Revenue Performance - Revenue for the three months ended September 30, 2025 totaled $2.4 million, a decrease of $2.0 million or 45% compared to $4.4 million for the same quarter in the prior year[329]. - Revenue for the nine months ended September 30, 2025 totaled $8.1 million, a decrease of $4.6 million or 36% compared to $12.8 million for the same period in the prior year[335]. - The Company experienced a 36% decline in revenue for the nine months ended September 30, 2025, totaling $8,142,000 compared to $12,756,000 in 2024[374]. - Total revenue decreased by $2.0 million, or 45%, to $2.4 million compared to $4.4 million in the prior year quarter[377]. - Total revenue for the nine months ended September 30, 2025, decreased by $4.6 million, or 36%, to $8.1 million compared to $12.8 million in the prior year period[378]. Cost and Expenses - Cost of revenue for the three months ended September 30, 2025 decreased $1.4 million, or 50% to $1.3 million, compared to $2.7 million in the comparable prior year quarter[330]. - Cost of revenue for the nine months ended September 30, 2025 decreased $3.1 million, or 40% to $4.6 million, compared to $7.7 million in the comparable prior year period[336]. - Total operating expense for the three months ended September 30, 2025 decreased $1.0 million, or 20% to $4.1 million, compared to $5.2 million in the comparable prior year quarter[333]. - Total operating expense for the nine months ended September 30, 2025 decreased $3.8 million, or 22% to $13.4 million, compared to $17.3 million in the comparable prior year period[337]. - Selling, marketing and advertising expense decreased by $698,000, or 29%, primarily due to a $914,000 reduction in personnel costs[384]. - Engineering, technology and development expense decreased by $247,000, or 27%, driven by a $436,000 reduction in product and engineering personnel costs[387]. - General and administrative expenses for the three months ended September 30, 2025, decreased by $170,000 (9%) compared to the same period in 2024, totaling $1,765,000[389]. - Total general and administrative expenses for the nine months ended September 30, 2025, decreased by $1,620,000 (25%) to $4,938,000 compared to the same period in 2024[389]. Net Loss - Net loss for the three months ended September 30, 2025 was $3.6 million, compared to a net loss of $3.6 million in the comparable prior year quarter[333]. - Net loss for the nine months ended September 30, 2025 was $10.6 million or $(4.96) per share, compared to a net loss of $11.3 million, or $(80.10) per share, in the comparable prior year period[337]. - The net loss from operations for the three months ended September 30, 2025, was $3,051,000, a 12% improvement from a loss of $3,453,000 in the same period of 2024[374]. Financing Activities - The Company entered into Securities Purchase Agreements for a PIPE Offering, raising approximately $20 million for various corporate purposes[342]. - The Company completed equity financings totaling $20.0 million in gross proceeds in October 2025, providing significant additional working capital[410]. - The Company achieved a net cash provided by financing activities of $5.6 million for the nine months ended September 30, 2025, compared to $1.3 million in 2024, indicating a significant increase of over 330%[420]. - The Company raised approximately $670,000 from the May III Offering by selling 79,750 shares at $4.80 per share, closing on June 2, 2025[454]. - The Company utilized net proceeds from the May I Offering, totaling approximately $700,400, for working capital and to repay a portion of its indebtedness[458]. Asset Management - Cash and cash equivalents totaled $1.1 million as of September 30, 2025, down from $1.3 million at December 31, 2024[409]. - The company reported a net decrease in cash of $249,000 for the nine months ended September 30, 2025, compared to a decrease of $7.3 million in 2024[414]. - The company capitalized software development costs of $200,000 during the nine months ended September 30, 2025, compared to $434,000 in 2024[417]. Strategic Partnerships and Acquisitions - The acquisition of Supersocial expanded the Company's partnerships and included multiple live branded games on Roblox, enhancing its engagement with brands[354]. - The Company expanded its partnership with Meta-Stadiums Corp. to unlock new revenue opportunities within the TikTok creator ecosystem[357]. - The Company sold 100% of the membership interests of InPvP for $350,000, retaining rights to ad sales and brand integration for two years[355][356]. Stock and Equity Transactions - The Company converted $1.0 million of debt into 1.0 million shares of common stock at $1.00 per share as part of the Belleau Exchange Agreement[347]. - The Company issued 2,333,057 Series B Warrants with an exercise price of $1.00, which will be exercisable starting one year after issuance[349]. - The Company increased its authorized shares of Common Stock from 400 million to 750 million through the Third Amended and Restated Certificate of Incorporation[351]. Legal and Compliance - The Company regained compliance with NASDAQ Listing Rule 5550(a)(2) regarding minimum bid price requirements on July 8, 2025[367]. - The Company reported stockholders' equity of $170,000 in its Annual Report for the year ended December 31, 2024, which was below the $2,500,000 requirement[371]. - The company assesses collectability of receivables based on past transaction history and customer creditworthiness, impacting revenue recognition timing[470]. Market and Risk Assessment - The company is not currently exposed to market risks from interest rate changes or foreign currency exchange rates[481]. - The company qualifies as a "smaller reporting company," allowing it to take advantage of exemptions from certain reporting requirements[477]. - The company ceased being an "emerging growth company" as of December 31, 2024, but continues to be a smaller reporting company[480].
SUPER LEAGUE GAM(SLGG) - 2025 Q3 - Quarterly Report