A Paradise Acquisition Corp. Class A Ordinary Shares 2026 Q2 Earnings Call

Thank you, and good afternoon, everyone. We appreciate you joining us today. Speaking on the call today are Maximilian Martin, Chief Executive Officer, and Sid Banthiya, Chief Financial Officer for Enhanced. Earlier this afternoon, we issued our second quarter 2026 earnings results press release, available in the investor relations section of our website, along with our quarterly report on Form 10-Q filed with the SEC. Before I hand it off to Max, I want to remind listeners that today's call contains forward-looking statements, including statements about the company's strategy, expectations for our sports and consumer health businesses, liquidity, and plans for future events and products. These are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the risk factors in our SEC filings. We undertake no obligation to update these statements except as required by law.

We will also refer to adjusted EBITDA, a non-GAAP financial measure. A reconciliation to net loss, the most directly comparable GAAP measure, is included in our press release. With that, I will turn the call over to Max.

Thank you, Chris, and good afternoon, everyone. Thank you as well from my side for joining us today. This is our first earnings call as a public company, and although it mainly covers the second quarter, in reality, we are also providing an update for the first half of the year. As a startup, we will share a lot about what we have learned and how we will adjust based on those learnings as we continue to grow our business. We began the year focused on completing our business combination with A Paradise Acquisition Corp, which we disclosed in Q4 of 2025. We closed the BCA within a matter of months with Enhanced ringing the bell at the NYSE in May. Three weeks later, we staged the inaugural Enhanced Games, an event that became the first medically supervised sporting event allowing enhancement.

Despite our critics doing everything to castigate, and in some cases block our event, our athletes and staff persevered. We completed a first of its kind IRB clinical trial in a war zone and put on an event that delivered 21 personal bests, a world record, and engaged over 1 billion people globally in the process. Of course, we did all this while also launching our direct-to-consumer telehealth and supplement platform, Live Enhanced, during Q2. Building a viable company with our aspirations required several big additional steps. First, it took executives willing to leave established careers for an idea the sports world disapproved of. We had to recruit athletes willing to stake their reputations on it, clinicians and scientists willing to put their credibility into a protocol no one had tested before, and secure partners willing to subscribe to all of this despite the criticism.

More than anything, our aspirations for Enhanced required capital, and I'm proud we were able to raise a bit more than $50 million in financing this year, which included additional capital from both our executive chairman, Christian Angermayer, and myself, contributing $20 million and $5 million respectively. Simultaneously building and delivering one of the most groundbreaking sporting events in history, conducting a first of its kind clinical trial, launching a consumer platform, and going public are not projects most management teams could accomplish in a 2 or 3-year period. We achieved all this within 6 months. In May, we hosted the inaugural Enhanced Games in an arena complex we designed and built ourselves from the ground up for a global audience that far exceeded expectations. We did this in the face of considerable and vocal global opposition. Critics said it couldn't be done, people would die on our watch.

Traditional sporting organization changed bylaws to prevent athlete participation. They said it shouldn't happen at all. With this much public scrutiny, we deliberately chose to invest heavily in the inaugural Enhanced Games. We wanted to create an event that would capture the world's imagination, an event that provided a statement, pushed back against our critics, generated consumer awareness, and most importantly, built a global sports property IP we are now leveraging to the benefit of our consumer business. The level of investment when weighted against the global reach we generated, the infrastructure we built, and the sponsorship revenue secured, we believe was a right call for our first year. It's not unusual for an inaugural event at this scale to lose money. What is unusual is the reach and brand recognition we generated doing it.

Going forward, we now have a tangible benchmark against which we can sell sponsorship and media rights. This is a considerable change in the type of conversations we're having compared to when this was just a visionary concept last year. Importantly, a portion of our inaugural investment went into infrastructure, including the pool and the track, which can be reused for future Enhanced Games and the broader Enhanced Breaker Series. This will allow us to monetize our sporting business more effectively while also opening additional revenue streams around the games going forward. The inaugural event was invitation only for both athletes and spectators. However, going forward, we intend to make the games significantly more accessible, including potentially ticket sales.

Moreover, having demonstrated the economic impact the Enhanced Games can generate for a host city, we are evaluating future locations not just based on their ability to host the event, but also on the economic development financing opportunities and other incentives we can secure. Together, these factors should have a meaningful positive impact on the margins of the Enhanced Games as our tentpole event throughout the year. Ultimately, this will further strengthen Enhanced's positioning as one of the most exciting new sporting IPs for consumers to watch, built around one of the most compelling sporting rivalries ever, natural versus enhanced. We believe this rivalry is a true differentiating factor for a sporting model, and one that we intend to capitalize on significantly as the property scales. As the excitement around the games grew, so too did expectations that the event would produce multiple world records.

In retrospect, we should have managed that narrative more carefully. By allowing those expectations to take hold, we contributed to an impression that the evening had fallen short when only one world record was broken. Actually, it is quite the contrary, which we believe many people yet have to understand. What we delivered was transparent medical protocols, helping athletes achieve new personal records, some of these athletes well past their prime, at an average age of 30 years old. Looking at it from this perspective, the games were a massive success. That positioning is something we could have done better. Critics' voices drew the headlines, and hate always attracts more attention than love, leading the superficial reader to believe the games were not a success.

This learning helped us make a pivot in our communication strategy to not just better present the power of enhancements, but also position us more relatable to consumers. Nonetheless, there were many achievements which we believe position the company well into the future. Enhanced's multi-platform media strategy to produce a sporting event built for how modern fans consume content, definitely. Each event was dynamic enough to fit inside a TikTok or reel, providing an AI-resistant content model that reached around the globe. We leveraged our own social properties and the largest global Twitch streamers and content creators to deliver more than 4 million live views and more than 1 billion impressions overall. These figures do not include our partner Roku's streaming data, which offered the broadcast in 100 million North American homes and inevitably pushes the viewership numbers even higher.

For context, just the 4 million live views without Roku were equivalent to a regular NBA season game or an episode of The Tonight Show Starring Jimmy Fallon. Independent media coverage far exceeded expectations as well, with 4,000 global stories and publications reaching about 16.7 billion unique monthly visitors, with prominent feature stories in Vanity Fair, The Economist, Financial Times, GQ Magazine, and Men's Health Magazine, just to name a few. All the above demonstrates the extraordinary global interest in the games and how that helped enhance the incredible brand value as a new sports property. The centerpiece of our sports strategy was delivering the games while setting a new standard for athlete health and safety. It took us more than a year to establish our clinical study, working with the Department of Health in Abu Dhabi and Sheikh Shakhbout Medical City, the UAE's largest hospital, under an IRB-approved clinical trial.

This was an investment in athlete health unlike anything seen before in sport. The results speak for themselves. Every athlete completed the trial safely. Every athlete improved their health data. Our athletes overall achieved 21 new personal bests. For a first games, that is remarkable and demonstrates that athlete health and performance were never competing priorities. Our medical program and the proprietary data it generated gives us a foundation unlike anything else in the market, one we can now extend to a much broader population through our consumer platform. Partway through the trial, the region experienced a war that put the entire effort at risk. Our team took brave steps to safeguard our athletes, keep the trial's medical integrity intact, and found a path to complete the program on schedule. The credibility and trust we've built within the athlete community through our work is remarkable.

I have Olympic champions and world record holders reaching out through Instagram DMs, trying to get themselves a spot in our next competitions. That trust in the quality of what we deliver as a company goes beyond the athletes. It ultimately transfers to consumers and gives us a level of credibility that most consumer companies have to spend years and tons of capital trying to build. Most begin by buying customers, search terms, performance ads, incremental acquisitions, optimizing cost per clicks. We started by building a brand and delivering a global event that engaged over 1 billion people. What we have is not simply a product looking for a category. Personal health and performance is a subject that provokes real emotion. You cannot buy that with performance marketing. You have to demonstrate something publicly, create a conversation, and become part of the culture.