Core Viewpoint - Allied Gaming & Entertainment Inc. has provided an update regarding a court order that allows the company to amend its complaint in an ongoing litigation against Knighted Pastures, LLC and related parties [1] Group 1 - The United States District Court for the Central District of California issued an order on January 5, 2026 [1] - The court granted Allied's unopposed motion for leave to amend its complaint [1] - The company is now permitted to proceed with its amended pleadings in the litigation [1]

Core Viewpoint - Allied Gaming & Entertainment Inc. (AGAE) is aware of legal actions and investigations involving its former CEO, Frank Ng, and is committed to monitoring the situation closely [1][2]. Group 1: Legal and Investigative Actions - AGAE acknowledges the public disclosure from Ourgame International Holdings Limited regarding legal matters involving Mr. Frank Ng [1]. - The company will review and investigate any relevant matters from Mr. Ng's tenure as CEO, particularly concerning the development of its esports arena in Las Vegas [3]. - AGAE emphasizes that any review will adhere to applicable laws and governance standards, with guidance from independent legal and professional advisers [3]. Group 2: Corporate Governance and Transparency - AGAE reaffirms its commitment to strong corporate governance, transparency, and the protection of shareholder interests [4]. - The company will provide updates as necessary when further disclosures are appropriate or required [4]. Group 3: Company Overview - Allied Gaming & Entertainment Inc. is a global experiential entertainment company focused on live experiences, content, and interactive services in gaming, esports, and entertainment [5]. - The company operates a portfolio of premier assets and brands aimed at connecting fans, players, and communities worldwide [5].

Industry Overview - Video game stocks are characterized by product-release-driven revenue spikes, franchise and hit-dependency, rapid technological and platform shifts, and higher cyclicality and volatility compared to broader markets [2] - The companies mentioned had the highest dollar trading volume among video game stocks in recent days [2] Company Summaries - Turtle Beach Corporation develops and markets gaming headset solutions for various platforms, including consoles, PCs, and mobile devices, under the Turtle Beach brand, and also offers peripherals under the ROCCAT brand and microphones under the Neat Microphones brand [3] - Allied Gaming & Entertainment, Inc. focuses on creating esports venues and live events for video games and poker, and was founded in 2017, headquartered in New York, NY [4] - Motorsport Games Inc. develops and publishes multi-platform racing video games in the U.S., operating through Gaming and Esports segments, with titles including rFactor 2, NASCAR Heat series, KartKraft, and Le Mans Ultimate [4]

Core Viewpoint - The company reaffirms its financial strength and strategic progress despite elevated short-selling activity, emphasizing a significant disconnect between its market valuation and intrinsic value [1][2][3]. Financial Position - Total assets exceed US$106.7 million, with cash, cash equivalents, and short-term investments totaling approximately US$53.8 million, and shareholders' equity at around US$56.9 million [3]. - The current market capitalization is approximately US$14 million, representing about 25% of net asset value and less than 30% of cash and short-term investments [3]. Expense Management - Increased operating expenses are attributed to a prolonged shareholder control dispute, which is exceptional and non-recurring, not indicative of operational weakness [4]. - The company has optimized its cost structure and improved the efficiency of strategic capital deployment while maintaining stable operational progress [4]. Income Generation - The company generated over US$3.5 million in interest and investment income during the first nine months, showcasing a resilient financial foundation [5]. Strategic Focus - The company aims to expand higher-margin experiential and live entertainment businesses, advance monetization models, and pursue selective investment opportunities [6]. - With liquidity exceeding US$53 million, the company is positioned to execute its growth strategy without pressure from short-term market fluctuations [6]. Shareholder Guidance - The company advises shareholders to exercise caution regarding unverified commentary and to evaluate based on official disclosures and long-term value rather than short-term price movements [7]. - Management remains confident in delivering sustainable value to long-term shareholders and is committed to transparent communication and disciplined execution [8].

Core Viewpoint - Allied Gaming & Entertainment Inc. is currently involved in litigation against Knighted Pastures LLC and associated individuals, indicating ongoing legal challenges that may impact the company's operations and reputation [1]. Group 1: Company Overview - Allied Gaming & Entertainment Inc. is described as a global experiential entertainment and gaming company, highlighting its broad market presence and focus [1]. Group 2: Litigation Details - The litigation involves multiple parties, including Knighted Pastures LLC, Mr. Roy Choi, Ms. Naomi Choi, and Ms. Yiu-Ting So, suggesting a complex legal scenario that may have significant implications for the company [1].

Financial Performance - Total revenues for Q3 2025 were $1.8 million, a decrease of 15% from $2.2 million in Q3 2024, primarily due to a $0.3 million decline in in-person revenues from arena events [3]. - Net loss for Q3 2025 was $5.4 million, compared to a net loss of $4.0 million in Q3 2024, with an adjusted EBITDA loss of $2.0 million versus a loss of $0.1 million in the prior year [5]. - Total revenues for the three months ended September 30, 2025, were $1,846,912, a decrease of 14.6% compared to $2,163,541 for the same period in 2024 [23]. - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $5,361,229, compared to a net loss of $4,027,941 in 2024, reflecting an increase of 31.0% [23]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,960,060), compared to $(114,502) for the same period in 2024, indicating a decline in operational performance [27]. - The company reported a pre-tax loss of $5,398,984 for the three months ended September 30, 2025, compared to a pre-tax loss of $4,361,484 in 2024, an increase of 23.7% [27]. Costs and Expenses - Total costs and expenses increased to $9.2 million in Q3 2025, up from $3.3 million in the prior-year period, largely driven by a $4.4 million rise in legal and professional fees related to a dissident stockholder [4]. - Total costs and expenses for the three months ended September 30, 2025, were $9,181,330, significantly higher than $3,344,114 in the same period of 2024 [23]. - Research and development expenses for the three months ended September 30, 2025, were $174,774, an increase from $158,162 in 2024, showing a growth of 10.3% [23]. - Selling and marketing expenses decreased to $78,989 for the three months ended September 30, 2025, down from $90,512 in 2024, a reduction of 12.7% [23]. Cash and Liabilities - As of September 30, 2025, the company had cash and short-term investments of $56.0 million, down from $71.5 million at December 31, 2024 [6]. - Working capital decreased to $36.7 million as of September 30, 2025, compared to $64.3 million at December 31, 2024 [6]. - Total liabilities increased to $49.9 million as of September 30, 2025, from $35.2 million at December 31, 2024 [21]. Acquisitions and Expansion - The company completed the acquisition of Saiju School, which will be renamed Allied International Futuretech Academy, marking its entry into Japan's accredited secondary education system [2]. - The company plans further global expansion into markets including Dubai and Hainan following the acquisition of Saiju School [2]. Events and Productions - The company hosted events on 72 days in Q3 2025, including 33 proprietary events and 39 third-party events, enhancing its operational footprint [9]. - The company is participating in the production investment of The Angry Birds Movie 3, targeting a release on December 23, 2026, to capture the holiday viewing season [8]. Gaming Revenues - Casual mobile gaming revenues decreased to $837,862 for the three months ended September 30, 2025, down from $817,986 in 2024, representing a growth of 2.1% [23]. Interest Income and Shares - Interest income for the three months ended September 30, 2025, was $1,363,810, up from $1,033,362 in 2024, representing a growth of 32.0% [27]. - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 37,713,944, compared to 37,219,904 in 2024, an increase of 1.3% [23].

Revenue Performance - Total revenues for the three months ended September 30, 2025, were approximately $1.847 million, a decrease of $316 thousand or 14.6% compared to $2.163 million for the same period in 2024[157]. - In-person experience revenues decreased by approximately $336 thousand, or 25%, to approximately $1.009 million for the three months ended September 30, 2025, primarily due to lower average revenue per event[158]. - Casual mobile gaming revenue remained stable at $838 thousand for the three months ended September 30, 2025, compared to $818 thousand for the same period in 2024, attributed to the launch of a new poker game[159]. - Total revenues decreased to approximately $6.0 million for the nine months ended September 30, 2025, down from $7.2 million in 2024, primarily due to a decline in casual mobile gaming revenue[172]. - In-person experience revenues increased by approximately $0.3 million, or 9%, to approximately $3.8 million for the nine months ended September 30, 2025, driven by higher revenue from arena events[172]. Expenses - General and administrative expenses increased by approximately $5.9 million, or 448%, to approximately $7.176 million for the three months ended September 30, 2025, primarily due to increased legal and professional fees[163]. - General and administrative expenses surged by approximately $9.3 million, or 99%, to approximately $18.7 million for the nine months ended September 30, 2025, largely due to increased legal and professional fees[178]. - Research and development expenses increased to $175 thousand for the three months ended September 30, 2025, from $158 thousand for the same period in 2024, focusing on new casual mobile game development[162]. Losses and Financial Position - The company reported a loss from operations of $7.335 million for the three months ended September 30, 2025, compared to a loss of $1.181 million for the same period in 2024, reflecting a deterioration of $6.154 million[157]. - The company reported a net loss of approximately $15.1 million for the nine months ended September 30, 2025, compared to a net loss of $9.7 million for the same period in 2024[172]. - The company recognized a loss of $3 million related to an escrow settlement with Brookfield Property Partners during the three months ended September 30, 2025[166]. Cash Flow and Investments - Net cash used in operating activities improved to approximately $3.7 million for the nine months ended September 30, 2025, compared to $13.2 million in 2024, indicating a decrease in cash usage of $9.5 million[191]. - Net cash used in investing activities was approximately $41.0 million for the nine months ended September 30, 2025, significantly higher than $24.7 million in 2024, primarily due to increased purchases of short-term investments[192]. - Cash and cash equivalents stood at approximately $15.4 million as of September 30, 2025, excluding $38.3 million of short-term investments and $2.2 million of marketable securities[188]. Other Financial Metrics - Other non-operating income, net, was approximately $324 thousand for the three months ended September 30, 2025, compared to $1 thousand of other expense for the same period in 2024, representing an increase of $325 thousand[165]. - Interest income, net, rose to approximately $1.4 million for the three months ended September 30, 2025, up from approximately $1.0 million in the same period of 2024[171]. - The gain on foreign currency transactions was approximately $0.3 million for the three months ended September 30, 2025, compared to a loss of $1.2 million for the same period in 2024, reflecting a significant improvement[169]. - The fair value of digital assets increased by approximately $53 thousand for the three months ended September 30, 2025, following the adoption of ASU 2023-08, which requires crypto assets to be measured at fair value[170]. Compliance and Accounting Estimates - The company intends to monitor its stock price to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share by May 4, 2026[153]. - The company considers accounting estimates related to credit loss on loans, impairment of long-lived assets, impairment of goodwill, and accruals for loss contingencies as critical accounting estimates due to their potential material impact on financial condition and results of operations[198]. - Other items within the financial statements require estimation but are not classified as critical[198]. - There are no quantitative and qualitative disclosures about market risk applicable to the company[200].

Core Insights - Allied Gaming & Entertainment Inc. has completed the acquisition of Saiju School, marking its entry into Japan's accredited secondary education system and aiming to redefine future education models through creativity and technology [1][6][8] Company Overview - Allied Gaming & Entertainment Inc. is a global experiential entertainment company focused on providing unique experiences for gamers and concertgoers [10] Acquisition Details - Saiju School, founded in 1943, is the No. 1 Higher Vocational School accredited by Shiga Prefecture, Japan, providing specialized vocational studies alongside high school graduation qualifications [1][2] - The acquisition allows Allied to secure majority board seats and full authority to appoint the statutory auditor, enabling strategic integration and investment [4] Educational Model - Saiju School operates as a "Skills-Linkage Model School," allowing students to earn both high school diplomas and vocational qualifications within three years through a dual-pathway academic model [3] - The school will be transformed into the Allied International Futuretech Academy (AIFA), focusing on a FutureTech-driven curriculum that includes Live Events Production, esports training, AI, and Web3 blockchain applications [4][5] Strategic Significance - The acquisition is a major milestone in Allied's long-term strategy to expand its education and talent-development ecosystem, with AIFA serving as a flagship model for integrating esports and entertainment education [6][8] - Future plans include expanding the curriculum, creating overseas exchange pathways, and introducing industry internship programs, leveraging Allied's global entertainment footprint [6][8] Vision and Goals - Allied aims to cultivate globally minded digital creators, esports professionals, and next-generation tech talent through AIFA, establishing global academic and industry partnerships [5][6] - The integration of esports, entertainment, content production, and AI education into an accredited high school system is seen as a redefinition of the future model of global education [8]

Core Insights - Allied Gaming & Entertainment Inc. celebrates its leadership in live entertainment and esports through significant events at its flagship property, HyperX Arena Las Vegas [1][2] Group 1: Recent Events - On October 18, 2025, Allied Esports hosted a community celebration for World Esports Day, attracting hundreds of gamers and esports organizations [1][2] - The event was recognized by the State of Nevada, highlighting Allied Esports' role in the growing gaming and esports ecosystem in the state [2] Group 2: Upcoming Events - The World Bar Flair Championship 2025 will take place on November 3–4, 2025, featuring nearly 50 top flair bartenders competing for a $25,000 prize pool [3][4] - This championship serves as the grand finale of the World Flair Association's Grand Slam 2025 season and is expected to draw hundreds of live spectators and tens of thousands of online viewers [5] Group 3: Strategic Positioning - Allied Gaming & Entertainment aims to create meaningful experiences through proprietary live events and community engagement, reinforcing its transformation into a diversified experiential entertainment platform [6][7] - The company focuses on consistent event programming and international partnerships to enhance its entertainment ecosystem and drive long-term growth [7]

Core Viewpoint - The company issued a clarification regarding a previous announcement, correcting the classification of Allied Gaming & Entertainment Inc. from a "subsidiary" to an "associate company" [1] Group 1 - The voluntary announcement was dated October 14, 2025 [1] - The company has applied to the Stock Exchange to resume trading of its shares from 1:00 PM on October 15, 2025 [1]