P10 Holdings, Inc. Supplemental Information

DALLAS, July 13, 2020 (GLOBE NEWSWIRE) -- P10 Holdings, Inc. (OTC: PIOE, also referred to as “P10” or the “Company”) today announced that it is changing its status as a shell company.  Per P10’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2017, the Company was considered a “shell company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Effective October 5, 2017, P10 ceased to be a shell company.  The following provides the reasons P10 believes it is no longer a shell company.

Rule 12b-2 of the Exchange Act defines a shell company as a company that has (1) no or nominal operations; and, (2) either, (i) no or nominal assets; (ii) assets consisting solely of cash and cash equivalents; or (iii) assets consisting of any amount of cash and cash equivalents and nominal other assets.

On October 5, 2017, the Company closed on the acquisition of RCP Advisors 2, LLC and entered into a purchase agreement to acquire RCP Advisors 3, LLC.  On January 3, 2018, the Company closed on the acquisition of RCP Advisors 3, LLC.  As a result of these acquisitions, the Company became a leading provider of investment advisory services to private equity funds of funds, secondary funds and co-investment funds.  A review of the Company’s audited annual report for the years ended December 31, 2017 and 2018 (filed and disclosed on the OTC Marketplace) shows the Company generated $4.3 million and $33.1 in revenue, respectively, during those periods.  A majority of the Company’s revenues are locked up management fees with an average life of ten years providing the Company and investors with many years of forward visibility.  With little to no capital expenditures along with high margins, the Company is able to reinvest heavily in the business.  The same financials reflect operating expenses of $4.8 million and $26.1 million for the years ended December 31, 2017 and 2018, respectively.  As of December 31, 2018, the Company reported total assets of $183.9 million, of which $8.2 million consisted of cash and cash equivalents.  The Company’s financial statements are consistent with an operating business.