Allied Gaming & Entertainment Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
AIFA$3.97-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-07-07.
0001213900-25-061782
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-076748
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 65 previous paragraphs and 89 current paragraphs.
30 unchanged; 28 reworded; 19 added; 6 removed; 1 previous and 12 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
The Company held its Annual Meeting on August 4, 2025, and the results of the Annual Meeting were disclosed on our Current Form 8-K filed with the SEC on August 7, 2025.
Current report
Recent Developments
Current report
Chief Executive Officer Transition
Current report
On June 24, 2025, the Board of Directors (the “Board”) accepted the resignation of Ms. Yinghua Chen as Chief Executive Officer of the Company. Ms. Chen will continue to serve the Company in a senior strategic capacity as the Chief Executive Officer of the Company’s wholly owned subsidiary, AEI where Ms. Chen will focus on advancing AEI’s unique content strategy, including the development and integration of global animation intellectual property and gaming assets. In addition, on June 24, 2025, the Board appointed Mr. Yangyang (James) Li as Chief Executive Officer of the Company, effective immediately. Mr. Li will continue to serve as President and Chairman of the Board.
Current report
Other
Current report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. We are currently assessing the legislation and its effect on our consolidated financial statements.
Current report
General and administrative expenses increased by approximately $0.8 million, or 15%, to approximately $6.0 million for the three months ended June 30, 2025, from approximately $5.2 million for the three months ended June 30, 2024. The increase in general and administrative expenses resulted primarily from a $1.5 million increase in legal and professional fees incurred in connection with complaints filed by a dissident stockholder along with a proxy contest between the Company and such stockholder, a $0.2 million increase in audit and tax fees, as well as a $0.4 million increase in salaries and other G&A costs related to two new subsidiaries (BLT and ACD). This increase was partially offset by a $1.3 million decrease in legal and professional fees resulting from an insurance reimbursement for costs incurred in connection with the shareholder complaints.
Current report
Depreciation and amortization decreased by approximately $27 thousand, or 7%, to approximately $376 thousand for the three months ended June 30, 2025, from approximately $403 thousand for the three months ended June 30, 2024. The decrease was mainly due to the impairment of software licenses at December 31, 2024.
Current report
Other (expense) income, net
Current report
In-person experience revenues increased by approximately $0.6 million, or 30%, to approximately $2.8 million for the six months ended June 30, 2025 from approximately $2.2 million for the six months ended June 30, 2024. The increase in in-person revenues resulted from higher revenue generated from arena events, including both the quantity of events and the average revenue per event.
Current report
Costs and expenses
Current report
Casual mobile gaming costs (exclusive of depreciation and amortization) were $1.3 million for the six months ended June 30, 2025 and $2.5 million for the six months ended June 30, 2024, respectively, resulting from a decrease in user incentive, user acquisition and other associated with the decline in revenues.
Current report
Selling and marketing expenses increased by approximately $14 thousand, or 13%, to approximately $122 thousand for the six months ended June 30, 2025 from approximately $108 thousand for the six months ended June 30, 2024.
Current report
Depreciation and amortization decreased by approximately $21 thousand, or 3%, to approximately $0.8 million for the six months ended June 30, 2025, from approximately $0.8 million for the six months ended June 30, 2024. The decrease was mainly due to the impairment of software licenses at December 31, 2024.
Current report
Other (expense) income, net
Current report
We recognized other non-operating expense, net, of approximately $32 thousand during the six months ended June 30, 2025, compared to $1 thousand of other income, net, recorded for the six months ended June 30, 2024, representing an increase in other expense, net of $33 thousand. The increase is primarily attributable to a loss recognized on the sale of treasury bonds minus a gain recorded on the sale of marketable securities.
Current report
(Loss) gain on foreign currency transactions, net
Current report
Interest income, net
Current report
Net Cash (Used in) Provided by Investing Activities
Removed paragraphs (6)
Previous report
On April 17, 2025, the Company received a deficiency letter (the “Form 10-K Letter”) from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) notifying the Company that it was not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) because the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Form 10-K”) was not filed with the SEC by the required due date of March 31, 2025 (or April 15, 2025, following the Form 12b-25 filed by the Company on March 31, 2025).
Previous report
On May 22, 2025, the Company received a deficiency letter (the “Form 10-Q Letter”) from the Staff of Nasdaq notifying the Company that it was not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) because the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (the “Form 10-Q”) was not filed with the SEC by the required due date of May 15, 2025 (or May 20, 2025, following the Form 12b-25 filed by the Company on May 15, 2025) and because the Company had at the time of the Form 10-Q Letter remained delinquent in its filings for its Form 10-K (together the “Delinquent Reports”).
Previous report
The Company was provided until June 16, 2025, or 60 calendar days from the receipt of the Form 10-K Letter, to submit a plan (the “Compliance Plan”) to regain compliance with the Nasdaq Listing Rules with respect to the Delinquent Reports. The Company filed its Form 10-K on June 9, 2025, and received a letter from the Staff of Nasdaq on June 10, 2025, notifying the Company that it had regained partial compliance with the periodic filings requirements upon the filing of the Form 10-K. On June 16, 2025, the Company submitted its Compliance Plan to the Staff with respect to its delinquent Form 10-Q filing.
Previous report
As disclosed on our Current Report on Form 8-K filed with the SEC on May 23, 2025, and the proxy statement filed with the SEC on June 30, 2025, the Company’s Annual Meeting is scheduled for August 4, 2025, the Company is diligently preparing for the hearing to address the Annual Meeting deficiency and regain compliance with the Nasdaq Listing Rules.
Previous report
Depreciation and amortization increased by approximately $7 thousand, or 2%, to approximately $382 thousand for the three months ended March 31, 2025, from approximately $375 thousand for the three months ended March 31, 2024.
Previous report
Other income (expense), net
Reworded paragraphs (28)
Previous wording
The following discussion and analysis of the results of operations and financial condition of Allied Gaming & Entertainment Inc. (the “Company”) as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2024, which are included in the Form 10-K (the “Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on June 9, 2025. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us”, “we”, “our” and similar terms refer to the Company and its subsidiaries. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. Actual results could differ materially because of the factors discussed in “Risk Factors” in our Annual Report, and other factors that we may not know. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements above, to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis of the results of operations and financial condition of Allied Gaming & Entertainment Inc. (the “Company”) as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2024, which are included in the Form 10-K (the “Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on June 9, 2025. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us”, “we”, “our” and similar terms refer to the Company and its subsidiaries. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. Actual results could differ materially because of the factors discussed in “Risk Factors” in our Annual Report, and other factors that we may not know. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements above, to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.
Previous wording
Allied Experiential Entertainment (“AEE”) focuses on orchestrating live entertainment events and offers management and consultation service to experiential entertainment venue operations. In January 2025, AEE made a strategic investment by acquiring a minority interest stake in a partnership engaged in the production and distribution of The Angry Birds Movie 3, which will allow us to potentially receive profits generated by the movie after it is released. This initiative underscores Allied’s commitment to investing in iconic intellectual properties with broad, cross-generational appeal and multi-platform potential; supporting the Company’s growth strategy and expanding its global audience reach.
Current wording
Allied Experiential Entertainment (“AEE”) focuses on orchestrating live entertainment events and offers management and consultation service to experiential entertainment venue operations. In January 2025, AEE made a strategic investment by acquiring a minority interest stake in a partnership engaged in the production and distribution of an animated film. The Angry Birds Movie 3, which will allow us to potentially receive profits generated by the movie after it is released. This initiative underscores Allied’s commitment to investing in iconic intellectual properties with broad, cross-generational appeal and multi-platform potential; supporting the Company’s growth strategy and expanding its global audience reach.
Previous wording
Our business plan requires significant capital expenditures, and we expect our operating expenses to increase as we continue to expand our marketing efforts and operations in existing and new geographies as well as new vertical markets (including live influencer events, top artist events and concerts, experiential entertainment, casual mobile gaming, live streaming platforms and channels, interactive content monetization, and online esports tournament and gaming subscription platforms), which we believe will provide attractive returns on investment.
Current wording
In December 2022, we expanded our business plans to include a broader array of entertainment and gaming products and services, pursuant to which we will continue to pursue various acquisitions, joint ventures, and other such strategic opportunities. Our business plan requires significant capital expenditures, and we expect our operating expenses to increase as we continue to expand our marketing efforts and operations in existing and new geographies as well as new vertical markets (including live influencer events, top artist events and concerts, experiential entertainment, casual mobile gaming, live streaming platforms and channels, interactive content monetization, and online esports tournament and gaming subscription platforms), which we believe will provide attractive returns on investment.
Previous wording
On June 18, 2025, the Company received a notice from the Staff of Nasdaq indicating that, based on the Company’s non-compliance with Listing Rule 5620(a), which requires the Company to hold an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end, in addition to the Company’s non-compliance with Listing Rule 5250(c)(1) with respect to its Form 10-Q, the Staff determined to initiate procedures to delist the Company’s securities unless the Company requested an appeal to a Nasdaq Hearings Panel (the “Panel”) by June 25, 2025. On June 25, 2025, the Company submitted to the Staff a Request for Additional Stay, requesting a further stay of any suspension action pending the conclusion of the hearing process. Also on June 25, 2025, the Company received from the Staff a letter providing formal notice that the Panel will consider the Company’s appeal at an oral hearing. A hearing is scheduled for July 31, 2025.
Current wording
On June 18, 2025, the Company received a notice from the Staff of Nasdaq indicating that, based on the Company’s non-compliance with Listing Rule 5620(a), which requires the Company to hold an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end, the Staff determined to initiate procedures to delist the Company’s securities unless the Company requested an appeal to a Nasdaq Hearings Panel (the “Panel”) by June 25, 2025. On June 25, 2025, the Company submitted to the Staff a Request for Additional Stay, requesting a further stay of any suspension action pending the conclusion of the hearing process. Also on June 25, 2025, the Company received from the Staff a letter providing formal notice that the Panel will consider the Company’s appeal at an oral hearing. The hearing was held on July 31, 2025 and the Panel’s decision is currently pending.
Previous wording
In-person experience revenues increased by approximately $0.4 million, or 32%, to approximately $1.7 million for the three months ended March 31, 2025 from approximately $1.3 million for the three months ended March 31, 2024. The increase in in-person revenues resulted from higher revenue generated from arena events.
Current wording
In-person experience revenues increased by approximately $0.2 million, or 27%, to approximately $1.2 million for the three months ended June 30, 2025 from approximately $0.9 million for the three months ended June 30, 2024. The increase in in-person revenues resulted from higher revenue generated from arena events, including both the quantity of events and the average revenue per event.
Previous wording
Casual mobile gaming revenue was $0.6 million for the three months ended March 31, 2025 and $1.1 million for the three months ended March 31, 2024, respectively. The decrease in casual mobile games revenue was primarily due to contraction of the online card game market as well as increasing competition from new mobile game developers.
Current wording
Casual mobile gaming revenue was $0.8 million for the three months ended June 30, 2025 and $1.7 million for the three months ended June 30, 2024, respectively. The decrease in casual mobile games revenue was primarily due to the contraction of the online card game market as well as increasing competition from new mobile game developers.
Previous wording
In-person costs (exclusive of depreciation and amortization) increased by approximately $0.2 million, or 35%, to approximately $0.9 million for the three months ended March 31, 2025 from approximately $0.6 million for the three months ended March 31, 2024. The increase is the result of the costs associated with third party events at the arena held during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
In-person costs (exclusive of depreciation and amortization) increased by approximately $0.1 million, or 23%, to approximately $0.6 million for the three months ended June 30, 2025 from approximately $0.5 million for the three months ended June 30, 2024. The increase is the result of the costs associated with the quantity of events held at the arena during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous wording
Casual mobile gaming costs (exclusive of depreciation and amortization) were $0.6 million for the three months ended March 31, 2025 and $0.9 million for the three months ended March 31, 2024, respectively, resulting from a decrease in user incentive fees and user acquisition costs during the period in connection with the decrease in revenues described above.
Current wording
Casual mobile gaming costs (exclusive of depreciation and amortization) were $0.7 million for the three months ended June 30, 2025 and $1.6 million for the three months ended June 30, 2024, respectively, resulting from a decrease in user incentive and user acquisition costs associated with the decline in revenues during the period.
Previous wording
Research and development expenses were $181 thousand and $195 thousand for the three months ended March 31, 2025 and 2024, respectively. Research and development expenses consist principally of costs related to the development of new casual mobile games for ZTech.
Current wording
Research and development expenses were $167 thousand and $174 thousand for the three months ended June 30, 2025 and 2024, respectively. Research and development expenses consist principally of costs related to the development of new casual mobile games for ZTech.
Previous wording
Selling and marketing expenses decreased by approximately $14 thousand, or 26%, to approximately $40 thousand for the three months ended March 31, 2025 from approximately $54 thousand for the three months ended March 31, 2024.
Current wording
Selling and marketing expenses increased by approximately $28 thousand, or 52%, to approximately $82 thousand for the three months ended June 30, 2025 from approximately $54 thousand for the three months ended June 30, 2024.
Previous wording
We recognized other non-operating income, net, of approximately $24 thousand during the three months ended March 31, 2024, compared to $13 thousand of other expense, net, recorded for the three months ended March 31, 2024, representing a increase in other income of $37 thousand.
Current wording
We recognized other non-operating expense, net, of approximately $56 thousand during the three months ended June 30, 2025, compared to $14 thousand of other income, net, recorded for the three months ended June 30, 2024, representing an increase in other expense, net of $70 thousand. The increase is primarily attributable to a loss recognized on the sale of treasury bonds.
Previous wording
We realized a gain on investment in money market fund of $0.4 million for the three months ended March 31, 2025, resulting from to the change in fair value of the money market funds between the purchase date and March 31, 2025. There were no investments in money market funds for the three months ended March 31, 2024.
Current wording
We realized a gain on an investment in a money market fund of $20 thousand for the three months ended June 30, 2025, resulting from a change in the fair value of the money market funds between the purchase date and June 30, 2025. There were no investments in money market funds for the three months ended June 30, 2024.
Previous wording
Loss on investment in marketable securities
Current wording
Gain on investment in marketable securities
Previous wording
The Company recognized a loss of $0.3 million on its investments in marketable securities during the three months ended March 31, 2025, due to the change in fair value of the marketable securities that were owned during the period. There were no investments in marketable securities for the three months ended March 31, 2024.
Current wording
The Company recognized a gain of $0.8 million on its investments in marketable securities during the three months ended June 30, 2025, due to the change in fair value of the marketable securities during the period. There were no investments in marketable securities for the three months ended June 30, 2024.
Previous wording
Loss on foreign currency transactions, net
Current wording
(Loss) gain on foreign currency transactions, net
Previous wording
The loss on foreign currency transactions was approximately $0.6 million for the three months ended March 31, 2025 compared to $0 for the three months ended March 31, 2024. The increase in loss is a result of changes in the exchange rate of the Japanese Yen to United States Dollar between the dates certain loans payable were borrowed, the dates certain loans receivable were issued, and the dates certain equity linked notes, bond linked notes, ETF linked notes, and foreign securities were purchased and the remeasurement date of March 31, 2025.
Current wording
The loss on foreign currency transactions was approximately $0.5 million for the three months ended June 30, 2025 compared to a $0.4 million gain for the three months ended June 30, 2024. The increase in loss is a result of changes in the exchange rate of the Japanese Yen to United States Dollar between the dates certain loans payable were borrowed, the dates certain loans receivable were issued, and the dates certain equity linked notes, bond linked notes, FX linked notes and foreign securities were purchased and the June 30, 2025 and 2024 remeasurement date.
Previous wording
General and administrative expenses increased by approximately $2.6 million, or 92%, to approximately $5.5 million for the three months ended March 31, 2025, from approximately $2.9 million for the three months ended March 31, 2024. The increase in general and administrative expenses resulted primarily from a $3.2 million increase in legal and professional fees incurred in connection with a complaint filed by a dissident stockholder, as well as a $0.1 million increase in salaries due to the hiring of our new President in April of 2024. These increases were partially offset by the decrease in audit, tax, and filing fees of $0.2 million and stock-based compensation of $0.3 million due to restricted share awards granted on February 22, 2024 in which a portion immediately vested.
Current wording
General and administrative expenses increased by approximately $3.4 million, or 42%, to approximately $11.5 million for the six months ended June 30, 2025, from approximately $8.1 million for the six months ended June 30, 2024. The increase in general and administrative expenses resulted primarily from a $3.8 million increase in legal and other professional fees incurred in connection with complaints filed by a dissident stockholder along with a proxy contest between the Company and such stockholder, a $0.2 million increase in audit and tax fees, a $0.1 million increase in salaries due to the hiring of Mr. Li as new President of the Company in April of 2024, a $0.8 million increase in salaries and other G&A costs related to two new subsidiaries (BLT and ACD), as well as a $0.1 million increase in directors’ and officers’ insurance costs. These increases were partially offset by a $1.3 million decrease in legal and professional fees resulting from an insurance reimbursement for costs incurred in connection with the second shareholder complaint and a decrease in stock-based compensation of $0.3 million due to restricted share awards granted on February 22, 2024 in which a portion immediately vested.
Previous wording
The decrease in the fair value of digital assets was approximately $63 thousand and $0 for the three months ended March 31, 2025 and 2024, respectively. We adopted ASU 2023-08 on January 1, 2025, which requires entities to measure crypto assets at fair value. The decrease in fair value is a result of the decrease in the fair value of Ethereum from the date of adoption.
Current wording
The decrease in the fair value of digital assets was approximately $35 thousand and $0 for the six months ended June 30, 2025 and 2024, respectively. We adopted ASU 2023-08 on January 1, 2025, which requires entities to measure crypto assets at fair value. The decrease in fair value is a result of the decrease in the fair value of Ethereum from the date of adoption.
Previous wording
Interest income, net, was approximately $864 thousand for the three months ended March 31, 2025 compared to approximately $859 thousand of interest income for the three months ended March 31, 2024. The increase is a result of the interest earned on fixed term deposits and equity, bond, and ETF linked notes, as well as interest earned on loans receivable during the period.
Current wording
Interest income, net, was approximately $1.9 million for both the six months ended June 30, 2025 and 2024. Interest income is a result of the interest earned on fixed term deposits and equity, bond, and ETF linked notes, as well as interest earned on loans receivable during the period.
Previous wording
Our primary sources of liquidity and capital resources have been cash and short-term investments on the balance sheet, including the funds received through the sale of World Poker Tour.
Current wording
Our primary sources of liquidity and capital resources have been cash from operations, cash and short-term investments on the balance sheet, including the funds received through the sale of World Poker Tour, and interest income from loan facilities that we provide to certain qualified borrowers.
Previous wording
As of March 31, 2025, we had cash and cash equivalents of approximately $19.5 million (not including $49.2 million of short-term investments and $2.1 million of marketable securities) and working capital of approximately $57.3 million.
Current wording
As of June 30, 2025, we had cash and cash equivalents of approximately $23.1 million (not including $33.9 million of short-term investments and $3.0 million of marketable securities) and working capital of approximately $44.9 million.
Previous wording
Cash requirements for our current liabilities include approximately $34.5 million for loans payable, approximately $4.5 million in the aggregate for accounts payable and accrued expenses, and approximately $1.6 million for the current portion of an operating lease liability. Cash requirements for non-current liabilities include approximately $3.6 million for the non-current portion of an operating lease liability. The Company intends to meet these cash requirements from its current cash balance.
Current wording
Cash requirements for our current liabilities include approximately $36.0 million for loans payable, approximately $4.9 million in the aggregate for accounts payable and accrued expenses, and approximately $1.6 million for the current portion of an operating lease liability. Cash requirements for non-current liabilities include approximately $3.2 million for the non-current portion of an operating lease liability. The Company intends to meet these cash requirements from its current cash, short-term investments, and marketable securities balances.
Previous wording
The table below summarizes cash flows for the three months ended March 31, 2025 and 2024:
Current wording
The table below summarizes cash flows for the six months ended June 30, 2025 and 2024:
Previous wording
Net cash used in operating activities for the three months ended March 31, 2025 and 2024 was approximately $2.2 million and $2.1 million, respectively, representing increased usage of cash of $0.1 million. During the three months ended March 31, 2025 and 2024, the net cash used in operating activities was primarily attributable to the net loss of approximately $4.9 million and $1.8 million, respectively, adjusted for approximately $1.5 million and $1.1 million, respectively, of net non-cash expenses, and approximately $1.2 and $1.4 million, respectively, of cash used to fund changes in the levels of operating assets and liabilities.*** ***
Current wording
Net cash used in operating activities for the six months ended June 30, 2025 and 2024 was approximately $3.1 million and $4.5 million, respectively, representing decreased usage of cash of $1.5 million. During the six months ended June 30, 2025 and 2024, the net cash used in operating activities was primarily attributable to the net loss of approximately $9.7 million and $5.7 million, respectively, adjusted for approximately $2.8 million and $2.0 million, respectively, of net non-cash expenses, and approximately $3.9 million and ($0.8 million), respectively, of cash generated by or (used to fund) changes in the levels of operating assets and liabilities.*** ***
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 was approximately $45.1 million, which consisted of $64.0 million used for the purchase of short-term investments, $2.4 million used for loans receivable, $2.6 million used for other receivables, and $2.5 million used for the investments, partially offset by $23.8 million in proceeds from the maturing of short-term investments, $1.3 million from proceeds from repayment of short-term loans, and $1.2 million from proceeds from the sale of marketable securities.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 was approximately $34.1 million, which consisted of $127.5 million used for the purchase of short-term investments, $10.6 million used for loans receivable, $1.7 million used for the purchase of land use rights, and $2.5 million used for the investments in unconsolidated affiliate, partially offset by $102.4 million in proceeds from the maturing of short-term investments, $4.5 million from proceeds from repayment of short-term loans, and $1.2 million from proceeds from the sale of marketable securities.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2024 was approximately $14.5 million, which consisted of $19.6 million used for the purchase of short-term investments and $1.3 million used for the issuance of a short-term loan, partially offset by $6.5 million in proceeds from the maturing of short-term investments.
Current wording
Net cash provided by investing activities for the six months ended June 30, 2024 was approximately $1.7 million, which consisted of approximately $41.6 million in proceeds from the maturing of short-term investments, partially offset by approximately $39.9 million used for the purchase of short-term investments.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2025 was approximately $7.5 million compared to approximately $7.6 million of net cash used in financing activities during the three months ended March 31, 2024. Net cash provided by financing activities during the three months ended March 31, 2025 represented proceeds from a short-term loan of $19.2 million, which is partially offset by a repayment of short-term loans of 11.7 million.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2025 was approximately $1.0 million compared to approximately $19.8 million of net cash provided by financing activities during the six months ended June 30, 2024. Net cash provided by financing activities during the six months ended June 30, 2025 represented proceeds from a short-term loan of $30.2 million, which is partially offset by a repayment of short-term loans of $22.7 million and payment upon cancellation of common stock previously issued of $6.6 million,
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2024 was approximately $7.6 million, which consisted of approximately $5.6 million from proceeds from short-term loans and $2.0 million from proceeds from issuance of common stock in a share purchase agreement.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2024 was approximately $19.8 million. Net cash provided by financing activities during the six months ended June 30, 2024 represented proceeds from a short-term loan of approximately $19.8 million and proceeds from the issuance of common stock in a share purchase agreement of $2.0 million, offset by the $2.0 million return of proceeds upon cancellation of common stock previously issued.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
The increase in the fair value of digital assets was approximately $28 thousand and $0 for the three months ended June 30, 2025 and 2024, respectively. We adopted ASU 2023-08 on January 1, 2025, which requires entities to measure crypto assets at fair value. The increase in fair value is a result of the increase in the fair value of Ethereum from March 31, 2025.
Current report — wording carried from elsewhere
Interest income, net, was approximately $1.0 million for the three months ended June 30, 2025 and 2024. Interest income is a result of interest earned on fixed term deposits and equity, bond, and FX linked notes, as well as interest earned on loans receivable during the period.
Current report — wording carried from elsewhere
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Casual mobile gaming revenue was $1.4 million for the six months ended June 30, 2025 and $2.8 million for the six months ended June 30, 2024, respectively. The decrease in casual mobile games revenue was primarily due to the contraction of the online card game market as well as increasing competition from new mobile game developers.
Current report — wording carried from elsewhere
In-person costs (exclusive of depreciation and amortization) increased by approximately $0.3 million, or 30%, to approximately $1.5 million for the six months ended June 30, 2025 from approximately $1.1 million for the six months ended June 30, 2024. The increase is the result of the costs associated with third party events at the arena held during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Research and development expenses were $348 thousand and $369 thousand for the six months ended June 30, 2025 and 2024, respectively. Research and development expenses consist principally of costs related to the development of new casual mobile games for ZTech.
Current report — wording carried from elsewhere
Realized gain on investment in money market fund
Current report — wording carried from elsewhere
We realized a gain on an investment in a money market fund of $0.4 million for the six months ended June 30, 2025, resulting from the change in the fair value of the money market funds between the purchase date and June 30, 2025. There were no investments in money market funds for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Gain on investment in marketable securities
Current report — wording carried from elsewhere
The Company recognized a gain of $0.5 million on its investments in marketable securities during the six months ended June 30, 2025, due to the change in the fair value of the marketable securities during the period. There were no investments in marketable securities for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
The loss on foreign currency transactions was approximately $1.1 million for the six months ended June 30, 2025 compared to a $0.4 million gain for the six months ended June 30, 2024. The increase in loss is a result of changes in the exchange rate of the Japanese Yen to United States Dollar between the dates certain loans payable were borrowed, the dates certain loans receivable were issued, and the dates certain equity linked notes, bond linked notes, ETF linked notes and foreign securities were purchased and the June 30, 2025 and 2024 remeasurement date.
Current report — wording carried from elsewhere
Change in fair value of digital assets
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net Cash Used In Investing Activities