GameSquare Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
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, 2024 · Filed Nov 14, 2024
GAME$2.58+3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-15.
0001493152-24-032651
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045915
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 251 previous paragraphs and 251 current paragraphs.
192 unchanged; 46 reworded; 13 added; 10 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 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
Frankly Media
Current report
Nine months ended September 30, 2024 and 2023
Current report
Restructuring charges for the nine months ended September 30, 2024, were $0.5 million, in comparison to $0.4 million for the same period in 2023. The variance was not significant.
Current report
Loss on extinguishment of debt
Current report
Loss on extinguishment of debt for the nine months ended September 30, 2024, was $1.0 million, in comparison to $0 for the same period in 2023. The Company recognized a day one loss on issuance of debt of $1.4 million on July 8, 2024 in connection with the issuance of the Yorkville CD. The loss is presented net of the $0.3 million gain on extinguishment of the King Street CD which was paid down in full on July 10, 2024.
Current report
Agency revenue for the three months ended September 30, 2024, was $3.3 million, in comparison to $2.8 million for the same period in 2023.
Current report
Interest expense, net
Current report
Interest expense, net for the three months ended September 30, 2024, was $0.1 million, in comparison to $0.2 million for the same period in 2023. The variance between the periods was not significant.
Current report
Loss on extinguishment of debt
Current report
Loss on extinguishment of debt for the three months ended September 30, 2024, was $1.0 million, in comparison to $0 for the same period in 2023. The Company recognized a day one loss on issuance of debt of $1.4 million on July 8, 2024 in connection with the issuance of the Yorkville CD. The loss is presented net of the $0.3 million gain on extinguishment of the King Street CD which was paid down in full on July 10, 2024.
Current report
Change in fair value of warrant liability income (expense) for the three months ended September 30, 2024, was $26 thousand, in comparison to $0.1 million for the same period in 2023. Prior to the Engine acquisition, we did not have any liability measured warrants. The variance between the periods was not significant.
Current report
Other income (expense) for the three months ended September 30, 2024, was $0, in comparison to $(0.2) million for the same period in 2023. The variance between the periods was not significant.
Current report
Critical Accounting Policies
Removed paragraphs (10)
Previous report
Frankly
Previous report
Frankly Inc. (“Frankly”), through its wholly-owned subsidiary Frankly Media, LLC, provides a complete suite of solutions that give publishers a unified workflow for the creation, management, publishing and monetization of digital content to any device, while maximizing audience value and revenue.
Previous report
Frankly’s products include a ground-breaking online video platform for Live, Video-on-Demand (“VOD”) and Live-to-VOD workflows, a full-featured content management system with rich storytelling capabilities, as well as native apps for iOS, Android, Apple TV, Fire TV and Roku.
Previous report
The Notice alleges that due to the Company’s failure to maintain its 51% economic interest in FaZe Media, Inc. and other actions, one or more events of default under the King Street CD, including with respect to the terms of that side letter and consent agreement dated May 13, 2024 between the Company and King Street (the “Consent”), have occurred. Pursuant to the Notice, King Street demanded immediate repayment of the full principal amount, premiums, and accrued interest under the King Street CD.
Previous report
If it is ultimately determined that events of default exist under the King Street Note and that the Notice was properly provided on behalf of the Holder, the outstanding principal amount of the King Street Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof will be due and payable. From and after an event of default, all such amounts due and owing to King Street would bear interest at 18% per annum, or such lower maximum amount of interest permitted to be charged under applicable law.
Previous report
The Company strongly disagrees with the assertion that events of default have occurred under the King Street CD based on, inter alia, a plain language reading of the Consent and interpretive caselaw regarding the plain language. The Company will pursue a defense to any enforcement action taken by King Street, but the Company cannot guarantee a resolution on a timely basis, on favorable terms, or at all. If the Company is unable to resolve the alleged defaults under the King Street Note, it would have a material adverse effect on the Company’s liquidity, financial condition and results of operations.
Previous report
Restructuring charges for the six months ended June 30, 2024, were $0.1 million, in comparison to $0.3 million for the same period in 2023. The decrease was primarily related to acquisition of Engine and associated restructuring activities at GameSquare in advance of closing of the acquisition. Various restructuring activities at FaZe occurred prior to the closing of the acquisition on March 7, 2024, and therefore, the associated expenses are not included in the Company’s financial results for the period.
Previous report
Agency revenue for the three months ended June 30, 2024, was $2.0 million, in comparison to $2.9 million for the same period in 2023.
Previous report
Interest expense
Previous report
Change in fair value of convertible debt gain (loss) for the three months ended June 30, 2024, was $0.6 million, in comparison to 0.5 million for the same period in 2023. The variance between the periods was not significant.
Reworded paragraphs (46)
Previous wording
Frankly also provides comprehensive advertising products and services, including direct sales and programmatic ad support. With the release of its server side ad insertion (SSAI) platform, Frankly has been positioned to help video producers take full advantage of the growing market in addressable advertising.
Current wording
Frankly Media provides comprehensive advertising products and services, including direct sales and programmatic ad support.
Previous wording
On June 21, 2024, the Company received a notice of alleged event of default and a demand for payment of the full principal amount, together with premiums and interest thereon (the “Notice”), from King Street Partners LLC (“King Street”), the holder of that certain 12.75% Convertible Senior Secured Note with a principal amount of $5,800,000 dated December 29, 2023.
Current wording
On June 21, 2024, the Company received a notice from King Street Partners LLC (“King Street”), the holder of a 12.75% Convertible Senior Secured Note with a principal amount of $5,800,000 dated December 29, 2023. The notice objected to the Company’s ability to maintain its 51% economic interest in FaZe Media, Inc. and other related matters.
Previous wording
On June 17, 2024, the Company entered into an agreement to sell 5,725,000 of its 11,450,000 shares of Series A-1 Preferred Stock of Faze Media to M40A3 LLC (“M4”) in exchange for $9.5 million (the “Secondary SPA”). The first 2,862,500 share tranche was issued on June 17, 2024 for consideration of $4.75 million and the remaining 2,862,500 will be issued on August 15, 2024.
Current wording
On June 17, 2024, the Company entered into an agreement to sell 5,725,000 of its 11,450,000 shares of Series A-1 Preferred Stock of Faze Media to M40A3 LLC (“M4”) in exchange for $9.5 million (the “Secondary SPA”). The first 2,862,500 share tranche was issued on June 17, 2024 for consideration of $4.75 million and the remaining 2,862,500 was issued on August 15, 2024 for consideration of $4.75 million.
Previous wording
As a result of the above transactions, the Company recorded a non-controlling interest in Faze Media, Inc. of $15,750,000, the sum of cash consideration received, within the consolidated statements of stockholders’ equity.
Current wording
As a result of the above transactions, the Company recorded a non-controlling interest in Faze Media, Inc. of $20,500,000, the sum of cash consideration received, within the consolidated statements of stockholders’ equity.
Previous wording
The following is a summary of the Company’s financial performance highlights for the three and six months ended June 30, 2024 and 2023. This summary should be considered in the context of the additional disclosures in this MD&A which further highlight Company results by segment.
Current wording
The following is a summary of the Company’s financial performance highlights for the three and nine months ended September 30, 2024 and 2023. This summary should be considered in the context of the additional disclosures in this MD&A which further highlight Company results by segment.
Previous wording
The following table summarizes our results of operations for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023:
Current wording
Thefollowing table summarizes our results of operations for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023:
Previous wording
The following tables disaggregate revenue by revenue stream and geographic region for the three and six months ended June 30, 2024, and 2023.
Current wording
The following tables disaggregate revenue by revenue stream and geographic region for the three and nine months ended September 30, 2024, and 2023.
Previous wording
Revenues for the six months ended June 30, 2024, were $46.3 million, in comparison to $14.2 millionfor the same period in 2023. The increase was primarily related to the acquisition of Engine on April 11, 2023 and the acquisition of FaZe on March 7, 2024.
Current wording
Revenues for the nine months ended September 30, 2024, were $72.7 million, in comparison to $25.7 millionfor the same period in 2023. The increase was primarily related to the acquisition of Engine on April 11, 2023 and the acquisition of FaZe on March 7, 2024.
Previous wording
Teams revenue for the six months ended June 30, 2024, was $15.8 million, in comparison to $0 for the same period in 2023. The increase was related to our acquisition of FaZe on March 7, 2024. As such, there is no revenue is this operating segment in the prior year period.
Current wording
Teams revenue for the nine months ended September 30, 2024, was $25.3 million, in comparison to $0 for the same period in 2023. The increase was related to our acquisition of FaZe on March 7, 2024. As such, there is no revenue is this operating segment in the prior year period.
Previous wording
Agency revenue for the six months ended June 30, 2024, was $5.0 million, in comparison to $5.7 million for the same period in 2023. The variance was not significant.
Current wording
Agency revenue for the nine months ended September 30, 2024, was $8.3 million, in comparison to $8.5 million for the same period in 2023. The variance was not significant.
Previous wording
SaaS + Advertising revenue for the six months ended June 30, 2024, was $25.5 million, in comparison to $8.4 million for the same period in 2023. The increase was related to our acquisition of Engine on April 11, 2023. As such, there is only one quarter of SaaS + Advertising revenue for this operating segment in the prior year period. The large increase in revenue is also due to significant growth derived primarily from programmatic advertising year over year.
Current wording
SaaS + Advertising revenue for the nine months ended September 30, 2024, was $39.2 million, in comparison to $17.1 million for the same period in 2023. The increase was related to our acquisition of Engine on April 11, 2023. As such, there is only two quarters of SaaS + Advertising revenue for this operating segment in the prior year period. The large increase in revenue is also due to significant growth derived primarily from programmatic advertising year over year.
Previous wording
Cost of sales for the six months ended June 30, 2024, was $38.7 million, in comparison to $10.1 million for the same period in 2023. The increase was primarily related to an increase in revenue associated with the acquisitions of FaZe and Engine discussed above, and varying margins of the Company product mix.
Current wording
Cost of sales for the nine months ended September 30, 2024, was $59.9 million, in comparison to $19.1 million for the same period in 2023. The increase was primarily related to an increase in revenue associated with the acquisitions of FaZe and Engine discussed above, and varying margins of the Company product mix.
Previous wording
General and administrative expenses for the six months ended June 30, 2024, was $12.1 million, in comparison to $6.9 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included from April 11, 2023 forward.
Current wording
General and administrative expenses for the nine months ended September 30, 2024, was $18.2 million, in comparison to $11.6 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included from April 11, 2023 forward.
Previous wording
Selling and marketing expenses for the six months ended June 30, 2024, was $4.7 million, in comparison to $2.5 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included from April 11, 2023 forward.
Current wording
Selling and marketing expenses for the nine months ended September 30, 2024, was $6.9 million, in comparison to $3.9 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above. Faze was not part of the prior year comparable results and Engine was included from April 11, 2023 forward.
Previous wording
Research and development expenses for the six months ended June 30, 2024, was $1.6 million, in comparison to $0.7 million for the same period in 2023. The increase was the result of an increase in expenses from the operations of Engine that were included in the 2023 period from April 11, 2023 forward.
Current wording
Research and development expenses for the nine months ended September 30, 2024, was $2.4 million, in comparison to $1.1 million for the same period in 2023. The increase was the result of an increase in expenses from the operations of Engine that were included in the 2023 period from April 11, 2023 forward.
Previous wording
Depreciation and amortization for the six months ended June 30, 2024, was $1.7 million, in comparison to $0.7 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above and the related long-lived assets and intangible assets acquired in connection with these acquisitions.
Current wording
Depreciation and amortization for the nine months ended September 30, 2024, was $2.5 million, in comparison to $1.3 million for the same period in 2023. The increase was primarily related to our acquisitions of Faze and Engine as discussed above and the related long-lived assets and intangible assets acquired in connection with these acquisitions.
Previous wording
Other operating expenses for the six months ended June 30, 2024, was $2.1 million, in comparison to $1.5 million for the same period in 2023. Other operating expenses between the quarters consisted solely of transaction related expenses. The increase was primarily related to additional transaction activities in the 2024 period. The 2024 period included transaction costs associated with the acquisition of FaZe, the disposal of Complexity, the Faze Media Inc. asset contribution and the Franky Media asset disposal, while the 2023 period only included transaction costs associated with the acquisition of Engine.
Current wording
Other operating expenses for the nine months ended September 30, 2024, was $3.4 million, in comparison to $2.2 million for the same period in 2023. Other operating expenses between the quarters consisted primarily of transaction related expenses. The increase was primarily related to additional transaction activities in the 2024 period. The 2024 period included transaction costs associated with the acquisition of FaZe, the disposal of Complexity, the Faze Media Inc. asset contribution and the Franky Media asset disposal, while the 2023 period only included transaction costs associated with the acquisition of Engine.
Previous wording
Interest expense for the six months ended June 30, 2024, was $0.6 million, in comparison to $0.1 million for the same period in 2023. The increase was primarily related interest expense on convertible debt acquired in connection with the acquisition of Engine and line of credit that was closed in September 2023. We did not have comparable debt instruments outstanding during the comparative period.
Current wording
Interest expense for the nine months ended September 30, 2024, was $0.7 million, in comparison to $0.4 million for the same period in 2023. The increase was primarily related interest expense on convertible debt acquired in connection with the acquisition of Engine and line of credit that was closed in September 2023. We did not have comparable debt instruments outstanding for all of the comparative period.
Previous wording
Change in fair value of convertible debt gain (loss) for the six months ended June 30, 2024, was $0.5 million, in comparison to 0.5 million for the same period in 2023. Prior to the Engine acquisition, we did not have any convertible debt. The change represents adjusting the convertible debt to fair value at the end of the reporting period, primarily driven by changes in our share price.
Current wording
Change in fair value of convertible debt income (expense) for the nine months ended September 30, 2024, was $0.4 million, in comparison to 0.5 million for the same period in 2023. Prior to the Engine acquisition, we did not have any convertible debt. The change represents adjusting the convertible debt to fair value at the end of the reporting period, primarily driven by changes in our share price.
Previous wording
Change in fair value of warrant liability gain (loss) for the six months ended June 30, 2024, was $53 thousand, in comparison to $1.7 million for the same period in 2023. Prior to the Engine acquisition, we did not have any liability measured warrants. The gain represents adjusting the liability measured warrants to fair value at the end of the reporting period, primarily driven by changes in our share price. The large reduction in gain is primarily driven by the expiration of the majority of the liability measured warrants, and therefore the change in fair value from period to period is not significant in the current period.
Current wording
Change in fair value of warrant liability income (expense) for the nine months ended September 30, 2024, was $0.1 million, in comparison to $1.8 million for the same period in 2023. Prior to the Engine acquisition, we did not have any liability measured warrants. The gain represents adjusting the liability measured warrants to fair value at the end of the reporting period, primarily driven by changes in our share price. The large reduction in gain is primarily driven by the expiration of the majority of the liability measured warrants, and therefore the change in fair value over the current period is not significant.
Previous wording
Arbitration settlement reserve gain (loss) for the six months ended June 30, 2024, was $0.1 million, in comparison to $0.7 million for the same period in 2023. Prior to the Engine acquisition, we did not have an arbitration settlement reserve. The change represents adjusting the arbitration settlement reserve to fair value at the end of the reporting period, primarily driven by changes in our share price.
Current wording
Arbitration settlement reserve income (expense) for the nine months ended September 30, 2024, was $0.3 million, in comparison to $1.0 million for the same period in 2023. Prior to the Engine acquisition, we did not have an arbitration settlement reserve. The change represents adjusting the arbitration settlement reserve to fair value at the end of the reporting period, primarily driven by changes in our share price.
Previous wording
Other income (expense) for the six months ended June 30, 2024, was $(4.1) million, in comparison to $38 thousand for the same period in 2023. Other expense in the current period is primarily related to loss incurred of $3.8 million on the disposal of Frankly Media remaining SaaS assets which closed on May 31, 2024. No such loss was incurred in the prior period.
Current wording
Other income (expense) for the nine months ended September 30, 2024, was $(4.1) million, in comparison to $(0.2) million for the same period in 2023. Other expense in the current period is primarily related to loss incurred of $3.8 million on the disposal of Frankly Media remaining SaaS assets which closed on May 31, 2024. No such loss was incurred in the prior period.
Previous wording
There was no income tax benefit for the six months ended June 30, 2024, in comparison to $5 thousand for the same period in 2023. The change was trivial between the two periods and relates to change in deferred tax liabilities.
Current wording
There was no income tax benefit for the nine months ended September 30, 2024, in comparison to $16 thousand for the same period in 2023. The change was trivial between the two periods and relates to change in deferred tax liabilities.
Previous wording
Net income from discontinued operations for the six months ended June 30, 2024, was $1.3 million, in comparison to a net loss of $2.8 million for the same period in 2023. The increase was primarily related to gain on disposal of Complexity of $3.0 million in the 2024 period partially offset by net loss from operations of Complexity of $1.4 million as compared to a net loss from operations of Complexity of $2.6 million in the 2023 period.
Current wording
Net income from discontinued operations for the nine months ended September 30, 2024, was $1.3 million, in comparison to a net loss of $2.3 million for the same period in 2023. The increase was primarily related to gain on disposal of Complexity of $3.0 million in the 2024 period partially offset by net loss from operations of Complexity of $1.4 million as compared to a net loss from operations of Complexity of $2.7 million in the 2023 period.
Previous wording
Revenues for the three months ended June 30, 2024, were $28.6 million, in comparison to $11.4 millionfor the same period in 2023. The increase was primarily related to the acquisition of FaZe on March 7, 2024 along with the large increase in programmatic advertising revenue at Frankly.
Current wording
Revenues for the three months ended September 30, 2024, were $26.4 million, in comparison to $11.5 millionfor the same period in 2023. The increase was primarily related to the acquisition of FaZe on March 7, 2024 along with the large increase in programmatic advertising revenue at Frankly.
Previous wording
Teams revenue for the three months ended June 30, 2024, was $13.3 million, in comparison to $0 for the same period in 2023. The increase was related to our acquisition of FaZe on March 7, 2024. As such, there is no revenue for this operating segment in the prior year period.
Current wording
Teams revenue for the three months ended September 30, 2024, was $9.4 million, in comparison to $0 for the same period in 2023. The increase was related to our acquisition of FaZe on March 7, 2024. As such, there is no revenue for this operating segment in the prior year period.
Previous wording
SaaS + Advertising revenue for the three months ended June 30, 2024, was $13.3 million, in comparison to $8.4 million for the same period in 2023. The increase was related to our acquisition of Engine on April 11, 2023. The large increase in revenue is due to significant growth derived primarily from programmatic advertising year over year.
Current wording
SaaS + Advertising revenue for the three months ended September 30, 2024, was $13.7 million, in comparison to $8.7 million for the same period in 2023. The increase was related to our acquisition of Engine on April 11, 2023. The large increase in revenue is due to significant growth derived primarily from programmatic advertising year over year.
Previous wording
Cost of sales for the three months ended June 30, 2024, was $24.4 million, in comparison to $8.6 million for the same period in 2023. The increase was primarily related to an increase in revenue associated with the acquisition of FaZe discussed above, and varying margins of the Company product mix.
Current wording
Cost of sales for the three months ended September 30, 2024, was $21.2 million, in comparison to $9.0 million for the same period in 2023. The increase was primarily related to an increase in revenue associated with the acquisition of FaZe and Frankly discussed above, and varying margins of the Company product mix.
Previous wording
General and administrative expenses for the three months ended June 30, 2024, was $7.1 million, in comparison to $4.2 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above. Faze was not part of the prior year comparable results.
Current wording
General and administrative expenses for the three months ended September 30, 2024, was $6.2 million, in comparison to $4.7 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above. Faze was not part of the prior year comparable results.
Previous wording
Selling and marketing expenses for the three months ended June 30, 2024, was $2.4 million, in comparison to $1.7 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above. Faze was not part of the prior year comparable results.
Current wording
Selling and marketing expenses for the three months ended September 30, 2024, was $2.2 million, in comparison to $1.5 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above. Faze was not part of the prior year comparable results.
Previous wording
Research and development expenses for the three months ended June 30, 2024, was $0.9 million, in comparison to $0.7 million for the same period in 2023. The variance between the periods was not significant.
Current wording
Research and development expenses for the three months ended September 30, 2024, was $0.8 million, in comparison to $0.4 million for the same period in 2023. The variance between the periods was not significant.
Previous wording
Depreciation and amortization for the three months ended June 30, 2024, was $1.0 million, in comparison to $0.6 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above and the related long-lived assets and intangible assets acquired in connection with the acquisition.
Current wording
Depreciation and amortization for the three months ended September 30, 2024, was $0.8 million, in comparison to $0.6 million for the same period in 2023. The increase was primarily related to our acquisition of Faze as discussed above and the related long-lived assets and intangible assets acquired in connection with the acquisition.
Previous wording
Other operating expenses for the three months ended June 30, 2024, was $1.0 million, in comparison to $1.0 million for the same period in 2023. Other operating expenses between the quarters consisted solely of transaction related expenses. The variance between the periods was not significant.
Current wording
Other operating expenses for the three months ended September 30, 2024, was $1.3 million, in comparison to $0.7 million for the same period in 2023. Other operating expenses between the quarters consisted solely of transaction related expenses. The variance between the periods was not significant.
Previous wording
Interest expense for the three months ended June 30, 2024, was $0.2 million, in comparison to $0.1 million for the same period in 2023. The increase was primarily related to a line of credit that was closed in September 2023. We did not have comparable debt instruments outstanding during the comparative period.
Current wording
Change in fair value of convertible debt income (expense) for the three months ended September 30, 2024, was $(0.1) million, in comparison to $0.1 million for the same period in 2023. The variance between the periods was not significant.
Previous wording
Arbitration settlement reserve gain (loss) for the three months ended June 30, 2024, was $44 thousand, in comparison to $0.7 million for the same period in 2023. Prior to the Engine acquisition, we did not have an arbitration settlement reserve. The change represents adjusting the arbitration settlement reserve to fair value at the end of the reporting period, primarily driven by changes in our share price. The decrease in gain is due to the large gain in the prior year period. There was a larger reduction in our share price from the beginning to the end of the reporting period in the prior year.
Current wording
Arbitration settlement reserve income (expense) for the three months ended September 30, 2024, was $0.1 million, in comparison to $0.2 million for the same period in 2023. Prior to the Engine acquisition, we did not have an arbitration settlement reserve. The change represents adjusting the arbitration settlement reserve to fair value at the end of the reporting period, primarily driven by changes in our share price. The variance between the periods was not significant.
Previous wording
Net loss from discontinued operations for the three months ended June 30, 2024, was $0.2 million, in comparison to a net loss of $1.5 million for the same period in 2023. The decrease in net loss was due to net loss from operations of Complexity of $0 in the current period (disposed of on March 1, 2024) as compared to a net loss from operations of Complexity of $1.3 million in the 2023 period.
Current wording
Net income (loss) from discontinued operations for the three months ended September 30, 2024, was $0, in comparison to a net income of $0.4 million for the same period in 2023. The decrease in net income was due to net loss from operations of Complexity of $0 in the current period (disposed of on March 1, 2024) as compared to a net loss from operations of Complexity of $0.1 million in the 2023 period. The 2023 period also included net income of $0.5 million from the operations of Winview, which was driven by income recognized in connection with a patent legal settlement wherein Winview legal fees were forgiven.
Previous wording
As of June 30, 2024, cash and restricted cash totaled $14.5 million, compared to $3.0 million as of December 31, 2023.
Current wording
As of September 30, 2024, cash and restricted cash totaled $11.2 million, compared to $3.0 million as of December 31, 2023.
Previous wording
Since inception, we have financed our operations primarily by issuing equity and debt. As of June 30, 2024, our principal sources of liquidity were our cash in the amount of $13.9 million, available borrowings under our line of credit as well as new debt and/or equity issuances.
Current wording
Since inception, we have financed our operations primarily by issuing equity and debt. As of September 30, 2024, our principal sources of liquidity were our cash in the amount of $11.2 million, available borrowings under our line of credit as well as new debt and/or equity issuances.
Previous wording
Net cash used in operating activities was $17.6 million during the six months ended June 30, 2024, compared with $6.9 million used in operating activities in the comparative period. The use of funds in operating activities is described in the Results of Operations section above.
Current wording
Net cash used in operating activities was $25.4 million during the nine months ended September 30, 2024, compared with $10.2 million used in operating activities in the comparative period. The use of funds in operating activities is described in the Results of Operations section above.
Previous wording
Net cash provided by investing activities was $2.8 million for the six months ended June 30, 2024.
Current wording
Net cash provided by investing activities was $2.7 million for the nine months ended September 30, 2024.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Six months ended June 30, 2024 and 2023
Previous report — wording carried elsewhere
Change in fair value of warrant liability gain (loss) for the three months ended June 30, 2024, was $16 thousand, in comparison to $1.7 million for the same period in 2023. Prior to the Engine acquisition, we did not have any liability measured warrants. The gain represents adjusting the liability measured warrants to fair value at the end of the reporting period, primarily driven by changes in our share price. The large reduction in gain is primarily driven by the expiration of the majority of the liability measured warrants, and therefore the change in fair value from period to period is not significant in the current period.
Previous report — wording carried elsewhere
Other income (expense) for the three months ended June 30, 2024, was $(3.9) million, in comparison to $39 thousand for the same period in 2023. Other expense in the current period is primarily related to loss incurred of $3.8 million on the disposal of Frankly Media remaining SaaS assets which closed on May 31, 2024. No such loss was incurred in the prior period.