Core Insights - Super League Enterprise, Inc. is participating in the "2025 Virtual Tech Conference" where CEO Matt Edelman will discuss the company's innovative media and technology products [1][2] - The conference will focus on technological advancements across various industries, including gaming and entertainment, highlighting the potential for disruption [2] Company Overview - Super League is a leader in engaging audiences through playable media, providing brands with interactive ads, content, and experiences within mobile games and immersive platforms [5] - The company utilizes proprietary technology and a network of creators to enhance brand engagement and loyalty [5] Event Details - The virtual fireside chat is scheduled for June 5, 2025, at 2:00 PM ET, hosted by Maxim Group [1] - Interested participants can register through their Maxim representative or via email [3]

Core Viewpoint - Super League Enterprise, Inc. has successfully closed a registered direct offering with an institutional investor, raising approximately $670,000 through the sale of shares of Common Stock and Pre-funded Warrants [1][3]. Group 1: Offering Details - The offering included the sale of 5,583,334 shares of Common Stock at a public offering price of $0.12 per share, with Pre-Funded Warrants priced at $0.11999 each [2]. - The Pre-Funded Warrants are immediately exercisable and can be exercised at any time until fully exercised [2]. Group 2: Financial Implications - The aggregate gross proceeds from the offering were approximately $670,000, which the Company plans to use for general corporate purposes and working capital [3]. Group 3: Legal and Regulatory Information - Aegis Capital Corp. acted as the exclusive placement agent for the offering, and the transaction was conducted under an effective shelf registration statement previously filed with the SEC [4].

Core Viewpoint - Super League Enterprise, Inc. has announced a registered direct offering with an institutional investor for approximately $670,000 in shares of Common Stock and Pre-funded Warrants [1][3]. Group 1: Offering Details - The offering includes the sale of 5,583,334 shares of Common Stock at a public offering price of $0.12 per share, and Pre-Funded Warrants priced at $0.11999 each [2]. - The Pre-Funded Warrants are immediately exercisable and can be exercised at any time until fully exercised, with a one-for-one decrease in the number of shares of Common Stock for each Pre-Funded Warrant sold [2]. Group 2: Financial Proceeds and Use - The aggregate gross proceeds from the offering are expected to be approximately $670,000, with the transaction anticipated to close around June 2, 2025, pending customary closing conditions [3]. - The net proceeds from the offering, along with existing cash, are intended for general corporate purposes and working capital [3]. Group 3: Legal and Regulatory Information - Aegis Capital Corp. is acting as the exclusive placement agent for the offering, while Disclosure Law Group and Kaufman & Canoles, P.C. are providing legal counsel [4]. - The offering is made under an effective shelf registration statement previously filed with the SEC, with a final prospectus supplement to be filed and available on the SEC's website [4].

Core Insights - Super League has expanded its partnership with AdArcade to enhance revenue diversification through a patented mobile ad format that delivers three times higher engagement than standard playable ads [1][3] - The partnership allows Super League to provide brands and media agencies with a scalable, full-funnel playable solution, reaching 220 million monthly gamers in the US [1][3] Revenue Diversification Strategy - The expansion into mobile games is a key pillar of Super League's revenue diversification strategy, expected to account for 25% of the company's revenues in 2025 [3] - The company anticipates that the demographic of video game players will continue to grow, with projections indicating that three out of four individuals under 50 will play video games [3] Ad Performance Metrics - Native Playables, the interactive ads developed by AdArcade, achieve a return on ad spend (ROAS) as high as 13 times compared to standard playable ads [2][3] - The ads are designed to match the gameplay experience, leading to superior performance across key metrics [2][3] Audience Engagement - Native Playables target a broad audience, including Millennials, Gen X, Gen Z, and Gen Alpha, who engage with popular mobile games like Roblox, Minecraft, and Fortnite [4][7] - The partnership aims to effectively engage a multi-generational mobile gaming audience, enhancing brand visibility and consumer interaction [4][7] Operational Efficiency - The deployment of Native Playables can be completed in less than two weeks, with ad creation taking just hours due to AdArcade's automated system [3] - This efficiency allows brands to rapidly produce multiple playable ads tailored to specific demographic audiences [3]

Core Insights - Super League has sold its Minecraft property InPVP to Mineville LLC in an all-cash transaction, aimed at streamlining operations and reducing costs while focusing on playable media and content solutions for global brands [1][4] - The acquisition allows Mineville to expand into the Minecraft Bedrock ecosystem, which encompasses a majority of active Minecraft players [2] - Super League will become Mineville's exclusive partner for brand partnerships and advertising sales, increasing audience reach to 8.1 million monthly active Minecraft users [3] Company Overview - Super League is a leader in engaging audiences through playable media, providing global brands with ads, content, and experiences that are interactive and memorable within mobile games and immersive gaming platforms [5] - The company utilizes proprietary technology and a network of native creators to help brands stand out and drive consumer loyalty [5]

Financial Performance - Super League reported Q4 2024 revenue of $3.426 million, a decrease from $9.510 million in Q4 2023, and full-year revenue of $16.182 million, down from $25.079 million in 2023[15]. - The company experienced a net loss of $5.127 million in Q4 2024, compared to a net loss of $13.274 million in Q4 2023, and a full-year net loss of $16.474 million, down from $30.330 million in 2023[15]. - Super League's gross profit for Q4 2024 was $999,000, down from $3.725 million in Q4 2023, indicating challenges in maintaining profitability[15]. - The net loss for the fiscal year ended December 31, 2024, was $16,474,000, a significant improvement from a net loss of $30,330,000 in 2023, representing a reduction of approximately 46%[21]. Assets and Liabilities - Total current assets decreased to $5.753 million in 2024 from $16.758 million in 2023, while total liabilities reduced to $11.380 million from $15.338 million[14]. - Super League's cash and cash equivalents decreased to $1.310 million in 2024 from $7.609 million in 2023, reflecting liquidity challenges[14]. - Cash and cash equivalents at the end of the period were $1,310,000, down from $7,609,000 at the beginning of the period, reflecting a net decrease of $6,299,000[21]. Operational Efficiency - The company reported a significant reduction in operating expenses, totaling $5.602 million in Q4 2024 compared to $16.661 million in Q4 2023[15]. - Net cash used in operating activities decreased to $11,581,000 from $15,489,000, indicating improved operational efficiency[21]. - The company experienced a positive change in accounts receivable of $4,521,000, compared to a negative change of $2,113,000 in the previous year[21]. Strategic Initiatives - Super League aims to achieve EBITDA positivity by Q4 2025 through aggressive cost structure realignment and focusing on higher-margin programs[4]. - The company is exploring strategic alternatives to enhance revenue and has identified potential partnerships that could accelerate its path to profitability[7]. - The company appointed Bant Breen to the Board of Directors to leverage his extensive marketing and media experience for revenue growth[6]. Financing Activities - Proceeds from the issuance of preferred stock, net, amounted to $2,393,000, while proceeds from the issuance of common stock were $1,000,000[21]. - Net cash provided by financing activities was $5,446,000, a decrease from $21,441,000 in the prior year, reflecting a shift in financing strategy[21]. - The company incurred a loss on extinguishment of liability related to contingent consideration amounting to $336,000[21]. - The total cash paid in connection with the Melon Acquisition was $150,000, indicating ongoing investment in strategic acquisitions[21]. Shareholder Impact - Super League's weighted-average shares outstanding increased to 13,794,441 in Q4 2024 from 4,264,905 in Q4 2023, impacting per-share loss calculations[19]. - Depreciation and amortization expenses decreased to $2,612,000 from $5,376,000, indicating a reduction in asset-related costs[21]. - The company reported a gain of $311,000 from the sale of Minehut assets, contributing positively to cash flow[21].

Financial Data and Key Metrics Changes - The company is on track to achieve EBITDA positive status in Q4 2025, with operational changes being implemented to ensure this outcome [3] - Q1 operating expenses decreased approximately 25% compared to Q1 of the prior year, continuing into Q2 with further reductions [15] - Q1 gross margin increased to 44% from 38% for fiscal year 2024 [16] - Q1 net loss decreased by 20% compared to Q1 2024, indicating improved financial health despite revenue decline [17] Business Line Data and Key Metrics Changes - Mobile revenue represented 15% of total revenue in Q1, with expectations to grow to at least 25% by 2025 [16][33] - The company has delivered multiple successful campaigns, including a notable partnership with Chipotle that resulted in significant consumer engagement [12] Market Data and Key Metrics Changes - The average daily time spent by Generation Z and Generation Alpha on mobile games exceeds 88.5 minutes, highlighting the growing engagement in interactive entertainment [4] - The company is gaining trust from iconic brands, positioning itself as a leader in the playable media space [11] Company Strategy and Development Direction - The company is focused on reducing costs, increasing gross margins, and diversifying revenue streams to mitigate risks associated with major platform changes [15][16] - The acquisition of SuperSocial is seen as a strategic move to enhance capabilities and expand partnerships within the Roblox ecosystem [18][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential macroeconomic headwinds but currently does not see significant budget cuts, only delays in marketing and advertising budgets [32] - The company remains optimistic about its revenue pipeline, with approximately $20 million in active opportunities across 97 unique programs [17] Other Important Information - The company emphasizes the importance of playability in marketing, stating that it is a permanent and growing form of engagement [40] - The company is committed to pursuing additional capital raise opportunities to support operational needs and strategic growth [24] Q&A Session Summary Question: What does the recent acquisition say about potential targets? - The acquisition demonstrates the company's capability to support inorganic growth and provide a good partnership for companies looking to accelerate their growth [23] Question: Does the recent equity raise provide enough room to reach breakeven? - The company plans to pursue additional capital raise opportunities while aiming for EBITDA positive status in Q4 [24] Question: Are different agencies approaching the company now that it is focused on mobile? - The expansion into mobile has opened up diverse opportunities and conversations with agencies and brands [25][26] Question: How will macroeconomic factors impact the business? - The company is monitoring marketing budgets closely, noting that while cuts are not evident, delays are occurring [32] Question: What is the expected growth of mobile revenue? - Mobile is expected to represent at least 25% of total revenue by 2025, with positive growth trends observed [33] Question: Can you elaborate on the strategic importance of the SuperSocial acquisition? - The acquisition enhances the company's position within the Roblox ecosystem and provides opportunities to showcase capabilities to exciting IP owners and brands [35][36]

Revenue Performance - Revenue for the three months ended March 31, 2025, totaled $2.7 million, a decrease of $1.5 million or 35% compared to $4.2 million for the same period in 2024[228]. - Media and advertising revenue decreased by $93,000, or 7%, to $1.3 million, while publishing and content studio revenue decreased by $1.3 million, or 50%, to $1.3 million[237]. - The number of customers contributing over 10% of revenue increased to three, representing 50% of total revenue, compared to three customers representing 36% in the prior year[237]. - Revenue is expected to be seasonally stronger in the second half of the fiscal year, with the fourth quarter typically representing the highest revenue quarter[235]. Cost and Expenses - Cost of revenue decreased by $955,000, or 39%, to $1.5 million, driven primarily by the 35% decrease in quarterly revenues[229]. - Total operating expenses decreased by $1.5 million, or 24%, to $4.8 million, reflecting a focus on cost reductions and operating efficiencies[230]. - General and administrative expense decreased by $582,000, or 28%, to $1,520,000 from $2,102,000 in the prior year[246]. - Engineering, technology and development expense decreased by $0.8 million, or 45%, driven by a $291,000 reduction in cloud services and a $336,000 reduction in product and engineering personnel expense[245]. - Total noncash stock compensation expense decreased by $48,000, or 14%, to $284,000 from $332,000 in the prior year[240]. - Total amortization expense decreased by $142,000, or 21%, to $541,000 from $683,000 in the prior year[240]. Net Loss and Financial Position - Net loss for the three months ended March 31, 2025, was $4.2 million or $(0.25) per share, compared to a net loss of $5.3 million or $(1.00) per share in the prior year[230]. - As of March 31, 2025, the company reported an accumulated deficit of $274.3 million, with net cash used in operating activities totaling $2.2 million for the three months ended March 31, 2025, compared to $3.7 million for the same period in 2024[262]. - Cash and cash equivalents decreased to $0.7 million as of March 31, 2025, down from $1.3 million at December 31, 2024[261]. - The company incurred total interest expense of $1,402,000 for the three months ended March 31, 2025, significantly higher than $19,000 for the same period in 2024[259]. Financing Activities - The company entered into an underwriting agreement for a public offering of 5,117,647 shares at a price of $0.17 per share, resulting in net proceeds of approximately $700,400[231]. - The Company raised net proceeds of approximately $700,400 from a public offering of 5,117,647 shares at a price of $0.17 per share, with an additional 617,647 shares sold under an option agreement for gross proceeds of approximately $104,999[277]. - The Company reported a net cash provided by financing activities of $1,357,000 for the three months ended March 31, 2025, compared to a net cash used of $430,000 in the same period in 2024[285]. - The Company anticipates seeking additional capital through future issuances of common stock, preferred stock, or debt financings to support its operations and growth[263]. Strategic Agreements and Notes - The company entered into the Agile II Loan Agreement, issuing the Agile II Note with a total interest payment of approximately $1.05 million, requiring 32 equal payments of $110,937 starting February 17, 2025[264]. - The company issued the Diagonal Note for $300,000, maturing on December 30, 2025, with an interest rate of 10% per annum[265]. - The Belleau Purchase Agreement involves issuing Belleau Notes with an aggregate principal amount of $1,500,000, with the first sale generating gross proceeds of $300,000[270]. - The Company continues to explore strategic acquisitions and may need to raise additional equity capital or incur debt to finance these acquisitions[278]. Revenue Recognition and Accounting Estimates - Revenue is recognized when control of goods or services is transferred to customers, with specific criteria including contract approval and collectability assurance[314]. - Management's estimates regarding collectability impact the actual revenue recognized each period, which could materially affect financial results[315]. - Significant judgments and estimates are required to determine performance obligations and the timing of revenue recognition, potentially affecting periodic financial results[316]. - The fair value of certain promissory notes is estimated based on present value calculations using market rates and credit risk, with adjustments recognized in other income[318]. Company Status and Reporting - The Company qualifies as a "smaller reporting company," allowing it to take advantage of certain reporting exemptions under the Exchange Act[321]. - The Company is subject to less rigorous ongoing public reporting requirements, which may result in stockholders receiving less information compared to more mature public companies[322]. - The Company continues to be an "emerging growth company" until December 31, 2024, allowing it to benefit from various reporting exemptions[324].

Core Insights - Super League is focused on streamlining operations to reduce operating expenses and net loss, aiming to achieve EBITDA positivity by Q4 2025 [1][3] - The company has successfully entered the mobile games market, which now constitutes 15% of its revenues, as part of its strategy for revenue diversification and higher-margin programs [4][5] - Super League acquired Supersocial, enhancing its Roblox business with 49 immersive builds that have garnered over 390 million visits and 3 billion impressions [5] - The company has a strong pipeline of nearly $20 million in active opportunities across approximately 100 programs, positioning itself at the intersection of interactive entertainment and advertising [6] Financial Performance - For Q1 2025, Super League reported revenues of $2.718 million, a decrease from $4.209 million in Q1 2024 [12] - The cost of revenue was $1.522 million, leading to a gross profit of $1.196 million [12] - Total operating expenses were reduced to $4.827 million from $6.337 million year-over-year, resulting in a net operating loss of $3.631 million, improved from a loss of $4.605 million in the previous year [12] - The net loss for Q1 2025 was $4.230 million, compared to a net loss of $5.260 million in Q1 2024, indicating a year-over-year improvement [12][14] Balance Sheet Overview - As of March 31, 2025, total assets were $9.784 million, down from $11.711 million at the end of 2024 [10] - Total liabilities increased to $13.245 million from $11.541 million, with current liabilities rising significantly [10] - Stockholders' equity showed a deficit of $3.461 million, compared to a positive equity of $170,000 at the end of 2024 [10] Cash Flow Analysis - Net cash used in operating activities for Q1 2025 was $2.203 million, an improvement from $3.743 million in Q1 2024 [16] - The company generated $1.357 million in net cash from financing activities, contrasting with a cash outflow of $430,000 in the same period last year [16] - Cash and cash equivalents decreased to $747,000 from $1.310 million at the beginning of the period [17]

Core Viewpoint - Super League Enterprise, Inc. has successfully completed a public offering of common stock, with the underwriter exercising an option to purchase additional shares, resulting in increased gross proceeds for the company [1]. Group 1: Offering Details - The underwriter purchased an additional 617,647 shares at a public offering price of $0.17 per share, leading to approximately $105,000 in additional gross proceeds [1]. - The total number of common stock sold in the offering increased to 5,735,294 shares, with total gross proceeds reaching approximately $974,999 before deducting underwriting fees and other estimated expenses [1]. - The exercise of the over-allotment option is expected to close on May 14, 2025, subject to customary closing conditions [1]. Group 2: Company Background - Super League Enterprise, Inc. is a leader in redefining brand-consumer connections through playable media, providing global brands with ads, content, and experiences integrated within mobile games and immersive gaming platforms [5]. - The company utilizes proprietary technology and an award-winning development studio to create impactful brand experiences that resonate with consumers [5].