Revenue and Income - Revenue for the nine months ended September 30, 2025 was $0, a decrease from $55 in the same period of 2024, primarily due to no revenue-generating tournament activity or live streaming services [224]. - Other income for the nine months ended September 30, 2025 was a net income of $3,624,433, compared to a net expense of $1,740,710 in the same period of 2024, driven by a $4,080,000 net unrealized gain on equity securities [227]. - Other income for Q3 2025 was $4,171,117, compared to net other expenses of $460,620 in Q3 2024, driven by a net unrealized gain on equity securities of $4,080,000 [232]. - The company anticipates continued operating losses as it executes its development plans through 2025, raising concerns about its ability to continue as a going concern [242]. - As of September 30, 2025, the company has incurred recurring losses from operations and has not generated net income for an entire year of operations [269]. - The company anticipates continued operating losses and negative cash flows from operations for the foreseeable future [269]. - The company does not expect to generate sufficient revenue to achieve net income during the next twelve months [270]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025 were $3,856,687, an increase of $2,596,624 compared to $1,260,063 in the same period of 2024, mainly due to increased spending post-IPO [226]. - Operating expenses for Q3 2025 were $1,630,481, a significant increase of $1,080,043 (197%) compared to $549,438 in Q3 2024, primarily due to increased selling, general and administrative expenses and stock-based compensation [231]. - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(4,215,961), a substantial increase from $(528,504) in the same period of 2024 [243]. Cash and Liquidity - The company had cash of $9,595,577 as of September 30, 2025, compared to $29,228 as of December 31, 2024, indicating a significant increase in liquidity due to IPO proceeds [233]. - Net proceeds from financing activities for the nine months ended September 30, 2025, were $18,658,936, significantly higher than $544,520 in the same period of 2024 [246]. - Current cash and cash equivalents, including funds from the IPO and PIPE Offering, are believed to be sufficient to fund operations for at least the next twelve months [271]. Strategic Partnerships and Initiatives - The company launched its first activation under a strategic partnership with Learfield in May 2025, starting with the University of Florida [212]. - The company anticipates scaling Learfield-based activations across additional universities and launching digital activations with rewards through Loyalty Tokens [221]. - The company has secured a strategic partnership with Learfield Communications, aiming to leverage college networks for sponsorship revenue and data insights [238]. Engagement and Growth Metrics - The company experienced a 148% year-over-year increase in video views from 2020 to 2024, reaching nearly 1,400,000 views by September 30, 2025 [209]. - Impressions increased by 57% year-over-year from 2020 to 2024, totaling nearly 8.5 million since inception [209]. - The average viewing time for live streams was 19 minutes, significantly higher than the industry benchmark of 11 minutes, indicating strong viewer engagement [209]. - The Golden Royale Cup tournament in November 2023 garnered nearly 300,000 views and 20,000 total hours of live-streaming content, showcasing the company's growing engagement in esports [236]. Development and Future Plans - A beta version of a scalable data insights monetization SaaS model is expected to be ready by Q1 2026, aimed at providing a recurring revenue stream [213]. - The company is in the development stage of its platform and related software, with ongoing investments in product development, infrastructure, and customer acquisition planned [271]. Audit and Compliance - The independent auditors' report expresses substantial doubt about the company's ability to continue as a going concern [269]. - The financial statements have been prepared in conformity with U.S. GAAP, assuming continuation of the company as a going concern [272]. Stock Options and Valuation - The company issued stock options and warrants in connection with the IPO and PIPE Offering during the nine months ended September 30, 2025 [264]. - Key assumptions for stock options and warrants valuation include expected volatility, expected term, risk-free interest rate, and expected dividend yield [265]. - The company uses the "simplified method" for estimating the expected term for stock options issued at-the-money [266].
Brag House Holdings Inc(TBH) - 2025 Q3 - Quarterly Report