Allied Gaming & Entertainment (US:AGAE)2025-11-19 22:01Revenue Performance - Total revenues for the three months ended September 30, 2025, were approximately $1.847 million, a decrease of $316 thousand or 14.6% compared to $2.163 million for the same period in 2024[157]. - In-person experience revenues decreased by approximately $336 thousand, or 25%, to approximately $1.009 million for the three months ended September 30, 2025, primarily due to lower average revenue per event[158]. - Casual mobile gaming revenue remained stable at $838 thousand for the three months ended September 30, 2025, compared to $818 thousand for the same period in 2024, attributed to the launch of a new poker game[159]. - Total revenues decreased to approximately $6.0 million for the nine months ended September 30, 2025, down from $7.2 million in 2024, primarily due to a decline in casual mobile gaming revenue[172]. - In-person experience revenues increased by approximately $0.3 million, or 9%, to approximately $3.8 million for the nine months ended September 30, 2025, driven by higher revenue from arena events[172]. Expenses - General and administrative expenses increased by approximately $5.9 million, or 448%, to approximately $7.176 million for the three months ended September 30, 2025, primarily due to increased legal and professional fees[163]. - General and administrative expenses surged by approximately $9.3 million, or 99%, to approximately $18.7 million for the nine months ended September 30, 2025, largely due to increased legal and professional fees[178]. - Research and development expenses increased to $175 thousand for the three months ended September 30, 2025, from $158 thousand for the same period in 2024, focusing on new casual mobile game development[162]. Losses and Financial Position - The company reported a loss from operations of $7.335 million for the three months ended September 30, 2025, compared to a loss of $1.181 million for the same period in 2024, reflecting a deterioration of $6.154 million[157]. - The company reported a net loss of approximately $15.1 million for the nine months ended September 30, 2025, compared to a net loss of $9.7 million for the same period in 2024[172]. - The company recognized a loss of $3 million related to an escrow settlement with Brookfield Property Partners during the three months ended September 30, 2025[166]. Cash Flow and Investments - Net cash used in operating activities improved to approximately $3.7 million for the nine months ended September 30, 2025, compared to $13.2 million in 2024, indicating a decrease in cash usage of $9.5 million[191]. - Net cash used in investing activities was approximately $41.0 million for the nine months ended September 30, 2025, significantly higher than $24.7 million in 2024, primarily due to increased purchases of short-term investments[192]. - Cash and cash equivalents stood at approximately $15.4 million as of September 30, 2025, excluding $38.3 million of short-term investments and $2.2 million of marketable securities[188]. Other Financial Metrics - Other non-operating income, net, was approximately $324 thousand for the three months ended September 30, 2025, compared to $1 thousand of other expense for the same period in 2024, representing an increase of $325 thousand[165]. - Interest income, net, rose to approximately $1.4 million for the three months ended September 30, 2025, up from approximately $1.0 million in the same period of 2024[171]. - The gain on foreign currency transactions was approximately $0.3 million for the three months ended September 30, 2025, compared to a loss of $1.2 million for the same period in 2024, reflecting a significant improvement[169]. - The fair value of digital assets increased by approximately $53 thousand for the three months ended September 30, 2025, following the adoption of ASU 2023-08, which requires crypto assets to be measured at fair value[170]. Compliance and Accounting Estimates - The company intends to monitor its stock price to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share by May 4, 2026[153]. - The company considers accounting estimates related to credit loss on loans, impairment of long-lived assets, impairment of goodwill, and accruals for loss contingencies as critical accounting estimates due to their potential material impact on financial condition and results of operations[198]. - Other items within the financial statements require estimation but are not classified as critical[198]. - There are no quantitative and qualitative disclosures about market risk applicable to the company[200].