Revenue Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Mobile ad revenue remained steady at 15% of total revenue, while revenue from Roblox campaigns decreased to 42%, down from 57% in 2024[6] Cost Management and Profitability - Gross margins improved to 45%, up from 39% a year ago, indicating a positive trend in cost management[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, demonstrating progress towards profitability[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing financial stability[2] - The total assets decreased to $8.7 million as of September 30, 2025, down from $11.7 million at the end of 2024[19] - Total liabilities decreased to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Net Loss and Earnings - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Net cash provided by investing activities was $923,000 for the nine months ended September 30, 2025, compared to a net cash outflow of $457,000 in 2024[25] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $5,633,000, up from $1,297,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] Other Financial Metrics - Non-cash stock compensation increased to $1,372,207 for the nine months ended September 30, 2025, from $986,000 in 2024[23] - The company reported a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025, down from $1,953,000 in 2024[25] - The company recorded a loss on extinguishment of liability of $161,000 for the nine months ended September 30, 2025, compared to $336,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]
SUPER LEAGUE GAM(SLGG) - 2025 Q3 - Quarterly Results