Revenue Performance - Total revenues for the three months ended September 30, 2024, increased to approximately $2.16 million, a rise of 93% from $1.12 million in the same period of 2023[125] - In-person experience revenues rose by approximately $0.2 million, or 20%, to approximately $1.35 million for the three months ended September 30, 2024, compared to $1.12 million for the same period in 2023[126] - Casual mobile gaming revenue was $0.8 million for the three months ended September 30, 2024, attributed to the business combination with ZTech on October 31, 2023[127] - Total revenues increased by approximately $1.6 million, or 29%, to $7.2 million for the nine months ended September 30, 2024, compared to $5.6 million for the same period in 2023[139] - Casual mobile gaming revenue was $3.7 million for the nine months ended September 30, 2024, compared to $0.0 million for the same period in 2023, driven by the business combination with ZTech[142] Expenses and Losses - Total costs and expenses increased to $3.34 million for the three months ended September 30, 2024, up from $1.76 million in the same period of 2023, representing a 90% increase[125] - Loss from operations for the three months ended September 30, 2024, was $1.18 million, compared to a loss of $0.64 million in the same period of 2023[125] - Research and development expenses were $158,000 for the three months ended September 30, 2024, reflecting the costs related to the development of new casual mobile games for ZTech[130] - General and administrative expenses increased by approximately $0.4 million, or 47%, to approximately $1.3 million for the three months ended September 30, 2024, primarily due to increased payroll costs[133] - Net loss attributable to common stockholders was approximately $9.5 million for the nine months ended September 30, 2024, compared to a net loss of $2.5 million for the same period in 2023[139] Cash Flow and Financing - Cash and cash equivalents were approximately $10.9 million as of September 30, 2024, not including approximately $66.7 million of short-term investments[155] - Net cash used in operating activities increased to approximately $13.2 million for the nine months ended September 30, 2024, from $4.6 million for the same period in 2023[158] - Net cash provided by financing activities for the nine months ended September 30, 2024 was approximately $28 million, a significant increase from the net cash used of approximately $2.1 million during the same period in 2023[162] - The net cash provided in 2024 included proceeds from short-term loans of approximately $28 million and $2 million from the issuance of common stock, offset by a $2 million return of proceeds upon cancellation of previously issued common stock[162] Accounting and Estimates - The company prepares its financial statements in accordance with U.S. generally accepted accounting principles, requiring management to make estimates affecting reported amounts of assets and liabilities[164] - Critical accounting estimates include assumptions about highly uncertain matters, with goodwill impairment being a significant area of focus[165] Other Financial Information - The Company entered into a Securities Purchase Agreement with Blue Planet, agreeing to sell 6,000,000 shares at $1.10 per share for a total of $6.6 million[121] - The Company reported a net loss attributable to common stockholders of $4.03 million for the three months ended September 30, 2024[125] - The Company expects operating expenses to increase as it expands marketing efforts and operations in new vertical markets[115] - General and administrative expenses increased by approximately $3.7 million, or 66%, to $9.4 million for the nine months ended September 30, 2024, from $5.7 million for the same period in 2023[148] - Interest income, net, increased to approximately $2.9 million for the nine months ended September 30, 2024, from approximately $2.2 million for the same period in 2023[152] - Loss on foreign currency transactions was approximately $0.8 million for the nine months ended September 30, 2024, compared to $0.0 million for the same period in 2023[151] - Total current assets increased to approximately $102.8 million as of September 30, 2024, compared to $78.3 million as of December 31, 2023[154] - The company recognized a loss of $3.0 million related to an escrow settlement with Brookfield Property Partners during the nine months ended September 30, 2024[135] - The company does not engage in any off-balance sheet financing activities or have interests in variable interest entities[163]
Allied Gaming & Entertainment (AGAE) - 2024 Q3 - Quarterly Report