Revenue Performance - Total revenue for the three months ended June 30, 2024, was $1,798,000, compared to $738,000 for the same period in 2023, representing a 143% increase[24] - Total revenue for the six months ended June 30, 2024, was $3,314 million, with a significant contribution from Falcon's Creative Group at $1,521 million[116] - Total revenue for the six months ended June 30, 2024 decreased by $11.2 million to $3.3 million compared to $14.5 million for the same period in 2023, primarily due to the deconsolidation of FCG[195] - Revenue from services transferred over time totaled $1.8 million for the three months and $5.3 million for the six months ended June 30, 2024, a decrease from $3.3 million and $13.2 million in 2023[60] - FCG recorded revenues of $30.6 million for the six months ended June 30, 2024, an increase of $17.5 million or 134% compared to the same period in 2023[186] Net Income and Loss - Net income attributable to common stockholders for the three months ended June 30, 2024, was $1,234,000, compared to a loss of $8,802,000 for the same period in 2023[24] - For the six months ended June 30, 2024, Falcon's Beyond reported a net income of $122,052 thousand, a significant improvement from a net loss of $18,652 thousand in the same period of 2023[25] - Net income for the six months ended June 30, 2024, was $122.1 million compared to a loss of $18.7 million for the same period in 2023[177] - Net income for the three months ended June 30, 2024, was $8.0 million, compared to a net loss of $8.8 million for the same period in 2023[156] Expenses and Cost Management - Operating expenses for the three months ended June 30, 2024, totaled $5,320,000, down from $12,905,000 for the same period in 2023, a decrease of 58.8%[24] - Selling, general and administrative expenses decreased by $3.9 million to $5.3 million for the three months ended June 30, 2024, compared to $9.2 million for the same period in 2023, driven by reductions in audit fees and professional services[160] - Selling, general and administrative expense decreased by $6.8 million to $12.1 million for the six months ended June 30, 2024, compared to $18.9 million for the same period in 2023[181] - Research and development expenses decreased to less than $0.1 million for the three months ended June 30, 2024, compared to $0.4 million for the same period in 2023, due to the completion of FBB division projects[161] Assets and Liabilities - Total current assets increased to $2,776,000 as of June 30, 2024, from $2,429,000 as of December 31, 2023, reflecting a 14.3% growth[21] - Total liabilities decreased to $365,403,000 as of June 30, 2024, from $552,353,000 as of December 31, 2023, indicating a reduction of 33.9%[22] - The company has $15.7 million in debt maturing within the next 12 months and does not currently have sufficient cash or liquidity to meet its liabilities[42] - The company has a working capital deficiency of $24.6 million as of June 30, 2024, excluding non-cash earnout liability balance and maturing debt[149] Equity and Investments - Total equity attributable to common stockholders improved to $(44,719,000) as of June 30, 2024, from $(57,105,000) as of December 31, 2023, reflecting a positive change of 21.7%[23] - The investment in Falcon's Creative Group (FCG) was recorded at fair value of $39.1 million as of July 27, 2023, following its deconsolidation[65] - The company recognized a net income of $1.0 million from FCG for the three months ended June 30, 2024, and $1.5 million for the six months, after adjustments for preferred returns and amortization[73] - The company reported a share of gain from equity method investments totaling $2,874 million, indicating robust investment performance[116] Strategic Developments - The company completed a merger with FAST II on October 5, 2023, which is expected to enhance its operational capabilities and market reach[30] - Falcon's Beyond operates through three business divisions, focusing on content creation, experiential entertainment, and brand optimization, which are expected to drive future growth[32] - The company has committed to fund its share of additional investment in Karnival TP-AQ Holdings Limited for constructing Vquarium Entertainment Centers in China[41] Financial Adjustments and Risks - The company incurred transaction costs related to the business combination totaling $22.1 million, which are still under negotiation and may impact future financial results[31] - The company has accrued significant expenses related to external advisors and legal costs, impacting its financial position as of June 30, 2024[42] - The company is evaluating the impact of recently issued accounting standards on its financial statements and disclosures[53][55] - The company has a concentration of credit risk with significant revenue dependence on a few customers, particularly QIC[51][52] Foreign Exchange and Other Financial Impacts - The company experienced a foreign exchange transaction loss of $517 million during the reporting period, impacting overall financial results[116] - The effective tax rate for the Company was 0% for the three and six months ended June 30, 2024, with less than $0.1 million paid in income taxes during the same period[102] Litigation and Commitments - The company is involved in ongoing litigation with Guggenheim Securities, LLC, claiming $11.1 million for services related to the Business Combination, which the company denies[219] - The company has unfunded commitments to its unconsolidated joint venture Karnival of $2.4 million (HKD 18.7 million) as of June 30, 2024[109]
Falcon's Beyond (FBYD) - 2024 Q2 - Quarterly Report