security and other deposits |  |  | 50,878 |  |  |  | 375,904 |
Total other assets |  | $ | 98,612,852 |  |  | $ | 62,627,642 |
Total assets |  | $ | 141,817,725 |  |  | $ | 83,223,707 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Accounts payable |  | $ | 10,418,510 |  |  | $ | 2,565,460 |
Accrued expenses |  |  | 555,841 |  |  |  | 698,369 |
Accrued payroll and payroll taxes |  |  | 233,308 |  |  |  | 331,457 |
Deferred revenue |  |  | 1,270,459 |  |  |  | 764,081 |
Convertible debt |  |  | 7,733,240 |  |  |  | - |
Current portion of operating lease liabilities |  |  | 293,937 |  |  |  | 230,952 |
Current portion of long-term debt |  |  | 489,043 |  |  |  | 325,245 |
Total current liabilities |  | $ | 20,994,338 |  |  | $ | 4,915,564 |
Long-term portion of operating lease liabilities |  |  | 1,107,870 |  |  |  | 3,646,385 |
Long-term licensing liability |  |  | 4,500,000 |  |  |  | 1,500,000 |
Long-term debt, net of current portion |  |  | 7,599,709 |  |  |  | 11,182,073 |
Total liabilities |  | $ | 34,201,917 |  |  | $ | 21,244,022 |
Commitments and contingencies |  |  |  |  |  |  |  |
Stockholders’ Equity |  |  |  |  |  |  |  |
Class A common stock, $0.001 par — 5,000,000 authorized, 0 issued and outstanding at June 30, 2024 and at December 31, 2023 |  |  | - |  |  |  | - |
Class B common stock, $0.001 par — 30,000,000 authorized, 383,656 issued and outstanding at June 30, 2024 and 1,959,445 issued and outstanding at December 31, 2023 |  |  | 383 |  |  |  | 1,960 |
Class C common stock, $0.001 par — 50,000,000 authorized, 0 and 30,306,060 issued and outstanding at June 30, 2024 and December 31, 2023 |  |  | - |  |  |  | 30,306 |
Class D common stock, $0.001 par — 60,000,000 authorized, 35,478,706 and 0 issued and outstanding at June 30, 2024 and December 31, 2023 |  |  | 35,479 |  |  |  | - |
Preferred stock, $0.001 par — 5,000,000 authorized, none issued or outstanding |  |  | - |  |  |  | - |
Additional paid-in capital |  |  | 110,077,062 |  |  |  | 47,743,085 |
Accumulated deficit |  |  | (37,141,490 | ) |  | $ | (17,021,453 | )
|  | $ | 72,971,434 |  |  | $ | 30,753,898 |
Treasury Stock, at cost — 76,245 shares at June 30, 2024 and December 31, 2023 |  |  | (76 | ) |  |  | (76 | )
Total Notes Live, Inc. and subsidiaries equity |  | $ | 72,971,358 |  |  | $ | 30,753,822 |
Non-controlling interest |  |  | 34,644,450 |  |  |  | 31,225,863 |
Total stockholders’ equity |  | $ | 107,615,808 |  |  | $ | 61,979,685 |
Total liabilities and stockholders’ equity |  | $ | 141,817,725 |  |  | $ | 83,223,707 |

See notes to accompanying condensed consolidated financial statements.

F-4

NOTES LIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in US Dollars)

Unaudited

|  | For the three months ended |  |  | For the six months ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
Restaurant including food and beverage revenue |  | $ | 2,824,092 |  |  | $ | 2,187,461 |  |  | $ | 5,404,194 |  |  | $ | 3,814,637 |
Event center ticket and fees revenue |  |  | 1,335,761 |  |  |  | 436,230 |  |  |  | 2,660,656 |  |  |  | 877,514 |
Rental and sponsorship revenue |  |  | 15,385 |  |  |  | 50,385 |  |  |  | 50,131 |  |  |  | 82,045 |
Total revenues |  |  | 4,175,238 |  |  |  | 2,674,076 |  |  |  | 8,114,981 |  |  |  | 4,774,196 |
Operating costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Food and beverage |  |  | 643,857 |  |  |  | 467,635 |  |  |  | 1,248,412 |  |  |  | 818,081 |
Event center |  |  | 700,188 |  |  |  | 130,344 |  |  |  | 1,291,470 |  |  |  | 226,479 |
Labor |  |  | 1,138,564 |  |  |  | 820,684 |  |  |  | 2,205,962 |  |  |  | 1,383,808 |
Rent |  |  | 421,678 |  |  |  | 363,036 |  |  |  | 642,564 |  |  |  | 500,818 |
Operating expenses |  |  | 5,013,845 |  |  |  | 3,027,271 |  |  |  | 18,829,788 |  |  |  | 6,515,888 |
Depreciation and amortization |  |  | 609,329 |  |  |  | 390,776 |  |  |  | 1,215,793 |  |  |  | 714,155 |
Total operating costs |  |  | 8,527,461 |  |  |  | 5,199,746 |  |  |  | 25,433,989 |  |  |  | 10,159,229 |
Loss from operations |  | $ | (4,352,223 | ) |  | $ | (2,525,670 | ) |  | $ | (17,319,008 | ) |  | $ | (5,385,033 | )
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (1,150,221 | ) |  |  | (74,878 | ) |  |  | (1,555,186 | ) |  |  | (130,560 | )
Other expense |  |  | - |  |  |  | - |  |  |  | (2,500,000 | ) |  |  | - |
Loss on sale of investments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (11,947 | )
Interest income |  |  | 200,779 |  |  |  | 6,738 |  |  |  | 226,510 |  |  |  | 20,153 |
Other income |  |  | 32,500 |  |  |  | 35,501 |  |  |  | 62,500 |  |  |  | 70,569 |
Total other expense, net |  | $ | (916,942 | ) |  | $ | (32,639 | ) |  | $ | (3,766,176 | ) |  | $ | (51,785 | )
Net loss |  | $ | (5,269,165 | ) |  | $ | (2,558,309 | ) |  | $ | (21,085,184 | ) |  | $ | (5,436,818 | )
Net loss attributable to non-controlling interests |  |  | (748,066 | ) |  |  | (126,032 | ) |  |  | (965,147 | ) |  |  | (504,426 | )
Net loss attributable to common stockholders |  | $ | (4,521,099 | ) |  | $ | (2,432,277 | ) |  | $ | (20,120,037 | ) |  | $ | (4,932,392 | )
Weighted average number of shares of Class A common stock, outstanding, basic and diluted |  |  | - |  |  |  | 272,526 |  |  |  | - |  |  |  | 274,861 |
Basic and diluted net loss per share of Class A common stock |  | $ | - |  |  | $ | (0.10 | ) |  | $ | - |  |  | $ | (0.23 | )
Weighted average number of shares of Class B common stock, outstanding, basic and diluted |  |  | 383,737 |  |  |  | 21,949,810 |  |  |  | 1,069,348 |  |  |  | 20,451,328 |
Basic and diluted net loss per share of Class B common stock |  | $ | (0.13 | ) |  | $ | (0.10 | ) |  | $ | (0.59 | ) |  | $ | (0.23 | )
Weighted average number of shares of Class C common stock, outstanding, basic and diluted |  |  | 64,115 |  |  |  | 1,784,238 |  |  |  | 13,427,266 |  |  |  | 897,048 |
Basic and diluted net loss per share of Class C common stock |  | $ | (0.13 | ) |  | $ | (0.10 | ) |  | $ | (0.59 | ) |  | $ | (0.23 | )
Weighted average number of shares of Class D common stock, outstanding, basic and diluted |  |  | 34,901,392 |  |  |  | - |  |  |  | 19,733,631 |  |  |  | - |
Basic and diluted net loss per share of Class D common stock |  | $ | (0.13 | ) |  | $ | - |  |  | $ | (0.59 | ) |  | $ | - |

See notes to accompanying condensed consolidated financial statements.

F-5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in US Dollars)

Unaudited

|  | Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Class A Common Stock |  |  | Class B Common Stock |  |  | Class C Common Stock |  |  | Class D Common Stock |  |  | Additional |  |  |  |  |  | Treasury Stock |  |  | Total Notes |  |  | Non- |  |  |  |
|  | Number of Shares |  |  | Amount |  |  | Number of Shares |  |  | Amount |  |  | Number of Shares |  |  | Amount |  |  | Number of Shares |  |  | Amount |  |  | Paid In Capital |  |  | Accumulated Deficit |  |  | Number of Shares |  |  | Amount |  |  | Live, Inc. Equity |  |  | Controlling Interests |  |  | Total Equity |
Balances at December 31, 2023 |  |  | - |  |  | $ | - |  |  |  | 1,959,445 |  |  | $ | 1,960 |  |  |  | 30,306,030 |  |  | $ | 30,306 |  |  |  | - |  |  | $ | - |  |  | $ | 47,743,085 |  |  | $ | (17,021,453 | ) |  |  | 76,245 |  |  | $ | (76 | ) |  | $ | 30,753,822 |  |  | $ | 31,225,863 |  |  | $ | 61,979,685 |
Issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,008,750 |  |  |  | 2,009 |  |  |  | - |  |  |  | - |  |  |  | 20,085,491 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 20,087,500 |  |  |  | - |  |  |  | 20,087,500 |
Exercise of warrants |  |  | - |  |  |  | - |  |  |  | 40,349 |  |  |  | 40 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 40 |  |  |  | - |  |  |  | 40 |
Equity issued for services |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 700,000 |  |  |  | 700 |  |  |  | - |  |  |  | - |  |  |  | 6,999,300 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,000,000 |  |  |  | - |  |  |  | 7,000,000 |
Conversion of Common Stock Class B to Common Stock Class D |  |  | - |  |  |  | - |  |  |  | (1,619,804 | ) |  |  | (1,620 | ) |  |  | - |  |  |  | - |  |  |  | 1,619,804 |  |  |  | 1,620 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Conversion of Common Stock Class C to Common Stock Class D |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (33,014,780 | ) |  |  | (33,015 | ) |  |  | 33,014,780 |  |  |  | 33,015 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Equity based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,566,254 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,566,254 |  |  |  | - |  |  |  | 2,566,254 |
Shareholder contribution associated with convertible debt transaction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,500,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,500,000 |  |  |  | - |  |  |  | 2,500,000 |
Warrants issued as debt discount |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,000,140 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,000,140 |  |  |  | - |  |  |  | 3,000,140 |
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,013,613 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,013,613 |  |  |  | 2,361,387 |  |  |  | 10,375,000 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (124,050 | ) |  |  | (124,050 | )
Net loss |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (15,598,938 | ) |  |  | - |  |  |  | - |  |  |  | (15,598,938 | ) |  |  | (217,081 | ) |  |  | (15,816,019 | )
Balances at March 31, 2024 |  |  | - |  |  | $ | - |  |  |  | 379,990 |  |  | $ | 380 |  |  |  | - |  |  | $ | - |  |  |  | 34,634,584 |  |  | $ | 34,635 |  |  | $ | 90,907,883 |  |  | $ | (32,620,391 | ) |  |  | 76,245 |  |  | $ | (76 | ) |  | $ | 58,322,431 |  |  | $ | 33,246,119 |  |  | $ | 91,568,550 |
Issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 526,250 |  |  |  | 526 |  |  |  | - |  |  |  | - |  |  |  | 5,163,315 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,163,841 |  |  |  | - |  |  |  | 5,163,841 |
Exercise of warrants |  |  | - |  |  |  | - |  |  |  | 12,498 |  |  |  | 12 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12 |  |  |  | - |  |  |  | 12 |
Conversion of Common Stock Class B to Common Stock Class D |  |  | - |  |  |  | - |  |  |  | (8,832 | ) |  |  | (9 | ) |  |  | - |  |  |  | - |  |  |  | 8,832 |  |  |  | 9 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Conversion of Common Stock Class C to Common Stock Class D |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (526,250 | ) |  |  | (526 | ) |  |  | 526,250 |  |  |  | 526 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Equity issued for fixed asset acquisition |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 276,100 |  |  |  | 276 |  |  |  | 2,760,724 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,761,000 |  |  |  | - |  |  |  | 2,761,000 |
Equity based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 689,252 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 689,252 |  |  |  | - |  |  |  | 689,252 |
Equity issued for interest and fees for convertible debt transaction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 32,940 |  |  |  | 33 |  |  |  | 329,367 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 329,400 |  |  |  | - |  |  |  | 329,400 |
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 10,226,521 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 10,226,521 |  |  |  | 2,293,479 |  |  |  | 12,520,000 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (147,082 | ) |  |  | (147,082 | )
Net loss |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4,521,099 | ) |  |  | - |  |  |  | - |  |  |  | (4,521,099 | ) |  |  | (748,066 | ) |  |  | (5,269,165 | )
Balances at June 30, 2024 |  |  | - |  |  | $ | - |  |  |  | 383,656 |  |  | $ | 383 |  |  |  | - |  |  | $ | - |  |  |  | 35,478,706 |  |  | $ | 35,479 |  |  | $ | 110,077,062 |  |  | $ | (37,141,490 | ) |  |  | 76,245 |  |  | $ | (76 | ) |  | $ | 72,971,358 |  |  | $ | 34,644,450 |  |  | $ | 107,615,808 |
Balances at January 1, 2023 |  |  | 275,000 |  |  | $ | 275 |  |  |  | 18,297,555 |  |  | $ | 18,298 |  |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  | $ | 22,445,530 |  |  | $ | (6,496,980 | ) |  |  | - |  |  | $ | - |  |  | $ | 15,967,123 |  |  | $ | 22,793,014 |  |  | $ | 38,760,137 |
Issuance of shares |  |  | - |  |  |  | - |  |  |  | 1,963,150 |  |  |  | 1,963 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,500,138 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,502,101 |  |  |  | - |  |  |  | 5,502,101 |
Exercise of warrants |  |  | 66,665 |  |  |  | 67 |  |  |  | 1,250 |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 82,432 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 82,500 |  |  |  | - |  |  |  | 82,500 |
Equity issued for services |  |  | - |  |  |  | - |  |  |  | 402,610 |  |  |  | 403 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,207,427 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,207,830 |  |  |  | - |  |  |  | 1,207,830 |
Equity based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 83,497 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 83,497 |  |  |  | - |  |  |  | 83,497 |
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,835,550 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,835,550 |  |  |  | 4,564,450 |  |  |  | 6,400,000 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (273,961 | ) |  |  | (273,961 | )
Net loss |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,500,115 | ) |  |  | - |  |  |  | - |  |  |  | (2,500,115 | ) |  |  | (378,394 | ) |  |  | (2,878,509 | )
Balances at March 31, 2023 |  |  | 341,665 |  |  | $ | 342 |  |  |  | 20,664,565 |  |  | $ | 20,665 |  |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  | $ | 31,154,574 |  |  | $ | (8,997,095 | ) |  |  | - |  |  | $ | - |  |  | $ | 22,178,486 |  |  | $ | 26,705,109 |  |  | $ | 48,883,595 |
Issuance of shares |  |  | - |  |  |  | - |  |  |  | 2,636,215 |  |  |  | 2,637 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,249,975 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,252,612 |  |  |  | - |  |  |  | 8,252,612 |
Equity issued for services |  |  | - |  |  |  | - |  |  |  | 5,000 |  |  |  | 5 |  |  |  | 175,000 |  |  |  | 175 |  |  |  | - |  |  |  | - |  |  |  | 534,964 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 535,144 |  |  |  | - |  |  |  | 535,144 |
Conversion of Common Stock Class A |  |  | (341,665 | ) |  |  | (342 | ) |  |  | - |  |  |  | - |  |  |  | 8,541,625 |  |  |  | 8,542 |  |  |  | - |  |  |  | - |  |  |  | (8,200 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Acquisition of treasury stock |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 76,245 |  |  |  | (76 | ) |  |  | (76 | ) |  |  | - |  |  |  | (76 | )
Equity based compensation |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 100,509 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 100,509 |  |  |  | - |  |  |  | 100,509 |
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 100,000 |  |  |  | 100,000 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (273,961 | ) |  |  | (273,961 | )
Net loss |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,432,277 | ) |  |  | - |  |  |  | - |  |  |  | (2,432,277 | ) |  |  | (126,032 | ) |  |  | (2,558,309 | )
Balances at June 30, 2023 |  |  | - |  |  | $ | - |  |  |  | 23,305,780 |  |  | $ | 23,307 |  |  |  | 8,716,625 |  |  | $ | 8,717 |  |  |  | - |  |  | $ | - |  |  | $ | 40,031,822 |  |  | $ | (11,429,372 | ) |  |  | 76,245 |  |  | $ | (76 | ) |  | $ | 28,634,398 |  |  | $ | 26,405,116 |  |  | $ | 55,039,514 |

See notes to accompanying condensed consolidated financial statements.

F-6

NOTES LIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in US Dollars)

Unaudited

|  | For the six months ended June 30, |
|  | 2024 |  |  | 2023 |
Net loss |  | $ | (21,085,184 | ) |  | $ | (5,436,818 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Equity issued for interest on convertible debt |  |  | 229,400 |  |  |  | - |
Equity based compensation |  |  | 3,255,506 |  |  |  | 184,006 |
Equity issued for services |  |  | 7,000,000 |  |  |  | 1,742,974 |
Project abandonment loss |  |  | 668,402 |  |  |  | - |
Amortization of debt discount |  |  | 1,134,815 |  |  |  | 717 |
Non cash lease expense |  |  | 268,635 |  |  |  | 242,100 |
Unrealized income on equity method investment |  |  | - |  |  |  | (5,568 | )
Depreciation and amortization |  |  | 1,215,793 |  |  |  | 714,155 |
Noncash financing expense |  |  | 2,500,000 |  |  |  | - |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Inventories |  |  | (25,922 | ) |  |  | (85,766 | )
Prepaid expenses and other current assets |  |  | (28,097 | ) |  |  | (95,490 | )
Security deposit |  |  | 325,026 |  |  |  | 150,000 |
Accounts payable |  |  | 7,829,502 |  |  |  | (1,014,730 | )
Accrued expenses |  |  | (142,528 | ) |  |  | (6,144 | )
Accrued payroll and payroll taxes |  |  | (98,149 | ) |  |  | (131,307 | )
Deferred revenue |  |  | 506,378 |  |  |  | 366,133 |
Operating lease liabilities |  |  | (235,819 | ) |  |  | (225,652 | )
Licensing liabilities |  |  | 2,800,000 |  |  |  | - |
Net cash provided by (used in) operating activities |  | $ | 6,117,758 |  |  | $ | (3,601,390 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  | (31,259,314 | ) |  |  | (18,612,512 | )
Net cash acquired from acquisition of 13141 BP |  |  | 74,085 |  |  |  | - |
Net cash used in investing activities |  | $ | (31,185,229 | ) |  | $ | (18,612,512 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Proceeds from sale of non-controlling interest equity |  |  | 22,895,000 |  |  |  | 6,500,000 |
Distributions to non-controlling shareholders |  |  | (271,132 | ) |  |  | (547,922 | )
Principal payments on long-term debt |  |  | (153,001 | ) |  |  | (76,995 | )
Proceeds from issuance of shares |  |  | 25,251,341 |  |  |  | 13,754,713 |
Proceeds from exercise of warrants |  |  | 52 |  |  |  | 82,500 |
Payment for personal guarantee on convertible debt |  |  | (100,000 | ) |  |  | - |
Acquisition of treasury stock |  |  | - |  |  |  | (76 | )
Net cash provided by financing activities |  | $ | 47,622,260 |  |  | $ | 19,712,220 |
Net increase (decrease) in cash |  |  | 22,554,789 |  |  |  | (2,501,682 | )
Cash, beginning |  |  | 20,201,104 |  |  |  | 23,470,734 |
Cash, ending |  | $ | 42,755,893 |  |  | $ | 20,969,052 |
Supplemental disclosure of non-cash operating, investing and financing activities: |  |  |  |  |  |  |  |
Cash paid for interest |  | $ | 189,992 |  |  | $ | 112,662 |
Property acquired via mortgage |  | $ | - |  |  | $ | 3,316,937 |
Property acquired via convertible debt |  | $ | 10,000,000 |  |  | $ | - |
Debt discounts — warrants |  | $ | 3,000,140 |  |  | $ | - |
Equity issued for origination fee |  | $ | 100,000 |  |  | $ | - |
Debt discount — suite granted to lender |  | $ | 200,000 |  |  | $ | - |
Land returned in exchange for termination of promissory note payable |  | $ | 3,267,000 |  |  | $ | - |
Right of Use Assets obtained in exchange for operating lease liabilities |  | $ | 299,101 |  |  | $ | - |

See notes to accompanying condensed consolidated financial statements.

F-7

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Organization

Notes Live, Inc. (“NL” or “the Company”) is a Colorado corporation formed on March 13, 2017. The Company is a hospitality and entertainment business to which it earns revenues from operating restaurants, hosting events, renting event space and operating outdoor amphitheaters. The Company and its subsidiaries operate within the United States of America.

The Company’s registered office is at 1755 Telstar Drive, Suite 501, Colorado Springs, Colorado 80920.

The Company’s subsidiaries and its interests in each are presented below as of June 30, 2024:

Name of Entity |  | Place of Incorporation |  | Interest |
Notes Live, Inc. (Parent) |  | Colorado |  |  | 100 | %
Bourbon Brothers Holding Company, LLC (“BBH”) |  | Colorado |  |  | 100 | %
Bourbon Brothers Smokehouse and Tavern CS, LLC (“BBST”) |  | Colorado |  |  | 100 | %
Bourbon Brothers Presents, LLC d/b/a Boot Barn Hall (“BBP”) |  | Colorado |  |  | 89 | %
Bourbon Brothers Smokehouse and Tavern GA, LLC (“BBSTGA”) |  | Georgia |  |  | 100 | %
Bourbon Brothers Presents GA, LLC (“BBPGA”) |  | Georgia |  |  | 100 | %
Notes Holding Company, LLC (“NH”) |  | Colorado |  |  | 100 | %
13141 Notes, LLC d/b/a Notes (“Notes”) |  | Colorado |  |  | 100 | %
Sunset Amphitheater, LLC (“Sunset”) * |  | Colorado |  |  | 10 | %
Hospitality Income & Asset, LLC (“HIA”) * |  | Colorado |  |  | 99 | %
Sunset on the Stones River, LLC (“Stones”) |  | Colorado |  |  | 100 | %
Bourbon Brothers Licensing, LLC (“BBL”) |  | Colorado |  |  | 100 | %
GA HIA, LLC (“GAHIA”) * |  | Colorado |  |  | 16 | %
Notes Live Real Estate, LLC (“NotesRE”) |  | Colorado |  |  | 100 | %
Roth’s Seafood and Chophouse, LLC (“Roth”) |  | Colorado |  |  | 100 | %
Sunset Operations, LLC (“SunsetOps”) |  | Colorado |  |  | 100 | %
Sunset Hospitality Collection, LLC (“SHC”) * |  | Colorado |  |  | 54 | %
Notes Hospitality Collection, LLC (“NHC”) |  | Colorado |  |  | 100 | %
Sunset at Broken Arrow, LLC (“BA”) * |  | Colorado |  |  | 80 | %
Sunset at Mustang Creek, LLC (“MC”) * |  | Colorado |  |  | 84 | %
Sunset at McKinney, LLC (“MK”) * |  | Colorado |  |  | 88 | %
Sunset Operations at McKinney, LLC (“McKinneyOps”) |  | Colorado |  |  | 100 | %
Sunset at El Paso, LLC (“EP”) * |  | Colorado |  |  | 100 | %
Sunset Operations at El Paso, LLC (“EPOps”) |  | Colorado |  |  | 100 | %
Polaris Pointe Parking, LLC (“PPP”) |  | Colorado |  |  | 100 | %

*These entities are considered majority-owned subsidiaries or variable interest entities and consolidated into the Notes Live consolidated financials

F-8

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (Continued)

Bourbon Brothers Holdings Company, LLC (“BBH”) is a holding company designed to own and manage each of the Bourbon Brothers-related operating entities.

Bourbon Brothers Smokehouse and Tavern CS, LLC (“BBST”) is the sole owner and operator of its restaurant operations. The restaurant building is leased from Hospitality Income & Asset, LLC (“HIA”), a majority owned subsidiary, whom the company has a lease with and then purchased a majority of HIA in the year ended December 31, 2022 (refer to Note 7 – Related Party Transactions footnote for further details of this acquisition).

Bourbon Brothers Presents, LLC d/b/a Boot Barn Hall (“BBP”) specializes in producing music concerts as well as other types of live entertainment, including comedy acts and speaking engagements. Additionally, BBP utilizes the Boot Barn Hall event venue (“event venue”) to host corporate events and weddings, among other utilizations of the facility. BBP is the sole owner and operator of the Boot Barn Hall event venue facility. The Boot Barn Hall event venue building is leased from HIA, a related party (refer to Note 4 – Leases footnote for further details). The Company owns 89% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Bourbon Brothers Smokehouse and Tavern GA, LLC (“BBSTGA”) is the sole owner and operator of the restaurant operations. The BBSTGA restaurant building is leased from a related party entity (refer to Note 5 – Leases footnote for further details).

Bourbon Brothers Presents GA, LLC (“BBPGA”) is the Company’s concert and event venue in Gainesville, Georgia, specializing in producing music concerts as well as other types of live entertainment, including comedy acts and speaking engagements. Additionally, this concert and event venue facility is utilized to host corporate events and weddings. BBPGA is the sole owner and operator of this facility. This facility is leased from a related party entity (refer to Note 7 – Related Party Transactions footnote for further details).

Bourbon Brothers Media, LLC (“BBM”) is a digital media-focused entertainment company. BBM closed in 2023.

Bourbon Brothers Licensing, LLC (“BBL”) BBL is designed to exclusively serve as the entity which licenses the Bourbon Brothers brand.

Notes Holding Company, LLC (“NH”) is a pass-through entity established to hold the Company’s equity interests in various subsidiaries.

13141 Notes, LLC (“Notes”) is the restaurant operating entity, managing the Notes Eatery (formally known as Buttermilk Eatery, LLC which updated its name on August 8, 2022), located in Colorado Springs, Colorado, which opened in June 2020.

13141 BP, LLC (“13141 BP”) was acquired by the Company on June 26, 2024. The Company purchased 100% of the membership units for 13141 BP’s members. and owns the land and buildings for which Notes currently use from an existing lease arrangement. The transaction is treated as an asset acquisition and accounted for under ASC 805, Business Combinations. Under this methodology the purchase price is allocated to the acquired asset based on their proportionate fair values. The Company purchased these units of 13141 BP for a total purchase price of $2,761,000 using equity. Under the terms of the purchase agreement, the Company issued 276,100 shares of Class D common stock. The Company owns 100% of this subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset Amphitheater, LLC (“Sunset”) is a hospitality-focused music venue located in Colorado Springs. This venue opened in August 2024. The Company owns 10% of this variable interest entity and 100% of its voting control and consolidates it into its financials.

Hospitality Income & Asset, LLC (“HIA”) was acquired by the Company on April 1, 2022 and owns the land and buildings for which both BBST and BBP currently use from existing lease arrangements. The Company owns 99% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

F-9

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (Continued)

Sunset on the Stones River, LLC (“Stones”) was planned to be a fully integrated Notes Live entertainment complex in Murfreesboro, Tennessee. The Company does not plan to move forward with this location. Its agreement with the City was terminated on August 26, 2024. The Company expensed the development costs to date in 2024 for $305,497 included in operating expenses for the six months ended June 30, 2024.

GA HIA, LLC (“GAHIA”) is the Colorado-based entity that holds the Company’s Georgia based operations. The Company owns 16% of this variable interest entity and 100% of its voting control and consolidates it into its financials.

Notes Live Real Estate, LLC (“NotesRE”) holds title to certain Company real estate assets.

Roth’s Seafood and Chophouse, LLC (“Roth Seafood”) is a restaurant adjacent to The Sunset amphitheater. This location is slated to open when construction is completed which is anticipated in May 2025.

Sunset Operations, LLC (“Sunset Ops”) is the operating entity that manages the Sunset amphitheater operations and opened August 9, 2024.

Notes Hospitality Collection, LLC (“NHC”) is the operating entity that manages the venue rentals and 1,200 additional seating to view the concerts and shows at Sunset Ops and is slated to open when construction is completed which is anticipated in May 2025.

Sunset Hospitality Collection, LLC (“SHC”) is the entity that owns the venue that includes Roth Seafood and NHC and is currently under construction. The Company owns 54% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset at Broken Arrow, LLC (“Sunset BA”) is a hospitality-focused music venue located in Broken Arrow, OK and has not yet begun construction. The Company owns 80% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset at Mustang Creek, LLC (“Sunset MC”) is a hospitality-focused music venue located in Mustang Creek, OK and has not yet begun construction. The Company owns 84% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset at McKinney, LLC (“Sunset MC”) is a hospitality-focused music venue located in McKinney, TX and has not yet begun construction. The Company owns 88% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset Operations at McKinney, LLC (“McKinneyOps”) is the operating entity that manages the Sunset amphitheater in McKinney, TX operations and is slated to open when construction is completed which is anticipated in 2026.

Sunset at El Paso, LLC (“Sunset EP”) is a hospitality-focused music venue located in El Paso, TX and has not yet begun construction. The Company owns 100% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset Operations at El Paso, LLC (“EPOps”) is the operating entity that manages the Sunset Amphitheater in El Paso, TX operations and is slated to open when construction is completed which is anticipated in 2026.

Polaris Pointe Parking, LLC (“PPP”) owns the land for parking at Sunset Ops.

On January 29, 2024, the Company announced it executed a definitive merger agreement with Fresh Vine Wine, Inc. (“Fresh Vine”) and was anticipated to close in June 2024. On July 31, 2024, the Company entered into a Termination Agreement (the “Termination Agreement”), wherein the parties mutually agreed to terminate the Merger Agreement effective immediately upon execution of the Termination Agreement.

F-10

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, these condensed consolidated financial statements reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the periods presented.

Risks and Uncertainties

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgements that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations regarding future events that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates.

Significant estimates made by management include, but are not limited to: economic lives of leased assets; impairment assessment of long- lived assets; depreciable lives of property, plant and equipment; useful lives of intangible assets; accruals for contingencies including tax contingencies; valuation allowances for deferred income tax assets; estimates of fair value of identifiable assets and liabilities acquired in business combinations; and estimates of fair value used in the private stock valuations used for equity based compensation and warrants.

Liquidity and Capital Resources

The Company has devoted substantially all of its efforts to developing its business plan, raising capital, and opening and operating its restaurants and event venues in Colorado, Georgia, Tennessee, Oklahoma and Texas. The accompanying condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business.

The accompanying condensed consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As of the issuance of these financials, management has concluded there is no substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. The Company had an accumulated deficit of $37,141,490 and $17,021,453 as of June 30, 2024 and December 31, 2023, respectively and incurred net losses of $20,120,037 and $4,932,392 for the six months ended June 30, 2024 and 2023 respectively. These conditions raised substantial doubt about the Company’s ability to continue as a going concern; however, based on management’s plan, as described below, such substantial doubt has been alleviated. The Company believes that cash on hand, and the improved profitability in 2024 from the operating entities in Colorado Springs, Colorado and Gainesville, Georgia, along with the opening of Sunset Amphitheater in August 2024 will allow the Company to continue its business operations, as well as additional capital raising and debt financing in 2024, will allow the Company to continue its business operations. There is no guarantee that we will be able to execute on these plans as laid out above.

The Company’s continued implementation of its business plan to add additional locations is dependent on its future engagement in strategic locations, real estate transactions, capital raising, and debt financing. If the Company is unable to enter into strategic transactions, the Company may be required to delay its business plan implementation for future expansion, which would have a material adverse impact on the Company’s growth plan.

F-11

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned, majority-owned subsidiaries and variable interest entities. For those entities that aren’t wholly-owned by Company, the Company assesses the voting and management control to confirm the Company is the primary beneficiary of the majority-owned subsidiaries and variable interest entities. All intercompany accounts and transactions have been

Principles of Consolidation (Continued)

eliminated upon consolidation. See “Organization” and “Non-controlling Interest” for further discussions of the entities that are majority-owned subsidiaries and variable interest entities. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. See “Investments in related parties” for further discussion.

Fair Value Measurements

Fair values have been determined for measurement and/or disclosure purposes based on the following methods. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The levels of the fair value hierarchy are as follows:

● Level 1 – fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

● Level 2 – fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

● Level 3 – fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The carrying values of cash, payables and accrued liabilities approximate their fair values because of the short-term nature of these financial instruments. Balances due to and due from related parties do not have specific repayment dates and are payable on demand, thus are also considered current and short-term in nature, hence carrying value approximates fair value and are included in current assets or liabilities.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. As of June 30, 2024 and December 31, 2023, the Company did not have any cash equivalents. Cash balances can exceed federally insured limits.

Inventories

Inventories, consisting principally of food, beverages and supplies, are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. The Company reviews inventory on a weekly basis and determines if slow-moving or obsolete inventory exists. No allowance is deemed necessary as of June 30, 2024 and December 31, 2023.

F-12

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in related parties

The Company currently accounts for certain investments using a practical expedient to measure these investments that do not have a readily determinable fair value in accordance with Accounting Standards Codification (“ASC”) 321, Investments — Equity Securities; ASC 325, Investments – Other; ASC 810, Consolidation; and ASC 820, Fair Value Measurement. The investments are initially recognized at cost. Any income or loss from these investments are recognized on the condensed consolidated statements of operations, net of operating expenses. The carrying value of the Company’s investments are assessed for indicators or impairment at each balance sheet date. Under this method of accounting, the investment is derecognized once the Company’s interest in the investment is sold or impaired. Upon sale, any proportionate gain or loss is recognized in the condensed consolidated statement of operations as other income.

The Company had one investment during 2023, until it disposed of it on December 31, 2023, that it accounted for using the equity method as described in ASC 323, Investments – Equity Method and Joint Ventures where the investment was initially recorded as an asset on the balance sheet at its initial cost. This investment was adjusted each reporting period by the Company through the income statement for the income or loss for its proportionate share of investment. See Note 6 – Investments in Related Parties and Note 7 – Related Party Transactions for further discussion.

Property and Equipment

Property and equipment are recorded at historical cost net of accumulated depreciation and amortization, write-downs and impairment losses. Property and equipment are recorded as construction in progress until they are placed in service, and are depreciated or amortized once placed in service. Depreciation and amortization are calculated on a straight-line basis over the following periods:

The estimated useful lives are:

Leasehold improvements |  | Shorter of lease term or useful life
Furniture, fixtures and equipment |  | 2-10 years
Buildings |  | Up to 40 years

Property and equipment costs directly associated with the acquisition, development and construction of a restaurant are capitalized. Expenditures for major improvements and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and amortization and the related gain or loss are reflected in earnings.

Intangible Assets

Intangible assets with a finite life are recorded at cost and are amortized on a straight-line basis over estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The Company currently has naming rights that are amortized on a straight-line basis over six years.

The Company reviews the carrying values of its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable.

Impairment Assessment of Long-Lived Assets

Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An evaluation for impairment is performed at the lowest level of identifiable cash flows. An impairment loss is recognized in an amount equal to the excess of the carrying value over the estimated fair value. No impairment loss was recognized during the periods ending June 30, 2024 and June 30, 2023.

F-13

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers. This ASC requires an entity to allocate the transaction price received from customers to each separate and distinct performance obligation and recognize revenue as these performance obligations are satisfied. The Company recognizes revenue from restaurant sales when food and beverage products are transferred to the customer. Revenue from a venue rental, concert or show is recognized when the event, concert or show occurs. Amounts collected in advance of the event are recorded as deferred revenue until the event occurs. Amounts collected from sponsorship agreements, which are not related to a single event, are classified as deferred revenue and recognized over the term of the agreements as the benefits are provided to the sponsors. As of June 30, 2024 and December 31, 2023, deferred revenue totaled $1,270,459 and $764,081, respectively. As of June 30, 2023 and December 31, 2022, deferred revenue totaled $493,424 and $127,291, respectively. During the six months ended June 30, 2024, the Company recognized $671,632 in revenue from its deferred revenue balance as of December 31, 2023. During the six months ended June 30, 2023, the Company recognized $152,245 in revenue from its deferred revenue balance as of December 31, 2022. There are no refunds or allowance for refunds in accordance with the Company’s reservation policies, which do not allow for, except in limited circumstances.

Leases

The Company accounts for its leases in accordance with ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded in the condensed consolidated balance sheets as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term, including any renewal options that are likely to be exercised, at the rate implicit in the lease. Lease liabilities are increased by the principal amount due and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.

In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components as permitted under ASC 842. The Company excludes short-term leases having initial terms of 12 months or less as an accounting policy election and expenses payments on these short-term leases as they are made.

Long-term Licensing Liability

The Company accounts for the licensing of its hospitality fire pit suites of Notes Hospitality Collection as a long-term licensing liability. The deposits of $100,000 and fully prepaid licenses of $200,000 are recognized in this account.

The amortization of these liabilities will start to be recognized when NHC opens its suites fully after construction is expected to be completed by May 2025.

Advertising Expenses

Advertising costs are expensed as incurred and included in operating expenses in the accompanying condensed consolidated statements of operations. Total advertising expenses were approximately $694,133, $322,927, $1,407,258 and $727,443 for the three and six month periods ended June 30, 2024 and June 30, 2023, respectively.

Debt Issuance Costs

Debt issuance costs incurred in connection with the issuance of long-term debt are recorded as reductions of long-term debt and are amortized over the term of the related debt. Amortization of debt issuance costs of $856,586, $0, $1,134,815 and $0 for the three and six month periods ended June 30, 2024 and June 30, 2023, are included in interest expense in the accompanying condensed consolidated statements of operations.

F-14

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Equity Based Compensation

The Company recognizes equity-based compensation expense based on the fair value of the warrants or shares at the time of the grant or issuance. Share-based compensation includes warrants and stock grants issued to the Company’s employees. These may vest immediately or vest evenly up to five years. The exercise price of a warrant is the fair value of the Company’s equity on the date of issuance.

Equity Issuance Costs

Equity issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement.

Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability, and whether the warrants meet all the

requirements for equity classification, including whether the warrants are indexed to the Company’s own stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent balance sheet date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of stockholders’ equity at the time of issuance.

Income Taxes

The Company is subject to federal and state income taxes. A proportional share of the Company’s subsidiaries’ provisions are included in the condensed consolidated financial statements. Deferred income tax assets and liabilities are computed for differences between the asset and liability method and financial statement amounts that will result in taxable or deductible amounts in the future. The Company computes deferred balances based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income.

A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations is considered. If the Company determines it will be able to realize the deferred tax assets for which a valuation allowance had been recorded, then it will adjust the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions.

Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) an assessment is made as to whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

F-15

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company is a C corporation (“C Corp”), however, the Company’s subsidiaries are limited liability companies (“LLC’s”), filing as individual partnerships. As an LLC, management believes that these companies are not subject to income taxes, and such taxes are the responsibility of the respective members. The subsidiaries’ LLCs are still in place, with the parent company filing as a corporation.

Non-controlling Interest and Variable Interest Entities

The non-controlling interest (“NCI”) represents capital contributions and distributions, income and loss attributable to the owners of less than wholly owned consolidated entities and are reported in equity. NCIs are evaluated by the Company and are shown as permanent equity. Net income (loss) attributable to NCIs reflects the portion of the net income (loss) of consolidated entities applicable to the NCI stockholders in the accompanying Condensed Consolidated Statements of Operations. The net income (loss) attributable to NCIs is classified in the Consolidated Statements of Operations as part of consolidated net income (loss) and deducted from total consolidated net income (loss) to arrive at the net income (loss) attributable to the Company. The Company has evaluated its investments in its consolidated entities in order to determine if they qualify as variable interest entities (“VIEs”). The Company is the entity that holds the majority, and only, voting interests and is also the primary beneficiary of the VIEs. The Company monitors these investments and, to the extent it has determined that it owns a majority of the controlling class of securities of a particular entity, analyzes the entity for potential consolidation. The Company will continually analyze investments, including when there is a reconsideration event, to determine whether such investments are VIEs and whether such VIE should be consolidated. These analyses require considerable judgment in determining the primary beneficiary of a VIE and could result in the consolidation of an entity that would otherwise not have been consolidated or the non-consolidation of an entity that would have otherwise been consolidated.

The Company accounts for the change in its ownership interest while it retains its 100% controlling financial interest, as the Company owns 100% of the voting membership interest, in all of its majority-owned subsidiaries and VIEs as equity transactions. As such, the Company is the entity that holds the majority, and only, voting interests and is also the primary beneficiary of the VIEs. These VIEs meets the definition of a business and the VIE’s assets can be used for purposes other than the settlement of the VIE’s obligations, The Company is the holder of controlling variable interests in its VIEs and is also the holder as the primary beneficiary of all of its VIEs. These VIEs exist for the Company’s operations and purposes. The Company is the sole manager of the legal entity and operating manager of these VIEs. The Company would provide support to the VIEs, including events that may expose the Company to the VIEs reporting losses. The Company directly controls the VIE’s financial position in terms of operations, construction, acquisition of real estate, financial performance and directs its cash flows. As the VIEs issue voting equity interests to the Company, the Company holds 100% voting interest and is also the primary beneficiary of the VIE. The VIEs meet or will meet the definition of a business once open for operations and the VIEs’ assets can be used for purposes other than settlement of the VIE’s obligations. he carrying value of the NCI should be adjusted to reflect the change in the Company’s ownership interest in the subsidiary, and differences between the fair value of the consideration received and the amount by which the NCI is adjusted should be recognized in equity attributable to the Company. This may be shown as NCI and as additional paid in capital to the Company when combined agree to the non-controlling issuance of shares as shown in the Condensed Consolidated Statement of Change in Stockholders’ Equity.

If a change in ownership of a consolidated subsidiary results in a loss of control or deconsolidation, any retained ownership interests are remeasured with the gain or loss reported to net earnings. These may be majority-owned subsidiaries or variable interest entities that the Company has 100% voting control of.

F-16

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of June 30, 2024:

|  | BBPCO |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  | 314,454 |  |  |  | 66,338 |  |  |  | 19,835 |  |  |  | 1,727,432 |  |  |  | - |  |  |  | 1,971,116 |  |  |  | 1,590,136 |  |  |  | 8,682,146 |  |  |  | 13,356,849 |  |  |  | 27,728,306 |
Property and equipment, net |  |  | 31,740 |  |  |  | 10,812,419 |  |  |  | 10,797,059 |  |  |  | 38,153,227 |  |  |  | - |  |  |  | 36,725 |  |  |  | 4,064,056 |  |  |  | 5,006,864 |  |  |  | 274,079 |  |  |  | 69,176,169 |
Other assets |  |  | 216,932 |  |  |  | 144,612 |  |  |  | 769,897 |  |  |  | (4,063,392 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (15,472 | ) |  |  | 542,193 |  |  |  | (2,405,230 | )
Total assets |  |  | 563,126 |  |  |  | 11,023,369 |  |  |  | 11,586,791 |  |  |  | 35,817,267 |  |  |  | - |  |  |  | 2,007,841 |  |  |  | 5,654,192 |  |  |  | 13,673,538 |  |  |  | 14,173,121 |  |  |  | 94,499,245 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 3,391 |  |  |  | - |  |  |  | 71,834 |  |  |  | 4,945,961 |  |  |  | - |  |  |  | 1,225 |  |  |  | 2,883,809 |  |  |  | 984,341 |  |  |  | 136,581 |  |  |  | 9,027,142 |
Accrued expenses and other |  |  | 254,681 |  |  |  | 38,984 |  |  |  | 64,269 |  |  |  | 40,600 |  |  |  | - |  |  |  | - |  |  |  | 869 |  |  |  | 16,516 |  |  |  | 130,252 |  |  |  | 546,171 |
Other long-term liabilities |  |  | 1,073,136 |  |  |  | 4,265,718 |  |  |  | 3,323,034 |  |  |  | 9,866,667 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 169,916 |  |  |  | 18,698,471 |
Total Liabilities |  |  | 1,331,208 |  |  |  | 4,304,702 |  |  |  | 3,459,137 |  |  |  | 14,853,228 |  |  |  | - |  |  |  | 1,225 |  |  |  | 2,884,678 |  |  |  | 1,000,857 |  |  |  | 436,749 |  |  |  | 28,271,784 |
Stockholders’ Equity & NCI |  |  | (768,082 | ) |  |  | 6,718,667 |  |  |  | 8,127,654 |  |  |  | 20,964,039 |  |  |  | - |  |  |  | 2,006,616 |  |  |  | 2,769,514 |  |  |  | 12,672,681 |  |  |  | 13,736,372 |  |  |  | 66,227,461 |
Total liabilities and equity |  |  | 563,126 |  |  |  | 11,023,369 |  |  |  | 11,586,791 |  |  |  | 35,817,267 |  |  |  | - |  |  |  | 2,007,841 |  |  |  | 5,654,192 |  |  |  | 13,673,538 |  |  |  | 14,173,121 |  |  |  | 94,499,245 |

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2023:

|  | BBPCO |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  | 409,973 |  |  |  | 49,643 |  |  |  | 110,314 |  |  |  | 1,281,934 |  |  |  | 52,462 |  |  |  | 1,657,511 |  |  |  | 677,742 |  |  |  | 6,418,199 |  |  |  | - |  |  |  | 10,657,778 |
Property and equipment, net |  |  | 19,956 |  |  |  | 10,993,207 |  |  |  | 11,334,305 |  |  |  | 13,373,408 |  |  |  | 3,506,517 |  |  |  | 120,766 |  |  |  | 48,988 |  |  |  | 269,137 |  |  |  | - |  |  |  | 39,666,284 |
Other assets |  |  | 1,254,602 |  |  |  | 76,104 |  |  |  | 733,332 |  |  |  | 10,008,993 |  |  |  | 1,795 |  |  |  | 399,594 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,474,420 |
Total assets |  |  | 1,684,531 |  |  |  | 11,118,954 |  |  |  | 12,177,951 |  |  |  | 24,664,335 |  |  |  | 3,560,774 |  |  |  | 2,177,871 |  |  |  | 726,730 |  |  |  | 6,687,336 |  |  |  | - |  |  |  | 62,798,482 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 35,045 |  |  |  | 1,103 |  |  |  | - |  |  |  | 2,168,812 |  |  |  | 44,270 |  |  |  | 36,989 |  |  |  | 47,681 |  |  |  | 32,308 |  |  |  | - |  |  |  | 2,366,208 |
Accrued expenses and other |  |  | 264,979 |  |  |  | 41,520 |  |  |  | 192,354 |  |  |  | 83,293 |  |  |  | - |  |  |  | 20,962 |  |  |  | 24,925 |  |  |  | - |  |  |  | - |  |  |  | 628,033 |
Other long-term liabilities |  |  | 1,054,770 |  |  |  | 4,336,093 |  |  |  | 3,404,225 |  |  |  | - |  |  |  | 3,267,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,062,088 |
Total Liabilities |  |  | 1,354,794 |  |  |  | 4,378,716 |  |  |  | 3,596,579 |  |  |  | 2,252,105 |  |  |  | 3,311,270 |  |  |  | 57,951 |  |  |  | 72,606 |  |  |  | 32,308 |  |  |  | - |  |  |  | 15,056,329 |
Stockholders’ Equity & NCI |  |  | 329,737 |  |  |  | 6,740,238 |  |  |  | 8,581,372 |  |  |  | 22,412,230 |  |  |  | 249,504 |  |  |  | 2,119,920 |  |  |  | 654,124 |  |  |  | 6,655,028 |  |  |  | - |  |  |  | 47,742,153 |
Total liabilities and equity |  |  | 1,684,531 |  |  |  | 11,118,954 |  |  |  | 12,177,951 |  |  |  | 24,664,335 |  |  |  | 3,560,774 |  |  |  | 2,177,871 |  |  |  | 726,730 |  |  |  | 6,687,336 |  |  |  | - |  |  |  | 62,798,482 |

A summary of the Company’s non-controlling interests for the periods ended June 30, 2024 and June 30, 2023:

|  | BBPCO |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
Balance at December 31, 2023 |  |  | (118,444 | ) |  |  | 6,733,243 |  |  |  | 601,110 |  |  |  | 21,620,755 |  |  |  | - |  |  |  | 288,653 |  |  |  | 47,106 |  |  |  | 2,053,440 |  |  |  | - |  |  |  | 31,225,863 |
Net income (loss) attributable to Non-Controlling Interest 1/1-3/31/24 |  |  | 15,652 |  |  |  | 82,506 |  |  |  | (3,000 | ) |  |  | (245,133 | ) |  |  | - |  |  |  | (28,043 | ) |  |  | (14,036 | ) |  |  | (24,839 | ) |  |  | (188 | ) |  |  | (217,081 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 33,078 |  |  |  | 235,993 |  |  |  | 1,993,498 |  |  |  | 98,818 |  |  |  | 2,361,387 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | (123,141 | ) |  |  | (909 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (124,050 | )
Balance at March 31, 2024 |  |  | (102,792 | ) |  |  | 6,692,608 |  |  |  | 597,201 |  |  |  | 21,375,622 |  |  |  | - |  |  |  | 293,688 |  |  |  | 269,063 |  |  |  | 4,022,099 |  |  |  | 98,630 |  |  |  | 33,246,119 |
Net income (loss) attributable to Non-Controlling Interest 4/1-6/30/24 |  |  | 11,469 |  |  |  | 94,097 |  |  |  | (3,107 | ) |  |  | (364,690 | ) |  |  | - |  |  |  | (38,086 | ) |  |  | (97,866 | ) |  |  | (325,036 | ) |  |  | (24,847 | ) |  |  | (748,066 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 338,742 |  |  |  | - |  |  |  | (130,839 | ) |  |  | 77,419 |  |  |  | 752,789 |  |  |  | 1,255,368 |  |  |  | 2,293,479 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | (146,173 | ) |  |  | (909 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (147,082 | )
Balance at June 30, 2024 |  |  | (91,323 | ) |  |  | 6,640,532 |  |  |  | 593,185 |  |  |  | 21,349,674 |  |  |  | - |  |  |  | 124,763 |  |  |  | 248,616 |  |  |  | 4,449,852 |  |  |  | 1,329,151 |  |  |  | 34,644,450 |

|  | BBPCO |  |  | Notes |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
Balance at December 31, 2022 |  |  | (144,332 | ) |  |  | - |  |  |  | 6,640,999 |  |  |  | 626,245 |  |  |  | 15,397,049 |  |  |  | 273,053 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 22,793,014 |
Net income (loss) attributable to Non-Controlling Interest 1/1-3/31/23 |  |  | 16,795 |  |  |  | - |  |  |  | (107,527 | ) |  |  | (3,175 | ) |  |  | (284,487 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (378,394 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | 200,000 |  |  |  | - |  |  |  | 4,364,450 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,564,450 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (908 | ) |  |  | - |  |  |  | (273,053 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (273,961 | )
Balance at March 31, 2023 |  |  | (127,537 | ) |  |  | - |  |  |  | 6,733,472 |  |  |  | 622,162 |  |  |  | 19,477,012 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 26,705,109 |
Net income (loss) attributable to Non-Controlling Interest 4/1-6/30/23 |  |  | 3,630 |  |  |  | - |  |  |  | (11,468 | ) |  |  | (2,680 | ) |  |  | (115,514 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (126,032 | )
Non-controlling interest issuance of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 100,000 |  |  |  | - |  |  |  | 100,000 |
Distributions to non-controlling shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (908 | ) |  |  | - |  |  |  | (273,053 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (273,961 | )
Balance at June 30, 2023 |  |  | (123,907 | ) |  |  | - |  |  |  | 6,722,004 |  |  |  | 618,574 |  |  |  | 19,361,498 |  |  |  | (273,053 | ) |  |  | - |  |  |  | - |  |  |  | 100,000 |  |  |  | - |  |  |  | 26,405,116 |

F-17

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Segment Reporting

The Company considers our restaurant and event center operations as similar, in close proximity, and have aggregated them into a single reportable segment. Revenue from customers is derived principally from food and beverage services with a portion being served in conjunction with live entertainment. Our chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM makes operating performance assessment and resource allocation decisions on a consolidated basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography.

Recently Issued and Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated financial statements. The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2024 or June 30, 2023.

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment, net, were as follows:

|  | As of June 30, 2024 |  |  | As of December 31, 2023 |
Leasehold Improvements |  | $ | 308,332 |  |  | $ | 160,738 |
Furniture and equipment |  |  | 4,555,108 |  |  |  | 4,064,928 |
Land and buildings |  |  | 45,600,121 |  |  |  | 39,381,977 |
Construction in progress |  |  | 50,665,535 |  |  |  | 17,678,116 |
|  | $ | 101,129,096 |  |  | $ | 61,285,759 |
Accumulated depreciation and amortization |  |  | (4,730,419 | ) |  |  | (3,547,996 | )
|  | $ | 96,398,677 |  |  | $ | 57,737,763 |

Depreciation and amortization expenses relating to property and equipment for the three and six month periods ended June 30, 2024 and June 30, 2023 were $592,651, $374,096, $1,182,435 and $680,795, respectively.

NOTE 4 — INTANGIBLES

Intangible assets subject to amortization consist of the following:

|  | Useful Life |  | June 30, 2024 |  |  | December 31, 2023 |
Naming rights |  | 6 years |  | $ | 400,314 |  |  | $ | 400,314 |
Accumulated amortization |  |  |  |  | (155,678 | ) |  |  | (122,319 | )
Intangible assets, net |  |  |  | $ | 244,636 |  |  | $ | 277,995 |

F-18

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 4 — INTANGIBLES (Continued)

The asset was put into use in 2023. Amortization expense relating to the intangible assets for the three and six month periods ended June 30, 2024 and June 30, 2023 was $16,680, $16,680, $33,360 and $33,360 respectively. The estimated amortization expense for the twelve months ended June 30, 2025 and thereafter is as follows:

2025 |  | $ | 66,719 |
2026 |  |  | 66,719 |
2027 |  |  | 66,719 |
2028 |  |  | 44,479 |
|  | $ | 244,636 |

NOTE 5 – LEASES

The Company leases the properties used for some of its restaurants, venue and office space.

Through June 30, 2022, the Company leased the land and buildings used in BBST and BBP operations from HIA. On April 1, 2022, the Company purchased a controlling interest in the equity of HIA. Accordingly, the impact of the lease is eliminated in the condensed consolidated financial statements.

Notes in Colorado Springs leased its property from 13141 BP, LLC (“13141 BP”), a related party (refer to Note 7– Related Party Transactions footnote for further details) through June 26, 2022, when the Company acquired the membership interests of 13141 BP. The lease was structured as a triple net (“NNN”) lease, which this type of lease includes costs of maintenance, repairs, operations, taxes and insurance, with annual rents of $218,750 during 2024 and 2023. As of the acquisition date, the lease is now eliminated in consolidations.

The Company leases its office space from an unrelated party. The lease is until November 30, 2029 and escalates in base rent by 1.3% each year. Additionally, the Company leases an executive apartment from an unrelated party. The lease is until April 13, 2025.

Total rent expense related to leased assets including short-terms leases and variable costs was $642,564 and $500,818 for the six months ended June 30, 2024 and June 30, 2023, respectively. Total cash paid for rent expense to leased assets was $268,635 and $242,100 for the six months ended June 30, 2024 and June 30, 2023.

The following table shows balance sheet information related to the operating leases:

|  |  |  | As of |
Balance Sheet Information |  | Classification |  | June 30, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |  |  |
Operating lease right-of-use assets, net |  | Operating Leases |  | $ | 1,368,661 |  |  | $ | 3,685,980 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current portion of operating lease liabilities |  | Operating Leases |  | $ | 293,937 |  |  | $ | 230,952 |
Long-term portion of operating lease liabilities |  | Operating Leases |  | $ | 1,107,870 |  |  | $ | 3,646,385 |
Total lease liabilities |  |  |  | $ | 1,401,807 |  |  | $ | 3,877,337 |

F-19

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 5 – LEASES (Continued)

The future minimum lease payments of existing operating lease liabilities are as follows:

|  | For the twelve months |
|  | ended June 30, |
2025 |  | $ | 362,717 |
2026 |  |  | 322,862 |
2027 |  |  | 328,300 |
2028 |  |  | 241,575 |
2029 |  |  | 244,611 |
Thereafter |  |  | 102,448 |
Total lease payments |  | $ | 1,602,513 |
Less: imputed interest |  |  | (200,706 | )
Present value of lease liabilities |  | $ | 1,401,807 |
Less: current portion |  |  | (293,937 | )
Long-term portion |  | $ | 1,107,870 |
Weighted-average remaining lease term (years) |  |  | 4.85 |
Weighted-average discount rate |  |  | 5.74 | %

NOTE 6 – INVESTMENTS IN RELATED PARTIES

The Company has non-controlling interest investments in related parties. Accordingly, the Company utilizes the guidance stated in ASC 323, Investments – Equity Method and Joint Ventures to account for applicable transactions. These investments lack readily determinable fair values. Consequently, these investments are accounted for under the practical expedient at cost minus impairment plus any changes in observable price changes from an orderly transaction of similar investments. An adjustment to the recognized value of the investment is not made if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value. Any income or loss from these investments is recognized in the condensed consolidated statements of operations, net of operating expenses. These investments are reviewed at each balance sheet date for impairment. The activity related to these investments for the periods ended June 30, 2024 and June 30, 2023 follows:

|  | Roth Industries LLC |  |  | War Hippies LLC |  |  | Total |
Balance at December 31, 2023 |  | $ | 550,000 |  |  | $ | - |  |  | $ | 550,000 |
- |  |  | - |  |  |  | - |  |  |  | - |
Balance at March 31, 2024 |  | $ | 550,000 |  |  | $ | - |  |  | $ | 550,000 |
- |  |  | - |  |  |  | - |  |  |  | - |
Balance at June 30, 2024 |  | $ | 550,000 |  |  | $ | - |  |  | $ | 550,000 |
Balance at December 31, 2022 |  | $ | 550,000 |  |  | $ | 75,603 |  |  | $ | 625,603 |
Net income attributable to entity |  |  | - |  |  |  | 2,567 |  |  |  | 2,567 |
Balance at March 31, 2023 |  | $ | 550,000 |  |  | $ | 78,170 |  |  | $ | 628,170 |
Net income attributable to entity |  |  | - |  |  |  | 3,001 |  |  |  | 3,002 |
Balance at June 30, 2023 |  | $ | 550,000 |  |  | $ | 81,171 |  |  | $ | 631,171 |

F-20

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 7 – RELATED PARTY TRANSACTIONS

The Company owns 550,000 preferred units or 2.0% of Roth Industries, LLC (“Roth Industries”). The Company’s Chairman and CEO is also the founder and Chairman of Roth Industries and is a significant stockholder of the Company. The Company’s officers and directors are also minority equity owners of Roth Industries. The Company currently accounts for this investment based on ASC 325, Investments – Other, under the cost method. In addition, the Company recognized licensing fees from Roth Industries, totaling $32,500 and $32,500 for the three months ended June 30, 2024 and 2023 and $62,500 and $65,000 during the six months ended June 30, 2024 and 2023, respectively, for Roth’s licensing use of the Bourbon Brothers brand in grocery products since the Company holds the exclusive license to use the brand. The Company also had $40,000 in receivables from Roth as of June 30, 2024. The amounts received were recorded in other income in the condensed consolidated statements of operations and the amounts receivable included in other receivables as prepaid expenses and other current assets in the condensed consolidated balance sheet.

The Company owned 20% of War Hippies, LLC and sold its interest in War Hippies, LLC on December 31, 2023, to the majority owners of War Hippies, realizing a loss on the investment of $75,603 that is recognized as other expense in the condensed consolidated statement of operations for the year ended December 31, 2023.

The Company on June 26, 2024, purchased 100% of the membership units for 13141 BP’s members and owns the land and buildings for which Notes currently use from an existing lease arrangement. The transaction is treated as an asset acquisition and accounted for under ASC 805, Business Combinations. Under this methodology the purchase price is allocated to the acquired asset based on their proportionate fair values. The Company purchased these units of 13141 BP for a total purchase price of $2,761,000 using equity. The members of 13141 BP were also shareholders of the Company prior to the purchase. Under the terms of the purchase agreement, the Company issued 276,100 shares of Class D common stock. The Company owns 100% of this subsidiary and 100% of its voting control and consolidates it into its financials.

Under the acquisition method of accounting, the total fair value of consideration transferred was allocated as follows as of June 26, 2024:

Consideration |  |  |  |
Issuance of shares |  | $ | 2,761,000 |
Fair value of consideration |  | $ | 2,761,000 |
Assets acquired and liabilities assumed |  |  |  |
Cash |  | $ | 74,085 |
Fixed Assets |  |  | 2,519,435 |
Lease receivable |  |  | 191,028 |
Accrued and other current liabilities |  |  | (23,548 | )
Net assets acquired |  | $ | 2,761,000 |

NOTE 8 – DEBT

Convertible Promissory Note

On January 17, 2024, the Company entered into a convertible promissory note (“Note”) with KWO, LLC (“KWO”), to accrue interest at 8.75% per annum, for draws to occur between March 2024 to May 2024 to be used towards Sunset Colorado construction. The outstanding balance of the Note as of June 30, 2024, was $10,000,000. Interest is to be paid monthly and the maturity date is one year from the date of the first draw. The first draw commenced March 1, 2024 with the maturity date of March 1, 2025. At any time during the period commencing June 1, 2024 and continuing until the date on which the Note is paid in full, KWO may convert the outstanding Note into Company shares of equivalent value, and the Company shares are deemed to have a fixed value of $10 per share.

F-21

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 8 – DEBT (Continued)

The Holder of the Note, KWO, along with Mr. JW Roth, both personally guarantee the Note at a fee equal to 1% of the promissory note balance. The Holder of the Note financed the asset purchase and paid the draw to the Sunset Colorado general contractor directly thus became a personal guarantor to the Note. The Company recognized a debt discount for the personal guarantee fee of $100,000 with $25,000 and $33,333 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining debt discount to be expensed to interest expense over the life of the Note. As consideration of the personal guarantee fee, the Company has granted a three-year warrant to purchase 500,000 Notes Live shares at $10 per share for both the Holder and Mr. Roth, with the Company recognizing a debt discount of $3,000,140 with $750,034 and $1,000,047 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining to be expensed over the life of the Note. In accordance with ASC 815-10, Derivatives and Hedging, the warrants were recorded at relative fair value within stockholder’s equity in the Condensed Consolidated Balance Sheet. A loan origination fee of $100,000 is recognized as debt discount with $25,000 and $33,333 expensed to interest expense in the three and six months ended June 30, 2024, with the remaining to be expensed over the life of the Note. The Company leased KWO a Sunset leased suite with a fair market value of $200,000 without additional payment or consideration, and is subject to and consistent with the schedule, rights, terms and conditions applicable to other suites offered to the public. The Company treated this leased suite as a debt discount with $50,000 and $66,666 expensed to interest expense in the three and six months ended June 30, 2024, with the remining to be expensed over the life of the Note. The convertible debt balance of $10,000,000 net by the cumulative debt discounts of $2,266,760 agree to the net of $7,733,240 shown as convertible debt on the Condensed Consolidated Balance Sheet. In addition, KWO in a related agreement, purchased 500,000 Class C shares from Mr. Roth at a discount as part of this transaction. Per ASC paragraph 718-10-15-4, the economic interest holder makes a capital contribution to the reporting entity, and the reporting entity makes a share-based payment to its grantee in exchange for goods or services provided to the reporting entity. In the Company’s instance, Mr. Roth paid the Holder on behalf of the Company. The Company recognized a $0 and $2,500,000 charge in other expense and additional paid in capital related to the exchange for the three and six months ended June 30, 2024, as Mr. Roth completed this stock transaction on behalf of the Company for KWO completing the Note transaction.

Economic Injury Disaster Loan

On May 4, 2020, the Company executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business.

Pursuant to the loan agreement, the principal amount of the EIDL Loan is $500,000, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum. Monthly payments of interest only in the amount of $2,437 were to originally commence on May 4, 2021; however, this repayment commencement date was extended by the SBA for 24 months. The EIDL Loan matures 30 years from the date of the note agreement, at which time all remaining unpaid principal and interest are due. JW Roth, CEO and Chairman, personally guarantees this loan agreement. As of June 30, 2024 and December 31, 2023, the principal balance of $500,000 remains outstanding.

Long-term bank debt

On April 1, 2022, when the Company purchased the majority of equity interests of HIA. In this transaction, the Company became a guarantor of HIA’s mortgage on the properties used in BBST and BBP operations. The mortgage accrues interest at 5.5% and matures on July 10, 2031. The balance as of June 30, 2024 and December 31, 2023 was $3,363,656 and $3,404,225. This mortgage is collateralized by the BBSTCO and BBP land and buildings. This mortgage is personally guaranteed by JW Roth.

On December 21, 2022, the Company closed on a deed of land with the City of Murfreesboro, Tennessee, for the Company to develop a Bourbon Brothers Smokehouse and Tavern, Boot Barn Hall and an amphitheater on 20.13 acres parcel for $3,267,000. On August 26, 2024 Notes Live and the City of Murfreesboro, TN agreed to discontinue the development project previously planned for 20.13 acres as originally conceived. The City sold the undeveloped property to Notes Live subject to reconveyance and other termination provisions if the project was discontinued. The City and Notes Live proceeded with reconveyance of the property and the City terminated the promissory note. The outstanding balance at June 30, 2024 and December 31, 2023 was $0 and $3,267,000.

F-22

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 8 – DEBT (Continued)

On May 26, 2022, GAHIA took on a mortgage for the properties used in the BBSTGA and BBPGA operations, with the Company as a guarantor to the mortgage. GAHIA began to draw on this mortgage in early 2023 with the final mortgage amount in place in June 2023. The mortgage accrues interest at 3.95% and matures on May 26, 2043. The balance at June 30, 2024 and December 31, 2023 was $4,265,718 and $4,391,818. This mortgage is collateralized by the BBSTGA and BBPGA land and buildings. This mortgage is personally guaranteed by JW Roth.

Long-term debt consists of the following:

|  | As of |
|  | June 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
SBA Economic Injury Disaster Loan |  | $ | 500,000 |  |  | $ | 500,000 |
Bank loan and promissory notes |  |  | 7,588,752 |  |  |  | 11,007,318 |
Convertible debt |  |  | 7,733,240 |  |  |  | - |
Total |  |  | 15,821,992 |  |  |  | 11,507,318 |
Less: current maturities |  |  | 8,222,283 |  |  |  | 325,245 |
Long-term debt |  | $ | 7,599,709 |  |  | $ | 11,182,073 |

Following is the future maturities of long-term debt for the twelve months ended June 30,:

2025 |  | $ | 8,222,283 |
2026 |  | $ | 348,787 |
2027 |  | $ | 363,653 |
2028 |  | $ | 373,132 |
2029 |  | $ | 382,961 |
Thereafter |  | $ | 6,131,176 |
Total long-term debt |  | $ | 15,821,992 |

NOTE 9 – EQUITY

Stockholders’ Equity

The Company had two membership classes of units while it was a limited liability company, Class A voting and Class B non-voting. The Class A voting and the Class B non-voting units have identical economic rights to participate in dividends and to the assets of the Company, however, the non-voting units do not provide the holder the right to vote on any matters or otherwise participate in the management of the business and affairs of the Company. On April 6, 2022, when the Company filed to convert from a Colorado LLC to a Colorado C Corp, the Company’s Class A membership units became Class A common stock and the Class B membership units became Class B common stock. The Company amended its articles on October 25, 2022 to include Class C common stock. On March 5, 2024, the Company and its Class C common stock stockholders authorized a Class D of common stock up to 60,000,000 shares. Except for any difference in voting privileges, or any differing contractual rights or limitations assigned or afforded to a specific series of stock in connection with a merger, acquisition or strategic transaction, the shares of Class A Voting Common Stock, Class B Non-Voting Common Stock, Class C Voting Common Stock, and Class D Voting Common Stock have the same preferences, limitations, and relative rights in all other respects. Each holder of Class A Voting Common Stock shall be entitled to 250 votes per share of Class A Voting Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote. Each holder of Class C Voting Common Stock shall be entitled to one vote per share of Class C Voting Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote. Each holder of Class D Voting Common Stock shall be entitled to one vote per share of Class D Voting Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote. Except as required by law, holders of the Class B Non-Voting Common Stock shall have no voting power with respect to their shares of Class B Non-Voting Common Stock and the shares of Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to the stockholders.

F-23

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 9 – EQUITY (Continued)

On August 7, 2023, the Company allowed the stockholders to convert their Class A shares into Class C shares at a 1 to 25 basis and the Class B shares into Class C shares at a 1 to 1 basis. The Company has 76,245 shares of treasury stock that it acquired through the acquisition of HIA.

On November 3, 2023, the Company and its stockholders effected a forward split of both the Class B and Class C shares 5-for-1 and increased the authorized shares of Class C up to 50,000,000 at a par value of $0.001. On that same date, the Company began a private placement offering of its Class C shares at $10 per share. The Company issued 526,250 and 2,535,000 Class C shares during the three and six months ended June 30, 2024 from this offering. The Company issued 700,000 Class C shares as payment for services to Sunshine Advisors, LLC.

On March 5, 2024, the Company and its Class C common stock stockholders authorized a Class D of common stock up to 60,000,000 shares. At that time, the Company allowed its Class B and Class C stockholders to convert to Class D shares at a 1 to 1 basis. As of June 30, 2024, the Company has 383,656 Class B shares, no Class C shares, and 35,478,706 Class D shares issued and outstanding.

NOTE 10 – EARNINGS PER SHARE

Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company applies the multiple-class method in calculating earnings per share. Earnings and losses are shared pro-rata between the multiple classes of shares. For 2024, the Company has four classes of shares for Class A, Class B, Class C and Class D that weighted-average number of shares by class and earnings per share by class were calculated of. For 2023, the Company had three classes of shares for Class A, Class B, and Class C shares that weighted average number of shares by class and earnings per share by class were calculated of. The calculation of diluted net income per share includes the effects of the assumed exercise of any outstanding warrants and convertible debt, except during loss periods as the effect would be anti-dilutive. The shares presented are post-split from the November 8, 2023 split election.

F-24

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

The following table sets forth the calculation of earnings per share for the three and six months ended June 30, 2024 and 2023, as presented in the accompanying condensed consolidated statements of operations:

|  | For the Three Months Ended June 30, 2024 |
|  | Class A |  |  | Class B |  |  | Class C |  |  | Class D |
Basic and diluted net loss per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  | 0.65 | % |  |  | 49.20 | % |  |  | 50.14 | % |  |  |  |
Allocation of net loss |  | $ | - |  |  | $ | (49,079 | ) |  | $ | (8,200 | ) |  | $ | (4,463,820 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | - |  |  |  | 383,737 |  |  |  | 64,115 |  |  |  | 34,901,392 |
Basic and diluted net loss per share of common stock |  | $ | - |  |  | $ | (0.13 | ) |  | $ | (0.13 | ) |  | $ | (0.13 | )

|  | For the Six Months Ended June 30, 2024 |
|  | Class A |  |  | Class B |  |  | Class C |  |  | Class D |
Basic and diluted net loss per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  | 0.65 | % |  |  | 49.20 | % |  |  | 50.14 | % |  |  |  |
Allocation of net loss |  | $ | - |  |  | $ | (628,547 | ) |  | $ | (7,892,351 | ) |  | $ | (11,599,139 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | - |  |  |  | 1,069,348 |  |  |  | 13,427,266 |  |  |  | 19,733,631 |
Basic and diluted net loss per share of common stock |  | $ | - |  |  | $ | (0.59 | ) |  | $ | (0.59 | ) |  | $ | (0.59 | )

|  | For the Three Months Ended June 30, 2023 |
|  | Class A |  |  | Class B |  |  | Class C |  |  | Class D |
Basic and diluted net loss per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  | 0.65 | % |  |  | 49.20 | % |  |  | 50.14 | % |  |  |  |
Allocation of net loss |  | $ | (27,612 | ) |  | $ | (2,223,891 | ) |  | $ | (180,774 | ) |  | $ | - |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | 272,526 |  |  |  | 21,949,810 |  |  |  | 1,784,238 |  |  |  | - |
Basic and diluted net loss per share of common stock |  | $ | (0.10 | ) |  | $ | (0.10 | ) |  | $ | (0.10 | ) |  | $ | - |

|  | For the Six Months Ended June 30, 2023 |
|  | Class A |  |  | Class B |  |  | Class C |  |  | Class D |
Basic and diluted net loss per share of common stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  | 0.65 | % |  |  | 49.20 | % |  |  | 50.14 | % |  |  |  |
Allocation of net loss |  | $ | (62,697 | ) |  | $ | (4,665,072 | ) |  | $ | (204,623 | ) |  | $ | - |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | 274,861 |  |  |  | 20,451,328 |  |  |  | 897,048 |  |  |  | - |
Basic and diluted net loss per share of common stock |  | $ | (0.23 | ) |  | $ | (0.23 | ) |  | $ | (0.23 | ) |  | $ | - |

NOTE 11 – WARRANTS

The Company grants, to certain of its directors and employees, warrants to purchase shares of the Company’s equity.

F-25

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 11 – WARRANTS (Continued)

Following is a summary of the warrant activities during the periods ended June 30, 2024 and June 30, 2023:

|  |  |  |  |  |  |  |  |  |  | Weighted |
|  |  |  |  |  |  |  | Weighted |  |  | Average |
|  |  |  |  | Weighted |  |  | Average |  |  | Remaining |
|  | Number of |  |  | Average |  |  | Grant Date |  |  | Contractual |
|  | Warrants |  |  | Exercise Price |  |  | Fair Value |  |  | Term (in years) |
Outstanding, December 31, 2022 |  |  | 2,921,400 |  |  | $ | 2.50 |  |  |  |  |  |  |  |  |
Granted |  |  | 107,500 |  |  | $ | 3.00 |  |  | $ | 1.58 |  |  |  |  |
Exercised |  |  | (67,915 | ) |  | $ | 6.07 |  |  |  |  |  |  |  |  |
Expired and forfeited |  |  | (82,815 | ) |  | $ | 2.88 |  |  |  |  |  |  |  |  |
Outstanding, June 30, 2023 |  |  | 2,878,170 |  |  | $ | 2.51 |  |  |  |  |  |  |  |  |
Outstanding, December 31, 2023 |  |  | 3,029,830 |  |  | $ | 2.60 |  |  |  |  |  |  |  |  |
Granted |  |  | 2,279,250 |  |  | $ | 9.95 |  |  | $ | 4.50 |  |  |  |  |
Exercised |  |  | (67,997 | ) |  | $ | 2.23 |  |  |  |  |  |  |  |  |
Expired and forfeited |  |  | (216,000 | ) |  | $ | 5.55 |  |  |  |  |  |  |  |  |
Outstanding, June 30, 2024 |  |  | 5,025,083 |  |  | $ | 5.81 |  |  |  |  |  |  |  | 5.43 |

During the three and six months ended June 30, 2024, the Company granted a total of 2,279,250 warrants with 1,279,250 granted to employees and board and directors with 1,000,000 granted as part of the convertible promissory note (refer to Note 8 – Debt). These warrants are required to be measured at fair value on the grant date, and they are expensed over the requisite service period, generally over a 4 or 5-year period. As of June 30, 2024, there was a total of 3,319,997 warrants exercisable with an aggregate intrinsic value of $14,412,855. For the total warrants outstanding of 5,025,583 as of June 30, 2024, the aggregate intrinsic value was $21,142,098. As of June 30, 2024, there was $4,632,857 of unrecognized compensation cost related to non-vested warrants. The equity-based compensation cost, related to warrants included as a charge to operating expenses in the condensed consolidated statements of operations, was $4,688,372, $10,254,806, $100,424 and $184,006 for the three and six months ended June 30, 2024 and June 30, 2023, respectively. The cost is expected to be recognized over a weighted-average period of 2.95 years.

The fair value of the warrants is measured on the grant date using a Black-Scholes-Merton pricing model, which includes assumptions that are derived from external data (such as risk-free rate of interest), and assumptions which are subjective (such as the volatility factor, expected dividend rate, and expected term).:

|  | June 30, 2024 |  |  | June 30, 2023 |
Volatility |  |  | 66.3% to 77.4 | % |  |  | 69.3% to 77.4 | %
Dividends |  |  | 0.00 | % |  |  | 0.00 | %
Risk-free rate |  |  | 0.4% to 4.8 | % |  |  | 0.4% to 4.8 | %
Expected Term (years) |  |  | 3-5 |  |  |  | 3-5 |

Warrants are equity classified, not liability classified, and are not remeasured at fair value.

F-26

NOTES LIVE, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024 AND 2023

(UNAUDITED)

NOTE 12 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements as of November 27, 2024 and identified the following:

The Company had additional sales of its private equity offering of its Class C shares, which converted to Class D shares, through this report date of November 27, 2024. The Company raised an additional $7,945,090 for a total of 794,509 shares.

On January 29, 2024, the Company announced it executed a definitive merger agreement with Fresh Vine Wine, Inc. (“Fresh Vine”) and was anticipated to close in June 2024. On July 31, 2024, the Company entered into a Termination Agreement (the “Termination Agreement”), wherein the parties mutually agreed to terminate the Merger Agreement effective immediately upon execution of the Termination Agreement.

On January 22, 2024, Notes Live and Live Nation entered into an Exclusive Operating Agreement, pursuant to which Live Nation intended to serve as the exclusive operator of The Sunset BA. Although the parties pursued their working partnership, in August 2024, Notes Live and Live Nation terminated the Exclusive Operating Agreement due to Notes Live determining that it is unable to construct the number of parking spaces originally contemplated by the Exclusive Operating Agreement. Notes Live is actively pursuing other third-party operators for The Sunset BA. As part of this termination, Live Nation exercised its put right for the 100,000 Class D shares worth $1,000,000 it holds of the Company. As of June 30, 2024, these shares were classified as permanent equity, and the Company subsequently reclassified this amount as a liability upon notice of execution of the put right from Live Nation and it will be classified there until the Company repurchases the shares from Live Nation. On September 26, 2024, the Company repurchased these shares.

On August 12, 2024, Notes Live purchased 100,000 Class D shares back from Roth Industries, a related party, at $5 per shares as the Company will hold these as treasury shares.

On April 30, 2024, Notes Live executed a term sheet with the City of El Paso, Texas. This term sheet was approved by the El Paso City Council by a vote of 6-1. This term sheet will define a more detailed, negotiated Development Agreement between Notes Live and the City of El Paso that will establish a public private partnership. This Development Agreement is anticipated to be complete in the next 60 days and will specifically define the construction of a 12,500- person amphitheater to be developed by Notes Live. In addition, On August 16, 2024, the City of El Paso provided an economic incentive in the form of a promissory note at 0% interest for $8,000,000 maturing in eight years to be used towards the construction of the facility which options for this to be forgiven based on certain deliverables.

On August 26, 2024, Notes Live and the City of Murfreesboro, TN agreed to discontinue the development project previously planned for 20.13 acres as originally conceived to include construction of an amphitheater, restaurant, and indoor music hall at the site. The City sold the undeveloped property to Notes Live subject to reconveyance and other

termination provisions if the project was discontinued. The City and Notes Live proceeded with reconveyance of the property and the City terminated the promissory note of $3,267,000.

On September 6, 2024, the Company amended and restated its Articles of Incorporation with the State of Colorado to update its name to Venu Holding Corporation from its prior name of Notes Live, Inc. In addition, the Company amended its articles to eliminate the Class A Voting Common Stock, and to cause all issued and outstanding shares of the Corporation’s Class C Voting Common Stock and Class D Voting Common Stock to be converted on a one-for-one basis into shares of “Common Stock” without any separate identifying class designation and with all shares of the Corporation’s common stock (regardless of any class designation) to continue to have the same economic rights (but with the Class B Non-Voting Common Stock” continuing to not entitle the holders thereof to shares any voting rights with respect to such shares). Each holder of Common Stock shall be entitled to one (1) vote per share of Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Except as required by law, holders of the Class B Non-Voting Common Stock shall have no voting power with respect to their shares of Class B Non-Voting Common Stock and the shares of Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to the shareholders.

On November 1, 2024, the Company hired a new President to report to its CEO. As part of the employment, he was awarded warrants exercisable to acquire 500,000 to vest over a four-year period exercisable at $10 per warrant share.

F-27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Notes Live, Inc. and Subsidiaries

Colorado Springs, Colorado

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Notes Live, Inc. and Subsidiaries (the Company) as of December 31, 2023 and 2022, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2023, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Grassi & Co., CPAs, P.C.

We have served as the Company’s auditor since 2023.

Jericho, New York

February 26, 2024, except for Note 13, as to which the date is August 5, 2024.

F-28

NOTES LIVE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in US Dollars)

|  | As of December 31, |
|  | 2023 |  |  | 2022 |
ASSETS |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | $ | 20,201,104 |  |  | $ | 23,470,734 |
Inventories |  |  | 185,746 |  |  |  | 87,155 |
Prepaid expenses and other current assets |  |  | 209,215 |  |  |  | 297,794 |
Total current assets |  | $ | 20,596,065 |  |  | $ | 23,855,683 |
Other assets |  |  |  |  |  |  |  |
Property and equipment, net |  |  | 57,737,763 |  |  |  | 23,983,216 |
Intangible assets, net |  |  | 277,995 |  |  |  | 344,715 |
Operating lease right-of-use assets, net |  |  | 3,685,980 |  |  |  | 3,939,046 |
Investments in related parties |  |  | 550,000 |  |  |  | 625,603 |
Security and other deposits |  |  | 375,904 |  |  |  | 150,000 |
Total other assets |  | $ | 62,627,642 |  |  | $ | 29,042,580 |
Total assets |  | $ | 83,223,707 |  |  | $ | 52,898,263 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Accounts payable |  | $ | 2,565,460 |  |  | $ | 1,820,201 |
Accrued expenses |  |  | 698,369 |  |  |  | 362,237 |
Accrued payroll and payroll taxes |  |  | 331,457 |  |  |  | 404,999 |
Deferred revenue |  |  | 764,081 |  |  |  | 127,291 |
Current portion of operating lease liabilities |  |  | 230,952 |  |  |  | 437,915 |
Current portion of long-term debt |  |  | 325,245 |  |  |  | 338,658 |
Total current liabilities |  | $ | 4,915,564 |  |  | $ | 3,491,301 |
Long-term portion of operating lease liabilities |  |  | 3,646,385 |  |  |  | 3,658,323 |
Long-term licensing liability |  |  | 1,500,000 |  |  |  | — |
Long-term debt, net of current portion |  |  | 11,182,073 |  |  |  | 6,988,502 |
Total liabilities |  | $ | 21,244,022 |  |  | $ | 14,138,126 |
Commitments and contingencies |  |  |  |  |  |  |  |
Stockholders’ Equity |  |  |  |  |  |  |  |
Class A common stock, $0.001 par – 5,000,000 authorized, 0 and 275,000 issued and outstanding at December 31, 2023 and at December 31, 2022* |  |  | — |  |  |  | 275 |
Class B common stock, $0.001 par – 30,000,000 authorized, 1,959,445 issued and outstanding at December 31, 2023 and 18,297,555 issued and outstanding at December 31, 2022* |  |  | 1,960 |  |  |  | 18,298 |
Class C common stock, $0.001 par – 50,000,000 authorized, 30,306,030 and 0 issued and outstanding at December 31, 2023 and at December 31, 2022* |  |  | 30,306 |  |  |  | — |
Preferred stock, $0.001 par – 5,000,000 authorized, none issued or outstanding |  |  | — |  |  |  | — |
Additional paid-in capital |  |  | 47,743,085 |  |  |  | 22,445,530 |
Accumulated deficit |  |  | (17,021,453 | ) |  |  | (6,496,980 | )
|  | $ | 30,753,898 |  |  | $ | 15,967,123 |
Treasury Stock, at cost – 76,245 and 0 shares at December 31, 2023 and December 31, 2022* |  |  | (76 | ) |  |  | — |
Total Notes Live, Inc. and subsidiaries equity |  |  | 30,753,822 |  |  |  | 15,967,123 |
Non-controlling interest |  |  | 31,225,863 |  |  |  | 22,793,014 |
Total stockholders’ equity |  | $ | 61,979,685 |  |  | $ | 38,760,137 |
Total liabilities and stockholders’ equity |  | $ | 83,223,707 |  |  | $ | 52,898,263 |

* The common stock share amounts were adjusted retrospectively to reflect the 5-for-1 stock split on November 3, 2023.

See notes to accompanying audited consolidated financial statements.

F-29

NOTES LIVE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in US Dollars)

|  | For the year ended December 31, |
|  | 2023 |  |  | 2022 |
Revenues |  |  |  |  |  |
Restaurant and other revenue |  | $ | 9,522,523 |  |  | $ | 6,809,218 |
Event center and other revenue |  |  | 3,075,141 |  |  |  | 1,847,649 |
Total revenues |  |  | 12,597,664 |  |  |  | 8,656,867 |
Operating costs |  |  |  |  |  |  |  |
Food and beverage |  |  | 2,216,359 |  |  |  | 1,491,951 |
Event center |  |  | 1,072,909 |  |  |  | 767,065 |
Labor |  |  | 3,667,095 |  |  |  | 2,421,444 |
Rent |  |  | 815,233 |  |  |  | 676,175 |
Operating expenses |  |  | 14,081,000 |  |  |  | 6,887,768 |
Depreciation and amortization |  |  | 1,877,236 |  |  |  | 1,176,552 |
Total operating costs |  |  | 23,729,832 |  |  |  | 13,420,955 |
Loss from operations |  | $ | (11,132,168 | ) |  | $ | (4,764,088 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | (331,674 | ) |  |  | (397,120 | )
Interest income |  |  | 20,152 |  |  |  | 12,149 |
Shuttered Venue Grant |  |  | — |  |  |  | 210,378 |
Loss on extinguishment of debt |  |  | — |  |  |  | (3,395,046 | )
(Loss) gain on sale of investments, net |  |  | (75,603 | ) |  |  | 197,812 |
Other income |  |  | 132,500 |  |  |  | 117,582 |
Total other expense, net |  | $ | (254,625 | ) |  | $ | (3,254,245 | )
Net loss |  | $ | (11,386,793 | ) |  | $ | (8,018,333 | )
Net loss attributable to non-controlling interests |  |  | (862,320 | ) |  |  | (1,094,584 | )
Net loss attributable to common shareholders |  | $ | (10,524,473 | ) |  | $ | (6,923,749 | )
Weighted average number of shares of Class A common stock, outstanding, basic and diluted* |  |  | 136,301 |  |  |  | 275,000 |
Basic and diluted net income (loss) per share of Class A common stock |  | $ | (0.39 | ) |  | $ | (0.45 | )
Weighted average number of shares of Class B common stock, outstanding, basic and diluted* |  |  | 16,640,620 |  |  |  | 15,008,238 |
Basic and diluted net income (loss) per share of Class B common stock |  | $ | (0.39 | ) |  | $ | (0.45 | )
Weighted average number of shares of Class C common stock, outstanding, basic and diluted* |  |  | 10,106,179 |  |  |  | — |
Basic and diluted net income (loss) per share of Class C common stock |  | $ | (0.39 | ) |  | $ | — |

* The numbers of weighted averaged outstanding common shares — Basic and Diluted, were adjusted retrospectively to reflect the 5-for-1 split on November 3, 2023.

See notes to accompanying audited consolidated financial statements.

F-30

NOTES LIVE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in US Dollars)

|  | Stockholders’ Equity |  | Additional Paid-In Capital |  | Accumulated Deficit |  | Treasury Stock |  | Total Notes Live, Inc. Equity (Deficit) |  | Non- Controlling Interests |  | Total Equity (Deficit)
|  | Class A Common Stock |  | Class B Common Stock |  | Class C Common Stock |
|  | Number of Shares |  | Amount |  | Number of Shares |  | Amount |  | Number of Shares |  | Amount |  | Number of Shares |  | Amount |
Balances at December 31, 2021 |  | 275,000 |  |  | $ | 275 |  |  | 8,558,815 |  |  | $ | 8,559 |  |  | — |  | $ | — |  | $ | 3,263,433 |  |  | $ | (1,987,491 | ) |  | — |  | $ | — |  |  | $ | 1,284,776 |  |  | $ | (197,194 | ) |  | $ | 1,087,582 |
Net loss from January 1, 2022 through April 5, 2022 |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | (426,769 | ) |  | — |  |  | — |  |  |  | (426,769 | ) |  | $ | (42,154 | ) |  |  | (468,923 | )
Conversion from LLC to C Corp |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | (2,653,608 | ) |  |  | 2,414,260 |  |  | — |  |  | — |  |  |  | (239,348 | ) |  |  | 239,348 |  |  |  | — |
Conversion of promissory notes to equity |  | — |  |  |  | — |  |  | 2,121,905 |  |  |  | 2,122 |  |  | — |  |  | — |  |  | 7,636,732 |  |  |  | — |  |  | — |  |  | — |  |  |  | 7,638,854 |  |  |  | — |  |  |  | 7,638,854 |
Exercise of warrants |  | — |  |  |  | — |  |  | 57,085 |  |  |  | 57 |  |  | — |  |  | — |  |  | 6,793 |  |  |  | — |  |  | — |  |  | — |  |  |  | 6,850 |  |  |  | — |  |  |  | 6,850 |
Contributions, net of equity issuance fees |  | — |  |  |  | — |  |  | 2,066,670 |  |  |  | 2,067 |  |  | — |  |  | — |  |  | 4,400,486 |  |  |  | — |  |  | — |  |  | — |  |  |  | 4,402,553 |  |  |  | — |  |  |  | 4,402,553 |
Equity issued for purchase of subsidiary |  | — |  |  |  | — |  |  | 5,488,080 |  |  |  | 5,488 |  |  | — |  |  | — |  |  | 8,818,020 |  |  |  | — |  |  | — |  |  | — |  |  |  | 8,823,508 |  |  |  | — |  |  |  | 8,823,508 |
Equity issued for services |  | — |  |  |  | — |  |  | 5,000 |  |  |  | 5 |  |  | — |  |  | — |  |  | 14,995 |  |  |  | — |  |  | — |  |  | — |  |  |  | 15,000 |  |  |  | — |  |  |  | 15,000 |
Equity based compensation |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | 958,679 |  |  |  | — |  |  | — |  |  | — |  |  |  | 958,679 |  |  |  | — |  |  |  | 958,679 |
Interests in subsidiaries |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  |  | 23,845,444 |  |  |  | 23,845,444 |
Net loss from April 6, 2022 through December 31, 2022 |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | (6,496,980 | ) |  | — |  |  | — |  |  |  | (6,496,980 | ) |  |  | (1,052,430 | ) |  |  | (7,549,410 | )
Balances at December 31, 2022 |  | 275,000 |  |  | $ | 275 |  |  | 18,297,555 |  |  | $ | 18,298 |  |  | — |  | $ | — |  | $ | 22,445,530 |  |  | $ | (6,496,980 | ) |  | — |  | $ | — |  |  | $ | 15,967,123 |  |  | $ | 22,793,014 |  |  | $ | 38,760,137 |
Issuance of shares, net of equity issuance fees |  | — |  |  |  | — |  |  | 4,885,600 |  |  |  | 4,885 |  |  | 207,250 |  |  | 207 |  |  | 16,690,088 |  |  |  | — |  |  | — |  |  | — |  |  |  | 16,695,180 |  |  |  | — |  |  |  | 16,695,180 |
Exercise of warrants |  | 66,665 |  |  |  | 67 |  |  | 2,085 |  |  |  | 2 |  |  | — |  |  | — |  |  | 82,531 |  |  |  | — |  |  | — |  |  | — |  |  |  | 82,600 |  |  |  | — |  |  |  | 82,600 |
Equity issued for services |  | — |  |  |  | — |  |  | 407,610 |  |  |  | 408 |  |  | — |  |  | — |  |  | 1,217,422 |  |  |  | — |  |  | — |  |  | — |  |  |  | 1,217,830 |  |  |  | — |  |  |  | 1,217,830 |
Conversion of Common Stock Class A |  | (341,665 | ) |  |  | (342 | ) |  | — |  |  |  | — |  |  | 8,541,625 |  |  | 8,542 |  |  | (8,200 | ) |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Conversion of Common Stock Class B |  | — |  |  |  | — |  |  | (21,633,405 | ) |  |  | (21,633 | ) |  | 21,557,155 |  |  | 21,557 |  |  | 152 |  |  |  | — |  |  | 76,245 |  |  | (76 | ) |  |  | — |  |  |  | — |  |  |  | — |
Equity based compensation |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | 392,520 |  |  |  | — |  |  | — |  |  | — |  |  |  | 392,520 |  |  |  | — |  |  |  | 392,520 |
Non-controlling interest issuance of shares |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | 6,923,042 |  |  |  | — |  |  | — |  |  | — |  |  |  | 6,923,042 |  |  |  | 9,826,958 |  |  |  | 16,750,000 |
Distributions to non-controlling shareholders |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  |  | (531,789 | ) |  |  | (531,789 | )
Net loss |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | (10,524,473 | ) |  | — |  |  | — |  |  |  | (10,524,473 | ) |  |  | (862,320 | ) |  |  | (11,386,793 | )
Balances at December 31, 2023 |  | — |  |  | $ | — |  |  | 1,959,445 |  |  | $ | 1,960 |  |  | 30,306,030 |  | $ | 30,306 |  | $ | 47,743,085 |  |  | $ | (17,021,453 | ) |  | 76,245 |  | $ | (76 | ) |  | $ | 30,753,822 |  |  | $ | 31,225,863 |  |  | $ | 61,979,685 |

See notes to accompanying audited consolidated financial statements.

F-31

NOTES LIVE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in US Dollars)

|  | For the years ended December 31, |
|  | 2023 |  |  | 2022 |
Net loss |  | $ | (11,386,793 | ) |  | $ | (8,018,333 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Equity based compensation |  |  | 392,520 |  |  |  | 958,679 |
Equity issued for services |  |  | 1,217,830 |  |  |  | 15,000 |
Loss on extinguishment of debt |  |  | — |  |  |  | 3,395,046 |
Amortization of debt discount |  |  | 4,544 |  |  |  | 190,289 |
Non cash lease expense |  |  | 486,924 |  |  |  | 611,862 |
Non cash interest |  |  | 1,292 |  |  |  | 13,502 |
Realized loss on sale of equity method investment |  |  | 75,603 |  |  |  | — |
Net loss from equity investment |  |  | — |  |  |  | 7,417 |
Depreciation and amortization |  |  | 1,877,236 |  |  |  | 1,176,552 |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Inventories |  |  | (98,591 | ) |  |  | 10,917 |
Prepaid expenses and other current assets |  |  | 88,579 |  |  |  | (273,134 | )
Security deposit |  |  | (225,904 | ) |  |  | (150,000 | )
Accounts payable |  |  | 745,259 |  |  |  | 1,711,469 |
Accrued expenses |  |  | 334,840 |  |  |  | 123,448 |
Accrued payroll and payroll taxes |  |  | (73,542 | ) |  |  | 234,712 |
Deferred revenue |  |  | 636,790 |  |  |  | (146,622 | )
Operating lease liabilities |  |  | (452,759 | ) |  |  | (561,552 | )
Licensing liabilities |  |  | 1,500,000 |  |  |  | — |
Net cash used in operating activities |  | $ | (4,876,172 | ) |  | $ | (700,748 | )
Cash flows from investing activities |  |  |  |  |  |  |  |
Cash acquired from consolidation of subsidiaries |  |  | — |  |  |  | 4,269,562 |
Investments in related parties |  |  | — |  |  |  | (133,020 | )
Sales of investments in related parties |  |  | — |  |  |  | 766,987 |
Acquisitions, net of cash acquired |  |  | — |  |  |  | (1,210,626 | )
Purchase of property and equipment |  |  | (31,165,063 | ) |  |  | (8,119,210 | )
Net cash used in investing activities |  | $ | (31,165,063 | ) |  | $ | (4,426,307 | )
Cash flows from financing activities |  |  |  |  |  |  |  |
Proceeds from sale of non-controlling interest equity |  |  | 16,750,000 |  |  |  | 18,967,764 |
Distributions to non-controlling shareholders |  |  | (531,789 | ) |  |  | — |
Proceeds from issuance of convertible promissory notes |  |  | — |  |  |  | 468,808 |
Principal payments on long-term debt |  |  | (224,386 | ) |  |  | (110,911 | )
Proceeds from ERTC grants |  |  | — |  |  |  | 459,261 |
Proceeds from Shuttered Venue Grant |  |  | — |  |  |  | 210,378 |
Proceeds from issuance of shares, net of equity issuance fees of $24,167 and $297,446 |  |  | 16,695,180 |  |  |  | 4,402,553 |
Proceeds from exercise of warrants |  |  | 82,600 |  |  |  | 6,850 |
Net cash provided by financing activities |  | $ | 32,771,605 |  |  | $ | 24,404,703 |
Net (decrease) increase in cash |  |  | (3,269,630 | ) |  |  | 19,277,648 |
Cash, beginning |  |  | 23,470,734 |  |  |  | 4,193,086 |
Cash, ending |  | $ | 20,201,104 |  |  | $ | 23,470,734 |
Supplemental disclosure of non-cash operating, investing and financing activities: |  |  |  |  |  |  |  |
Cash paid for interest |  | $ | 305,168 |  |  | $ | 51,407 |
Property acquired via mortgage |  | $ | 4,400,000 |  |  | $ | 3,267,000 |
Acquisition of new operating lease Right-of-Use Assets |  | $ | — |  |  | $ | 1,443,516 |
Conversion of debt to equity |  | $ | — |  |  | $ | 7,638,854 |

See notes to accompanying audited consolidated financial statements.

F-32

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS

Organization

Notes Live, Inc. (“NL” or “the Company” formally known as B Entertainment, LLC) is a Colorado corporation formed on March 13, 2017. The Company is a hospitality and entertainment business to which it earns revenues from operating restaurants, hosting events, renting event space and operating outdoor amphitheaters. The Company and its subsidiaries operate within the United States of America.

The Company’s registered office is at 1755 Telstar Drive, Suite 501, Colorado Springs, Colorado 80920.

On April 6, 2022, B Entertainment, LLC filed a certificate of conversion, whereby B Entertainment, LLC effected a corporate conversion from a Colorado limited liability company to a Colorado corporation and changed its name to Notes Live, Inc. Pursuant to the corporate conversion, units of membership interest in the limited liability company were converted into shares of common stock of the corporation at a conversion ratio of one membership unit for one share of common stock. The corporate conversion was approved by members holding a majority of the outstanding units, and in connection with such conversion, the Company filed a certificate of incorporation and adopted bylaws.

The Company’s subsidiaries and its interests in each are presented below as of December 31, 2023:

Name of Entity |  | Place of Incorporation |  |  | Interest |
Notes Live, Inc. (Parent) |  |  | Colorado |  |  |  | 100 | %
Bourbon Brothers Holding Company, LLC (“BBH”) |  |  | Colorado |  |  |  | 100 | %
Bourbon Brothers Smokehouse and Tavern CS, LLC (“BBST”) |  |  | Colorado |  |  |  | 100 | %
Bourbon Brothers Presents, LLC d/b/a Boot Barn Hall (“BBP”)* |  |  | Colorado |  |  |  | 89 | %
Bourbon Brothers Smokehouse and Tavern GA, LLC (“BBSTGA”) |  |  | Georgia |  |  |  | 100 | %
Bourbon Brothers Presents GA, LLC (“BBPGA”) |  |  | Georgia |  |  |  | 100 | %
Bourbon Brothers Media, LLC (“BBM”) |  |  | Colorado |  |  |  | 100 | %
Notes Holding Company, LLC (“NH”) |  |  | Colorado |  |  |  | 100 | %
13141 Notes, LLC d/b/a Notes (“Notes”) |  |  | Colorado |  |  |  | 100 | %
Sunset Amphitheater, LLC (“Sunset”)* |  |  | Colorado |  |  |  | 10 | %
Hospitality Income & Asset, LLC (“HIA”)* |  |  | Colorado |  |  |  | 99 | %
Sunset on the Stones River, LLC (“Stones”) |  |  | Colorado |  |  |  | 100 | %
Bourbon Brothers Licensing, LLC (“BBL”) |  |  | Colorado |  |  |  | 100 | %
GA HIA, LLC (“GAHIA”)* |  |  | Colorado |  |  |  | 16 | %
Notes Live Real Estate and Development, LLC (“NotesRE”) |  |  | Colorado |  |  |  | 100 | %
Roth’s Seafood and Chophouse, LLC (“Roth”) |  |  | Colorado |  |  |  | 100 | %
Sunset Operations, LLC (“SunsetOps”) |  |  | Colorado |  |  |  | 100 | %
Sunset Hospitality Collection, LLC (“SHC”)* |  |  | Colorado |  |  |  | 69 | %
Notes Hospitality Collection, LLC (“NHC”) |  |  | Colorado |  |  |  | 100 | %
Sunset at Broken Arrow, LLC (“BA”)* |  |  | Colorado |  |  |  | 92 | %
Sunset at Mustang Creek, LLC (“MC)* |  |  | Colorado |  |  |  | 85 | %
Polaris Pointe Parking, LLC (“PPP”) |  |  | Colorado |  |  |  | 100 | %

* These entities are considered majority-owned subsidiaries or variable interest entities and consolidated into the Notes Live consolidated financials

Bourbon Brothers Holdings Company, LLC (“BBH”) is a holding company designed to own and manage each of the Bourbon Brothers-related operating entities.

F-33

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS (cont.)

Bourbon Brothers Smokehouse and Tavern CS, LLC (“BBST”) is the sole owner and operator of its restaurant operations. The restaurant building is leased from Hospitality Income & Asset, LLC (“HIA”), a majority owned subsidiary, whom the company has a lease with and then purchased a majority of HIA in the year ended December 31, 2022 (refer to Note 7 — Related Party Transactions footnote for further details of this acquisition).

Bourbon Brothers Presents, LLC d/b/a Boot Barn Hall (“BBP”) specializes in producing music concerts as well as other types of live entertainment, including comedy acts and speaking engagements. Additionally, BBP utilizes the Boot Barn Hall event venue (“event venue”) to host corporate events and weddings, among other utilizations of the facility. BBP is the sole owner and operator of the Boot Barn Hall event venue facility. The Boot Barn Hall event venue building is leased from HIA, a related party (refer to Note 4 — Leases footnote for further details). The Company owns 89% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Bourbon Brothers Smokehouse and Tavern GA, LLC (“BBSTGA”) is the sole owner and operator of the restaurant operations. The BBSTGA restaurant building is leased from a related party entity (refer to Note 5 — Leases footnote for further details).

Bourbon Brothers Presents GA, LLC (“BBPGA”) is the Company’s concert and event venue in Gainesville, Georgia, currently under construction, specializing in producing music concerts as well as other types of live entertainment, including comedy acts and speaking engagements. Additionally, this concert and event venue facility is utilized to host corporate events and weddings. BBPGA is the sole owner and operator of this facility. This facility is leased from a related party entity (refer to Note 7 — Related Party Transactions footnote for further details).

Bourbon Brothers Media, LLC (“BBM”) is a digital media-focused entertainment company. BBM closed in 2023.

Bourbon Brothers Licensing, LLC (“BBL”) BBL is designed to exclusively serve as the entity which licenses the Bourbon Brothers brand.

Notes Holding Company, LLC (“NH”) is a pass-through entity established to hold the Company’s equity interests in various subsidiaries.

13141 Notes, LLC (“Notes”) is the restaurant operating entity, managing the Notes Bar (formally known as Buttermilk Eatery, LLC which updated its name on August 8, 2022), located in Colorado Springs, Colorado, which opened in June 2020.

Sunset Amphitheater, LLC (“Sunset”) is a hospitality-focused music venue located in Colorado Springs. This venue is currently under construction. The Company owns 10% of this variable interest entity and 100% of its voting control and consolidates it into its financials.

Hospitality Income & Asset, LLC (“HIA”) was acquired by the Company on April 1, 2022 and owns the land and buildings for which both BBST and BBP currently use from existing lease arrangements. The Company owns 99% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset on the Stones River, LLC (“Stones”) was envisioned as a newly developed fully integrated Notes Live entertainment complex in Tennessee. Construction for did not commence, and in July 2024 Notes Live determined not to pursue the project.

GA HIA, LLC (“GAHIA”) is the Colorado-based entity that holds the Company’s Georgia based operations. The Company owns 16% of this variable interest entity and 100% of its voting control and consolidates it into its financials.

Notes Live Real Estate and Development, LLC (“NotesRE”) holds title to certain Company real estate assets.

Roth’s Seafood and Chophouse, LLC (“Roth Seafood”) is a restaurant adjacent to The Sunset amphitheater. This location is slated to open when construction is completed which is anticipated in May 2025.

F-34

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS (cont.)

Sunset Operations, LLC (“Sunset Ops”) is the operating entity that manages the Sunset amphitheater operations and is slated to open when construction is completed which is anticipated in 2024.

Notes Hospitality Collection, LLC (“NHC”) is the operating entity that manager the venue rentals and 1,200 additional seating to view the concerts and shows at Sunset Ops and is slated to open when construction is completed which is anticipated in May 2025.

Sunset Hospitality Collection, LLC (“SHC”) is the entity that owns the venue that includes Roth Seafood and NHC and is currently under construction. The Company owns 69% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset at Broken Arrow, LLC (“Sunset BA”) is a hospitality-focused music venue located in Broken Arrow, OK and has not yet begun construction. The Company owns 92% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Sunset at Mustang Creek, LLC (“Sunset MC”) is a hospitality-focused music venue located in Mustang Creek, OK and has not yet begun construction. The Company owns 85% of this majority-owned subsidiary and 100% of its voting control and consolidates it into its financials.

Polaris Pointe Parking, LLC (“PPP”) owns the land for parking at SHC and Sunset Ops and has not yet begun construction.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, these consolidated financial statements reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the periods presented.

Risks and Uncertainties

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgements that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations regarding future events that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates.

Significant estimates made by management include, but are not limited to: economic lives of leased assets; impairment assessment of long- lived assets; depreciable lives of property, plant and equipment; useful lives of intangible assets; accruals for contingencies including tax contingencies; valuation allowances for deferred income tax assets; estimates of fair value of identifiable assets and liabilities acquired in business combinations; and estimates of fair value used in the private stock valuations used for equity based compensation and warrants.

The Company has been subject to risks and uncertainties as a result of the global COVID-19 pandemic. These include federal, state and local restrictions on restaurants, some of which limited capacity or seating in the dining rooms while others allowed to-go or curbside service only. As of December 31, 2023, our company locations in Colorado and Georgia were operating without restriction.

F-35

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Liquidity and Capital Resources

The Company has devoted substantially all of its efforts to developing its business plan, raising capital, and opening and operating its restaurants and event venues in Colorado, Georgia, Tennessee, Oklahoma and Texas. The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business.

The accompanying consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As of the issuance of these financials, management has concluded there is no substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. The Company had an accumulated deficit of $17,021,453 and $6,496,980 as of December 31, 2023 and December 31, 2022, respectively and generated negative cash flows from operations of $4,876,172 and $700,748 during the years ended December 31, 2023 and 2022, respectively. These conditions raised substantial doubt about the Company’s ability to continue as a going concern; however, based on management’s plan, as described below, such substantial doubt has been alleviated. The Company believes that cash on hand, and the improved profitability in 2024 from the operating entities in Colorado Springs, Colorado and Gainesville, Georgia, along with the anticipated opening of Sunset Amphitheater in August 2024 will allow the Company to continue its business operations, as well as additional capital raising and debt financing in 2024, will allow the Company to continue its business operations.

The Company’s continued implementation of its business plan to add additional locations is dependent on its future engagement in strategic locations, real estate transactions, capital raising, and debt financing. If the Company is unable to enter into strategic transactions, the Company may be required to delay its business plan implementation for future expansion, which would have a material adverse impact on the Company’s growth plan.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned, majority-owned subsidiaries and variable interest entities. For those entities that aren’t wholly-owned by Company, the Company assesses the voting and management control to confirm the Company is the primary beneficiary of the majority-owned subsidiaries and variable interest entities. All intercompany accounts and transactions have been eliminated upon consolidation. Investments for which the Company exercises significant influence but does not have control are accounted for under the equity method. See “Investments in related parties” for further discussion.

Fair Value Measurements

Fair values have been determined for measurement and/or disclosure purposes based on the following methods. The Company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The levels of the fair value hierarchy are as follows:

| ● | Level 1 — fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
| ● | Level 2 — fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
| ● | Level 3 — fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

F-36

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

The carrying values of cash and cash equivalents, payables and accrued liabilities approximate their fair values because of the short-term nature of these financial instruments. Balances due to and due from related parties do not have specific repayment dates and are payable on demand, thus are also considered current and short-term in nature, hence carrying value approximates fair value and are included in current assets or liabilities.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. As of December 31, 2023 and 2022, the Company did not have any cash equivalents. Cash balances can exceed federally insured limits.

Inventories

Inventories, consisting principally of food, beverages and supplies, are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. The Company reviews inventory on a weekly basis and determines if slow-moving or obsolete inventory exists. No allowance is deemed necessary as of December 31, 2023 and 2022.

Investments in related parties

The Company currently accounts for certain investments using a practical expedient to measure these investments that do not have a readily determinable fair value in accordance with Accounting Standards Codification (“ASC”) 321, Investments — Equity Securities; ASC 325, Investments — Other; ASC 810, Consolidation; and ASC 820, Fair Value Measurement. The investments are initially recognized at cost. Any income or loss from these investments are recognized on the consolidated statements of operations, net of operating expenses. The carrying value of the Company’s investments are assessed for indicators or impairment at each balance sheet date. Under this method of accounting, the investment is derecognized once the Company’s interest in the investment is sold or impaired. Upon sale, any proportionate gain or loss is recognized in the consolidated statement of operations as other income.

The Company had one investment during 2022 and 2023, until it disposed of it on December 31, 2023, that it accounted for using the equity method as described in ASC 323, Investments — Equity Method and Joint Ventures where the investment was initially recorded as an asset on the balance sheet at its initial cost. This investment was adjusted each reporting period by the Company through the income statement for the income or loss for its proportionate share of investment. See Note 6 — Investments in Related Parties and Note 7 — Related Party Transactions for further discussion.

Property and Equipment

Property and equipment are recorded at historical cost net of accumulated depreciation and amortization, write-downs and impairment losses. Property and equipment are recorded as construction in progress until they are placed in service, and are depreciated or amortized once placed in service. Depreciation and amortization are calculated on a straight-line basis over the following periods:

The estimated useful lives are:

Leasehold improvements |  | Shorter of lease term or useful life
Furniture, fixtures and equipment |  | 2 – 10 years
Buildings |  | Up to 40 years

Property and equipment costs directly associated with the acquisition, development and construction of a restaurant are capitalized. Expenditures for major improvements and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and amortization and the related gain or loss are reflected in earnings.

F-37

NOTES LIVE, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Intangible Assets

Intangible assets with a finite life are recorded at cost and are amortized on a straight-line basis over estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The Company currently has naming rights that are amortized on a straight-line basis over six years.

The Company reviews the carrying values of its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable.

Impairment Assessment of Long-Lived Assets

Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An evaluation for impairment is performed at the lowest level of identifiable cash flows. An impairment loss is recognized in an amount equal to the excess of the carrying value over the estimated fair value. No impairment loss was recognized during the years ending December 31, 2023 and 2022.

Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers. This ASC requires an entity to allocate the transaction price received from customers to each separate and distinct performance obligation and recognize revenue as these performance obligations are satisfied. The Company recognizes revenue from restaurant sales when food and beverage products are transferred to the customer. Revenue from a venue rental, concert or show is recognized when the event, concert or show occurs. Amounts collected in advance of the event are recorded as deferred revenue until the event occurs. Amounts collected from sponsorship agreements, which are not related to a single event, are classified as deferred revenue and recognized over the term of the agreements as the benefits are provided to the sponsors. As of December 31, 2023, 2022 and 2021, deferred revenue totaled $764,081, $127,291 and $190,580, respectively. In 2023, the Company recognized $125,640 in revenue from its deferred revenue balance at December 31, 2022. In 2022, the Company recognized $145,241 in revenue from its deferred revenue balance at December 31, 2021. There are no refunds or allowance for refunds in accordance with the Company’s reservation policies, which do not allow for, except in limited circumstances.

Leases

The Company accounts for its leases in accordance with ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded in the consolidated balance sheets as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term, including any renewal options that are likely to be exercised, at the rate implicit in the lease. Lease liabilities are increased by the principal amount due and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.

In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components as permitted under ASC 842. The Company excludes short-term leases having initial terms of 12 months or less as an accounting policy election and expenses payments on these short-term leases as they are made.

Long-term Licensing Liability

The Company accounts for the licensing of its hospitality fire pit suites of Notes Hospitality Collection as a long-term licensing liability. The deposits of $100,000 and fully prepaid licenses of $200,000 are recognized in this account. The amortization of these liabilities will start to be recognized when NHC opens its suites fully after construction is expected to be completed by December 2024 or early 2025.

F-38

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Advertising Expenses

Advertising costs are expensed as incurred and included in operating expenses in the accompanying consolidated statements of operations. Total advertising expenses were approximately $2,541,156 and $1,008,826 for the years ended December 31, 2023 and 2022, respectively.

Debt Issuance Costs

Debt issuance costs incurred in connection with the issuance of long-term debt are recorded as reductions of long-term debt and are amortized over the term of the related debt. Amortization of debt issuance costs of $4,544 and $5,074 for the years ended December 31, 2023 and 2022, are included in interest expense in the accompanying consolidated statements of operations.

Equity Based Compensation

The Company recognizes equity-based compensation expense based on the fair value of the warrants or shares at the time of the grant or issuance. Share-based compensation includes warrants and stock grants issued to the Company’s employees. These may vest immediately or vest evenly up to five years. The exercise price of a warrant is the fair value of the Company’s equity on the date of issuance.

Equity Issuance Costs

Equity issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. During the years ended December 31, 2023 and 2022, equity issuance costs of $24,167 and $297,446 of were netted against stockholders’ equity as a cost of stock issued.

Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability, and whether the warrants meet all the requirements for equity classification, including whether the warrants are indexed to the Company’s own stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent balance sheet date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of stockholders’ equity at the time of issuance.

Other Income

SBA Shuttered Venue Grant

In 2022, the Company secured a Shuttered Venue Operators Grant (the “SVOG”) from The U.S. Small Business Administration (“SBA”) COVID-19 Relief Programs under its assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. Under the terms of the SVOG, recipients are not required to repay the funding as long as funds are used for eligible uses by the dates specified by the program.

F-39

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

Income Taxes

In 2022 the Company restructured as a corporation and is subject to federal and state income taxes. A proportional share of the Company’s subsidiaries’ provisions are included in the consolidated financial statements. Deferred income tax assets and liabilities are computed for differences between the asset and liability method and financial statement amounts that will result in taxable or deductible amounts in the future. The Company computes deferred balances based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income.

A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations is considered. If the Company determines it will be able to realize the deferred tax assets for which a valuation allowance had been recorded, then it will adjust the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions.

Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) an assessment is made as to whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

The Company is a C corporation (“C Corp”), however, the Company’s subsidiaries are limited liability companies (“LLC’s”), filing as individual partnerships. As an LLC, management believes that these companies are not subject to income taxes, and such taxes are the responsibility of the respective members. The subsidiaries’ LLCs are still in place, with the parent company filing as a corporation for 2023 and 2022 and will report its portion on a Form 1120. Prior to the conversion to a C Corp in 2022, the Company filed as an LLC partnership. The expenses to convert to a corporation in 2022 were immaterial and expensed as incurred.

Non-controlling Interest

The non-controlling interest (“NCI”) represents capital contributions, income and loss attributable to the owners of less than wholly owned consolidated entities and are reported in equity. NCIs are evaluated by the Company and are shown as permanent equity. Net income attributable to NCIs reflects the portion of the net income (loss) of consolidated entities applicable to the NCI shareholders in the accompanying Consolidated Statements of Operations. The net income attributable to NCIs is classified in the Consolidated Statements of Operations as part of consolidated net income and deducted from total consolidated net income to arrive at the net income attributable to the Company.

The Company accounts for the change in its ownership interest while it retains its controlling financial interest in its majority-owned subsidiary or variable interest entities as equity transactions. The carrying value of the NCI should be adjusted to reflect the change in its ownership interest in the subsidiary. And differences between the fair value of the consideration received and the amount by which the NCI is adjusted should be recognized in equity attributable to the Company. This may be shown as NCI and as additional paid in capital to the Company when combined agree to the non-controlling issuance of shares as shown in the Consolidated Statement of Change in Stockholders’ Equity.

If a change in ownership of a consolidated subsidiary results in a loss of control or deconsolidation, any retained ownership interests are remeasured with the gain or loss reported to net earnings. These may be majority-owned subsidiaries or variable interest entities that the Company has 100% voting control of.

F-40

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

A summary of the Company’s non-controlling interests for the years ended December 31, 2023 and December 31, 2022 is as follows:

|  | BBPCO |  |  | Notes |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Total |
Balance at December 31, 2021 |  |  | (189,510 | ) |  |  | (7,684 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (197,194 | )
Net loss attributable to Non-Controlling Interest 1/1/22-4/5/22 |  |  | 11,294 |  |  |  | — |  |  |  | (26,321 | ) |  |  | — |  |  |  | (27,127 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (42,154 | )
Conversion from LLC to C Corp |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 239,348 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 239,348 |
Net loss attributable to Non-Controlling Interest 4/6/22-12/31/22 |  |  | 33,881 |  |  |  | — |  |  |  | (440,000 | ) |  |  | (8,540 | ) |  |  | (625,824 | ) |  |  | (11,947 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,052,430 | )
Interest in Subsidiaries |  |  | 3 |  |  |  | 7,684 |  |  |  | 7,107,320 |  |  |  | 395,437 |  |  |  | 16,050,000 |  |  |  | 285,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 23,845,444 |
Balance at December 31, 2022 |  |  | (144,332 | ) |  |  | — |  |  |  | 6,640,999 |  |  |  | 626,245 |  |  |  | 15,397,049 |  |  |  | 273,053 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 22,793,014 |
Net income (loss) attributable to Non-Controlling Interest 1/1-12/31/23 |  |  | 25,888 |  |  |  | — |  |  |  | 76,621 |  |  |  | (11,131 | ) |  |  | (899,567 | ) |  |  | — |  |  |  | (34,512 | ) |  |  | (5,678 | ) |  |  | (13,941 | ) |  |  | (862,320 | )
Non-controlling interest issuance of shares |  |  | — |  |  |  | — |  |  |  | 260,355 |  |  |  | — |  |  |  | 7,123,273 |  |  |  | — |  |  |  | 323,165 |  |  |  | 52,784 |  |  |  | 2,067,380 |  |  |  | 9,826,958 |
Distributions to non-controlling shareholders |  |  | — |  |  |  | — |  |  |  | (244,732 | ) |  |  | (14,004 | ) |  |  | — |  |  |  | (273,053 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (531,789 | )
Balance at December 31, 2023 |  |  | (118,444 | ) |  |  | — |  |  |  | 6,733,243 |  |  |  | 601,110 |  |  |  | 21,620,755 |  |  |  | — |  |  |  | 288,653 |  |  |  | 47,106 |  |  |  | 2,053,439 |  |  |  | 31,225,863 |

The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of December 31, 2023:

|  | BBPCO |  |  | GAHIA |  |  | HIA |  |  | Sunset CO |  |  | Sunset TN |  |  | Sunset MC |  |  | Sunset BA |  |  | SHC |  |  | Sunset McK |  |  | Total |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  | 409,973 |  |  |  | 49,643 |  |  |  | 110,314 |  |  |  | 1,281,934 |  |  |  | 52,462 |  |  |  | 1,657,511 |  |  |  | 677,742 |  |  |  | 6,418,199 |  |  |  | - |  |  |  | 10,657,778 |
Property and equipment, net |  |  | 19,956 |  |  |  | 10,993,207 |  |  |  | 11,334,305 |  |  |  | 13,373,408 |  |  |  | 3,506,517 |  |  |  | 120,766 |  |  |  | 48,988 |  |  |  | 269,137 |  |  |  | - |  |  |  | 39,666,284 |
Other assets |  |  | 1,254,602 |  |  |  | 76,104 |  |  |  | 733,332 |  |  |  | 10,008,993 |  |  |  | 1,795 |  |  |  | 399,594 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,474,420 |
Total assets |  |  | 1,684,531 |  |  |  | 11,118,954 |  |  |  | 12,177,951 |  |  |  | 24,664,335 |  |  |  | 3,560,774 |  |  |  | 2,177,871 |  |  |  | 726,730 |  |  |  | 6,687,336 |  |  |  | - |  |  |  | 62,798,482 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | 35,045 |  |  |  | 1,103 |  |  |  | - |  |  |  | 2,168,812 |  |  |  | 44,270 |  |  |  | 36,989 |  |  |  | 47,681 |  |  |  | 32,308 |  |  |  | - |  |  |  | 2,366,208 |
Accrued expenses |  |  | 264,979 |  |  |  | 41,520 |  |  |  | 192,354 |  |  |  | 83,293 |  |  |  | - |  |  |  | 20,962 |  |  |  | 24,925 |  |  |  | - |  |  |  | - |  |  |  | 628,033 |
Other long-term liabilities |  |  | 1,054,770 |  |  |  | 4,336,093 |  |  |  | 3,404,225 |  |  |  | - |  |  |  | 3,267,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,062,088 |
Total Liabilities |  |  | 1,354,794 |  |  |  | 4,378,716 |  |  |  | 3,596,579 |  |  |  | 2,252,105 |  |  |  | 3,311,270 |  |  |  | 57,951 |  |  |  | 72,606 |  |  |  | 32,308 |  |  |  | - |  |  |  | 15,056,329 |
Stockholders’ Equity & NCI |  |  | 329,737 |  |  |  | 6,740,238 |  |  |  | 8,581,372 |  |  |  | 22,412,230 |  |  |  | 249,504 |  |  |  | 2,119,920 |  |  |  | 654,124 |  |  |  | 6,655,028 |  |  |  | - |  |  |  | 47,742,153 |
Total liabilities and equity |  |  | 1,684,531 |  |  |  | 11,118,954 |  |  |  | 12,177,951 |  |  |  | 24,664,335 |  |  |  | 3,560,774 |  |  |  | 2,177,871 |  |  |  | 726,730 |  |  |  | 6,687,336 |  |  |  | - |  |  |  | 62,798,482 |

Segment Reporting

The Company considers our restaurant and event center operations as similar, in close proximity, and have aggregated them into a single reportable segment. Revenue from customers is derived principally from food and beverage services with a portion being served in conjunction with live entertainment. Our chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM makes operating performance assessment and resource allocation decisions on a consolidated basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography.

Recently Adopted Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

NOTE 3 — PROPERTY AND EQUIPMENT

Property and equipment, net, were as follows:

|  | As of December 31, 2023 |  |  | As of December 31, 2022 |
Leasehold Improvements |  | $ | 160,738 |  |  | $ | 95,577 |
Furniture and equipment |  |  | 4,064,928 |  |  |  | 1,345,780 |
Land and buildings |  |  | 39,381,977 |  |  |  | 13,384,885 |
Construction in progress |  |  | 17,678,116 |  |  |  | 10,894,355 |
|  | $ | 61,285,759 |  |  | $ | 25,720,597 |
Accumulated depreciation |  |  | (3,547,996 | ) |  |  | (1,737,381 | )
|  | $ | 57,737,763 |  |  | $ | 23,983,216 |

Depreciation and amortization expense relating to property and equipment for the years ended December 31, 2023 and 2022 were $1,810,516 and $1,176,552, respectively.

F-41

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 4 — INTANGIBLES

Intangible assets subject to amortization consist of the following:

|  | Useful Life |  | December 31, |
|  |  |  | 2023 |  |  | 2022 |
Naming rights |  | 6 years |  | $ | 400,314 |  |  | $ | 400,314 |
Accumulated amortization |  |  |  |  | (122,319 | ) |  |  | (55,599 | )
Intangible assets, net |  |  |  | $ | 277,995 |  |  | $ | 344,715 |

The asset was put into use in 2023. Amortization expense relating to the intangible assets for the years ended December 31, 2023 and 2022 was $66,720 and $55,599 respectively. The estimated amortization expense for the periods subsequent to December 31, 2023 is as follows:

The estimated amortization expense for the periods after December 31, 2023 is as follows:

2024 |  |  | $ | 66,719 |
2025 |  |  |  | 66,719 |
2026 |  |  |  | 66,719 |
2027 |  |  |  | 66,719 |
2028 |  |  |  | 11,119 |
|  |  | $ | 277,995 |

NOTE 5 — LEASES

The Company leases the properties used for its restaurants and venue space.

Through March 31, 2022, the Company leased the land and buildings used in BBST and BBP operations from HIA. On April 1, 2022, the Company purchased a controlling interest in the equity of HIA. Accordingly, the impact of the lease is eliminated in the consolidated financial statements.

Notes in Colorado Springs leases its property from 13141 BP, LLC (“13141 BP), a related party (refer to Note 7 — Related Party Transactions footnote for further details). The lease is structured as a triple net (“NNN”) lease, which this type of lease includes costs of maintenance, repairs, operations, taxes and insurance, with annual rents of $218,750 during 2023 and 2022. Base rent increases by 10% every five years through rent escalators in the lease. The initial term of the lease is 10 years with two, five-year renewal options which will give the Company the ability to extend the lease on identical terms and control the property for up to 20 years.

The Company leases its office space from an unrelated party. The lease is until November 30, 2029 and escalates in base rent by 1.3% each year.

Total rent expense related to leased assets including short-terms leases and variable costs was $1,061,427 and $684,895 for the years ended December 31, 2023 and December 31, 2022, respectively. Total cash paid for rent expense to leased assets was $452,759 and $561,552 for the years ended December 31, 2023 and December 31, 2022.

The following table shows balance sheet information related to the operating leases:

Balance Sheet Information |  | Classification |  | As of December 31, |
|  |  |  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Operating lease right-of-use assets, net |  | Operating Leases |  | $ | 3,685,980 |  |  | $ | 3,939,046 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current portion of operating lease liabilities |  | Operating Leases |  | $ | 230,952 |  |  | $ | 437,915 |
Long-term portion of operating lease liabilities |  | Operating Leases |  |  | 3,646,385 |  |  |  | 3,658,323 |
Total lease liabilities |  |  |  | $ | 3,877,337 |  |  | $ | 4,096,238 |

F-42

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 5 — LEASES (cont.)

The future minimum lease payments of existing operating lease liabilities are as follows:

|  |  | As of December 31, |
|  |  | 2023 |  |  | 2022 |
2023 |  |  | $ | — |  |  | $ | 446,664 |
2024 |  |  |  | 449,699 |  |  |  | 449,699 |
2025 |  |  |  | 452,734 |  |  |  | 452,734 |
2026 |  |  |  | 477,645 |  |  |  | 477,645 |
2027 |  |  |  | 480,680 |  |  |  | 480,680 |
2028 |  |  |  | 483,716 |  |  |  | 483,716 |
Thereafter |  |  |  | 3,340,248 |  |  |  | 3,343,617 |
Total lease payments |  |  | $ | 5,684,722 |  |  | $ | 6,134,755 |
Less: imputed interest |  |  |  | (1,807,385 | ) |  |  | (2,038,517 | )
Present value of lease liabilities |  |  | $ | 3,877,337 |  |  | $ | 4,096,238 |
Weighted-average remaining lease term (years) |  |  |  | 13.25 |  |  |  | 14.35 |
Weighted-average discount rate |  |  |  | 6.00 | % |  |  | 6.00 | %

NOTE 6 — INVESTMENTS IN RELATED PARTIES

The Company has non-controlling interest investments in related parties. Accordingly, the Company utilizes the guidance stated in ASC 323, Investments — Equity Method and Joint Ventures to account for applicable transactions. These investments lack readily determinable fair values. Consequently, these investments are accounted for under the practical expedient at cost minus impairment plus any changes in observable price changes from an orderly transaction of similar investments. An adjustment to the recognized value of the investment is not made if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value. Any income or loss from these investments is recognized in the consolidated statements of operations, net of operating expenses. These investments are reviewed at each balance sheet date for impairment. The activity related to these investments for the years ended December 31, 2023 and December 31, 2022 follows:

|  | Roth Industries LLC |  |  | Hospitality Income & Asset, LLC |  |  | 13141 BP, LLC |  |  | 1820 Jet Stream LLC |  |  | War Hippies LLC |  |  | Total |
Balance at January 1, 2022 |  | $ | 500,000 |  |  | $ | 116,987 |  |  | $ | 250,000 |  |  |  | 500,000 |  |  |  | — |  |  | $ | 1,366,987 |
Additions, net |  |  | 50,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 83,020 |  |  |  | 133,020 |
Disposals, net |  |  | — |  |  |  | (116,987 | ) |  |  | (250,000 | ) |  |  | (500,000 | ) |  |  | — |  |  |  | (866,987 | )
Net loss attributable to entity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7,417 | ) |  |  | (7,417 | )
Balance at December 31, 2022 |  | $ | 550,000 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 75,603 |  |  | $ | 625,603 |
Disposals, net |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (75,603 | ) |  |  | (75,603 | )
Balance at December 31, 2023 |  | $ | 550,000 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 550,000 |

NOTE 7 — RELATED PARTY TRANSACTIONS

The Company owns 550,000 preferred units or 2.0% of Roth Industries, LLC (“Roth Industries”). The Company’s Chairman and CEO is also the founder, manager and Chairman of Roth Industries and is a significant stockholder of the Company. The Company’s officers and directors are also minority equity owners of Roth Industries. The Company currently accounts for this investment based on ASC 325, Investments — Other, under the cost method. In addition, the Company received funds from Roth Industries, totaling $132,500 and $125,000 during the years ended December 31, 2023 with $0 in receivables and December 31, 2022 with $0 in receivables, respectively, for Roth’s licensing use of the Bourbon Brothers brand in grocery products since the Company holds the exclusive license to use the brand. The amounts received were recorded in other income in the consolidated statements of operations.

F-43

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 7 — RELATED PARTY TRANSACTIONS (cont.)

On April 1, 2022, the Company purchased 99% of the voting and non-voting units of HIA, from its members. HIA is the entity that owns the land and buildings for BBST and BBP. The Company’s Chairman and CEO is also the founder and manager of HIA. The Company’s officers and directors are also minority equity owners of. The transaction is treated as an asset acquisition and accounted for under ASC 805, Business Combinations. Under this methodology the purchase price is allocated to the acquired asset based on their proportionate fair values. The Company purchased these units of HIA for a total purchase price of $10,383,445. The units of HIA were purchased using a combination of cash and equity. Under terms of the purchase agreement, the Company issued 1,097,616 non-voting units and cash payments of $1,459,937. The Company assumed the mortgage related to the properties that was previously held by HIA.

Under the acquisition method of accounting, the total fair value of consideration transferred was allocated as follows as of April 1, 2022:

Consideration |  |  |
Cash |  | $ | 1,459,937 |
Issuance of shares |  |  | 8,923,508 |
Fair value of consideration |  | $ | 10,383,445 |
Assets acquired and liabilities assumed |  |  |  |
Cash |  | $ | 249,311 |
Fixed assets |  |  | 13,384,885 |
Other non-current assets |  |  | 36,000 |
Intangible assets |  |  | 400,314 |
Lease receivable |  |  | 385,115 |
Accounts payable |  |  | (208,429 | )
Accrued and other current liabilities |  |  | (3,671,071 | )
Non-controlling interests |  |  | (192,680 | )
Net assets acquired |  | $ | 10,383,445 |

The Chairman and CEO of the Company is also the founder and manager of 13141 BP. Additionally, the Company owned 9.96% of 13141 BP, LLCs issued and outstanding equity and sold its interest in 13141 BP, LLC to a third party on June 6, 2022, for $250,000. The Company leases property from 13141 BP with annual rent payments of $218,750. The Company had a related party note receivable for the sale of 72,000 Class B Non-Voting shares of the Company as of December 31, 2022, for $36,000, that was received in full on May 31, 2023.

The Company owned 9.1% of 1820 Jet Stream, LLC (“Jet Stream”) and 33.3% of the voting units and sold its interest in Jet Stream on June 6, 2022, to a third party for $700,000, realizing a gain on the investment of $200,000 that is recognized as other income in the consolidated statement of operations for the year ended December 31, 2022. Jet Stream’s assets consist of a single real estate holding from which the operating decisions are controlled via the operation agreement and by the property management. The majority tenant of this single real estate holding is Roth Industries, LLC (“Roth”). The Company does not use any of the real estate in its operations. Centennial Standard Real Estate Company, LLC (“Centennial”) is the manager of Jet Stream. Centennial is jointly owned by the Company’s Chairman and CEO and a director of the Company.

The Company owned 20% of War Hippies, LLC and sold its interest in War Hippies, LLC on December 31, 2023, to the majority owners of War Hippies, realizing a loss on the investment of $75,603 that is recognized as an other expense in the consolidated statement of operations for the year ended December 31, 2023.

F-44

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 8 — DEBT

Convertible Promissory Notes

During 2021, the Company issued $3,775,000 in convertible promissory notes (the “July 2021 Notes”), net of issuance costs of $190,285. The Company issued an additional $468,807 in January and February of 2022. The July 2021 Notes had a maturity date of July 26, 2026 and bore interest at a rate of 6.0%. The July 2021 Notes were convertible, at the option of the holder, at a fixed conversion price of $2.50 per unit, into non-voting units. The Company elected to extend the maturity date by 384 days (the “Extension”) provided the Company continues to pay the lender interest during that extension period.

The promissory notes holders were tendered an offer by the Company and all note holders agreed on February 15, 2022, to convert their promissory notes to Class B units of the Company at a value of $0.50 per unit. The $4,243,807 in promissory notes were converted into 8,487,615 non-voting units. The members also elected for the units to split 1-for-20 on February 15, 2022, which brought the value to $10.00 per unit per the conversion and split price. The Company recognized a loss on the extinguishment of the debt of $3,395,046 for the year ended December 31, 2022.

Concurrent with the issuance of the July 2021 Notes, the lenders received 10,000 warrant units for each $100,000 of promissory notes held. A total of 377,500 warrants were issued that provide the holder the option to purchase non-voting units at $2.50 per share, with an additional 46,881 warrants issued in January through February 2022. The warrants expire on July 26, 2024. In accordance with ASC 815-10, Derivatives and Hedging, the warrants were recorded at relative fair value within stockholders’ equity in the accompanying consolidated balance sheets.

Economic Injury Disaster Loan

On May 4, 2020, the Company executed the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company’s business.

Pursuant to the loan agreement, the principal amount of the EIDL Loan is $500,000, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum. Monthly payments of interest only in the amount of $2,437 were to originally commence on May 4, 2021; however, this repayment commencement date was extended by the SBA for 24 months. The EIDL Loan matures 30 years from the date of the note agreement, at which time all remaining unpaid principal and interest are due. JW Roth, CEO and Chairman, personally guarantees this loan agreement. As of December 31, 2023 and 2022, the principal balance of $500,000 remains outstanding.

Long-term bank debt

On April 1, 2022, when the Company purchased the majority of equity interests of HIA. In this transaction, the Company became a guarantor of HIA’s mortgage on the properties used in BBST and BBP operations. The mortgage accrues interest at 5.5% and matures on July 10, 2031. The balance at December 31, 2023 and 2022 was $3,404,225 and $3,560,160. This mortgage is collateralized by the BBST CO and BBP land and buildings. This mortgage is personally guaranteed by JW Roth.

On December 21, 2022, the Company closed on a deed of land with the City of Murfreesboro, Tennessee, for the Company to develop a Bourbon Brothers Smokehouse and Tavern, Boot Barn Hall and an amphitheater on 20.13 acres parcel for $3,267,000. The Company has a loan with the City of Murfreesboro for a total amount of $3,267,000 to be paid in 20 equal installments of $163,880 which will begin when the construction is completed for this location which is anticipated in 2026. The outstanding balance at December 31, 2023 and 2022 was $3,267,000. This loan is collateralized by the 20.13 parcel of land.

On May 26, 2022, GAHIA took on a mortgage for the properties used in the BBSTGA and BBPGA operations, with the Company as a guarantor to the mortgage. GAHIA began to draw on this mortgage in early 2023 with the final mortgage amount in place in June 2023. The mortgage accrues interest at 3.95% and matures on May 26, 2043. The balance at December 31, 2023 and 2022 was $4,391,818 and $0. This mortgage is collateralized by the BBSTGA and BBPGA land and buildings. This mortgage is personally guaranteed by JW Roth.

F-45

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 8 — DEBT (cont.)

Long-term debt consists of the following:

|  | For the period December 31, |
|  | 2023 |  |  | 2022 |
SBA Economic Injury Disaster Loan |  | $ | 500,000 |  |  | $ | 500,000 |
Bank loan |  |  | 11,007,318 |  |  |  | 6,827,160 |
Total |  |  | 11,507,318 |  |  |  | 7,327,160 |
Less: current maturities |  |  | 325,245 |  |  |  | 338,658 |
Long-term debt |  | $ | 11,182,073 |  |  | $ | 6,988,502 |

Future maturities of long-term debt as of December 31, 2023 are as follows:

2024 |  |  | $ | 325,245 |
2025 |  |  | $ | 340,337 |
2026 |  |  | $ | 436,878 |
2027 |  |  | $ | 533,682 |
2028 |  |  | $ | 548,811 |
Thereafter |  |  | $ | 9,322,365 |
Total long-term debt |  |  | $ | 11,507,318 |

NOTE 9 — EQUITY

Stockholders’ Equity

The Company had two membership classes of units while it was a limited liability company, Class A voting and Class B non-voting. The Class A voting and the Class B non-voting units have identical economic rights to participate in dividends and to the assets of the Company, however, the non-voting units do not provide the holder the right to vote on any matters or otherwise participate in the management of the business and affairs of the Company. On April 6, 2022, when the Company filed to convert from a Colorado LLC to a Colorado C Corp, the Company’s Class A membership units became Class A common stock and the Class B membership units became Class B common stock. The Company amended its articles in 2023 to include Class C common stock Except for any difference in voting privileges, or any differing contractual rights or limitations assigned or afforded to a specific series of stock in connection with a merger, acquisition or strategic transaction, the shares of Class A Voting Common Stock, Class B Non-Voting Common Stock, Class C Voting Common Stock, and Class D Voting Common Stock have the same preferences, limitations, and relative rights in all other respects. Each holder of Class A Voting Common Stock shall be entitled to 250 votes per share of Class A Voting Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Each holder of Class C Voting Common Stock shall be entitled to one vote per share of Class C Voting Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Except as required by law, holders of the Class B Non-Voting Common Stock shall have no voting power with respect to their shares of Class B Non-Voting Common Stock and the shares of Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to the shareholders.

On January 28, 2022, the Company held a special meeting for its members. The members consented that the outstanding convertible promissory note holders may elect to convert their Notes into non-voting units at a price of $0.50 per unit. 100% of the convertible promissory notes elected to convert. The members also elected for the units to split 1-for-20 on February 15, 2022. Additionally, the members elected to allow the exchange of voting units for non-voting units. All voting units were exchanged to non-voting units except 1.1 million units elected to remain as voting units. Post-election on February 15, 2022, and post-split 1-for-20, The Company had 55,000 voting units and 2,136,144 non-voting shares.

F-46

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 9 — EQUITY (cont.)

In May 2022, the Company began a private placement offering of its Class B shares at $3 per share. As of December 31, 2022, the Company has 275,000 shares of Class A common stock and 18,297,55 shares of Class B common stock issued and outstanding.

In 2023, the Company continued the private placement of its Class B shares at $3 per share and sold an additional 4,885,600 Class B shares until August 1, 2023.

On August 7, 2023, the Company allowed the shareholders to convert their Class A shares into Class C shares at a 1 to 25 basis and Class B shares into Class C shares at a 1 to 1 basis. The Company has 76,245 shares of treasury stock that it acquired through the acquisition of HIA.

On November 3, 2023, the Company and its shareholders effected a forward split of the Class B and Class C shares 5-for-1 and increased the authorized shares of Class C up to 50,000,000 at a par value of $0.001. On that same date, the Company began a private placement offering of its Class C shares at $10 per share and sold 207,250 of such shares. As of December 31, 2023, the Company has 1,959,445 shares of Class B common stock and 30,306,030 shares of Class C common stock issued and outstanding.

NOTE 10 — EARNINGS PER SHARE

Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company applies the three-class method in calculating earnings per share. Earnings and losses are shared pro-rata between the three classes of shares. For 2023, the Company has three classes of shares for Class A, Class B and Class C that weighted average number of shares by class and earnings per share by class were calculated of. For 2022, the Company had two classes of shares for Class A and Class B that weighted average number of shares by class and earnings per share by class were calculated of. The calculation of diluted net income per unit includes the effects of the assumed exercise of any outstanding warrants and convertible debt, except during loss periods as the effect would be anti-dilutive. The shares presented are post-conversion from membership units and post-split from the November 8, 2023 split election.

The following table sets forth the calculation of earnings per membership unit as presented in the accompanying consolidated statements of operations:

|  | For the Year Ended December 31, 2023 |
|  |  | Class A |  |  |  | Class B |  |  |  | Class C |
Basic and diluted net income per share of common stock |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |
Allocation of net loss |  | $ | (53,361 | ) |  | $ | (6,514,641 | ) |  | $ | (3,956,471 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | 136,301 |  |  |  | 16,640,620 |  |  |  | 10,106,179 |
Basic and diluted net loss per share of common stock |  | $ | (0.39 | ) |  | $ | (0.39 | ) |  | $ | (0.39 | )

|  | For the Year Ended December 31, 2022 |
|  |  | Class A |  |  |  | Class B |  |  |  | Class C |
Basic and diluted net income per share of common stock |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |
Allocation of net loss |  | $ | (124,583 | ) |  | $ | (6,799,166 | ) |  | $ | — |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted weighted average shares outstanding |  |  | 275,000 |  |  |  | 15,008,238 |  |  |  | — |
Basic and diluted net loss per share of common stock |  | $ | (0.45 | ) |  | $ | (0.45 | ) |  | $ | — |

F-47

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 11 — WARRANTS

The Company grants, to certain of its directors and employees, warrants to purchase units of its membership equity. The Company has also issued warrants through the July 2021 Notes offering. These warrants are required to be measured at fair value on the grant date, and they are expensed over the requisite service period, generally over a 4 or 5-year period.

Following is a summary of the warrant activities during the year ended December 31, 2023 and December 31, 2022:

|  | Number of Units |  |  | Weighted Average Exercise Price |  |  | Weighted Average Grant Date Fair Value |  |  | Weighted Average Remaining Contractual Term (in years) |
Outstanding, January 1, 2022 |  |  | 540,000 |  |  | $ | 0.55 |  |  | $ | — |  |  |  |  |
Granted |  |  | 2,515,155 |  |  | $ | 2.86 |  |  | $ | 0.91 |  |  |  |  |
Exercised |  |  | (57,085 | ) |  | $ | 0.36 |  |  | $ | — |  |  |  |  |
Expired and forfeited |  |  | (76,670 | ) |  | $ | 2.00 |  |  | $ | — |  |  |  |  |
Outstanding, December 31, 2022 |  |  | 2,921,400 |  |  | $ | 2.51 |  |  | $ | — |  |  |  |  |
Granted |  |  | 307,500 |  |  | $ | 3.39 |  |  | $ | 1.87 |  |  |  |  |
Exercised |  |  | (68,750 | ) |  | $ | 6.01 |  |  | $ | — |  |  |  |  |
Expired and forfeited |  |  | (130,320 | ) |  | $ | 2.56 |  |  | $ | — |  |  |  |  |
Outstanding, December 31, 2023 |  |  | 3,029,830 |  |  | $ | 2.60 |  |  | $ | — |  |  |  | 6.37 |

As of December 31, 2023, there was a total of 1,669,124 warrants exercisable with an aggregate intrinsic value of $11,807,409. As of December 31, 2023, the outstanding warrants totaling 3,029,830 had an aggregate intrinsic value of $22,434,909. The equity-based compensation cost, related to warrants included as a charge to operating expenses in the consolidated statements of operations, was $392,520 and $958,680 for the year ended December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023, there was $1,256,196 of unrecognized compensation cost related to non-vested warrants. The cost is expected to be recognized over a weighted-average period of 2.67 years.

The fair value of the warrants is measured on the grant date using a Black-Scholes-Merton pricing model, which includes assumptions that are derived from external data (such as risk-free rate of interest), and assumptions which are subjective (such as the volatility factor, expected dividend rate, and expected term).:

|  | 2023 |  |  | 2022 |
Volatility |  |  | 61.2% to 77.4% |  |  |  | 55.0% to 72.5% |
Dividends |  |  | 0.00% |  |  |  | 0.00% |
Risk-free rate |  |  | 1.5% to 5.0% |  |  |  | 1.1.% to 4.5% |
Expected Term (years) |  |  | 3 – 5 |  |  |  | 3 – 5 |

Warrants are equity classified, not liability classified, and are not remeasured at fair value.

NOTE 12 — INCOME TAXES

From the inception of the Company and through December 31, 2021, the Company was taxed as a pass-through partnership entity (a limited liability company) under the Internal Revenue Code and was not subject to federal and state income taxes. Accordingly, no provision had been made. With the conversion of B Entertainment, LLC to Notes Live, Inc., and election to be taxed as a C corporation (The Company applied for this election to be effective January 1, 2022), the Company became subject to U.S. federal income taxes, in addition to state and local income taxes.

The change to a C corporation was treated as a change in tax status resulting in the deferred tax effects of such change being recorded to income from continuing operations on the date the C corporation tax election was effective. The Company recorded a $56,314 net deferred tax benefit related to the remeasurement of its U.S. deferred tax assets and liabilities due to the change in tax status. Additionally, the Company performed an analysis of both positive and negative evidence that would support the realizability of the net deferred tax asset as of December 31, 2023 and December 31, 2022. After weighing the objectively verifiable positive and negative evidence, it was determined that a full valuation allowance is necessary as of December 31, 2023 and December 31, 2022.

F-48

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 12 — INCOME TAXES (cont.)

Components of the provision for income taxes for the year ended December 31, 2023 and December 31, 2022 follows:

|  | 2023 |  |  | 2022 |
Current benefit |  | $ | — |  |  | $ | — |
Deferred benefit – conversion to corporation |  |  | — |  |  |  | (56,314 | )
Change in deferred benefit through December 31 |  |  | (2,563,120 | ) |  |  | (868,621 | )
Income tax benefit |  | $ | (2,563,120 | ) |  | $ | (924,935 | )
Less valuation allowance |  |  | 2,563,120 |  |  |  | 924,935 |
Provision for income taxes |  | $ | — |  |  | $ | — |

Following the conversion of B Entertainment, LLC to Notes Live, Inc. on April 6, 2022, the Company will begin filing federal and state returns where required.

The following table reconciles the statutory income tax rates to actual rates based on income or loss before income taxes as of December 31, 2023 and December 31, 2022:

|  | 2023 |  |  | 2022 |
|  | Total |  |  | Tax Rate |  |  | Total |  |  | Tax Rate |
Income tax benefit at federal statutory rate |  | $ | (2,391,227 | ) |  |  | 21.0 | % |  | $ | (1,683,850 | ) |  |  | 14.8 | %
Non-controlling interest |  |  | 181,088 |  |  |  | -1.6 | % |  | $ | 229,863 |  |  |  | -2.0 | %
Debt issuance costs – debt converted to equity |  |  | — |  |  |  | 0.0 | % |  |  | 38,894 |  |  |  | -0.3 | %
Impact of change in tax status |  |  | — |  |  |  | 0.0 | % |  |  | (56,314 | ) |  |  | 0.5 | %
Inducement premium on conversion of debt to equity |  |  | — |  |  |  | 0.0 | % |  |  | 712,960 |  |  |  | -6.3 | %
SBA Shuttered Venue Operators Grant |  |  | — |  |  |  | 0.0 | % |  |  | (44,179 | ) |  |  | -0.4 | %
Entertainment and meals |  |  | 11,025 |  |  |  | -0.1 | % |  |  | 1,050 |  |  |  | 0.0 | %
State and local income taxes net of federal tax benefit |  |  | (364,006 | ) |  |  | 3.2 | % |  |  | (123,359 | ) |  |  | 1.1 | %
Valuation allowance |  |  | 2,563,120 |  |  |  | -22.5 | % |  |  | 924,935 |  |  |  | -8.1 | %
Provision for income taxes |  | $ | — |  |  |  | 0.0 | % |  | $ | — |  |  |  | 0.0 | %

The Company recorded a full valuation allowance against its deferred tax assets as of December 31, 2023 and 2022.

NOTE 13 — SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of the issuance of the consolidated financial statements at August 5, 2024 and identified the following:

On January 17, 2024, the Company entered into a promissory note (“Note”) with KWO, LLC (“KWO”), to accrue interest at 8.75% per annum, for draws to occur between March to May 2024 to be used towards Sunset construction. Interest is to be paid monthly and the maturity date is one year from the date of the first draw. At any time during the period commencing June 1, 2024 and continuing until the date on which the Note is paid in full, KWO may convert the outstanding Note into Company shares of equivalent value. The Holder of the Note, along with Mr. JW Roth, both personally guarantee the Note at a fee equal to 1% of the promissory note balance. As consideration of the personal guarantees, the Company has granted a three-year warrant to purchase 500,000 Notes Live shares at $10 per share for both the Holder and Mr. Roth.

F-49

NOTES LIVE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 13 — SUBSEQUENT EVENTS (cont.)

Notes Live and Live Nation Worldwide, Inc. (“Live Nation”) entered into the Live Nation Operating Agreement on January 22, 2024 in connection with the ownership and operation of The Sunset location in Broken Arrow, Oklahoma in the Tulsa market. Pursuant to the Live Nation Operating Agreement, the Company was the owner of The Sunset and Live Nation was the operator. The Company was responsible for constructing The Sunset venue. Live Nation would be responsible for booking acts at and operating the venue. At the end of each show, the net profit would have been split between the parties in accordance with the terms of the agreement. The agreement was for 10 years with two, five-year renewals. However, on August 1, 2024, the Live Nation Operating Agreement was terminated by the parties.

On January 29, 2024, the Company announced it executed a definitive merger agreement with Fresh Vine Wine, Inc. (“Fresh Vine”), which was anticipated to close in July 2024. The Transaction would have been an all-stock transaction. Specifically, at the closing of the Transaction, Fresh Vine would issue shares of its common stock to Notes Live shareholders pursuant to a formula intended to allocate existing Fresh Vine stockholders and Notes Live shareholders a percentage of the combined company. After pursuing the Transaction, the parties decided to terminate the definitive merger agreement on July 31, 2024 in accordance with its terms and to cease their efforts towards the contemplated merger.

On March 5, 2024, the Company filed Articles of Amendment to its Articles of Incorporation, pursuant to which Notes Live created a class of stock for 60,000,000 shares with a par value of $0.001 per share are denominated as “Class D Voting Common Stock”. Except for any difference in voting privileges, or any differing contractual rights or limitations assigned or afforded to a specific series of stock in connection with a merger, acquisition or strategic transaction, the shares of Class A Voting Common Stock, Class B Non-Voting Common Stock, Class C Voting Common Stock, and Class D Voting Common Stock have the same preferences, limitations, and relative rights in all other respects. Each holder of Class A Voting Common Stock shall be entitled to 250 votes per share of Class A Voting Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Each holder of Class C Voting Common Stock shall be entitled to one vote per share of Class C Voting Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Each holder of Class D Voting Common Stock shall be entitled to one vote per share of Class D Voting Common Stock held of record by such holder on all matters on which shareholders generally are entitled to vote. Except as required by law, holders of the Class B Non-Voting Common Stock shall have no voting power with respect to their shares of Class B Non-Voting Common Stock and the shares of Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to the shareholders.

On March 12, 2024, the Company entered into a preliminary agreement with the City of McKinney, Texas through a joint effort by the City of McKinney, the McKinney Economic Development Corporation (the “MEDC”), and the McKinney Community Development Corporation (“MCDC”). Pursuant to Venu’s public-private partnership with the City of McKinney, Notes Live will develop The Sunset McKinney on a 46-acre tract of land that is owned by the MEDC. Given that one of the MCDC’s strategic initiatives is to support the development of destination-entertainment facilities in McKinney, the MCDC has announced that it expects to make a financial investment in The Sunset McKinney’s development. Notes Live anticipates that construction of The Sunset McKinney will begin in the first or second quarter of 2025, with the amphitheater expected to be concert-ready in the second quarter of 2026. With a seating capacity of more than 20,000, The Sunset McKinney will be Venu’s largest venue to date. For the City of McKinney, partnering with Notes Live to develop The Sunset McKinney will represent a potential investment in the community in excess of $220 million.

The Company had additional sales of its private equity offering of its Class C shares through August 5, 2024. The Company raised an additional $28,969,000 for a total of 2,896,900 shares, which all have been exchanged on a one-for-one basis to Class D shares.

F-50

1,200,000 Shares of Common Stock

Venu Holding Corporation

| PROSPECTUS |

ThinkEquity

November 27, 2024

Through and including December 22, 2024 (the 25th day after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer’s obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.