Revenue Performance - Total revenues for the three months ended March 31, 2025, were approximately $2.3 million, a decrease of $104 thousand or 4% compared to $2.4 million for the same period in 2024[138]. - In-person experience revenues increased by approximately $402 thousand, or 32%, to approximately $1.7 million for the three months ended March 31, 2025, driven by higher revenue from arena events[139]. - Casual mobile gaming revenue decreased by approximately $506 thousand, or 45%, to $618 thousand for the three months ended March 31, 2025, primarily due to market contraction and increased competition[140]. Expenses - General and administrative expenses increased by approximately $2.6 million, or 92%, to approximately $5.5 million for the three months ended March 31, 2025, largely due to increased legal and professional fees[144]. - Research and development expenses were $181 thousand for the three months ended March 31, 2025, a slight decrease from $195 thousand for the same period in 2024[143]. - In-person costs (exclusive of depreciation and amortization) increased by approximately $225 thousand, or 35%, to approximately $861 thousand for the three months ended March 31, 2025, due to costs associated with third-party events[141]. - Casual mobile gaming costs (exclusive of depreciation and amortization) decreased to $582 thousand for the three months ended March 31, 2025, down from $937 thousand for the same period in 2024, reflecting reduced user acquisition costs[142]. Net Loss and Income - The company reported a net loss of $4.9 million for the three months ended March 31, 2025, compared to a net loss of $1.8 million for the same period in 2024, reflecting a deterioration of $3.1 million[138]. - Other income (expense), net, improved by $37 thousand, resulting in approximately $24 thousand of other income for the three months ended March 31, 2025, compared to $13 thousand of other expense for the same period in 2024[146]. - The company realized a gain of $367 thousand on investment in a money market fund for the three months ended March 31, 2025, with no such investments reported for the same period in 2024[147]. - The company recognized a loss of $0.3 million on investments in marketable securities for the three months ended March 31, 2025, compared to no investments in the same period of 2024[148]. - The loss on foreign currency transactions was approximately $0.6 million for the three months ended March 31, 2025, compared to $0 for the same period in 2024[150]. - The decrease in the fair value of digital assets was approximately $63 thousand for the three months ended March 31, 2025, with no decrease reported for the same period in 2024[151]. - Interest income, net, was approximately $864 thousand for the three months ended March 31, 2025, compared to approximately $859 thousand for the same period in 2024[152]. Cash Flow and Assets - Current assets increased to approximately $98.0 million as of March 31, 2025, from $94.7 million as of December 31, 2024[153]. - Working capital surplus decreased to approximately $57.3 million as of March 31, 2025, from $64.3 million as of December 31, 2024[153]. - Net cash used in operating activities was approximately $2.2 million for the three months ended March 31, 2025, compared to $2.1 million for the same period in 2024[157]. - Net cash used in investing activities was approximately $45.1 million for the three months ended March 31, 2025, compared to $14.5 million for the same period in 2024[158][159]. - Net cash provided by financing activities was approximately $7.5 million for the three months ended March 31, 2025, compared to approximately $7.6 million for the same period in 2024[160][161]. - Cash and cash equivalents were approximately $19.5 million as of March 31, 2025, not including $49.2 million of short-term investments[154].
Allied Gaming & Entertainment (AGAE) - 2025 Q1 - Quarterly Report