Revenue Performance - Total revenues for the three months ended June 30, 2024, were approximately $2.64 million, a decrease of 19% from $3.27 million in the same period of 2023[129]. - In-person experience revenues decreased by approximately $0.4 million, or 28%, to approximately $0.9 million for the three months ended June 30, 2024, from approximately $1.3 million for the same period in 2023[130]. - Casual mobile gaming revenue was $1.7 million for the three months ended June 30, 2024, compared to $0 million for the same period in 2023, attributed to the business combination with ZTech[132]. - Multiplatform content revenue was $0 for the three months ended June 30, 2024, down from $2.0 million in the same period of 2023, due to the absence of a live streaming event[131]. - Total revenues increased by approximately $0.6 million, or 12.5%, to $5.0 million for the six months ended June 30, 2024, compared to $4.5 million for the same period in 2023[142]. - In-person experience revenues decreased by approximately $0.3 million, or 12%, to approximately $2.2 million for the six months ended June 30, 2024, driven by fewer events held[143]. - Casual mobile gaming revenue was $2.9 million for the six months ended June 30, 2024, compared to $0.0 million for the same period in 2023, attributed to the business combination with ZTech[145]. Expenses and Losses - General and administrative expenses increased by approximately $3.0 million, or 136%, to approximately $5.2 million for the three months ended June 30, 2024, primarily due to legal and professional fees[137]. - Total costs and expenses for the three months ended June 30, 2024, were approximately $7.93 million, an increase of 70% from $4.66 million in the same period of 2023[129]. - Net loss attributable to common stockholders for the three months ended June 30, 2024, was approximately $3.8 million, compared to a net loss of $0.69 million for the same period in 2023[129]. - General and administrative expenses increased by approximately $3.3 million, or 70%, to approximately $8.1 million for the six months ended June 30, 2024, primarily due to increased legal and professional fees[150]. - Net loss attributable to common stockholders was approximately $5.5 million for the six months ended June 30, 2024, compared to a net loss of $2.6 million for the same period in 2023[156]. Cash Flow and Assets - Net cash used in operating activities increased to approximately $4.5 million for the six months ended June 30, 2024, from $3.0 million in 2023, reflecting a higher net loss[164]. - Net cash provided by financing activities was approximately $19.8 million for the six months ended June 30, 2024, compared to a net cash used of approximately $1.9 million in 2023[167]. - Current assets increased to approximately $94.7 million as of June 30, 2024, from $78.3 million as of December 31, 2023[155]. - Working capital surplus decreased to approximately $61.8 million as of June 30, 2024, from $66.4 million as of December 31, 2023[156]. Accounting Estimates and Risks - The company considers accounting for goodwill impairment to be a critical accounting estimate due to the high uncertainty involved and potential material impact on financial results[170]. - There are additional items within the financial statements that require estimation but are not deemed critical[170]. - The company has identified that changes in accounting estimates could materially affect financial condition or results of operations[170]. - The company has not disclosed any quantitative and qualitative disclosures about market risk in this report[171].
Allied Gaming & Entertainment (AGAE) - 2024 Q2 - Quarterly Report