Revenue Performance - Revenue for the three and nine months ended September 30, 2023 totaled $7.2 million and $15.6 million, reflecting increases of 60% and 24%, respectively, compared to the prior year periods[159]. - Total revenue for the three months ended September 30, 2023, increased by $2.7 million or 60% to $7.2 million, compared to $4.5 million in the same period of 2022[184]. - Media and advertising revenue for the three months ended September 30, 2023, increased by 24% to $2.9 million, driven by a 46% increase in Roblox immersive advertising media product sales[185][186]. - Publishing and content studio revenue for the three months ended September 30, 2023, increased by $2.2 million or 124%, primarily due to a 184% increase in custom game development and immersive experience revenues[192]. - Total revenue for the nine months ended September 30, 2023, increased by $3.0 million or 24% to $15.6 million, compared to $12.6 million in the same period of 2022[192]. Profitability and Loss - Gross profit for the three and nine months ended September 30, 2023 was 35% and 39%, respectively, compared to 40% and 44% for the prior year comparable periods[160]. - Net loss for the three months ended September 30, 2023 was $3.0 million or $(1.01) per share, compared to a net loss of $52.6 million or $(28.14) per share in the prior year period[162]. - The company experienced a net loss from operations of $4.5 million for the three months ended September 30, 2023, a decrease of 91% compared to the prior year[184]. - The company incurred net losses totaling $14.1 million for the nine months ended September 30, 2023, compared to $16.0 million for the same period in 2022[216]. - The company has an accumulated deficit of $227.8 million as of September 30, 2023[216]. Operating Expenses - Total operating expense for the three and nine months ended September 30, 2023 decreased to $7.0 million and $26.0 million, compared to $53.9 million and $74.3 million in the prior year periods[161]. - The total operating expense for the three months ended September 30, 2023, was $7.0 million, a decrease of 87% compared to the same period in 2022[184]. - Noncash stock-based compensation expense for Q3 2023 was $643,000, a decrease of $543,000 or 46% compared to Q3 2022[193]. - General and administrative expenses for Q3 2023 totaled $2,271,000, a decrease of $978,000 or 30% compared to Q3 2022[203]. - Selling, marketing, and advertising expenses increased by $203,000 or 7% in Q3 2023, driven by higher sales and account management personnel costs[200]. Strategic Partnerships and Acquisitions - The Company formed a strategic partnership with LandVault in April 2023 to provide scalable solutions in the metaverse[165]. - The Company acquired Melon, Inc. on May 4, 2023, paying a total of $900,000, with potential contingent consideration of up to $2.35 million based on revenue milestones[166][168]. - Super League joined the Roblox Partner Program on August 2, 2023, enhancing its offerings with the official Roblox advertising system[171]. - The Melon Acquisition on May 4, 2023, included a contingent consideration of up to $2,350,000 based on revenue milestones for the periods ending December 31, 2023, and December 31, 2024[209]. Cash Flow and Financing - Cash and cash equivalents totaled approximately $1.1 million at September 30, 2023, down from $2.5 million at December 31, 2022[215]. - The company reported a net cash provided by financing activities of $13,406,000 for the nine months ended September 30, 2023, compared to $4,160,000 in 2022[227]. - The company raised approximately $12,060,000 from the issuance of preferred stock, net of issuance costs, during the nine months ended September 30, 2023[227]. - The Series A Convertible Preferred Financing resulted in gross proceeds of $12,622,000, with net proceeds of $10,926,000 after fees[232]. - The company raised a total of $11,781,000 through the issuance of Series AA preferred stock, with net proceeds amounting to $10,348,000 after fees[240]. Compliance and Regulatory Matters - The company regained compliance with NASDAQ Listing Rule 5550(a)(2) on September 25, 2023, after receiving a notice from Nasdaq[179]. - The company received a 180-day extension from Nasdaq until October 2, 2023, to regain compliance with the minimum bid price requirement[182]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions for up to five years[265]. Future Plans and Considerations - Management plans to seek additional capital through equity or debt financings to support growth and operations[217]. - The company is evaluating potential strategic acquisitions and may need to raise additional equity capital or incur debt to finance these acquisitions[220]. - Management continues to explore strategic partnerships and financing alternatives to facilitate growth and execute business strategies[218].
SUPER LEAGUE GAM(SLGG) - 2023 Q3 - Quarterly Report