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 Performance - Super League Enterprise, Inc. reported a revenue increase of 25% year-over-year for Fiscal Year 2023, reaching $50 million[12]. - For Fiscal Year 2024, Super League expects revenue growth to continue at a rate of 20% to 25%, projecting revenues between $60 million and $62.5 million[12]. - The company has secured two new licensing agreements with major game publishers, which are expected to contribute an additional $10 million in revenue[12]. - Super League's gross margin improved to 60%, up from 55% in the previous fiscal year, reflecting better cost management[12]. User Growth and Engagement - The company has expanded its user base by 30%, now serving over 1 million active users across its gaming platforms[12]. - The company is investing $5 million in new product development, focusing on enhancing user engagement through innovative gaming experiences[12]. - Super League plans to enter three new international markets in 2024, aiming to increase its global footprint and user acquisition[12]. Operating Expenses and Investments - Operating expenses increased by 15% due to higher marketing costs associated with user acquisition strategies[12]. - Super League has implemented new cybersecurity measures, investing $1 million to protect user data and enhance platform security[12]. Strategic Initiatives - The company is exploring potential acquisition opportunities to enhance its service offerings and market position[12].

Financial Data and Key Metrics Changes - The financial results in the latter half of 2024 did not meet expectations, indicating a need for improvement, described as a potential speed bump on the path to profitability [7] - The company aims to achieve EBITDA positivity by Q4 2025, with a focus on larger revenue and higher margin programs [10] Business Line Data and Key Metrics Changes - Revenue diversification is beginning to take effect, with margins recovering and a healthy pipeline of approximately $20 million in active pursuits across 77 unique programs [8] - The fastest growth area is now within mobile games, contributing about 16% of revenue in Q4 2024 and expected to approach 20% in Q1 2025 [37][38] Market Data and Key Metrics Changes - The gaming market is substantial, with 3.3 billion gamers globally and 61% of Americans playing video games, indicating a significant opportunity for growth [21] - The perception of gamers is shifting, with brands recognizing that gamers are regular consumers, which is expected to lead to increased advertising dollars flowing into gaming channels [26] Company Strategy and Development Direction - The company is focusing on becoming EBITDA positive and is aggressively restructuring its cost structure to align with this goal [10] - There is a commitment to exploring additional complementary offerings to fuel meaningful growth, particularly in response to structural changes in the Roblox brand partnership ecosystem [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds and structural shifts in the advertising ecosystem but remains optimistic about long-term prospects [4][5] - The transition of leadership to Matt Edelman as the new CEO is seen as a positive step, with a focus on aligning vision and capabilities for future growth [11][41] Other Important Information - The company is exploring strategic alternatives and has identified potential acquisition targets that align with its business model [14][50] - The appointment of Bant Breen to the Board is expected to enhance connections with agencies and brands, potentially opening new revenue opportunities [12][13] Q&A Session Summary Question: Context on discussions with potential acquisition targets - Management is unable to disclose binding agreements but is in touch with multiple companies, including Infinite Reality, and is exploring better-fit opportunities [48][50] Question: Addressing changes in Roblox's ad ecosystem - The company is part of the Roblox partner program and is focusing on branded content opportunities as Roblox shifts to a more managed ad ecosystem [55] Question: Opportunities in mobile advertising - The company is focused on playable advertising and collaborating with mobile game developers, with quick turnaround times for campaigns [62] Question: Education process for customers regarding gaming advertising - The education process is ongoing, with brands beginning to understand the value of gaming ecosystems, supported by data analytics to encourage repeat business [67][68]

Core Insights - Super League has faced significant challenges over the past two years but remains committed to seizing opportunities in the gaming industry [2][3] - The company has appointed Matt Edelman as the new CEO, with Ann Hand transitioning to the Executive Chair role [5][6] - Despite recent financial struggles, there are signs of recovery, including revenue diversification and margin improvement [3][4] Financial Performance - For the fiscal year ended December 31, 2024, Super League reported revenue of $16.18 million, down from $25.08 million in 2023, representing a decline of approximately 35.4% [16] - The net loss for 2024 was $16.47 million, compared to a net loss of $30.33 million in 2023, indicating a reduction in losses [17][21] - The company aims to achieve EBITDA positivity by Q4 2025 through aggressive cost management and focusing on higher-margin revenue streams [4][8] Strategic Initiatives - The company is exploring strategic alternatives to enhance its market position, particularly in the playable digital advertising space [7][8] - Bant Breen has been appointed to the Board of Directors, bringing extensive experience in marketing and media, which could positively impact Super League's revenue trajectory [6][8] - The exclusivity period for a deal with Infinite Reality has expired, allowing Super League to pursue other strategic opportunities [7]

Core Viewpoint - Super League is set to announce its fourth quarter and full year 2024 financial results on March 28, 2025, and will host a webinar to discuss these results and provide a corporate update [1][2]. Group 1: Financial Results Announcement - The Company will release its financial results before market open on March 28, 2025 [1]. - A webinar will take place at 8:30 am Eastern Time on the same day to discuss the results [2]. Group 2: Company Overview - Super League is a leader in redefining the gaming industry as a media channel, focusing on immersive content for global brands [3]. - The Company provides a unique suite of tools and services aimed at maximizing user engagement and enhancing brand awareness [3]. - Super League aims to inspire customer loyalty and create new revenue sources through innovative gameplay and creativity [3].

Core Insights - AVID and Super League have launched AVID Creator Planet, an educational platform on Roblox aimed at students aged 13 and above, focusing on developing executive function and durable skills [1][2][3] Group 1: Educational Focus - AVID Creator Planet emphasizes the practice of durable skills such as problem-solving, critical thinking, collaboration, and communication through interactive scenarios [2][3] - The platform is set in Equinova, an extraterrestrial environment where users engage in building challenges and face problem-solving tests through unexpected events [3] Group 2: Resources and Support - AVID has developed a comprehensive suite of free resources for teachers and students, including step-by-step lessons to facilitate the learning experience [2] - Super League's commitment to creating educational and immersive experiences aims to enhance the developmental benefits of time spent in virtual worlds [4] Group 3: Company Backgrounds - AVID is a national nonprofit organization that supports schools and educators, preparing millions of students for success in college and careers [5] - Super League, listed on Nasdaq as SLE, is redefining the gaming industry as a media channel, providing immersive content solutions for global brands [6]

Core Insights - The American Egg Board (AEB) has launched a unique gaming activation called "Tower of Eggs" in Roblox, aimed at engaging gamers with egg recipes and gameplay [1][5] - This initiative is part of AEB's "Meant to be Broken" campaign, targeting Millennial and Gen Z consumers who are avid gamers [3][4] Group 1: Gaming Activation Details - The "Tower of Eggs" pop-up features a four-level obstacle course where players can create recipes like Sausage, Egg and Cheese Roll-Ups and Ramen Carbonara [2] - Players can earn egg-inspired accessories for their Roblox avatars as rewards for completing challenges [2][4] - The activation will be featured in popular Roblox games from December 10, 2024, to February 5, 2025, including "Color or Die" and "Ultimate Easy Obby" [3] Group 2: Strategic Partnerships and Marketing - The AEB partnered with Talmont and Super League to create this gaming experience, marking the first-ever Roblox activation by a national commodity checkoff organization [5][6] - The initiative reflects a broader trend of brands engaging in gaming culture to create experiences and build communities [6] - AEB aims to connect with a new generation of consumers by leveraging the creativity and engagement potential of the Roblox platform [6]

Financial Results - Super League Enterprise, Inc. reported its financial results for the fiscal quarter ended September 30, 2024[2]. - The company has not yet disclosed specific financial figures or performance metrics in the provided documents[2]. - The financial results include key metrics that will be detailed in the attached exhibits[5]. Corporate Communications - The company released an Earnings Press Release and a Letter to Shareholders on November 14, 2024[2]. - The Letter to Shareholders was authored by CEO Ann Hand, discussing operating highlights and financial results[2]. - The press release and shareholder letter are available as Exhibits 99.1 and 99.2, respectively[5]. Regulatory Compliance - The report is filed under Form 8-K with the SEC, indicating compliance with regulatory requirements[1]. - The company is classified as an emerging growth company under the Securities Act of 1933[1]. - The report was signed by CFO Clayton Haynes, confirming its authenticity[6]. Forward-Looking Statements - The report contains forward-looking statements regarding the company's plans and expectations[4].

Revenue Performance - Revenue for Q3 2024 totaled $4.4 million, a decrease of $2.8 million or 38% compared to $7.2 million in Q3 2023[253]. - Revenue for the nine months ended September 30, 2024 totaled $12.8 million, down from $15.6 million in the prior year period[257]. - Total revenue for the three months ended September 30, 2024 decreased by $2.8 million, or 38%, to $4.4 million compared to $7.2 million in the prior year quarter[270]. - Total revenue for the nine months ended September 30, 2024 decreased by $2.8 million, or 18%, to $12.8 million compared to $15.6 million in the prior year period[274]. - Media and advertising revenue decreased by $1.3 million, or 47%, to $1.5 million compared to $2.9 million in the prior year quarter[271]. - Publishing and content studio revenue decreased by $1.3 million, or 33%, to $2.6 million compared to $4.0 million in the prior year quarter[272]. - Direct to consumer revenue decreased by $102,000, or 29%, to $247,000 compared to $349,000 in the prior year quarter[273]. - Media and advertising revenue decreased by $2.3 million, or 33%, to $4.6 million compared to $6.9 million in the prior year period[275]. - Direct to consumer revenue decreased by $387,000, or 35%, to $731,000 compared to $1.1 million in the prior year period[277]. - Publishing and content studio revenue was relatively flat at $7.4 million for the nine months ended September 30, 2024, compared to $7.5 million in the prior year[276]. - Minehut related media sales for the nine months ended September 30, 2023 totaled $716,000[275]. Cost and Expenses - Cost of revenue for Q3 2024 decreased by $1.9 million or 42% to $2.7 million, driven by the 38% decrease in quarterly revenues[254]. - Cost of revenue for the nine months ended September 30, 2024 decreased by $1.9 million or 20% to $7.7 million compared to $9.5 million in the prior year[258]. - Total operating expenses for Q3 2024 decreased by $1.9 million or 26% to $5.2 million compared to $7.0 million in Q3 2023[256]. - Total operating expense for the nine months ended September 30, 2024 decreased by $8.7 million, or 34%, to $17.3 million compared to $26.0 million in the prior year period[259]. - Total operating expense for the three months ended September 30, 2024 was $5.2 million, a decrease of $1.9 million, or 26%, compared to $7.0 million in the prior year quarter[266]. - Noncash stock compensation expense for the three months ended September 30, 2024 decreased by $287,000, or 44%, compared to the same period in 2023[281]. - Selling, marketing and advertising expense decreased by $764,000, or 24%, primarily due to a $335,000 reduction in amortization expense related to the write-down of partner relationship intangible assets[291]. - Total amortization expense decreased by $618,000, or 50%, for the three months ended September 30, 2024 compared to the same period in 2023[289]. - Engineering, technology and development costs decreased by $1.2 million, or 56%, primarily due to a $243,000 (60%) reduction in cloud services and a $662,000 (61%) decrease in product and engineering personnel expenses[294]. - For the nine months ended September 30, 2024, engineering, technology and development costs decreased by $3.9 million, or 53%, driven by a $1.2 million (64%) reduction in cloud services and a $1.5 million (48%) decrease in product and engineering personnel expenses[295]. - General and administrative expenses for the three months ended September 30, 2024, totaled $1.935 million, a decrease of $336,000 (15%) compared to $2.271 million in the same period of 2023[297]. - Personnel costs in general and administrative expenses decreased by $164,000 (30%) for the three months ended September 30, 2024, due to headcount reductions[298]. - Professional fees increased by $45,000 (25%) for the three months ended September 30, 2024, due to additional audit and third-party valuation fees related to complex transactions[298]. - Noncash stock compensation expense in general and administrative expenses decreased by $171,000 (43%) for the three months ended September 30, 2024[299]. Net Loss - Net loss for Q3 2024 was $3.6 million or $(0.54) per share, compared to a net loss of $3.0 million or $(3.19) per share in Q3 2023[256]. - Net loss for the nine months ended September 30, 2024 was $11.3 million, or $(2.00) per share, compared to a net loss of $17.1 million, or $(10.25) per share, in the prior year period[259]. Acquisitions and Investments - The company entered into a binding term sheet with Infinite Reality for an asset acquisition, including a cash component of up to $20 million[241]. - The company acquired Melon, Inc. for a total consideration of $900,000, with potential contingent consideration of up to $2.35 million based on revenue milestones[250]. - The Super Biz Acquisition included a contingent consideration liability of $1.765 million as of September 30, 2024, reflecting the cash portion payable[305]. - The Melon Acquisition has a contingent consideration of up to $2.35 million, with $1 million payable for revenue milestones achieved by December 31, 2023, and $1.35 million for the year ending December 31, 2024[309]. - The fair value of the Melon Contingent Consideration was determined using a Monte Carlo simulation model with a closing stock price of $2.15 and a volatility rate of 70%[310]. - The company completed the Melon Acquisition on May 4, 2023, for a total of $900,000, which included $150,000 in working capital advances and $750,000 in common stock[343]. Cash Flow and Financing - As of September 30, 2024, the company reported an accumulated deficit of $263.7 million and net cash used in operating activities of $8.2 million for the nine months ended September 30, 2024[331]. - Cash and cash equivalents decreased from $7.6 million at December 31, 2023, to $0.3 million at September 30, 2024[330]. - The company anticipates seeking additional capital through future issuances of common stock, preferred stock, or debt financings to fund operations[332]. - The Company entered into a Business Loan and Security Agreement, issuing a secured promissory note for an aggregate value of $1.85 million, with total interest payments of approximately $0.78 million[335]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(8,160) thousand, compared to $(14,090) thousand for the same period in 2023, indicating a 42.5% improvement[339][341]. - Net cash provided by financing activities was $1,297 thousand for the nine months ended September 30, 2024, a significant decrease of 90.3% compared to $13,406 thousand in the same period of 2023[339][345]. - The Company reported a net cash decrease of $(7,320) thousand for the nine months ended September 30, 2024, compared to a decrease of $(1,342) thousand in the same period of 2023[339]. - The company raised approximately $41.98 million in gross proceeds from various preferred stock offerings, with net proceeds totaling $37.56 million after fees[353]. - The company completed a public offering of 778,653 shares of common stock at a price of $2.60 per share, resulting in net proceeds of approximately $1.8 million after deducting underwriting discounts and commissions[357]. Market and Operational Risks - The Company may face challenges in obtaining additional funding due to market volatility, which could adversely impact its financial condition and business strategies[336][338]. - The company is exploring alternatives for raising capital, including strategic partnerships and potential acquisitions, which may require additional equity or debt financing[336][337]. - The company is not currently exposed to market risks from changes in interest rates or foreign currency exchange rates[375]. Other Financial Information - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in its financial statements[363]. - The triggering of the Down Round Feature for the Series AA Preferred Stock resulted in a deemed dividend totaling $6.45 million, impacting retained earnings[353]. - The company issued 5,334 shares of Series AAA-2 Preferred Stock, with a conversion price adjusted to $1.71 as of December 22, 2023[353]. - The company has approximately 3,200 square feet of office space, with 1,650 square feet on a month-to-month basis[362]. - The company granted underwriters a 45-day option to purchase additional shares as part of its common stock offering[355]. - The company has assessed contingent liabilities related to legal proceedings, with potential losses evaluated based on the merits of claims[364]. - The company generates revenue from innovative advertising, content and technology, and direct to consumer offers, including in-game items and digital collectibles[367]. - Revenue is recognized when the company transfers promised goods or services to customers, reflecting the expected consideration[368]. - Management's estimates regarding collectability impact the actual revenue recognized each period, which could materially affect financial results[369]. - The company elected to report as an "emerging growth company," allowing it to take advantage of certain exemptions from rigorous reporting requirements[371]. - The company will remain an "emerging growth company" for up to five years unless the market value of its common stock held by non-affiliates exceeds $700 million[373].

Core Insights - Super League reported a narrowing of net loss per share in Q3 2024, indicating improved operational efficiency through a significant reduction in operating expenses [1][2] - The company entered a transformative agreement with Infinite Reality, which is expected to reshape its business model and enhance its asset portfolio [2][3] Financial Performance - Revenue remained relatively flat in Q3 2024, but the company achieved a 30% reduction in proforma operating expenses compared to the same quarter last year [2] - There was a 27% reduction in proforma net loss for the same period, showcasing progress towards profitability [2] Strategic Developments - The merger with Infinite Reality will provide Super League with a worldwide perpetual license to produce events and sell sponsorships for the Drone Racing League, which has over 100 million young fans globally [3] - The acquisition of Thunder Studios, TalentX, and Fearless Media is expected to enhance Super League's reach and digital marketing capabilities [3] Market Positioning - Super League is experiencing a positive shift in its business model, with blue-chip brands increasingly choosing the company for immersive and interactive solutions [4] - The company is focusing on higher-margin pop-up experiences and a leaner cost structure to drive recurring revenues and profitability [4] Future Outlook - The integration of Infinite Reality's audience assets is anticipated to position Super League as a leading global entertainment network, capitalized for growth [5] - The company aims to redefine gaming as a digital media channel, leveraging its partnerships with global brands to scale market adoption [5]