Revenue Performance - Total revenue for the three months ended September 30, 2024, was $2,069,000, compared to $1,581,000 for the same period in 2023, representing a year-over-year increase of 31%[38] - Revenue from services transferred over time was $2.069 million for the three months ended September 30, 2024, compared to $1.581 million for the same period in 2023, indicating a growth of 31%[75] - Related party revenues from services provided to equity method investments were $2.0 million for the three months ended September 30, 2024, up from $0.4 million in the same period of 2023, reflecting a significant increase of 400%[75] - For the nine months ended September 30, 2024, total revenue was $5,383 million, up from $4,937 million in the same period of 2023, indicating a growth of approximately 9%[142] - Total revenue for the three months ended September 30, 2024, increased by $0.5 million to $2.1 million compared to $1.6 million for the same period in 2023[196] Net Income and Loss - The net income for the three months ended September 30, 2024, was $39,301,000, compared to $4,310,000 for the same period in 2023, showing a substantial increase[38] - For the nine months ended September 30, 2024, Falcon's Beyond reported a net income of $161,353 thousand, a significant increase from a net loss of $14,342 thousand for the same period in 2023[39] - The net income for the nine months ended September 30, 2024, was $161,353 million, a substantial increase compared to a net loss of $8,380 million for the same period in 2023[142] - The company reported a share of gain from equity method investments of $38 million for the three months ended September 30, 2024, compared to a loss of $1,555 million in the same period in 2023[140] Assets and Liabilities - Total current assets decreased from $2,429,000 as of December 31, 2023, to $2,072,000 as of September 30, 2024, a decline of approximately 15%[35] - Total liabilities decreased significantly from $552,353,000 as of December 31, 2023, to $76,025,000 as of September 30, 2024, indicating a reduction of about 86%[36] - The company has a working capital deficiency of $27.0 million, excluding maturing debt of $10.3 million within the next 12 months as of September 30, 2024[57] - The company reported a working capital deficiency of $(27.0) million as of September 30, 2024, excluding debt maturing in the next 12 months[186] Cash Flow and Liquidity - Cash and cash equivalents increased from $672,000 as of December 31, 2023, to $828,000 as of September 30, 2024, an increase of approximately 23%[35] - The company experienced a net cash used in operating activities of $8,758 thousand, an improvement compared to $16,421 thousand for the nine months ended September 30, 2023[39] - Negative cash flows from operating activities amounted to $8.8 million for the nine months ended September 30, 2024, indicating liquidity challenges[55] - The Company does not currently have sufficient cash or liquidity to meet its maturing liabilities, raising substantial doubt about its ability to continue as a going concern[57] Equity and Investments - The total equity attributable to common stockholders improved from a deficit of $57,105,000 as of December 31, 2023, to a deficit of $1,414,000 as of September 30, 2024[37] - The company’s accumulated deficit decreased from $68,594,000 as of December 31, 2023, to $44,322,000 as of September 30, 2024, a reduction of approximately 35%[37] - 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[80] - The Company’s total investments and advances to equity method investments increased to $63.915 million as of September 30, 2024, from $60.643 million as of December 31, 2023[88] Operational Performance - The company reported a loss from operations of $2,461,000 for the three months ended September 30, 2024, compared to a loss of $20,404,000 for the same period in 2023[38] - The Company incurred an operating loss of $11.3 million for the nine months ended September 30, 2024, with an accumulated deficit of $44.3 million attributable to common stockholders[55] - Total segment loss from operations for the three months ended September 30, 2024, decreased by $7.5 million to a loss of $0.8 million compared to a loss of $8.3 million for the same period in 2023[215] - FCG segment loss decreased by $3.2 million to a loss of $1.7 million for the three months ended September 30, 2024, primarily due to increased revenues and improved margins on new long-term contracts[215] Debt and Financing - The Company’s long-term debt as of September 30, 2024, amounted to $25.530 million, with a current portion of $10.339 million[99] - The Company amended its revolving credit arrangement to increase the maximum capacity from $10 million to $15 million, with a maturity date extended to September 30, 2034[101] - The company entered into a five-year $7.25 million term loan with Infinite Acquisitions at an interest rate of 3.75% per annum, which was refinanced into a new $14.765 million term loan as of September 30, 2024[105][113] Strategic Developments - The company completed a merger with FAST II on October 5, 2023, which involved a contribution of cash to effectuate an "UP-C" structure[44] - Following a strategic investment of $30.0 million by QIC Delaware, Inc., Falcon's Creative Group was deconsolidated and is now accounted for as an equity method investment[58] - The Company has committed to fund its share of additional investment in Karnival TP-AQ Holdings Limited for constructing Vquarium Entertainment Centers in China[56] - The Company has entered into a commitment with The Hershey Licensing Company to develop venues in at least four locations by 2028, requiring a one-time development fee of $0.3 million per location and a 6% royalty on gross sales starting in 2025[133]
Falcon's Beyond (FBYD) - 2024 Q3 - Quarterly Report