Revenue Performance - Total revenues for the three months ended March 31, 2024, increased by approximately $1.2 million, or 99%, to $2.4 million compared to $1.2 million for the same period in 2023[111] - In-person experience revenues rose by approximately $62 thousand, or 5%, to approximately $1.3 million, driven by increased sponsorship and event revenue[112] - Casual mobile gaming revenue was $1.1 million for the three months ended March 31, 2024, compared to $0 for the same period in 2023, attributed to the business combination with Z-Tech[112] Expense Overview - Total costs and expenses increased by approximately $1.2 million, or 31%, to $5.1 million for the three months ended March 31, 2024, compared to $3.8 million in 2023[111] - General and administrative expenses increased by approximately $0.3 million, or 12%, to approximately $2.9 million, primarily due to increased stock-based compensation and legal fees[116] - Research and development expenses were $195 thousand for the three months ended March 31, 2024, compared to $0 in the same period in 2023, reflecting investment in new mobile game development[115] Net Loss and Financial Position - Net loss attributable to common stockholders decreased by approximately $195 thousand, or 10%, to $1.7 million for the three months ended March 31, 2024, compared to $1.9 million in 2023[111] - The net loss for the three months ended March 31, 2024, was approximately $1.8 million, compared to a net loss of $1.9 million for the same period in 2023[125] - As of March 31, 2024, the company had cash of approximately $7.3 million and working capital of approximately $67.2 million[120] Cash Flow Analysis - Net cash used in operating activities for the three months ended March 31, 2024, was approximately $2.1 million, an increase of $1.1 million compared to $1.0 million in the same period of 2023[125] - Net cash used in investing activities for the three months ended March 31, 2024, was approximately $14.5 million, significantly higher than $5.1 million in the same period of 2023[126] - Net cash provided by financing activities for the three months ended March 31, 2024, was approximately $7.6 million, a turnaround from the net cash used of $1.5 million in the same period of 2023[127] Financing Activities - The company entered into a Share Purchase Agreement for the sale of 7,330,000 shares at $0.90 per share, totaling $6.6 million, with an initial payment of $2 million received[107][108] - The credit facility was increased to $20 million, with an additional borrowing of approximately $6.3 million on March 15, 2024, at a fixed interest rate of 0.3% per annum[122] Accounting and Risk Disclosures - The company does not engage in any off-balance sheet financing activities[128] - The financial statements are prepared in accordance with U.S. generally accepted accounting principles, requiring management to make estimates that could materially impact financial condition[129] - The company considers certain accounting estimates to be critical due to the uncertainty involved and potential material impact on financial results[130] - There were no applicable quantitative and qualitative disclosures about market risk[131]
Allied Gaming & Entertainment (AGAE) - 2024 Q1 - Quarterly Report