Item 1. Business
Las Vegas Xpress, Inc. is a Nevada corporation, originally formed as a Utah corporation under the name State Cycle, Inc.
on August 7, 1974. We moved the corporation to the state of Nevada and changed our name to X Rail Enterprises, Inc. on November 5, 2015, at which time our primary business changed from mining to rail transportation, passenger excursions, rail car
construction and rail related operations and services. Effective November 4, 2017, we changed our name to Las Vegas Xpress, Inc.
Company Overview
Las Vegas Xpress, Inc. is in the specialty passenger train business and has three operating or in planning stage
divisions, The X Train, which will be an excursion railroad between metropolitan areas and resort/casino destinations, X Wine Railroads, which is a rail excursion from metropolitan areas to wine regions, and Club X Train, a riders membership club
for X Train customers.
As used in this filing, references to "the Company," "LVXI", "we", "our," "ours" and "us" refer to Las Vegas Xpress, Inc.,
and its subsidiaries, unless otherwise indicated.
X Train
The X Train will be an excursion passenger rail service between Los Angeles and Las Vegas. We expect service to begin in
early 2020. LVXI plans to have its casino guests ride the exclusive train service and to manage the host activity of its guests throughout their stay in the resort/casino. We anticipate that, in addition to the service between Los Angeles and Las
Vegas, future X Train runs will be added in the coming years.
We expect to operate the X Train as an Amtrak train listed on the Amtrak national timetable. Amtrak will provide the
locomotives, crew and railcars for the project. X Train will provide a complete bundled package of services including ticket, rooms and transfers to & from the station and weekend events such as access to nightclubs, golf outings and
restaurants. It will be scheduled as a Friday through Sunday service with passengers in Los Angeles boarding the train at Union Station and arriving at the station in downtown Las Vegas and leased and operated by the X Train. Only the X Train will
be able to use our station in Las Vegas. A typical X Train will carry 11 passenger cars and will include food service and will carry on average, 700 passengers per trip. This number can be increased by adding more cars to the route.
Our LA to Vegas business plan emanates from a regional transportation feasibility study published in 2007, which suggested
that a well-run rail service between Los Angeles and Las Vegas could garner up to 30% of the approximately 12 million passengers who regularly drive between these two metropolitan areas. See: www.rtcsouthernnevada.com. We believe that with our
current business plan, we would be able to break-even, on an operating basis, with approximately 20,000 riders per year.
To commence commercial service of the Los Angeles to Las Vegas route, we will need to negotiate and secure the necessary
rights, equipment and facilities by August 2019. These items include: securing a regularly scheduled train agreement from Amtrak to operate our excursion service on a weekly basis beginning with one round trip train per week and increasing to six
round trips per week over the next several years as demand dictates, securing operating rights to run our trains over tracks owned by private railroads, obtaining the capability to operate train equipment safely and in conformity with applicable
government regulations, and purchasing or leasing appropriate locomotive and passenger cars designed to move passengers over the route in comfort and securing leases on terminal facilities and passenger depots in Los Angeles and in Las Vegas. We
expect the X Train to begin running in January 2020. We will operate as a railroad under Amtrak’s national entitlement common carrier status.
X Wine Railroad
The Company’s X Wine Railroad service from LA Union Station to Santa Barbara California runs on a scheduled basis, once a
month on Saturdays, with individual riders (retail) as well as charters for corporate outings and special events (corporate). The X Wine Railroad provides a unique wine tasting experience to riders who take the train aboard special period classic
railcars and an excursion to the Los Olivos wine area of Southern California. Over 250 private wineries reside in the area and the X Wine Railroad provides private access to these vineyards on an exclusive basis. Ticket prices are $369 per person,
all inclusive. Since February 2017 this train has run once and the Company expects to continue to run this train intermittently, depending on demand. X Wine provides an all-inclusive day trip including a gourmet breakfast, wine tasting in the
wineries, wine and cheese lunch at the wineries, and a gourmet dinner on the train's return trip.
Club X Train
Club X Train, which is still in the planning stage, will be a one stop shop for all Las Vegas rooms, activities, tours,
show tickets and packages. Las Vegas shows, hotel rooms, tours, nightclubs and attractions will all available for members of ClubXTrain.com. This will be the only site riders need to plan their Vegas vacation getaway.
We anticipate that when a customer purchases a train ticket on either the X Train (once it commences operations) or any of
the X Wine Railroad excursions, such tickets will include enrollment in our Club X membership club. Members will receive points from each excursion they ride and will be provided discounts on products and services we provide. The more they ride,
the more points they will receive. Club X train will be the customer's ticket within Vegas for access to nightclubs, hosted bottle service, pool parties, gentlemen's clubs and the Club X Train Crawl: a high end to visiting three nightclubs in one
night. Customers will outline their desired plan for the evening and Club X Train will take care of arranging all the details. We expect to commence offering Club X Train service when the X Train commences running, currently anticipated to be
January 2020.
Implications of Being an Emerging Growth
Company
We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As
an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:
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being permitted to present 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;
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reduced disclosure about our executive compensation arrangements;
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exemptions from the requirements of holding non-binding advisory votes on executive
compensation or golden parachute arrangements; and
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exemption from the auditor attestation requirement in the assessment of our internal control
over financial reporting.
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We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging
growth company. We would cease to be an emerging growth company on the date that is the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1 billion or more; (ii) the last day of our fiscal year
following the fifth anniversary of the date of the completion of this offering; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the last day of the fiscal year in which
we are deemed to be a large accelerated filer under the rules of the Securities and Exchange Commission, or SEC, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior September 30th.
We may choose to take advantage of some but not all of these exemptions. We have taken advantage of reduced reporting requirements in this filing. Accordingly, the information contained herein may be different than the information you receive
from other public companies in which you hold stock.
The company website is www.xrailentertainment.com and our booking website is
www.vegasxtrain.com
. The X Wine Railroad site is
www.winerailroad.com
The Club X Train website is
www.clubxtrain.com
.
The contents of these websites are not incorporated into this filing. X Train Vacations, is a licensed IATAN travel agency, owned by Las Vegas Xpress, Inc.
The Company’s common stock is currently quoted on the OTC Pink under the symbol “LVXI”.
The Company maintains offices at 9480 South Eastern Avenue, Suite 205, Las Vegas, Nevada 89123.
Plan of Operations
The X Train
On February 11, 2016, the Company entered into share exchange agreements with some shareholders of Las Vegas Railway
Express, Inc. ("Las Vegas Rail"). Las Vegas Rail had developed a brand identity in its development of a passenger train service from Los Angeles to Las Vegas, called the X Train. Las Vegas Xpress, Inc. was formed to enter into an agreement with
selected shareholders of Las Vegas Rail to exchange the stock of the Company for certain shares of Las Vegas Rail. In addition, the Company executed a license agreement with XTRN to pay a royalty of 5% of the gross revenues generated by the
Company's operation of the X Train brand services including the operating name of Las Vegas Railway Express. Accordingly the Company owns the right to use Las Vegas Railway Express and the X Train brand and logo, which it acquired under the license
agreement.
Under the licensing agreement Las Vegas Xpress, Inc. operates an excursion passenger rail service also known as the X
Train that will run between Los Angeles and Las Vegas. Service is expected to begin in 2020. The Company plans to have its casino guests ride this exclusive train service and manage a host of activities for its guests throughout their stay in the
resorts and casinos in Las Vegas.
Accordingly, the Company plans to operate an excursion passenger rail service between Los Angeles and Las Vegas. The
service will operate as an Amtrak train on the Union Pacific Railroad, BNSF railroad and Metrolink railroad under Amtrak's access entitlement. The X Train will be stored in Amtrak's 8
th
Street yard in Los Angeles and the consist will be
assembled there by Amtrak switching engines. Each consist will be made up eleven Amtrak passenger railcars deployed specifically for this service. Each railcar will be retrofitted with a Las Vegas motif. Each train will consist of 11 railcars with
a total capacity of approximately 444 passengers.
Arrival into Las Vegas is planned to be at the train station in downtown Las Vegas at the Plaza Hotel.
At arrival, passengers will disembark the rail cars and immediately board a limo or tour bus provided by Greyhound under
an agreement with them to take them to the property where they are staying. All accommodations and activities planned for the weekend stay will be booked via the X Train booking center in Las Vegas, Club X. Weekend VIP and club hop services will be
coordinated through our Club X service (
www.clubxtrain.com
) for niteclub and outings. Passengers will be picked up at their hotels on Sunday at noon for a 2 pm
departure back to Los Angeles Union Station where the weekend experience is concluded.
The Company also owns a licensed IATIA travel agency, X Train Vacations which books rail excursions for other passenger
railroads in the United States of America. X Train Vacations is considered as a part of the Las Vegas Railway Express division.
The specific steps, estimated costs and expected timeline for operation of our X Train service are as follows:
September 2019 – December 2019: Rail realignment on station property to accommodate the X Train station – Cost - $1
million
September 2019 – December 2019: Training of Amtrak crews for certification of the new route between Dagget, Ca. & Las
Vegas - $650,000
September 2019 – January 2020: Beta test runs on route $750,000
July 2019 – October 2019: Procurement of passenger rail cars for service
January 2020: First run at one per week.
The X Wine Railroad
The Company’s X Wine Railroad service from LA Union Station to Santa Barbara California ran regularly on a monthly basis from February
2017 to December 2017. The X Wine Railroad was not operational in 2018, but the Company plans to continue to run the train service in 2019 depending on demand, as discussed above.
Club X Train
Club X Train will be a one stop shop for all Las Vegas rooms, activities, tours, show tickets and packages. Las Vegas
shows, hotel rooms, tours, nightclubs and attractions are all available as a member of ClubXTrain.com. This will be the only site riders need to plan their Vegas vacation getaway. Club X Train has the best Las Vegas deals and specials, too.
We expect to commence offering Club X Train service when the X Train commences running, currently anticipated to be
January 2020. As such commencement of the Club X Train will require the same steps and costs as commencement of the X Train, as set forth above.
Our Competitive Strengths
We have developed a business model that focuses on leisure travelers between Los Angeles and Las Vegas.
We believe the following strengths will allow us to maintain a competitive advantage in the market we serve:
Large Untapped Market of 12 Million Drivers.
There has been no regular passenger rail service between the Los Angeles and Las Vegas areas for over 20 years. The only major highway between Los
Angeles and Las Vegas is Interstate 15 (“I-15”). Of the more than 12,000,000 annual visitors from the Southern California/Los Angeles market, 94% use automobile transportation to Las Vegas via this corridor every year. We only need to capture
28,000 of these drivers (approximately 0.025 % of the total marketplace) to meet our plan on an operating basis. As the LA population grows, so will the traffic on this highway; the forecast for traffic on I-15 is expected to be 17 million
passengers by 2030. Congestion on I-15 is increasing, with motor vehicle travelers experiencing substantial delays during peak travel times (e.g., generally over 6 hours of drive time on Friday and Sunday afternoons). With increasing gasoline
costs, increasingly restrictive highway capacity, and reduced air travel from LA to Las Vegas, a rail transportation product - with both First Class and Coach – should be an attractive and viable alternative. Our trains will offer a service that
will set us apart from other travel options by extending our customers’ “Las Vegas” experience while en route.
“Las Vegas Style” Service.
The focus of our approach is to create a unique, Vegas class, “must see” mode of travel that not only serves the functional purpose of transporting passengers to Las
Vegas, but also integrates seamlessly into the traditional and iconic Las Vegas experience. To accomplish this goal, our award winning team of design professionals and staff has assembled an on-board product reflective of the “Las Vegas” theme,
which is comprised of a comfortable, fun, upscale and provocative atmosphere with multiple on-board amenities. Each train ticket entitles a passenger to an assigned seat with a high-quality meal and an alcoholic beverage.
Oversize baggage, access to the on-board Wi-Fi network, and other premium options will
also be available for additional ancillary fees. Commissions will be derived through our call centers, our website, and our on-board mobile application, where customers will be presented with the option to book ahead for various Vegas attractions
and necessities such as hotels, shows, tours, restaurant reservations, and rental cars.
Experienced Management and Board of Directors.
We have a strong management team and board of directors
comprised of both experienced industry professionals and successful entrepreneurs. Our CEO, Michael Barron has been a successful entrepreneur establishing and growing several companies over the past 30 years. Our board of directors is led by Dr.
Harry Teng, Head of the School of Rail Engineering at UNLV in Las Vegas, Lou Schillinger, CEO of Short Line Insurance Company, with over 300 industry rail clients insured and Don Adams,
a 50 year icon in the Las Vegas hotel/casino scene
. Company management has operated passenger service on a railroad with our own Club X cars and staff.
Not applicable because we are a smaller reporting company.
Item 2. Properties.
We lease approximately 2,066 square feet of general office space in premises located at 9480 S. Eastern Ave. Las Vegas,
Nevada. Our lease for this space expires on February 28, 2020 and our monthly rent is $3,642.