Financial Performance - Total revenue for the three months ended March 31, 2025, was $1,708,000, an increase of 12.7% compared to $1,516,000 for the same period in 2024[17] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $3,615,000, compared to a net income of $17,169,000 for the same period in 2024[17] - The company reported a total comprehensive loss of $8,007,000 for the three months ended March 31, 2025, compared to a comprehensive income of $114,028,000 for the same period in 2024[17] - The company reported a share of loss from equity method investments of $4.1 million for the three months ended March 31, 2025, compared to income of $1.2 million for the same period in 2024[55] - The Company reported a net loss before taxes of $8,093 million for the three months ended March 31, 2025, compared to a net income of $114,023 million for the same period in 2024[89] Operating Expenses - Operating expenses for the same period were $8,047,000, up from $6,829,000, reflecting a 17.8% increase year-over-year[17] - The company reported a loss from operations of $6,339,000 for the three months ended March 31, 2025, compared to a loss of $5,313,000 in the prior year[17] - Selling, general and administrative expenses decreased by $0.5 million to $6.3 million for the three months ended March 31, 2025, primarily due to a $1.8 million decrease in audit and professional service fees[120] - Research and development expenses for the three months ended March 31, 2025, were $118 million, while there were no expenses reported for the same period in 2024[89] - Research and development expenses increased to $0.1 million for the three months ended March 31, 2025, compared to $16 thousand for the same period in 2024, primarily due to the development of a location-based entertainment experience[122] Cash and Liquidity - Cash and cash equivalents at the end of the period were $1,108,000, an increase from $1,050,000 at the end of March 31, 2024[19] - The Company reported cash provided by operating activities of $0.9 million for the three months ended March 31, 2025, compared to cash used of $(3.8) million for the same period in 2024, representing a $4.7 million improvement[157] - Cash used in investing activities was $(0.1) million for the three months ended March 31, 2025, a decrease from $(2.1) million in the same period of 2024, primarily due to reduced advances to unconsolidated joint ventures[158] - Net cash used by financing activities increased to $(0.6) million in the three months ended March 31, 2025, compared to cash provided of $6.2 million in the same period of 2024, mainly due to a $5.2 million decrease in net proceeds from related party loans[159] Assets and Liabilities - Total current assets decreased to $2,656,000 as of March 31, 2025, down from $4,134,000 as of December 31, 2024[15] - Total liabilities increased to $82,667,000 as of March 31, 2025, compared to $81,328,000 as of December 31, 2024[15] - The company has a working capital deficiency of $(39.1) million, excluding $10.4 million of debt maturing in the next 12 months as of March 31, 2025[35] - Total accrued expenses and other current liabilities increased to $32.2 million as of March 31, 2025, from $25.9 million as of December 31, 2024[59] - As of March 31, 2025, the company's total long-term debt amounted to $30.565 million, down from $30.977 million as of December 31, 2024, reflecting a decrease of approximately 1.3%[60] Revenue Concentration - The company reported significant revenue concentration in the Falcon's Creative Group segment, with QIC generating revenues of $5.9 million for the three months ended March 31, 2025, compared to $14.7 million for the same period in 2024[39] - The Company had one customer contributing $1.6 million, representing 95% of total revenue for Q1 2025, compared to $1.5 million or 100% for Q1 2024[40] - Accounts receivable from this customer totaled $0.3 million, accounting for 52% of total accounts receivable as of March 31, 2025[41] Financing and Investments - The company is reliant on stockholders and third parties to obtain additional financing through debt or equity raises to fund its working capital needs and expansion plans[35] - The company has committed to fund its share of additional investment in Karnival TP-AQ Holdings Limited for constructing Vquarium Entertainment Centers in China[34] - The Company has committed to funding non-interest-bearing advances of $9.0 million to the Karnival joint venture, with $6.6 million funded as of March 31, 2025[53] - The Company received net cash proceeds of $0.9 million from the Business Combination, net of $1.3 million in transaction costs related to FAST II and $1.6 million for Falcon's Opco[152] Business Operations - The company operates through three business divisions: Falcon's Creative Group, Falcon's Beyond Destinations, and Falcon's Beyond Brands, which are designed to accelerate growth[26] - The company aims to expand its physical operations and develop new product offerings as part of its growth strategy[33] - FCG recognized $4.7 million in revenue from a Dragon Ball theme park consultancy agreement during the three months ended March 31, 2025[132] - FCG anticipates that its capital expenditures and working capital requirements will increase materially in the near future[149] Internal Controls and Compliance - The Company has identified material weaknesses in its internal control over financial reporting as of March 31, 2025, and is implementing measures to improve these controls[161] - The Company has engaged third-party consulting firms to enhance its risk assessment and financial reporting processes as part of its remediation efforts[163]
Falcon's Beyond (FBYD) - 2025 Q1 - Quarterly Report