Financial Data and Key Metrics Changes - Revenue increased by 13% year over year, with licensing revenue surging by 105% [5] - Adjusted EBITDA improved to $3,500,000, a positive swing of $6,400,000 compared to a loss of $2,900,000 in the same quarter last year [5] - The net loss included $1,900,000 in impairment charges and $2,100,000 related to a one-time settlement, resulting in an adjusted net loss of approximately $3,700,000 [6] Business Line Data and Key Metrics Changes - The licensing business is thriving, with new agreements in gaming, beauty, grooming, energy drinks, and fashion, guaranteeing $300,000,000 in minimum royalties over fifteen years for the digital business [10] - Honey Burdette brand showed strong growth with gross margins expanding, supported by a 28% increase in retail business at full price [36][38] Market Data and Key Metrics Changes - The company is focusing on the Miami market for its new Playboy Club concept, which is expected to be a significant revenue driver [10][26] - The reintroduction of the Playboy magazine is aimed at enhancing brand relevance, with the next issue featuring 12 Playmates, marking a historic first [8] Company Strategy and Development Direction - The company is evolving into a licensing-focused, asset-light business, aiming to enhance brand relevance through compelling content and experiences [5][7] - Plans to relocate corporate headquarters to Miami Beach to leverage a vibrant content creation and event strategy [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current strategy, team, and momentum to continue building on recent successes [11] - The company is focused on maintaining brand health and is selective about new licensing deals to avoid brand dilution [20][22] Other Important Information - The company has over $30,000,000 in cash on hand and a clear plan to reduce debt and lower the cost of capital [6] - Legal expenses related to litigation are expected to continue impacting EBITDA, but management is confident in their cases against former partners [40][41] Q&A Session Summary Question: Opportunity and registrations for paid voting - Management indicated that over 50% of expected registrations were achieved in the first few days without any marketing [13][14] Question: Materiality and timing of new licensing deals - Management emphasized the importance of strategic partnerships and brand health over rushing into deals, noting that annual deals exceed seven figures [18][20][21] Question: Structure and development of the Miami hospitality venue - Management confirmed that plans are in progress with a partner, focusing on remaining asset-light while exploring opportunities in other cities [25][26] Question: Impact of licensing commissions settlement on expense structure - Management noted that the settlement would reduce expenses moving forward, although specifics were not disclosed for competitive reasons [28][29] Question: Growth expectations for Honey Burdette - Management expects continued growth in the back half of the year, supported by strong retail performance [36][37]