Allied Gaming & Entertainment Files 10-Q

TL;DR

**Allied Gaming & Entertainment filed its Q1 2024 10-Q. Check financials.**

AI Summary

Allied Gaming & Entertainment Inc. filed its 10-Q for the quarterly period ended March 31, 2024. The company, formerly known as Allied Esports Entertainment, Inc. and Black Ridge Acquisition Corp., is incorporated in Delaware and operates in the amusement and recreation services sector. Its business address is located at 745 Fifth Avenue, Suite 500, New York, NY 10151.

Why It Matters

This filing provides investors with an update on the company's financial performance and operational status for the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• Allied Gaming & Entertainment Inc. (company) — Registrant
• March 31, 2024 (date) — Quarterly period end date
• Allied Esports Entertainment, Inc. (company) — Former company name
• Black Ridge Acquisition Corp. (company) — Former company name
• 745 Fifth Avenue, Suite 500, New York, NY 10151 (location) — Business and mailing address

FAQ

Key Financial Figures

• $0.0001 — 5,313 shares of common stock, par value $0.0001 per share, were outstanding. ALLIED GA

Filing Documents

• ea0205929-10q_allied.htm (10-Q) — 774KB
• ea020592901ex31-1_allied.htm (EX-31.1) — 11KB
• ea020592901ex31-2_allied.htm (EX-31.2) — 11KB
• ea020592901ex32-1_allied.htm (EX-32.1) — 5KB
• ea020592901ex32-2_allied.htm (EX-32.2) — 4KB
• 0001213900-24-045259.txt ( ) — 5688KB
• agae-20240331.xsd (EX-101.SCH) — 70KB
• agae-20240331_cal.xml (EX-101.CAL) — 45KB
• agae-20240331_def.xml (EX-101.DEF) — 288KB
• agae-20240331_lab.xml (EX-101.LAB) — 548KB
• agae-20240331_pre.xml (EX-101.PRE) — 293KB
• ea0205929-10q_allied_htm.xml (XML) — 638KB

Financial Statements

Financial Statements

FINANCIAL

PART I FINANCIAL INFORMATION 1 ITEM 1. Financial 1 Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 1 Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 2 Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 5 Notes to Unaudited Condensed Consolidated Financial Statements 7 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 19 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk. 23 ITEM 4. Controls and Procedures. 23 PART II - OTHER INFORMATION 24 ITEM 1. Legal Proceedings. 24 ITEM 1A. Risk Factors. 24 ITEM 2. Unregistered Sales of Equity and Use of Proceeds. 24 ITEM 3. Defaults Upon Senior Securities. 24 ITEM 4. Mine Safety Disclosures. 24 ITEM 5. Other Information. 24 ITEM 6. Exhibits. 25

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ALLIED GAMING & ENTERTAINMENT INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets March 31, December 31, 2024 2023 (unaudited) Assets Current Assets Cash and cash equivalents $ 7,300,965 $ 16,320,583 Short-term investments 69,642,386 56,500,000 Interest receivable 1,319,578 792,223 Accounts receivable 477,790 529,369 Loan receivable 1,340,149 - Deposits, current portion 3,700,000 3,700,000 Prepaid expenses and other current assets 550,572 498,886 Total Current Assets 84,331,440 78,341,061 Restricted cash 5,000,000 5,000,000 Property and equipment, net 3,608,688 3,834,193 Digital assets 49,300 49,300 Intangible assets, net 6,009,070 6,254,731 Deposits, non-current portion 385,524 392,668 Operating lease right-of-use asset 5,141,048 5,415,678 Goodwill 12,490,536 12,729,056 Total Assets $ 117,015,606 $ 112,016,687 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 172,975 $ 371,830 Accrued expenses and other current liabilities 496,992 763,512 Deferred revenue 105,650 103,748 Operating lease liability, current portion 1,484,332 1,482,977 Loans payable 14,856,822 9,230,168 Total Current Liabilities 17,116,771 11,952,235 Operating lease liability, non-current portion 5,191,538 5,560,251 Deferred tax liability 1,075,620 1,096,160 Total Liabilities 23,383,929 18,608,646 Commitments and Contingencies (Note 9) Stockholders' Equity Preferred stock, $ 0.0001 par value, 1,000,000 shares authorized, none issued and outstanding - - Series A Preferred stock, $ 0.0001 par value, 50,000 shares designated, none issued and outstanding - - Common stock, $ 0.0001 par value; 100,000,000 shares authorized, 47,795,097 and 39,085,470 shares issued at March 31, 2024 andDecember 31, 2023, and 45,515,313 and 36,805,686 shares outstanding at March 31, 2024 and December 31, 2023, respectively 4,780 3,909

financial statements

financial statements. 4 ALLIED GAMING & ENTERTAINMENT INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (unaudited) For the Three Months Ended March 31, 2024 2023 Cash Flows From Operating Activities Net loss $ ( 1,829,451 ) $ ( 1,893,787 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 471,600 5,126 Non-cash operating lease expense 270,027 227,136 Digital currency received as revenue - ( 26 ) Expenses paid using digital assets - 395 Depreciation and amortization 373,731 578,560 Changes in operating assets and liabilities: Accounts receivable 55,440 ( 233,684 ) Interest receivable ( 527,353 ) ( 624,815 ) Prepaid expenses and other current assets ( 52,239 ) ( 264,837 ) Accounts payable ( 184,702 ) 164,163 Accrued expenses and other current liabilities ( 361,443 ) 251,495 Operating lease liability ( 362,834 ) ( 280,615 ) Deferred revenue 1,902 1,037,772 Total Adjustments ( 315,871 ) 860,670 Net Cash Used In Operating Activities ( 2,145,322 ) ( 1,033,117 ) Cash Flows From Investing Activities Expenditures on software development costs - ( 49,950 ) Issuance of short-term loan ( 1,340,149 ) - Proceeds from maturing of short-term investments 6,500,000 - Purchases of short-term investments ( 19,642,386 ) ( 4,500,000 ) Purchases of intangible assets - ( 508,500 ) Purchases of property and equipment ( 10,639 ) ( 36,934 ) Net Cash Used In Investing Activities ( 14,493,174 ) ( 5,095,384 ) Cash Flows From Financing Activities Repurchases of common stock - ( 1,459,078 ) Proceeds from issuance of common stock in share purchase agreement 2,000,000 - Proceeds from short-term loan 5,626,654 - Net Cash Provided By (Used In) Financing Activities 7,626,654 ( 1,459,078 ) The accompanying notes are an integral part of these condensed consolidated

financial statements

financial statements. 5 ALLIED GAMING & ENTERTAINMENT INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows, continued (unaudited) For the Three Months Ended March 31, 2024 2023 Effect of Exchange Rate Changes on Cash ( 7,776 ) 7,328 Net Decrease In Cash, Cash Equivalents, And Restricted Cash ( 9,019,618 ) ( 7,580,251 ) Cash, cash equivalents, and restricted cash - Beginning of Period 21,320,583 16,167,442 Cash, cash equivalents, and restricted cash - End of Period $ 12,300,965 $ 8,587,191 Cash and restricted cash consisted of the following: Cash $ 7,300,965 $ 3,587,191 Restricted cash 5,000,000 5,000,000 $ 12,300,965 $ 8,587,191 The accompanying notes are an integral part of these condensed consolidated

financial statements

financial statements. 6 ALLIED GAMING & ENTERTAINMENT INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited) Note 1 – Business Organization and Nature of Operations Allied Gaming & Entertainment Inc. ("AGAE" and together with its subsidiaries, "the Company") operates a public esports and entertainment company through its wholly owned subsidiaries Allied Esports International, Inc., ("AEII"), Esports Arena Las Vegas, LLC ("ESALV"), Allied Mobile Entertainment Inc. ("AME"), Allied Mobile Entertainment (Hong Kong) Limited ("AME-HK"), Allied Experiential Entertainment Inc. ("AEE"), Skyline Music Entertainment (Hong Kong) Limited ("Skyline HK"), and Allied Esports GmbH ("AEG"). AEII produces a variety of esports and gaming-related content, including world class tournaments, live and virtual events, and original programming to continuously foster an engaged gaming community. ESALV operates HyperX Arena Las Vegas, the world's most recognized esports facility. AME-HK is a wholly owned subsidiary of AME and has a 40 % interest in Beijing Lianzhong Zhihe Technology Co. ("ZTech"). ZTech is engaged in the development and distribution of mobile casual games in China. AEE owns a 51 % interest in Skyline Music Entertainment Limited ("Skyline"), which is principally engaged in the organization of events, shows and concerts by top entertainment artists. AEG is currently inactive. Note 2 – Significant Accounting Policies There have been no material changes to the Company's significant accounting policies as set forth in the Company's audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission ("SEC") on March 28, 2024, as amended by the Form 10-K/A filed on April 29, 2024. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accorda

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View this 10-Q filing on SEC EDGAR