Financial Performance - Total revenues for Q3 2024 reached $2.2 million, a 93% increase from $1.1 million in Q3 2023[3] - Total revenues for Q3 2024 reached $2,163,541, a 93.2% increase from $1,119,959 in Q3 2023[20] - Net loss for Q3 2024 was $4.0 million, compared to net income of $0.1 million in the prior year, largely due to a $3.0 million settlement and $1.2 million in unrealized foreign currency losses[5] - Net loss attributable to common stockholders for Q3 2024 was $(4,027,941), compared to a profit of $75,246 in Q3 2023[20] - Net loss for the three months ended September 30, 2024, was $(4,028,622), compared to a net income of $75,246 for the same period in 2023[23] - The company reported a pre-tax net loss of $(4,361,484) for Q3 2024, compared to a profit of $75,246 in Q3 2023[20] - The company reported a total loss of $(9,741,024) for the nine months ended September 30, 2024, compared to $(2,585,005) in 2023[23] Revenue Streams - In-person event revenues at HyperX Arena increased by $0.2 million, while casual mobile gaming revenues rose by $0.8 million due to strategic investment in Z-Tech[3] - Casual mobile gaming revenue was $817,986 in Q3 2024, compared to $0 in Q3 2023, indicating a new revenue stream[20] Costs and Expenses - Total costs and expenses for Q3 2024 were $3.3 million, up from $1.8 million in the prior year, primarily driven by the investment in Z-Tech[4] - Total costs and expenses for Q3 2024 were $3,344,114, up from $1,760,218 in Q3 2023, indicating rising operational costs[20] - Research and development expenses for Q3 2024 were $158,162, compared to $0 in Q3 2023, highlighting increased investment in innovation[20] - Stock compensation expenses increased to $229,731 for the three months ended September 30, 2024, compared to $64,623 in 2023[23] - Depreciation and amortization expenses rose to $401,452 for the three months ended September 30, 2024, from $239,413 in 2023[23] Cash and Assets - As of September 30, 2024, the company had cash and short-term investments of $80.2 million, up from $78.6 million at the end of 2023[7] - Total current assets increased to $102,805,701 as of September 30, 2024, up from $78,341,061 at December 31, 2023, representing a 31.4% growth[19] - Cash and cash equivalents decreased to $10,992,235 as of September 30, 2024, down from $16,320,583 at December 31, 2023[19] - Total assets increased to $129,827,256 as of September 30, 2024, compared to $112,016,687 at December 31, 2023, reflecting overall growth[19] Strategic Initiatives - A strategic investment was announced with Yellow River Global Capital to enhance growth opportunities in location-based entertainment and content acquisition[9] - Future growth opportunities are being actively pursued in collaboration with Yellow River, focusing on digital technologies and entertainment content[9] - The company is preparing for the inaugural World Mahjong Tour events starting next month and developing new mobile game titles[2] Losses and Legal Fees - Non-recurring legal fees amounted to $102,854 for the three months ended September 30, 2024[24] - Loss on foreign currency for the three months ended September 30, 2024, was $1,213,446[24] - The company incurred a loss of $3,000,000 related to the settlement of the Brookfield agreement during the nine months ended September 30, 2024[23] EBITDA - Adjusted EBITDA loss was $0.1 million for Q3 2024, an improvement from a loss of $1.4 million in the prior quarter and a loss of $0.3 million in Q3 2023[6] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(4,566,183), a decline from $(3,583,677) in 2023[23] - EBITDA for the three months ended September 30, 2024, was $(4,660,532), significantly worse than $(401,234) in the same period of 2023[23] - Interest income, net, for the three months ended September 30, 2024, was $(1,033,362), compared to $(715,893) in 2023[23]
Allied Gaming & Entertainment (AGAE) - 2024 Q3 - Quarterly Results