Allied Gaming & Entertainment Inc. (AGAE) reported significant financial changes in its 10-Q filing for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for the third quarter increased to $2.2 million, up from $1.1 million, while revenues for the nine months rose to $7.2 million from $5.6 million. This growth was primarily driven by the introduction of casual mobile gaming revenue, which generated $0.8 million in Q3 2024, attributed to AGAE's acquisition of a 40% interest in ZTech, a mobile game developer, in October 2023.
Despite the revenue increase, AGAE reported a net loss of $4.0 million for Q3 2024, a stark contrast to a net income of $75,000 in Q3 2023. For the nine-month period, the net loss escalated to $9.7 million from $2.5 million in the prior year. The company's loss from operations also widened, reaching $(1.2 million) in Q3 2024 compared to $(640,000) in Q3 2023, and $(9.1 million) for the nine months, up from $(4.7 million).
Total costs and expenses for the third quarter increased to $3.3 million, up from $1.8 million, driven by higher general and administrative expenses, which rose by 47% to approximately $1.3 million. This increase was influenced by new hires and stock-based compensation related to restricted share awards. Additionally, AGAE recognized a $3.0 million loss related to a settlement with Brookfield Property Partners.
As of September 30, 2024, AGAE's total assets increased to $129.8 million from $112.0 million at the end of 2023, while total liabilities rose significantly to $45.3 million from $18.6 million, largely due to increased current liabilities. The company reported cash and cash equivalents of $11.0 million, down from $16.3 million at the end of 2023.
AGAE's strategic focus includes expanding its presence in the esports and mobile gaming sectors, with plans to adapt to technological advancements and market trends. The company is also navigating legal challenges, including a proxy contest initiated by Knighted Pastures LLC, which has resulted in increased legal expenses.
About Allied Gaming & Entertainment Inc.
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