Financial Performance - Falcon's Beyond reported consolidated revenue of $1.5 million for Q1 2024, with Falcon's Creative Group generating $14.9 million, an 87% increase year-over-year[1][6]. - The joint venture Producciones de Parques recognized revenues of $7.5 million in Q1 2024, a $1.2 million increase compared to the same period in 2023[6]. - Consolidated net income increased by $123.8 million to $114.0 million for Q1 2024, compared to a net loss of $9.9 million in Q1 2023, primarily due to a $118.6 million gain from changes in fair value of earnout liabilities[6]. - Adjusted EBITDA improved from $(8.0) million to $(4.5) million for Q1 2024, driven by lower selling, general, and administrative expenses[6]. - Falcon's Creative Group recorded operating income of $1.6 million and net income of $1.8 million in Q1 2024, compared to an operating loss of $1.2 million and net loss of $1.2 million in Q1 2023[6]. - Revenue for the three months ended March 31, 2024, was $1,516, a decrease of 83.5% compared to $9,194 for the same period in 2023[14]. - Total operating expenses for Q1 2024 were $6,829, down 62.2% from $18,096 in Q1 2023[14]. - Net income for the three months ended March 31, 2024, was $114,024, compared to a net loss of $9,850 in the same period last year[14]. - Basic net income per share for Q1 2024 was $1.90, while diluted net income per share was $1.53[14]. - Adjusted EBITDA for Q1 2024 was $(4,514), compared to $(7,986) in Q1 2023, indicating an improvement[21]. Assets and Cash Flow - Total assets increased to $67.8 million as of March 31, 2024, compared to $63.4 million as of December 31, 2023[11]. - Cash flows from operating activities resulted in a net cash used of $3,768 for Q1 2024, an improvement from $6,498 in Q1 2023[16]. - The company had cash and cash equivalents of $1,050 at the end of Q1 2024, compared to $1,551 at the end of Q1 2023[16]. Strategic Partnerships and Developments - The company announced a licensing agreement with The Hershey Company to create new location-based entertainment attractions featuring iconic brands[2]. - Falcon's Creative Group will serve as the master planner and attraction designer for the Dragon Ball theme park in Qiddiya, Saudi Arabia, which will feature five state-of-the-art rides[2]. - Falcon's Beyond launched Falcon's Attractions Systems & Technologies, focusing on selling immersive rides and attractions globally[2]. - The company has entered a letter of intent with Tanseisha Co. to explore developing themed entertainment experiences based on popular Japanese anime and manga[2]. Other Financial Metrics - The company reported a significant change in fair value of earnout liabilities amounting to $118,615 for Q1 2024[14]. - The company experienced a foreign exchange transaction loss of $375 in Q1 2024, compared to a gain of $599 in Q1 2023[14]. - The weighted average shares outstanding for basic shares was 9,021,520 for Q1 2024[14].

Financial Performance and Challenges - Katmandu Park DR was closed in March 2024 due to financial, operational, and infrastructure challenges, leading to losses in the Sierra Parima segment in 2023[29]. - The fair value of long-lived fixed assets in the Sierra Parima segment was determined to be less than carrying value as of December 31, 2023, resulting in a fixed asset impairment[29]. - Sierra Parima segment recorded a fixed asset impairment of $46.7 million, resulting in a fair value of the investment being determined as zero[64]. Strategic Partnerships and Agreements - Falcon's Beyond Brands (FBB) entered into a licensing agreement with The Hershey Company in January 2024 to develop Hershey-branded location-based experiences[30]. - The Consultancy Services Agreement with QIC has a total contract value of up to approximately $83.1 million if all opportunities are won[80]. - The company has entered into licensing agreements with PBS Kids and Hershey to develop themed experiences[76]. Growth and Development Initiatives - Qiddiya Investment Company (QIC) invested approximately $30 million in Falcon's Creative Group (FCG), with $17.5 million received initially and the remaining $12 million released in April 2024[41]. - FCG has experienced rapid growth due to increased demand and project scope, necessitating additional resources and talent allocation[40]. - The planned Qiddiya water theme park will span over 252,000 square meters and feature 23 rides, including seven world-first attractions[43]. - The first-ever Dragon Ball theme park will cover over 500,000 square meters and include seven themed lands based on the original series[45]. - FCG has been engaged in the design of 26 different entertainment assets for Qiddiya, a planned tourism destination in Saudi Arabia, since 2018[94]. Operational Strategies - Falcon's is deploying an asset-efficient strategy in its Falcon's Beyond Destinations (FBD) business to enter new markets more quickly and reduce operational risks[48]. - The new strategy for FBD emphasizes building strategic relationships with commercial developers and brands, focusing on high-traffic properties[83]. - FBB launched a new brand name, Falcon's Attraction Systems & Technologies, to focus on sales of rides and attractions[84]. Client Relationships and Revenue - 58% of first-time clients have contracted for additional services, with returning clients averaging 60 times the scope of the initial project[81]. - FCG's largest customer, QIC, accounted for approximately 81% of FCG's revenue for the year ended December 31, 2023[93]. - As of April 26, 2024, FCG has 11 active agreements with QIC, each of which can be terminated at will with a notice period of 14 days[95]. Workforce and Employment - The company had 116 full-time employees as of December 31, 2023, with 102 based in Orlando and 14 in the Philippines[103]. - The joint ventures with Meliá had approximately 297 year-round, full-time employees as of December 31, 2023, with 161 in Spain and 136 in the Dominican Republic[107]. - A pre-agreement for a 5.0% wage increase in 2023 and 3.3% in 2024 was announced for employees in Spain covered by collective bargaining agreements[108]. - The company was awarded the Top Workplaces Orlando regional award for the second consecutive year in 2023[104]. Regulatory and Compliance Issues - FCG is subject to various government regulations, including those related to data privacy and environmental laws, which may incur substantial compliance costs[96][98]. - The company maintains insurance coverage for various liabilities, but there is no assurance that it will be adequate to cover all claims[111]. - FCG's operations are influenced by complex regulations that may change over time, impacting costs and operational risks[96]. Research and Development - The Falcon's X-Lab facility is being relocated to the new headquarters to enhance research and development capabilities[86]. - As of December 31, 2023, the company holds 9 issued utility patents in the US and 1 in China, covering various innovative technologies[87]. - The company aims to leverage in-depth data and insights to optimize character and storyline development for greater audience impact[67]. Performance Comparison - The Katmandu Park in Mallorca outperforms surrounding non-Katmandu Meliá hotels, achieving higher occupancy and average room rates[59].

Business Combination - The Business Combination was completed on October 5-6, 2023, involving a SPAC Merger and an Acquisition Merger, with Falcon's as the surviving entity [38]. - Transferred Debt of $4.8 million was exchanged for 475,000 shares of Pubco Series A Preferred Stock at Closing [26]. - Following the Business Combination, the total number of shares of Pubco Class A Common Stock outstanding was 7,985,976, Class B Common Stock was 127,596,617, and Series A Preferred Stock was 656,415 [28]. - On November 6, 2023, the 656,415 shares of Series A Preferred Stock automatically converted into approximately 600,000 shares of Pubco Class A Common Stock [29]. - The Business Combination is treated as a reverse recapitalization, with no goodwill or intangible assets recorded [27]. - The Company was formed solely for the purpose of completing the transactions contemplated by the Merger Agreement dated January 31, 2023 [16]. - As of September 30, 2023, Pubco had no operations, assets, or liabilities prior to the Business Combination [40]. Financial Condition - As of September 30, 2023, Falcon's Beyond Global, Inc. had no assets and only nominal capitalization prior to the completion of the Business Combination [37]. - Falcon has generated losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern [18]. - The balance sheet does not include adjustments that might result from the uncertainty regarding Falcon's ability to continue as a going concern [18]. - The Company intends to raise additional capital through various sources, although there are no assurances of success [18]. Pubco Operations and Status - Pubco did not have any off-balance sheet financing arrangements as of September 30, 2023 [42]. - There were no long-term debt, capital, or operating lease obligations for Pubco as of September 30, 2023 [43]. - Pubco is classified as an "emerging growth company" and has not opted out of the extended transition period for new accounting standards [45]. - Pubco will remain an emerging growth company until it meets certain revenue or market value thresholds, including total annual revenue of at least $1,235,000,000 [47]. - During the reporting period, Pubco did not incur significant market risks, including interest rate risk or liquidity risk [48]. - There were no changes in internal control over financial reporting that materially affected Pubco during the quarter ended September 30, 2023 [52]. - Pubco's management concluded that its disclosure controls and procedures were effective as of September 30, 2023 [50]. - Pubco is not currently involved in any litigation or legal proceedings that could materially affect its business [54]. - There were no unregistered sales of equity securities or defaults upon senior securities reported [56][57].