Super League Gaming, Inc. (SLGG) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Ann Hand - CEO Conference Call Participants Howard Halpern - Taglich Brothers Scott Buck - H.C. Wainwright & Co. Operator Greetings, and welcome to the Super League Second Quarter 2023 Conference Call. Please note, this conference is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking statements within the m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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, 2023 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 From the transition period from _________ to _________ Table of Contents Commission File Number 001-38819 SUPER LEAGUE GAMING, INC. (Exact name of small business issuer as specified in its charter) Delaware ...

Super League Gaming, Inc. (SLGG) Q1 2023 Results Conference Call May 15, 2023 5:00 PM ET Company Participants Ann Hand - Chief Executive Officer, President, Chair of the Board Conference Call Participants Jack Vander Aarde - Maxim Group Operator Greetings, and welcome to the Super League Gaming First Quarter 2023 Conference Call. Please note this conference call is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking sta ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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, 2023 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 From the transition period from _________ to _________ Commission File Number 001-38819 SUPER LEAGUE GAMING, INC. (Exact name of small business issuer as specified in its charter) Delaware ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 From the transition period from to Commission File Number 001-38819 SUPER LEAGUE GAMING, INC. (Exact name of small business issuer as specified in its charter) Delaware 47-1990734 (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - Super League Gaming reported a record-breaking revenue growth of approximately $20 million for the full year 2022, representing a 70% increase year-over-year despite macroeconomic challenges [3][12] - The company achieved a gross margin of 43% for the year, with expectations to reach mid-60s in gross margins in the coming years [94] Business Line Data and Key Metrics Changes - The company served over 100 brands in 2022, with seven customers spending over $1 million through Super League channels, maintaining a strong 70% repeat customer rate [14][72] - The current pipeline includes 78 deals, with 56 of them being six-figure deals and eight being seven-figure deals, indicating a shift towards larger deal sizes [15][27] Market Data and Key Metrics Changes - The newly launched global sales partner strategy accounted for $3 million of the $20 million in revenue last year, which is about 15% of total revenue [27] - The company is seeing promising indicators from global sales partners, with multiple wins in the pipeline from brands like Lego, Colgate, and Nike [7][10] Company Strategy and Development Direction - The core strategy focuses on monetizing the massive audience reach built within existing virtual game worlds and platforms, with plans to expand into new virtual world engines [9][19] - The company aims to deepen its owned Metaverse game world and IP footprint, targeting a bold revenue goal of $100 million over the next few years [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to execute its vision and drive meaningful growth, emphasizing the importance of innovation in products and sales strategies [18][33] - The management acknowledged the ongoing market headwinds but highlighted the company's resilience and strong product market fit [92] Other Important Information - The company has successfully extinguished all debt after closing on over $12 million with accredited investors in aftermarket transactions [4] - There are pending commitments for an additional $10 million in aftermarket capital, with an announcement expected soon [25] Q&A Session Summary Question: What are Super League's plans to maintain its NASDAQ listing? - Management is aware of the share price being below $1 and is focused on execution to improve performance and potentially raise the share price above $1 [36] Question: Can you provide updates on the Yas Island Metaverse project? - The project is progressing well, with plans to launch two virtual worlds targeting different demographics in May [51][40] Question: How is the company planning to allocate capital raised? - The capital will be invested in organic growth strategies and to support the current pipeline, with a focus on revenue generation [88][89] Question: Is the $100 million revenue target purely organic? - Yes, the target is based on organic growth, although the company remains open to M&A opportunities that align with its strategic goals [90] Question: How likely are six-figure customers to graduate to seven-figure customers? - The company is optimistic about the potential for six-figure customers to increase their spending as they become more familiar with the offerings [107]

Financial Performance - In Q3 2022, Super League Gaming reported revenue of $4.5 million, a 25% increase from $3.6 million in Q3 2021, driven by strong growth in advertising and sponsorship revenue [173]. - Gross profit for Q3 2022 was $1.8 million, representing a gross margin of 40%, up from 38% in the prior year quarter [173]. - The net loss for Q3 2022 was $52.6 million, or $(1.41) per share, compared to a net loss of $7.0 million, or $(0.20) per share, in Q3 2021 [176]. - Advertising and sponsorship revenue increased by $1,178,000, or 50%, for the three months ended September 30, 2022, compared to the same period in 2021, and by $5,634,000, or 172%, for the nine months ended September 30, 2022 [188]. - Content sales revenue decreased by $65,000, or 11%, for the three months ended September 30, 2022, but increased by $972,000, or 76%, for the nine months ended September 30, 2022 [190]. - Direct to consumer revenue decreased by $210,000, or 33%, for the three months ended September 30, 2022, but increased by $471,000, or 51%, for the nine months ended September 30, 2022 [190]. - The company reported a net GAAP loss of $(69,238,000) for the nine months ended September 30, 2022, compared to a net GAAP loss of $(13,615,000) in 2021 [223]. Operating Expenses - Total operating expenses in Q3 2022 were $53.9 million, a 547% increase compared to $8.3 million in Q3 2021, primarily due to a $42 million goodwill impairment charge [174][176]. - Cost of revenue increased by $469,000, or 21%, for the three months ended September 30, 2022, and by $3,961,000, or 127%, for the nine months ended September 30, 2022, consistent with revenue growth [192]. - Total general and administrative expense increased by $2,688,000, or 112%, for the three months ended September 30, 2022, and by $4,140,000, or 61%, for the nine months ended September 30, 2022 [198]. - Noncash stock-based compensation expense increased by $550,000, or 86%, for the three months ended September 30, 2022, and by $1,675,000, or 104%, for the nine months ended September 30, 2022 [193]. - Engineering, technology, and development expenses increased significantly, with a 180% rise for the three months ended September 30, 2022, compared to the same period in 2021 [193]. Acquisitions and Market Presence - The company completed several acquisitions in FY 2021, including Mobcrush, Bannerfy, and Bloxbiz, to enhance its advertising capabilities and expand its market presence [180]. - The company completed the acquisition of Mobcrush on June 1, 2021, issuing a total of 12,582,204 shares of common stock as consideration [229]. - The acquisition of Bannerfy, Ltd. involved an initial payment of $2.45 million, including $525,000 in cash and $1.925 million in stock [230]. Cash Flow and Liquidity - Cash and cash equivalents decreased from $14.5 million at December 31, 2021, to approximately $1.1 million at September 30, 2022, highlighting liquidity challenges [203]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $(16,036,000), a slight improvement from $(16,273,000) in 2021 [222]. - Cash flows from investing activities totaled $(1,514,000) for the nine months ended September 30, 2022, compared to $(658,000) in 2021 [224]. - Cash flows from financing activities provided $4,160,000 in the nine months ended September 30, 2022, a significant decrease from $33,501,000 in 2021 [232]. - The company issued 331,000 shares of common stock at an average price of $0.97, raising net proceeds of approximately $320,000 during the nine months ended September 30, 2022 [234]. Goodwill and Impairment - The goodwill impairment charge of $42 million was primarily due to a decline in market capitalization as of September 30, 2022 [175]. - A goodwill impairment charge of $42.0 million was recorded, reflecting a fair value of $25.2 million against a carrying value of $67.3 million as of September 30, 2022, indicating a significant decline in market capitalization [202]. - As of September 30, 2022, the company's goodwill balance totaled $50.3 million [268]. - The estimated fair value of the company's reporting unit was $25.2 million, compared to a carrying value of $67.3 million, resulting in a goodwill impairment charge of $42.0 million [272]. Future Outlook and Strategies - Super League Gaming's advertising revenue is expected to grow as it captures the shift towards in-game advertising in the digital advertising market [172]. - The company anticipates higher revenue in the second half of the fiscal year due to seasonal trends in advertising spending [182]. - The company is exploring capital raising alternatives, including strategic partnerships and equity or debt financings, to support growth and business strategy execution [208]. - The company may need to raise additional equity capital or incur debt to finance potential strategic acquisitions, facing risks from market volatility and disruptions [221]. - The company has the right to sell up to $10,000,000 of newly issued shares under a common stock purchase agreement with Tumim Stone Capital, LLC [212]. - The company may offer and sell up to $75 million of shares through an equity distribution agreement with two investment banks, with a commission rate of 3.0% on gross sales [214]. Customer and Revenue Insights - The number of customers contributing over 10% of revenue was two, representing 26% of total revenue for the three months ended September 30, 2022, down from two customers contributing 34% in the prior year [188]. - The average revenue per customer for advertising and sponsorships increased by approximately 54% for the nine months ended September 30, 2022, compared to the prior year [190]. - The company reported a 95% increase in direct sales advertising revenue generating customers for the three months ended September 30, 2022, compared to the prior year [190]. Revenue Recognition Policies - Revenue from digital subscription fees, in-game digital goods, and gameplay access fees is recognized in the period services are rendered [256]. - Revenue for digital goods sold on the platform is recognized when Microsoft collects the revenue, with payments made to the company monthly based on reconciled sales revenue [258]. - The company generates revenue from advertising primarily through direct sales and programmatic display and video advertising units [249]. - Sponsorship revenue includes arrangements with brand and media partners, allowing for amateur esports experiences and curated gameplay content [251]. - Revenue from content sales is recognized over the contract term based on estimates of progress toward satisfaction of performance obligations [255]. - The company assesses collectability of receivables based on past transaction history and customer creditworthiness, impacting actual revenue recognized [259]. Compliance and Regulatory Status - Super League Gaming is monitoring its stock price to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share [178][179]. - The company expects to remain an "emerging growth company" for up to five years, benefiting from reduced reporting requirements [275].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 From the transition period from _________ to _________ Commission File Number 001-38819 SUPER LEAGUE GAMING, INC. (Exact name of small business issuer as specified in its charter) Delaware 47-1990734 (State ...

Super League Gaming, Inc. (SLGG) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET Company Participants Ann Hand - President and CEO Clayton Haynes - CFO Conference Call Participants Operator Good afternoon, everyone. And welcome aboard, as I take you to Super League Gaming Metaverse. We thought we would try something a little different this earnings season. And in place of our traditional earnings call, given who we are and what we do, we would show you our world. I am Ann Hand, the CEO and Chair ...

Super League Gaming, Inc. (SLGG) Q1 2022 Earnings Conference Call May 16, 2022 5:00 PM ET Company Participants Ann Hand - President and CEO Clayton Haynes - CFO Conference Call Participants Scott Buck - H.C. Wainwright Jack Vander Aarde - Maxim Group Operator Good afternoon, everyone, and thank you for participating in today’s conference call to discuss Super League Gaming’s Financial Results for the First Quarter ended March 31, 2022. Joining us today are Super League’s President and CEO, Ann Hand; and CFO ...