Allied Gaming & Entertainment Inc.
For the period ended Sep 30, 2025. Filed Nov 19, 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.
Sep 30, 2025 · Filed Nov 19, 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 2025-06-30; filed 2025-08-14.
0001213900-25-076748
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-19.
0001213900-25-112690
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 89 previous paragraphs and 90 current paragraphs.
37 unchanged; 39 reworded; 13 added; 9 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 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 (13)
Current report
Collaboration Arrangement
Current report
On August 25, 2025, AEI agreed in principle to negotiate and enter into a Project and Venue Operation & Management Agreement (the “COFCO Agreement”) with Hainan Tourism Investment Duty Free Co., Ltd. and Bethune Capital Limited (collectively, the “Parties”) under which the Parties will collaborate on the transformation of the COFCO Yalong Bay International Conference Center located in Sanya, Hainan, China into a comprehensive entertainment complex known as the Allied Esports Arena Asia (the “Project”). AEI made a $2.4 million deposit to participate in the COFCO Agreement, which will grant the Company the right to use the facility and participate in the cash flows generated from the Project. The definitive agreement has not yet been executed by all three parties.
Current report
Compliance with Nasdaq Listing Rules
Current report
As previously disclosed in a Form 8-K filed on June 25, 2025, on June 25, 2025, Allied Gaming & Entertainment Inc. (the “Company”) submitted a request to Nasdaq Hearings Panel (the “Panel”) to appeal a decision by the Staff of The Nasdaq Stock Market to initiate delisting procedure for 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. On August 4, 2025, the Company held its combined 2024 and 2025 Annual Meeting of Stockholders. In addition, the Company attended the hearing with the Panel and also provided certain supplementary information to the Panel. On September 2, 2025, the Panel issued its decision, in which the Panel finds that the Company is in compliance with Listing Rule 5620(a). Accordingly, the Company has regained compliance with Listing Rule 5620(a) and this matter is now closed.
Current report
On November 4, 2025, the Company received a deficiency letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) notifying the Company that, for the preceding 30 consecutive business days, the closing bid price for the Company’s common stock, par value $0.0001 per share (the “Common Stock”) was below the minimum $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”).
Current report
The notification received has no immediate effect on the Company’s Nasdaq listing. In accordance with Nasdaq rules, the Company has been provided an initial period of 180 calendar days, or until May 4, 2026 (the “Compliance Date”), to regain compliance with the Bid Price Requirement. If, at any time before the Compliance Date, the closing bid price for the Common Stock is at least $1.00 for a minimum of 10 consecutive business days, the Staff will provide the Company written confirmation of compliance with the Bid Price Requirement.
Current report
The Company intends to monitor the closing bid price of the Common Stock and may, if appropriate, consider available options to regain compliance with the Bid Price Requirement.
Current report
In-person experience revenues decreased by approximately $0.3 million, or 25%, to approximately $1.0 million for the three months ended September 30, 2025 from approximately $1.3 million for the three months ended September 30, 2024. The decrease in in-person revenues is primarily attributable to lower average revenue per event for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to a decrease in the size of events at the arena during the quarters.
Current report
Depreciation and amortization increased by approximately $4 thousand, or 1%, to approximately $405 thousand for the three months ended September 30, 2025, from approximately $401 thousand for the three months ended September 30, 2024. The slight increase was mainly due to additional property and equipment placed in service during the three months ending September 30, 2025.
Current report
Loss on escrow settlement
Current report
We recognized a loss in connection with a Settlement and Release Agreement dated September 16, 2024, with Brookfield Property Partners (“Brookfield”), under which $3.0 million was released and paid to Brookfield from an escrow account established in January 2020. The entire escrow account of $5.0 million was included in restricted cash on the condensed consolidated balance sheets since that date.
Current report
Loss on escrow settlement
Current report
We recognized a loss in connection with a Settlement and Release Agreement dated September 16, 2024, with Brookfield Property Partners (“Brookfield”), under which $3.0 million was released and paid to Brookfield from an escrow account established in January 2020. The entire escrow account of $5.0 million was included in restricted cash on the condensed consolidated balance sheets since that date.
Removed paragraphs (9)
Previous report
Termination of Securities Purchase Agreement
Previous report
On April 25, 2025, the Company and Blue Planet each agreed to terminate the Securities Purchase Agreement dated October 18, 2024, pursuant to which the Company had sold to Blue Planet (i) 6,000,000 shares of common stock of the Company and (ii) a corresponding warrant to purchase up to 6,000,000 shares of common stock at an exercise price of $1.80 per share, for an aggregate purchase price of $6,600,000. Pursuant to the termination agreement, the Company agreed to (1) refund the $6,600,000 purchase price, (2) Blue Planet transferred back to the Company all of the shares of common stock and warrants to purchase shares of common stock that had been issued in connection with the Securities Purchase Agreement and (3) cancel the corresponding warrant to purchase up to 6,000,000 shares of common stock.
Previous report
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 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.
Previous report
Recent Developments
Previous report
Chief Executive Officer Transition
Previous 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.
Previous report
Other
Previous 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.
Reworded paragraphs (39)
Previous 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.
Current wording
The following discussion and analysis of the results of operations and financial condition of Allied Gaming & Entertainment Inc. (the “Company”) as of September 30, 2025 and for the three and nine months ended September 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 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.
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 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
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.
Current 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.
Previous wording
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 wording
Casual mobile gaming revenue was $0.8 million for the three months ended September 30, 2025 and $0.8 million for the three months ended September 30, 2024, respectively. The slight increase in casual mobile games revenue was primarily due to the launch of a new poker game in June of 2025.
Previous 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.
Current wording
In-person costs (exclusive of depreciation and amortization) decreased by approximately $0.1 million, or 10%, to approximately $0.6 million for the three months ended September 30, 2025 from approximately $0.7 million for the three months ended September 30, 2024. The decrease is the result of lower costs associated with the smaller events held at the arena during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous 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.
Current wording
Casual mobile gaming costs (exclusive of depreciation and amortization) were $0.7 million for the three months ended September 30, 2025 and $0.7 million for the three months ended September 30, 2024, respectively, resulting from higher costs associated with the new gaming model approach discussed in casual mobile gaming revenue above.
Previous 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.
Current wording
Research and development expenses were $175 thousand and $158 thousand for the three months ended September 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 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 wording
Selling and marketing expenses decreased by approximately $12 thousand, or 13%, to approximately $79 thousand for the three months ended September 30, 2025 from approximately $91 thousand for the three months ended September 30, 2024.
Previous wording
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 wording
General and administrative expenses increased by approximately $5.9 million, or 448%, to approximately $7.2 million for the three months ended September 30, 2025, from approximately $1.3 million for the three months ended September 30, 2024. The significant increase in general and administrative expenses resulted primarily from a $5.4 million increase in legal and professional fees incurred in connection with complaints filed by a dissident stockholder as well as a $0.1 million increase in directors’ and officers’ insurance.
Previous 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.
Current wording
We recognized other non-operating income, net, of approximately $324 thousand during the three months ended September 30, 2025, compared to $1 thousand of other expense, net, recorded for the three months ended September 30, 2024, representing an increase in other expense, net of $325 thousand. The increase is primarily attributable to gains recognized on the sale of marketable securities and short-term investments.
Previous 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.
Current wording
We realized a gain on an investment in a money market fund of $27 thousand for the three months ended September 30, 2025, resulting from a change in the fair value of the money market funds between the purchase date and September 30, 2025. There were no investments in money market funds for the three months ended September 30, 2024.
Previous 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.
Current wording
The Company recognized a loss of $0.1 million on its investments in marketable securities during the three months ended September 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 September 30, 2024.
Previous 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.
Current wording
The gain on foreign currency transactions was approximately $0.3 million for the three months ended September 30, 2025 compared to a $1.2 million loss for the three months ended September 30, 2024. The increase 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 September 30, 2025 and 2024 remeasurement date.
Previous wording
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 wording
The increase in the fair value of digital assets was approximately $53 thousand and $0 for the three months ended September 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 and Bitcoin from the date of adoption.
Previous wording
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 wording
Interest income, net, was approximately $1.4 million for the three months ended September 30, 2025 compared to approximately $1.0 million for the three months ended September 30, 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.
Previous wording
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current wording
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Previous 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.
Current wording
In-person experience revenues increased by approximately $0.3 million, or 9%, to approximately $3.8 million for the nine months ended September 30, 2025 from approximately $3.5 million for the nine months ended September 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 $0.8 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.
Current wording
Casual mobile gaming revenue was $2.2 million for the nine months ended September 30, 2025 and $3.7 million for the nine months ended September 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 $0.3 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 wording
In-person costs (exclusive of depreciation and amortization) increased by approximately $0.3 million, or 15%, to approximately $2.1 million for the nine months ended September 30, 2025 from approximately $1.8 million for the nine months ended September 30, 2024. The increase is the result of the costs associated with third party events at the arena held during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
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 wording
Casual mobile gaming costs (exclusive of depreciation and amortization) were $2.1 million for the nine months ended September 30, 2025 and $3.2 million for the nine months ended September 30, 2024, respectively, resulting from a decrease in user incentive, user acquisition and other costs directly associated with the decline in revenues.
Previous wording
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 wording
Research and development expenses were $523 thousand and $527 thousand for the nine months ended September 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 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.
Current wording
Selling and marketing expenses increased by approximately $3 thousand, or 1%, to approximately $201 thousand for the nine months ended September 30, 2025 from approximately $198 thousand for the nine months ended September 30, 2024.
Previous 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.
Current wording
General and administrative expenses increased by approximately $9.3 million, or 99%, to approximately $18.7 million for the nine months ended September 30, 2025, from approximately $9.4 million for the nine months ended September 30, 2024. The increase in general and administrative expenses resulted primarily from a $7.9 million increase in legal and professional fees incurred in connection with complaints filed by a dissident stockholder, a $0.4 million increase in salaries due to the hiring of our new President in April of 2024 as well as a $0.3 million increase in directors’ and officers’ insurance costs. These increases were slightly offset by a $0.4 million decrease in stock-based compensation due to restricted share awards granted on February 22, 2024 in which a portion immediately vested.
Previous wording
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 wording
Depreciation and amortization decreased by approximately $5 thousand, or 0%, to approximately $1.2 million for the nine months ended September 30, 2025, from approximately $1.2 million for the nine months ended September 30, 2024. The decrease was mainly due to the impairment of software licenses at December 31, 2024.
Previous wording
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 wording
We recognized other non-operating income, net, of approximately $292 thousand during the nine months ended September 30, 2025, compared to $1 thousand of other income, net, recorded for the nine months ended September 30, 2024, representing an increase in other non-operating income, net of $291 thousand. The increase is primarily attributable to a gain recognized on the sale of marketable securities and short-term investments.
Previous wording
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 wording
We realized a gain on an investment in a money market fund of $0.4 million for the nine months ended September 30, 2025, resulting from the change in the fair value of the money market funds between the purchase date and the date the money market funds were sold. There were no investments in money market funds for the nine months ended September 30, 2024.
Previous wording
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 wording
The Company recognized a gain of $0.4 million on its investments in marketable securities during the nine months ended September 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 nine months ended September 30, 2024.
Previous wording
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 wording
The loss on foreign currency transactions was approximately $0.8 million for the nine months ended September 30, 2025 compared to a $0.9 million loss for the nine months ended September 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 September 30, 2025 and 2024 remeasurement date.
Previous 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.
Current wording
The increase in the fair value of digital assets was approximately $17 thousand and $0 for the nine months ended September 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 change in fair value represents fluctuations in the fair value of Ethereum and Bitcoin from the date of adoption or the date of purchase if made during the nine months ended September 30, 2025.
Previous 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.
Current wording
Interest income, net, was approximately $3.2 million and $2.9 million for the nine months ended September 30, 2025 and 2024 respectively. 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 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.
Current 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.
Previous 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.
Current wording
As of September 30, 2025, we had cash and cash equivalents of approximately $15.4 million (not including $38.3 million of short-term investments and $2.2 million of marketable securities) and working capital of approximately $36.6 million.
Previous 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.
Current wording
Cash requirements for our current liabilities include approximately $35.1 million for loans payable, approximately $9.3 million in the aggregate for accounts payable and accrued expenses, and approximately $1.7 million for the current portion of an operating lease liability. Cash requirements for non-current liabilities include approximately $2.8 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 six months ended June 30, 2025 and 2024:
Current wording
The table below summarizes cash flows for the nine months ended September 30, 2025 and 2024:
Previous 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.*** ***
Current wording
Net cash used in operating activities for the nine months ended September 30, 2025 and 2024 was approximately $3.7 million and $13.2 million, respectively, representing decreased usage of cash of $9.5 million. During the nine months ended September 30, 2025 and 2024, the net cash used in operating activities was primarily attributable to the net loss of approximately $15.1 million and $9.7 million, respectively, adjusted for approximately $3.2 million and $2.9 million, respectively, of net non-cash expenses, and approximately $8.2 million and ($6.4) 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 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.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was approximately $41.0 million, which consisted of $186.5 million used for the purchase of short-term investments, $6.1 million used for loans receivable, $1.7 million used for the purchase of land use rights, $2.4 million collaborative agreement deposit, and $3.1 million used for the investments in unconsolidated affiliate, partially offset by $102.5 million in proceeds from the maturing of short-term investments, $54.6 million from proceeds from early withdrawal of short-term investments, and $1.9 million from proceeds from the sale of marketable securities.
Previous 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.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2024 was approximately $24.7 million, which consisted of approximately $72.9 million used for the purchase of short-term investments and $14.4 million used for the issuance of a short-term loan. This was partially offset by approximately $62.7 million in proceeds from the maturing of short-term investments.
Previous 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,
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2025 was approximately $0.9 million compared to approximately $28.0 million of net cash provided by financing activities during the nine months ended September 30, 2024. Net cash provided by financing activities during the nine months ended September 30, 2025 represented proceeds from a loans payable of $45.6 million, which is partially offset by a repayment of loans payable of $38.1 million and proceeds upon cancellation of common stock previously issued of $6.6 million. Net cash provided by financing activities during the nine months ended September 30, 2024 represented proceeds from short-term loans of approximately $28 million and proceeds from the issuance of common stock in a share purchase agreement of $2 million, offset by the $2 million return of proceeds upon cancellation of common stock previously issued.
Previous wording
We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. We consider accounting for income taxes, impairment of long-lived assets, and impairment of goodwill to be critical accounting estimates. There are other items within our financial statements that require estimation but are not deemed critical, as defined above.
Current wording
We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. We consider accounting for the allowance for credit loss on loans receivable, impairment of long-lived assets, impairment of goodwill, and accruals for loss contingencies to be critical accounting estimates. There are other items within our financial statements that require estimation but are not deemed critical, as defined above.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Loss on investment in marketable securities
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Gain on investment in marketable securities
Previous report — wording carried elsewhere
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.