Allied Gaming & Entertainment (US:AGAE)2025-11-20 21:07Financial Performance - Total revenues for Q3 2025 were $1.8 million, a decrease of 15% from $2.2 million in Q3 2024, primarily due to a $0.3 million decline in in-person revenues from arena events [3]. - Net loss for Q3 2025 was $5.4 million, compared to a net loss of $4.0 million in Q3 2024, with an adjusted EBITDA loss of $2.0 million versus a loss of $0.1 million in the prior year [5]. - Total revenues for the three months ended September 30, 2025, were $1,846,912, a decrease of 14.6% compared to $2,163,541 for the same period in 2024 [23]. - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $5,361,229, compared to a net loss of $4,027,941 in 2024, reflecting an increase of 31.0% [23]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,960,060), compared to $(114,502) for the same period in 2024, indicating a decline in operational performance [27]. - The company reported a pre-tax loss of $5,398,984 for the three months ended September 30, 2025, compared to a pre-tax loss of $4,361,484 in 2024, an increase of 23.7% [27]. Costs and Expenses - Total costs and expenses increased to $9.2 million in Q3 2025, up from $3.3 million in the prior-year period, largely driven by a $4.4 million rise in legal and professional fees related to a dissident stockholder [4]. - Total costs and expenses for the three months ended September 30, 2025, were $9,181,330, significantly higher than $3,344,114 in the same period of 2024 [23]. - Research and development expenses for the three months ended September 30, 2025, were $174,774, an increase from $158,162 in 2024, showing a growth of 10.3% [23]. - Selling and marketing expenses decreased to $78,989 for the three months ended September 30, 2025, down from $90,512 in 2024, a reduction of 12.7% [23]. Cash and Liabilities - As of September 30, 2025, the company had cash and short-term investments of $56.0 million, down from $71.5 million at December 31, 2024 [6]. - Working capital decreased to $36.7 million as of September 30, 2025, compared to $64.3 million at December 31, 2024 [6]. - Total liabilities increased to $49.9 million as of September 30, 2025, from $35.2 million at December 31, 2024 [21]. Acquisitions and Expansion - The company completed the acquisition of Saiju School, which will be renamed Allied International Futuretech Academy, marking its entry into Japan's accredited secondary education system [2]. - The company plans further global expansion into markets including Dubai and Hainan following the acquisition of Saiju School [2]. Events and Productions - The company hosted events on 72 days in Q3 2025, including 33 proprietary events and 39 third-party events, enhancing its operational footprint [9]. - The company is participating in the production investment of The Angry Birds Movie 3, targeting a release on December 23, 2026, to capture the holiday viewing season [8]. Gaming Revenues - Casual mobile gaming revenues decreased to $837,862 for the three months ended September 30, 2025, down from $817,986 in 2024, representing a growth of 2.1% [23]. Interest Income and Shares - Interest income for the three months ended September 30, 2025, was $1,363,810, up from $1,033,362 in 2024, representing a growth of 32.0% [27]. - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 37,713,944, compared to 37,219,904 in 2024, an increase of 1.3% [23].