Business Divestiture and Strategic Initiatives - Ballantyne Strong divested its Convergent business segment for a total enterprise value of approximately $23.2 million, recording a gain of about $14.8 million in 2021[158]. - The company launched Strong Studios to diversify revenue streams and expand into content creation and production of feature films and series[155]. - The company has begun producing original content and acquiring rights to films and television programming since March 2022, indicating a strategic shift towards content creation[233]. Financial Performance - Net revenues for the third quarter of 2022 increased 68.0% to $10.3 million from $6.1 million in the same quarter of 2021[169]. - Revenue from Strong Entertainment increased 70.1% to $9.9 million in Q3 2022 from $5.8 million in Q3 2021, driven by a $3.6 million increase in product revenue and a $0.5 million increase in service revenue[171]. - Consolidated gross profit for Q3 2022 was $2.7 million, an increase of $0.3 million from $2.4 million in Q3 2021, with a gross profit percentage of 26.7% compared to 40.0% in the prior year[174]. - The loss from operations in Q3 2022 was $0.3 million, compared to a loss of $0.1 million in Q3 2021, reflecting increased selling and administrative expenses[181]. - Total other expense in Q3 2022 was $0.9 million, primarily due to a $1.3 million unrealized loss on equity holdings[184]. - Income tax expense decreased to $0.2 million in Q3 2022 from $2.7 million in Q3 2021, mainly due to current and deferred income tax on foreign earnings[185]. - The net loss from continuing operations for Q3 2022 was $2.2 million, or $0.11 per share, compared to a net income of $7.1 million, or $0.38 per share, in Q3 2021[187]. - For the nine months ended September 30, 2022, net revenues increased 73.4% to $29.4 million from $17.0 million in the same period of 2021[189]. - Revenue from Strong Entertainment for the first nine months of 2022 increased 76.5% to $28.4 million from $16.1 million in the same period of 2021[191]. - Consolidated gross profit increased to $7.7 million for the nine months ended September 30, 2022, from $6.1 million for the same period in 2021, representing a 26.3% increase[193]. - The company recorded a net loss from continuing operations of $8.6 million, or $0.45 per share, in the first nine months of 2022, compared to a net income of $3.8 million, or $0.21 per share, in the same period of 2021[207]. - Total cash and cash equivalents decreased to $4.3 million as of September 30, 2022, from $8.9 million as of December 31, 2021[209]. - Net cash used in operating activities from continuing operations was $2.8 million during the nine months ended September 30, 2022, compared to $0.3 million in the same period of 2021[214]. - The Strong Entertainment segment generated income from operations of $1.5 million in the first nine months of 2022, down from $2.2 million in the same period of 2021[200]. - Total other expense was $3.9 million during the first nine months of 2022, primarily due to a $3.8 million unrealized loss on equity holdings[202]. - Consolidated net loss for the quarter ended September 30, 2022, was $2,199, compared to a net income of $7,086 for the same period in 2021[224]. - Adjusted EBITDA for the quarter was $197, a significant decrease from $641 in the same quarter of 2021[224]. - EBITDA for the quarter was $(1,527), compared to $10,134 in the same quarter of 2021, indicating a decline in operating performance[224]. - Interest expense for the quarter was $91, up from $7 in the same quarter of 2021, reflecting increased borrowing costs[224]. - Income tax expense for the quarter was $245, compared to $2,696 in the same quarter of 2021, showing a reduction in tax liabilities[224]. - Depreciation and amortization expenses for the quarter totaled $336, compared to $345 in the same quarter of 2021, indicating stable asset depreciation[224]. Market and Operational Challenges - The COVID-19 pandemic has significantly impacted the company's customers in the entertainment and advertising industries, leading to a decline in operations and revenues[163]. - The company expects continued adverse impacts on revenues due to the COVID-19 pandemic and potential global recession[164]. - The ongoing geopolitical environment, including the military conflict in Ukraine, poses risks to the company's business and financial condition[152]. - The company expects to experience different seasonality patterns as it expands into new markets, which may affect future revenue and earnings[229]. Capital Allocation and Future Outlook - Ballantyne Strong continues to evaluate capital allocation opportunities, including investments in public or private companies and potential acquisitions[157]. - The company expects the upgrades from xenon to laser projection to accelerate in 2023 and continue for several years, driven by increased demand in the cinema industry[172]. - The company expects upgrades from xenon to laser projection to accelerate in 2023 and continue for several years, driven by the recovery in the cinema industry[192]. - Management regularly reviews and adjusts its estimates of Ultimate Revenue for film and television programming, which may impact amortization rates and potential impairments[238].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Jurisdicti ...

Financial Performance - Net revenues for 2021 were $6,116,000, representing a 10.0% increase from $5,561,000 in 2020[138] - Gross profit for 2021 was $2,448,000, a significant increase of 110.3% compared to $1,164,000 in 2020[138] - Other income surged to $10,223,000 in 2021, up 314.2% from $2,468,000 in 2020[138] - Net income from continuing operations for 2021 was $7,086,000, compared to a loss of $64,000 in 2020, marking a turnaround of $7,150,000[138] - The gross profit margin improved to 40.0% in 2021, up from 20.9% in 2020[138] - Selling and administrative expenses decreased slightly by 1.5% to $2,566,000 in 2021 from $2,604,000 in 2020[138] - The company experienced a loss from operations of $118,000 in 2021, a significant improvement from a loss of $1,458,000 in 2020[138] - Net revenues for the quarter ended September 30, 2021 increased 10.0% to $6.1 million from $5.6 million in the same quarter of 2020[140] - Revenue from Strong Entertainment increased 10.7% to $5.8 million in Q3 2021 from $5.3 million in Q3 2020, driven by higher revenues from screen systems and maintenance services[142] - Consolidated gross profit rose to $2.4 million in Q3 2021, representing 40.0% of revenue, compared to $1.2 million and 20.9% in Q3 2020[145] - Strong Entertainment segment gross profit was $2.2 million or 37.0% of revenues in Q3 2021, with a positive impact of $0.4 million from employee retention credits[147] - Consolidated loss from operations was $0.1 million in Q3 2021, a significant improvement from a loss of $1.5 million in Q3 2020[148] - Total other income for Q3 2021 was $10.2 million, primarily from an $8.4 million unrealized gain on investments[151] - Net income from continuing operations was $7.1 million, or $0.38 per share, in Q3 2021, compared to a net loss of $0.1 million in Q3 2020[155] - For the nine months ended September 30, 2021, net revenues increased 9.3% to $17.0 million from $15.5 million in the same period of 2020[156] - Consolidated gross profit for the nine months ended September 30, 2021 was $6.1 million, or 35.8% of revenue, compared to $3.2 million and 20.5% in the same period of 2020[160] - Strong Entertainment generated income from operations of $2.2 million in the first nine months of 2021, compared to a loss of $0.9 million in the same period of 2020[164] - The company generated a net income from continuing operations of $3.8 million, or $0.21 per share, in the first nine months of 2021, compared to a net loss of $5.0 million, or $0.34 per share, in the same period of 2020[170] Cash Flow and Investments - As of September 30, 2021, the company had total cash and cash equivalents of $10.5 million, an increase from $4.8 million as of December 31, 2020[172] - The company invested approximately $10.0 million in GreenFirst during the third quarter of 2021, bringing the fair value of its investment in GreenFirst to approximately $20.2 million[171] - Net cash used in operating activities from continuing operations was $0.3 million during the nine months ended September 30, 2021, primarily due to cash outflows for selling and administrative expenses[181] - Net cash used in investing activities from continuing operations was $10.6 million during the nine months ended September 30, 2021, compared to $4.6 million in the same period of 2020[182] - Net cash provided by financing activities from continuing operations was $3.6 million during the nine months ended September 30, 2021, primarily from the issuance of common stock[183] - The company entered into a demand credit agreement in June 2021, consisting of a revolving line of credit for up to CDN$2.0 million and a 20-year installment loan for up to CDN$5.1 million[173] - The company closed a public offering on February 8, 2021, issuing approximately 3.3 million shares at a price of $2.30 per share, resulting in net proceeds of approximately $6.7 million[177] - The company has outstanding intercompany loans from its Canadian subsidiary of approximately $34.6 million as of September 30, 2021[172] - The company believes its existing liquidity sources will be sufficient to meet projected capital needs for at least the next twelve months, but acknowledges potential impacts from COVID-19 restrictions[179] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings related to asbestos exposure, but does not expect these to materially affect its financial condition[200] - The company has not reported any significant changes in internal controls over financial reporting during the fiscal quarter[197] - There were no significant changes in critical accounting policies during the three months ended September 30, 2021[196] Market Conditions and Risks - The impact of the COVID-19 pandemic continues to affect customer spending, particularly in the entertainment and advertising sectors[135] - The company anticipates ongoing challenges due to the COVID-19 pandemic, including potential disruptions in film production and customer operations[135] - Revenue and earnings are expected to fluctuate moderately due to seasonal patterns and market expansion efforts[193] - The company has a primary exposure to foreign currency fluctuations through its Canadian subsidiary and may use foreign exchange contracts to manage this risk[192] - The company experienced a foreign currency transaction loss of $162 million, impacting overall financial results[190] - Unrealized losses on investments totaled $8,376 million, reflecting market volatility and investment performance challenges[190] EBITDA and Performance Metrics - Net income from continuing operations for Strong Entertainment was $7,719 million, while Corporate and Other reported a loss of $3,899 million, resulting in a consolidated net income of $3,820 million for the quarter[191] - EBITDA for Strong Entertainment was $10,896 million, with Corporate and Other showing a loss of $3,073 million, leading to a total EBITDA of $7,823 million[191] - Adjusted EBITDA was reported at $(1,990) million, with Corporate and Other at $(4,167) million, indicating a significant decline in performance[191]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Shares, $0.01 par value BTN NYSE American FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-13906 Ballantyne Strong, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13906 BALLANTYNE STRONG, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 47-0587703 (State or Other Ju ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Shares, $.01 par value BTN NYSE American FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Shares, $.01 par value BTN NYSE American FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: ...