Q2 2024 Allied Gaming & Entertainment Inc Earnings Call
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Operator: Good day, everyone, and welcome to the Allied Gaming and Entertainment Inc. 2nd quarter 2024, earnings conference call. At this time, all participants are in a listen-only mode.
Speaker Change: Good day, everyone and welcome to the Allied Gaming and Entertainment, Inc. Second quarter 2024 earnings Conference call. At this time, all participants are in a listen only mode.
Operator: Good day everyone, and welcome to the Allied Gaming and Entertainment Inc. Second Quarter 2024 Earnings Conference Call.
Operator: Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Operator: At this time, all participants are in a listen-only mode.
Operator: Today's call will be recorded and I will be standing by should you need any assistance.
Operator: Thank you for your participation.
Operator: Today's call will be recorded, and I will be standing by should you need any assistance.
Operator: Today's call will be recorded, and I will be standing by should you need any assistance?
Speaker Change: Today's call will be recorded and I will be standing by should you need any assistance.
Operator: It is now my pleasure to turn the conference over to Tyler Drew with ADDO Investor Relations.
Tyler Drew: It is now my pleasure to turn the conference over to Tyler Drew with Addo Investor Relations.
Tyler Drew: It is now my pleasure to turn the conference over to Tyler Drew with Addo Investor Relations.
It is now my pleasure to turn the conference over to Tyler true with Auto Investor Relations. Please go ahead.
Operator: Please go ahead.
Tyler Drew: Please go ahead. Thank you, operator.
Tyler Drew: Please go ahead, and Entertainment's Chief Executive Officer, Yinghua Chen, and Chief Financial Officer, Roy Anderson.
Tyler True: Thank you operator, good afternoon, and welcome to the Allied gaming and Entertainment second quarter 2024 earnings Conference call.
Tyler Drew: Good afternoon, and welcome to the Allied Gaming and Entertainment 2nd quarter 2024 earnings conference call.
Operator: Thank you, operator.
Tyler Drew: Speaking on the call today, our Allied Gaming and Entertainment's Chief Executive Officer, Yinghua Chen, and Chief Financial Officer, Roy Anderson. Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements. Words such as may, will, expect, and tend, plan, believe, speak, could, estimate, judgment, targeting, good, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Exchange Commission.
Speaker Change: Speaking on the call today are Allied gaming and entertainment <unk>, Chief Executive Officer, Jim, What Chen and Chief Financial Officer Roy Anderson.
Tyler Drew: Good afternoon and welcome to the Allied Gaming, and Entertainment Second Quarter 2024 Earnings Conference Call.
Tyler Drew: Speaking on the call today are
Tyler Drew: Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements, words such as may, will, expect, intend, plan, believe, seek, should estimate judgment targeting, should anticipate goal, and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Exchange Commission.
Speaker Change: Before I turn the call over to management. Please note that our prepared remarks may contain forward looking statements.
Speaker Change: Words, such as May will expect intend plan believe seek.
Good estimate judgement targeting.
Speaker Change: Anticipate goal and variations of these words and similar expressions are intended to identify forward looking statements.
Speaker Change: Actual results could differ materially from those implied by such forward looking statements due to a variety of factors discussed in the Companys public filings.
Speaker Change: <unk> the risk factors discussed in documents filed with the Securities and Exchange Commission.
Tyler Drew: Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Tyler Drew: Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, It can give no assurance that its expectations will be attained.
Speaker Change: Although the company believes the expectations reflected in such forward looking statements are based upon reasonable assumptions.
Speaker Change: It can give no assurance that its expectations will be attained.
Tyler Drew: The company undertakes no obligation to update any for-looking statement, whether as a result of new information, future events, or otherwise.
Speaker Change: The company undertakes no obligation to update any forward looking statement, whether as a result of new information future events or otherwise.
Tyler Drew: In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon, is available on the company's website, presents definitions of such non-GAAP financial measures, reconciliation to the appropriate GAAP measures, and an explanation of why the company believes such non-GAAP financial measures are useful to investors.
Tyler Drew: In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon, is available on the company's website, presents definitions of such non-GAAP financial measures, reconciliations to the appropriate GAAP measures, and an explanation of why the company believes such non-GAAP financial measures are useful to investors.
Speaker Change: In addition, certain of the financial information presented in this call represents non-GAAP financial measures.
The company's earnings release, which was issued this afternoon is available on the company's website presents definitions of such non-GAAP financial measures reconciliations to the appropriate GAAP measures.
And an explanation of why the company believes such non-GAAP financial measures are useful to investors.
Yinghua Chen: And with that, it's now my pleasure to turn the call over to Allied Gaming Entertainment CEO, Dean Watchen, Dean Wah. Thank you, Mr. Keller, and thank you all for joining us this afternoon. We are thrilled to speak with you today about the upward trajectory of our business, as we continue to gain traction, advancing our strategic initiatives. Notably, the tech is performing well. Our HyperX Arena remains in high demand, and just this morning, we announced the creation of the World Margin Tour, WMT. More than after the highly successful World Prokator, WMT will debut later this year, and I will provide more details on that shortly.
Tyler Drew: Allied Gaming and Entertainment's Chief Executive Officer, Yinghua Chen, and Chief Financial Officer, Roy Anderson.
Tyler Drew: And with that, it's now my pleasure to turn the call over to Allied Gaming and Entertainment CEO, Yinghua Chen.
And with that it's now my pleasure to turn the call over to ally gaming and entertainment CEO in watch and quinoa.
Tyler Drew: Before I turn the call over to management, please note that our prepared remarks, may contain forward-looking statements. Words such as may, will, expect, intend, plan, believe, seek, could, estimate, judgment, targeting, could, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statements.
Yinghua Chen: Yinghua.
Yinghua Chen: Thank you, Tyler, and thank you all for joining us this afternoon.
Speaker Change: Thank you Skyler and thank you all for joining US. This afternoon, we are thrilled to speak with you today about the upward trajectory of our business as we continue to gain traction advancing our strategic initiatives.
Yinghua Chen: We are thrilled to speak with you today about the upward trajectory of our business as we continue to gain traction advancing our strategic initiatives.
Tyler Drew: Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Exchange Commission.
Tyler Drew: Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained.
Tyler Drew: The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Yinghua Chen: Notably, ZTEK is performing well.
Speaker Change: Notably the tag is performing well.
Yinghua Chen: Our HyperX Arena remains in high demand.
Speaker Change: <unk> Arena remains in high demand and just this morning, we announced the creation of the world Mahjong toy that'd be empty.
Yinghua Chen: And just this morning, we announced the creation of the World Mahjong Tour, WMT.
Yinghua Chen: Modeled after the highly successful World Poker Tour, WMT will debut later this year, and I will provide more details on that shortly.
Modeled after the highly successful World Poker tour.
Speaker Change: <unk> will get back later this year and I will provide more details on that shortly.
Yinghua Chen: Our World Class HyperX Arena continues to be a hub of activities, hosting a wide variety of events this quarter, totaling 65 event dates, 40 of which were third-party events. We collaborated with the World Prokator on several of these events, which will be invaluable as we developed the World Margin Tour. Among the highlights was the WPT Seminole Hard Rock Poker Showdown Final Table, held at the Arena on May 29th, where Josh Richards claimed victory at nearly $1 million in prize money. The following day, on May 30th, we hosted the WPT Chapter Championship Final Table, where James Mackie secured the title and the seat at the upcoming WPT World Prokator Championship.
Yinghua Chen: Our world-class HyperX Arena continues to be a hub of activities, hosting a wide variety of events this quarter, totaling 65 event days, 40 of which were third-party events. We collaborated with the World Poker Tour on several of these events, which will be invaluable as we develop the World Mahjong Tour. Among the highlights was the WPT Seminole Hard Rock Poker Showdown final table held at the arena on May 29th, where Josh Richards claimed victory at nearly $1 million in prize money.
Speaker Change: Our World Class High priced arena continues to be a hub of activity hosting a wide variety of events this quarter totaling 65 events space.
Speaker Change: Of which less third party events.
Speaker Change: Collaborated with the World Poker tour with several of this event, which will be invaluable as we develop the wall mahjong tua.
Speaker Change: Among the highlights was the Wtt Seminole hard rock focus showed out final table.
Speaker Change: That'd be arena on May 29, we're just Richard claimed victory and nearly $1 million in prize money. The following day on May 30th.
Yinghua Chen: The following day, on May 30th, we hosted the WPT Choctaw Championship final table, where James Mackey secured the title and a seat at the upcoming WPT World Poker Championship.
<unk> dealt with BT Chuck Championship final table.
James Mackie: James Mackie secure at the title and a seat at the upcoming W. P T World Poker Championship.
Yinghua Chen: and other notable events this quarter included the Sonic Boom on official level-up after party. The Mobile Legends bang bang 2024 North America Challenger tournament spring grand finale and the licensing international excellence award. The Hatherec Serena truly embodies versatility, posing events that range from world-class poker tournaments to prestigious industry awards ceremonies, besides our esports and gaming events.
Yinghua Chen: Other notable events this quarter included the Sonic Boom Unofficial Level Up After Party, the Mobile Legends Bang Bang 2024 North America Challenger Tournament Spring Grand Finale, and the Licensing International Excellence Award.
Speaker Change: Other notable events. This quarter included the Sonic boom artificial level up after party the mobile Legends Bang Bang 'twenty 'twenty four North America Challenger tournaments spring Grand finale, and licensing International Excellence Award.
Yinghua Chen: The HyperX Arena truly embodies versatility, hosting events that range from world-class poker tournaments to prestigious industry awards ceremonies besides our esports and gaming events.
Speaker Change: They have the regs arena truly in bodies versatility hosting events and that range is from World class Poker tournament their prestigious industry awards ceremony, Besides our esports and gaming events.
Yinghua Chen: Now, let me turn to this morning's exciting announcement, the launch of the World Modjant Tour, a groundbreaking series of events that will bring the kind of game of Modjant to a global stage. Why is this so compelling for us? For starters, Modjant is a game of skill, strategy, and a touch of luck, with a history spanning over a century. Its popularity has been resurging in recent years, especially among the younger generation of the population. While it has always been a beloved game, it has never been monetized or brought to the market on a global scale until now.
Yinghua Chen: Now let me turn to this morning's exciting announcement, the launch of the World Mahjong Tour, a groundbreaking series of events that will bring the timeless game of Mahjong to a global stage.
Speaker Change: Now, let me turn to this morning's exciting announcements the launch of the world module to us.
Speaker Change: Groundbreaking series of events that will bring the timeless game of mahjong to a global stage.
Yinghua Chen: Why is this so compelling for us?
Speaker Change: Why is this so compelling for us.
Yinghua Chen: For starters, Mahjong is a game of skill, strategy, and a touch of luck, with a history spanning over a century. Its popularity has been resurging in recent years, especially among the younger generation of the population.
Speaker Change: <unk> module is a game of scale strategy.
Speaker Change: Have lunch with a history spanning all of our century.
Its popularity has been resurging in recent years, especially among the younger generation of the population.
Yinghua Chen: While it has always been a beloved game, it has never been monetized or brought to the market on a global scale until now.
Speaker Change: It has always been a beloved games. It has never been monetize are brought to the market on a global scale until now.
Yinghua Chen: Additionally, the WPT model has proven to be sustainable, and we have the experience required having owned, operated, and recently partnered with the World Poker Tour.
Yinghua Chen: Additionally, the WPT model has proven to be sustainable, and we have the experience required, having owned, operated, and recently partnered with the World Poker Tour. For the inaugural season, we will host a series of regional tournaments and events, dominating in the final at Hatherec Serena in the spring of 2025. WMT will leverage expertise from all three of AGE subsidiaries as we will introduce our proprietary mobile games, Modjant themed content production, and a comprehensive membership service model. This multi-faceted approach will drive brand awareness and will provide fans and players with a unique and immersive experience, both online and offline.
Speaker Change: Recently the W. P. T model has proven to be sustainable and we have the experian requires having owned operated and recently partnered with the ballpark mature.
Yinghua Chen: For the inaugural season, we will host a series of regional tournaments and events culminating in the final at HyperX Arena in the spring of 2025.
Speaker Change: For the inaugural season, we will host a series of regional tournaments and events, culminating in the final at Heartbreaks Arena.
Speaker Change: <unk> of 200 to the next slide.
Yinghua Chen: WMT will leverage expertise from all three of AGAE's subsidiaries as we will introduce our proprietary mobile games, modern themed content production, and a comprehensive membership service model. This multi-faceted approach will drive brand awareness and will provide fans and players with a unique and immersive experience both online and offline.
Speaker Change: <unk> will leverage expertise from all three of <unk> subsidiary.
Speaker Change: We will introduce our proprietary mobile games.
Speaker Change: Josephine content production and a comprehensive membership service model.
Speaker Change: This analysis does this approach will drive brand awareness and will provide fans and players with a unique and immersive experience both online and offline.
Yinghua Chen: We've been working diligently behind the scenes on this endeavor for the past year, and we are very optimistic that WMT will be a game-changer for us. While we will utilize resources from across the company, Allied Experiential Entertainment or AEE will be very involved in all aspects of WMT, and we are also excited with AEE's progress in other areas of business as it continues to expand on its opportunities in Asia.
Yinghua Chen: We've been working diligently behind the scenes on this endeavor for the past year, and we are very optimistic that WMT will be a game-changer for us.
Speaker Change: We've been working diligently behind the scenes on this endeavor for the past year and we are very optimistic that that'd be empty will be a game changer for us.
Yinghua Chen: While we will utilize resources from across the company, Allied Experiential Entertainment, or AEE, will be very involved in all aspects of WMT.
Speaker Change: While we will utilize resources from across the company.
Speaker Change: Experiential entertainment or AE will be very involved in all aspects of stuffy M T.
Yinghua Chen: And we are also excited with AEE's progress in other areas of business as it continues to expand on its opportunities in Asia.
Speaker Change: And we are also excited with the progress in other areas of business as it continues to expand its opportunities in Asia.
Yinghua Chen: Noteably, we are in close negotiation to partner with the popular annual music festival in the count, and we look forward to sharing more details in the future as negotiations are finalized.
Yinghua Chen: Notably, we are in close negotiations to partner with the popular annual music festival in Macau, and we look forward to sharing more details in the future as negotiations are finalized.
Speaker Change: Notably we are in close negotiations to partner with a popular music festival in Macau, and we look forward to sharing more details in the future.
Speaker Change: Negotiations are finalized.
Yinghua Chen: Moving on to Ally Mobile Entertainment, or AME, our strategic investment in VTAC, a prominent developer and operator of casual mobile games, is progressing well. VTAC had a busy quarter, having released a brand-new casual mobile game, the Loom Pop Mania, a popular match-three category in May, its second release of the year. The new casual mobile game is very fun and interactive. So far, it has been popular with gamers, and the feedback from those who have downloaded it has been very positive. We're also utilizing VTAC for its game distribution capabilities and are currently assessing which games within our AME catalog are best suited for marketing and distribution on the platform.
Yinghua Chen: Moving on to Allied Mobile Entertainment, or AME, our strategic investment in ZTEK, a prominent developer and operator of casual mobile games, is progressing well. ZTEK had a busy quarter, having released a brand new casual mobile game, Balloon Pop Mania, a popular match 3 category in May, its second release of the year. The new casual mobile game is very fun and interactive. So far it has been popular with gamers and the feedback from those who have downloaded it has been very positive.
Speaker Change: Moving on to ally mobile entertainment for A&D.
Speaker Change: Our strategic investment in <unk>.
Speaker Change: Prominent developer and operator of casual mobile games.
Speaker Change: Progressing well.
Speaker Change: <unk> had a busy quarter.
They released a brand new casual mobile games balloon pop mania.
Speaker Change: Couple of match three category in ne.
Speaker Change: Secondly lease of the year.
Speaker Change: The new casual mobile game is very fun and interactive so far it has been popular with gamers and the feedback from those who have downloaded it.
Speaker Change: Been very positive.
Yinghua Chen: We're also utilizing VTech for its game distribution capabilities and are currently assessing which games within our AME catalog are best suited for marketing and distribution on the platform.
Speaker Change: We're also utilizing <unk> for its gained distribution capabilities and are currently assessing which games within our A&D catalogs are best.
Speaker Change: So with it from a marketing and distribution on the platform.
Yinghua Chen: ZTEX momentum is evident.
Yinghua Chen: VTAC's momentum is evidence. With Q2 in-game ad revenue rising 53% over Q1, the business is well positioned for a robust second half of the 2024 and sustained revenue growth.
Speaker Change: <unk> momentum is evident.
Speaker Change: <unk> and game ads revenue rising 53% over Q1.
Speaker Change: The business is well positioned for a robust second half of 2024 and sustained revenue growth.
Yinghua Chen: With Q2 in-game ad revenue rising 53% over Q1, the business is well positioned for a robust second half of the 2024 and sustained revenue growth.
Roy Anderson: I will now turn the call over to our CFO, Roy Anderson, to provide updates on our Q2 financials. Thank you, Yinghua. Good afternoon, everyone, and thank you for joining us today. Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter, but down 19% from the second quarter of 2023. The decline in year and year over year revenue was primarily due to a $2 million decrease in revenues from our branded content production, offset by a $1.7 million increase in casual mobile gaming revenues. Now that ZTAC has been integrated into the business and is performing well.
Yinghua Chen: I will now turn the call over to our CFO Roy Anderson to provide updates on our Q2 financials.
Speaker Change: I will now turn the call over to our CFO Roy Anderson.
Roy Anderson: Updates on our Q2 financials.
Roy Anderson: Thank you, Yinghua.
Tyler Drew: In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon, is available on the company's website, presents definitions of such non-GAAP financial measures, reconciliations to the appropriate GAAP measures, and an explanation of why the company believes such non-GAAP financial measures are useful to investors.
Thank you Ian good afternoon, everyone and thank you for joining us today.
Roy Anderson: Good afternoon, everyone, and thank you for joining us today.
Roy Anderson: Total revenues for the second quarter of 2024 with $2 $6 million up 11% from the first quarter, but down 19% from the second quarter of 2023.
Roy Anderson: Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter, but down 19% from the second quarter of 2023. The decline in year-over-year revenue was primarily due to a $2 million decrease in revenues from our branded content production arm, offset by a $1.7 million increase in casual mobile gaming revenues now that ZTEK has been integrated into the business and is performing well.
Speaker Change: The decline in year over year revenue was primarily due to a $2 million decrease in revenues from branded content production.
Speaker Change: Offset by a $1 $7 million increase in casual mobile gaming revenues now that <unk> has been integrated into the business and is performing well.
Roy Anderson: Total cost and expenses for the second quarter were $7.9 million and increased from $4.7 million in the prior year period. Unfortunately, approximately $3 million of the increase in expenses was driven by costs related to the counterproductive actions of mited pastures, including litigation filed by them against AGE and their hostile attempt to take over the company at a meaningfully discounted price. Our net loss was $3.9 million for the second quarter of 2024, compared to a loss of $1.8 million in the prior quarter and a loss of $0.7 million in the second quarter of 2023. Our adjusted a beta loss was $1.4 million compared to a loss of $1.7 million in the prior quarter and a loss of $1.1 million in the second quarter of 2023.
Roy Anderson: Total costs and expenses for the second quarter were $7.9 million, an increase from $4.7 million in the prior year period. Unfortunately, approximately $3 million, of the increase in expenses was driven by costs related to the counterproductive actions of Knighted Pastures, including litigation filed by them against AGAE and their hostile attempt to take over the company at a meaningfully discounted price.
Speaker Change: Total cost and expenses for the second quarter was $7 $9 million, an increase from $4 7 million in the prior year period.
Speaker Change: Unfortunately, approximately $3 million.
Of the increase in expenses was driven by costs related to the counter productive actions ignited pastures, including litigation filed by them against AG and hostile attempt to take over the company at a meaningfully discounted price.
Roy Anderson: Our net loss was $3.9 million for the second quarter of 2024 compared to a loss of $1.8 million in the prior quarter and a loss of $0.7 million in the second quarter of 2023.
Speaker Change: Our net loss was $3 9 million for the second quarter of 2024 compared to a loss of $1 8 million in the prior quarter and a loss of <unk> 7 million in the second quarter of 2023.
Roy Anderson: Our adjusted EBITDA loss was $1.4 million compared to a loss of $1.7 million in the prior quarter and a loss of $1.1 million in the second quarter of 2023, are adjusted. EBITDA includes adjustments for the depreciation and amortization of fixed and intangible assets, stock-based compensation, non-recurring legal fees, and interest income.
Speaker Change: Our adjusted would be the loss was $1 4 million compared to a loss of $1 7 million in the prior quarter and a loss of $1 1 million in the second quarter of 2023.
Roy Anderson: Our adjusted a beta includes adjustments for the depreciation and amortization of fixed and intangible assets, stock-based compensation, non-recurring legal fees, and interest income. Now moving on to our balance sheet at June 30, 2024, our cash and short-term investments position total $95.2 million, including $5 million of restricted cash, compared to $78.6 million at December 31, 2023. The increase in our cash and short-term investments is primarily attributable to the proceeds of low and non-interest-bearing loans from Morgan Stanley Bank, Asia Limited. The company's working capital of surplus to find its current assets minus current liabilities was $61.8 million at June 30, 2024, compared to $66.4 million at December 31, 2023.
Speaker Change: Our adjusted EBITDA includes adjustments for the depreciation and amortization of fixed and intangible assets stock based compensation nonrecurring legal fees and interest income.
Roy Anderson: Now moving on to our balance sheet.
Speaker Change: Now moving onto our balance sheet at June 32024, our cash and short term investments position totaled $95 2 million.
Roy Anderson: At June 30, 2024, our cash and short-term investments position totaled $95.2 million, including $5 million of restricted cash, compared to $78.6 million at December 31, 2023. The increase in our cash and short-term investments is primarily attributable to the proceeds of low and non-interest-bearing loans from Morgan Stanley Bank Asia Ltd.
Speaker Change: <unk> 5 million of restricted cash.
Speaker Change: Compared to $78 6 million at December 31, 2023.
Speaker Change: The increase in our cash and short term investments is primarily attributable to the proceeds of low and non interest bearing loans from Morgan Stanley Bank Asia Limited.
Roy Anderson: The company's working capital surplus defined as current assets minus current liabilities was $61.8 million at June 30, 2024, compared to $66.4 million at December 31, 2023.
Speaker Change: The Companys working capital surplus defined as current assets minus current liabilities was $61 8 million at June 32024, compared to $66 4 million at December 31, 2023.
Yinghua Chen: I will now turn the call back over to you.
Roy Anderson: I will now turn the call back over to Yinghua.
Tyler Drew: And with that, it's now my pleasure to turn the call over to Allied Gaming and Entertainment CEO,
Speaker Change: I will now turn the call back over to you.
Yinghua Chen: Thank you, Roy. Before closing the call out, I'd like to reiterate my experiments for all the positive momentum we are experiencing at LI Gaming and its payments and say with full confidence that I believe our measurement team and board have the right skills and expertise to lead the company forward. Our three subsidiaries all have revenue calculates in the near future. We're especially optimistic about the opportunities presented by the World Module Tour and our ability to gain strong momentum leading up to the inaugural finale in the spring of 2025. The highly popular and resurgent game of Module offers vast untapped multi-potential that were eager to capitalize on.
Yinghua Chen: Thank you, Roy.
Tyler Drew: Yinghua Chen.
Yinghua Chen: Before closing the call out, I'd like to reiterate my excitement for all the positive momentum we are experiencing at Allied Gaming and Entertainment, and say with full confidence that I believe our management team and board have the right skills and expertise to lead the company forward. Our three subsidiaries all have revenue catalysts in the near future.
Speaker Change: Thank you Ray before closing the call I'd like to reiterate my excitement for all the positive momentum we are experiencing at ally.
Yinghua Chen: Yinghua?
Speaker Change: Like gaming and entertainment.
With full confidence that I believe our management team and board have the right skills and expertise to lead the company forward.
Speaker Change: Our three subsidiaries all have revenue catalyst in the near future.
Yinghua Chen: We're especially optimistic about the opportunities presented by the World Modern Tour and our ability to gain strong momentum leading up to the inaugural finale in the spring of 2025.
Especially optimistic about the opportunities presented by the wall margin to us.
Speaker Change: And our ability to gain strong momentum leading up to the Inagua finale.
Speaker Change: Spring of 2012 of the slide.
Yinghua Chen: The highly popular and resurgent game of Modern offers vast untapped market potential that we're eager to capitalize on.
Speaker Change: The highly popular and resurgent game of mahjong.
Operator: Good day, everyone, and welcome to the Allied Gaming and Entertainment Inc.
Operator: Good day, everyone, and welcome to the Allied Gaming and Entertainment Inc. 2nd quarter 2024, earnings conference call. At this time, all participants are in a listen-only mode. Today's call will be recorded, and I will be standing by, should you need any assistance?
Speaker Change: Vast untapped market potential that we're eager to capitalize on.
Operator: 2nd quarter 2024, earnings conference call.
Yinghua Chen: Thank you for your time today.
Yinghua Chen: Thank you for your time today.
Yinghua Chen: Thank you, Tyler, and thank you all for joining us this afternoon.
Speaker Change: Thank you for your time today, we look forward to speaking with you again, when we release, our third quarter 2024 results in November.
Yinghua Chen: We are thrilled to speak with you today about the upward trajectory of our business, as we continue to gain traction advancing our strategic initiatives.
Yinghua Chen: We look forward to speaking with you again when we release our third quarter 2024 results in November.
Roy Anderson: Good afternoon, everyone, and thank you for joining us today.
Yinghua Chen: Notably, ZTEC is performing well.
Roy Anderson: Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter, but down 19% from the second quarter of 2023. The decline in year-over-year revenue was primarily due to a $2 million decrease in revenues from our branded content production arm, offset by a $1.7 million increase in casual mobile gaming revenues now that ZTEK has been integrated into the business and is performing well.
Operator: At this time, all participants are in a listen-only mode.
Yinghua Chen: Our HyperX arena remains in high demand, and just this morning, we announced the creation of the World Mahjong Tour, WMT.
Roy Anderson: Total costs and expenses for the second quarter were $7.9 million, an increase from $4.7 million in the prior year period. Unfortunately, approximately $3 million of the increase in expenses was driven by costs related to the counterproductive actions of Knighted Pastures, including litigation filed by them against AGAE and their hostile attempt to take over the company at a meaningfully discounted price.
Yinghua Chen: We look forward to speaking with you again when we release our third quarter 2024 results in November.
Yinghua Chen: Modeled after the highly successful World Poker Tour, WMT will debut later this year, and I will provide more details on that shortly.
Roy Anderson: Our net loss was $3.9 million for the second quarter of 2024 compared to a loss of $1.8 million in the prior quarter and a loss of $0.7 million in the second quarter of 2023. Our adjusted EBITDA loss was $1.4 million compared to a loss of $1.7 million in the prior quarter and a loss of $1.1 million in the second quarter of 2023. Our adjusted EBITDA includes adjustments for the depreciation and amortization of fixed and intangible assets, stock-based compensation, non-recurring legal fees, and interest income.
Yinghua Chen: Our world-class HyperX arena continues to be a hub of activity, hosting a wide variety of events this quarter, totaling 65 event states, 40 of which were third-party events.
Roy Anderson: Now moving on to our balance sheet.
Yinghua Chen: We collaborated with the World Poker, Tour on several of these events, which will be invaluable as we develop the World Mahjong Tour.
Roy Anderson: At June 30, 2024, our cash and short-term investments position totaled $95.2 million, including $5 million of restricted cash, compared to $78.6 million at December 31, 2023.
Operator: Today's call will be recorded, and I will be standing by, should you need any assistance?
Yinghua Chen: Among the highlights was the WPT Seminole Hard Rock Poker Showdown Final Table, held at the, arena on May 29th, where Josh Richards claimed victory at nearly $1 million in prize money.
Roy Anderson: The increase in our cash and short-term investments is primarily attributable to the proceeds of low- and non-interest-bearing loans from Morgan Stanley Bank Asia Limited.
Yinghua Chen: Thank you, Roy.
Yinghua Chen: The following day, on May 30th, we hosted the WPT Choctaw Championship Final Table, where James Mackey secured the title and a seat at the upcoming WPT World Poker Championship.
Roy Anderson: The company's working capital surplus defined as current assets minus current liabilities was $61.8 million at June 30, 2024, compared to $66.4 million at December 31, 2023.
Yinghua Chen: Before closing the call out, I'd like to reiterate my excitement for all the positive momentum we are experiencing at Ally Gaming and Entertainment, and say with full confidence that I believe our management team and board have the right skills and expertise to lead the company forward. Our three subsidiaries all have revenue catalysts in the near future.
Yinghua Chen: Other notable events this quarter included the Sonic Boom Unofficial Level-Up Afterparty, the Mobile Legends Bang Bang 2024 North America Challenger Tournament Spring Grand Finale, and the Licensing International Excellence Award.
Roy Anderson: I will now turn the call back over to you, Nguyen.
Yinghua Chen: We're especially optimistic about the opportunities presented by the World Module Tour and our, ability to gain strong momentum leading up to the inaugural finale in the spring of 2025.
Yinghua Chen: The HyperX Arena truly embodies versatility, hosting events that range from world-class, poker tournaments to prestigious industry awards ceremonies besides our esports and gaming events.
Yinghua Chen: The highly popular and resurgent game of Mojo offers vast untapped market potential that, we're eager to capitalize on.
Speaker Change: Okay.
Yinghua Chen: Now let me turn to this morning's exciting announcement, the launch of the World Mahjong Tour, a groundbreaking series of events that will bring the timeless game of Mahjong to a global stage.
Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.
Operator: This does conclude today's program.
Yinghua Chen: Why is this so compelling for us?
Speaker Change: This does conclude today's program. Thank you for your participation you may disconnect at any time and have a wonderful evening.
Tyler Drew: It is now my pleasure to turn the conference over to Tyler Drew with Addo Investor Relations.
Tyler Drew: It is now my pleasure to turn the conference over to Tyler Drew with Addo Investor Relations. Please go ahead. Thank you, operator.
Operator: Thank you for your participation.
Yinghua Chen: For starters, Mahjong is a game of skill, strategy, and a touch of luck with a history spanning over a century. Its popularity has been resurging in recent years, especially among the younger generation of the population.
Operator: You may disconnect at any time, and have a wonderful evening.
Yinghua Chen: While it has always been a beloved game, it has never been monetized or brought to the market on a global scale until now.
Yinghua Chen: Thank you for your time today.
Yinghua Chen: Additionally, the WPT model has proven to be sustainable, and we have the experience required, having owned, operated, and recently partnered with the World Poker Tour.
Yinghua Chen: We look forward to speaking with you again when we release our third quarter 2024 results, in November.
Yinghua Chen: For the inaugural season, we will host a series of regional tournaments and events, culminating in the final at HyperX Arena in the spring of 2025.
Operator: This does conclude today's program.
Yinghua Chen: WMT will leverage expertise from all three of ATAE's subsidiaries, as we will introduce our proprietary mobile games, Mahjong-themed content production, and a comprehensive membership service model. This multi-faceted approach will drive brand awareness and will provide fans and players, with a unique and immersive experience, both online and offline.
Yinghua Chen: We've been working diligently behind the scenes on this endeavor for the past year, and we are very optimistic that WMT will be a game-changer for us.
Yinghua Chen: While we will utilize resources from across the company, Allied Experiential Entertainment, or AEE, will be very involved in all aspects of WMT.
Yinghua Chen: And we are also excited with AEE's progress in other areas of business, as it continues to expand on its opportunities in Asia.
Yinghua Chen: Notably, we are in close negotiations to partner with the popular annual music festival in Macau, and we look forward to sharing more details in the future as negotiations are finalized.
Speaker Change: Okay.
Yinghua Chen: Moving on to Allied Mobile Entertainment, or AME, our strategic investment in ZTEK, a prominent developer and operator of casual mobile games, is progressing well. ZTEK had a busy quarter, having released a brand new casual mobile game, Balloon Pop Mania, a popular match-three category in May, its second release of the year. The new casual mobile game is very fun and interactive. So far, it has been popular with gamers, and the feedback from those who have downloaded it has been very positive.
Yinghua Chen: We're also utilizing ZTEK for its game distribution capabilities and are currently assessing which, games within our AME catalog are best suited for marketing and distribution on the platform. ZTEK's momentum is evident, with Q2 in-game ad revenue rising 53% over Q1.
Tyler Drew: Please go ahead.
Tyler Drew: Good afternoon, and welcome to the Allied Gaming and Entertainment 2nd quarter 2024, earnings conference call.
Speaker Change: Hum.
Yinghua Chen: The business is well-positioned for a robust second half of the 2024 and sustained revenue growth.
Yinghua Chen: I will now turn the call over to our CFO, Roy Anderson, to provide updates on our Q2 financials.
Roy Anderson: Thank you, Yinghua.
Speaker Change: Mhm.
[music].
Tyler Drew: Thank you, operator.
Tyler Drew: Speaking on the call today, our Allied Gaming and Entertainment's Chief Executive Officer, Yinghua Chen, and Chief Financial Officer, Roy Anderson. Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements. Words such as may, will, expect, and tend, plan, believe, speak, could, estimate, judgment, targeting, good, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Change Commission.
Speaker Change: Uh huh.
Speaker Change: Uh-huh.
Speaker Change: Okay.
Operator: Продължете в следващия път.
Speaker Change: Okay.
Tyler Drew: Good afternoon, and welcome to the Allied Gaming and Entertainment 2nd quarter 2024, earnings conference call.
Tyler Drew: Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. In addition, certain of the financial information presented in this call represents non-gap financial measures.
Speaker Change: Uh-huh.
Speaker Change: Hum.
Speaker Change: Okay.
Operator: Share the News!
Speaker Change: Uh-huh Uh-huh.
Operator: Thanks for watching!
Operator: Абонирайте се за нови видео!
Speaker Change: Uh-huh.
Speaker Change: [music].
Speaker Change: Hum.
Speaker Change: Hmm.
Speaker Change: Uh-huh.
Tyler Drew: The company's earnings release, which was issued this afternoon, is available on the company's website, presents definitions of such non-gap financial measures, reconciliation to the appropriate gap measures, and an explanation of why the company believes such non-gap financial measures are useful to investors.
Tyler Drew: Speaking on the call today, our Allied Gaming and Entertainment's Chief Executive Officer, Yinghua Chen, and Chief Financial Officer, Roy Anderson.
Yinghua Chen: And with that, it's now my pleasure to turn the call over to Allied Gaming Entertainment CEO, Dean Watchen, Dean Wah. Thank you, Mr. Keller, and thank you all for joining us this afternoon. We are thrilled to speak with you today about the upward trajectory of our business, as we continue to gain traction, advancing our strategic initiatives. Notably, the tech is performing well. Our HyperX Arena remains in high demand, and just this morning, we announced the creation of the World Margin Tour, WMT.
Tyler Drew: Before I turn the call over to management, please note that our prepared remarks may contain forward-looking statements. Words such as may, will, expect, and tend, plan, believe, speak, could, estimate, judgment, targeting, good, anticipate, goal, and variations of these words and similar expressions are intended to identify forward-looking statements.
Tyler Drew: Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors discussed in the company's public filings, including the risk factors discussed in documents filed with the Securities and Change Commission.
Tyler Drew: Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained.
Tyler Drew: The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Tyler Drew: In addition, certain of the financial information presented in this call represents non-gap financial measures. The company's earnings release, which was issued this afternoon, is available on the company's website, presents definitions of such non-gap financial measures, reconciliation to the appropriate gap measures, and an explanation of why the company believes such non-gap financial measures are useful to investors.
Yinghua Chen: More than after the highly successful World Prokator, WMT will debuts later this year, and I will provide more details on that shortly. Our World Class HyperX Arena continues to be a hub of activities, hosting a wide variety of events this quarter, totaling 65 events dates, 40 of which were third party events. We collaborated with the World Prokator on several of these events, which will be invaluable as we developed the World Margin Tour.
Yinghua Chen: And with that, it's now my pleasure to turn the call over to Allied Gaming Entertainment CEO, Dean Watchen, Dean Wah.
Yinghua Chen: Thank you, Mr. Keller, and thank you all for joining us this afternoon.
Yinghua Chen: Among the highlights was the WPT Seminole Heart Rock Poker Showdown Final Table, held at the Arena on May 29th, where Josh Richards claimed victory at nearly $1 million in price money. The following day, on May 30th, we hosted the WPT Chapter Championship Final Table, where James Mackie secured the title and the seat at the upcoming WPT World Prokator Championship, and other notable events this quarter included the Sonic boom on official level-up after party.
Yinghua Chen: The Mobile Legends bang bang 2024 North America Challenger tournament spring grand finale and the licensing international excellence award. The Hatherec Serena truly embodies versatility, posing events that range from world-class poker tournaments to prestigious industry awards ceremonies besides our esports and gaming events.
Yinghua Chen: Now, let me turn to this morning's exciting announcement, the launch of the World Modjant Tour, a groundbreaking series of events that will bring the kind of game of Modjant to a global stage. Why is this so compelling for us? For starters, Modjant is a game of skill, strategy, and a touch of luck, with a history spanning over a century. Its popularity has been resturging in recent years, especially among the younger generation of the population.
Yinghua Chen: While it has always been a beloved game, it has never been monetized or brought to the market on a global scale, until now. Additionally, the WPT model has proven to be sustainable and we have the experience required having owned, operated, and recently partnered with the World Poker Tour. For the inaugural season, we will host a series of regional tournaments and events, dominating in the final at Hatherec Serena in the spring of 2025.
Yinghua Chen: WMT will leverage expertise from all three of AGE subsidiaries as we will introduce our proprietary mobile games, Modjant themed content production, and a comprehensive membership service model. This multi-faceted approach will drive brand awareness and will provide fans and players with a unique and immersive experience, both online and offline. We've been working diligently behind the scenes on this endeavor for the past year, and we are very optimistic that WMT will be a game-changer for us.
Yinghua Chen: While we will utilize resources from across the company, allied experiential entertainment or AEE will be very involved in all aspects of WMT, and we are also excited with AEE's progress in other areas of business as it continues to expand on its opportunities in Asia.
Yinghua Chen: Noteably, we are a close negotiation to partner with the popular annual music festival in the count, and we look forward to sharing more details in the future as negotiations are finalized.
Yinghua Chen: Moving on to Ally Mobile Entertainment, or AME, our strategic investment in VTAC, a prominent developer and operator of casual mobile games is progressing well. VTAC had a busy quarter, having released a brand-new casual mobile game, the Loom Pop Mania, a popular match-three category in May, its second release of the year. The new casual mobile game is very fun and interactive. So far, it has been popular with gamers and the feedback from those who have downloaded it has been very positive. We're also utilizing VTAC for its game distribution capabilities and are currently assessing which games within our AME catalog are best suited for marketing and distribution on the platform.
Yinghua Chen: VTAC's momentum is evidence. With Q2 in-game ad revenue rising 53% over Q1, the business is well positioned for a robust second half of the 2024 and sustained revenue growth.
Roy Anderson: I will now turn the call over to our CFO, Roy Anderson, to provide updates on our Q2 financials. Thank you, Yinghua. Good afternoon, everyone, and thank you for joining us today.
Roy Anderson: Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter, but down 19% from the second quarter of 2023. The decline in year and year over year revenue was primarily due to a $2 million decrease in revenues from our branded content production on offset by a $1.7 million increase in casual mobile gaming revenues. Now that ZTAC has been integrated into the business and is performing well.
Roy Anderson: Total cost and expenses for the second quarter were $7.9 million and increased from $4.7 million in the prior year period. Unfortunately, approximately $3 million of the increase in expenses was driven by costs related to the counterproductive actions of mited pastures, including litigation filed by them against AGE and their hostile attempt to take over the company at a meaningfully discounted price. Our net loss was $3.9 million for the second quarter of 2024 compared to a loss of $1.8 million in the prior quarter and a loss of $0.7 million in the second quarter of 2023.
Roy Anderson: Our adjusted a beta loss was $1.4 million compared to a loss of $1.7 million in the prior quarter and a loss of $1.1 million in the second quarter of 2023. Our adjusted a beta includes adjustments for the depreciation and amortization of fixed and intangible assets, stock-based compensation, non-recurring legal fees, and interest income.
Roy Anderson: Now moving on to our balance sheet at June 30, 2024, our cash and short-term investments position total $95.2 million including $5 million of restricted cash compared to $78.6 million at December 31, 2023. The increase in our cash and short-term investments is primarily attributable to the proceeds of low and non-interest bearing loans from Morgan Stanley Bank, Asia limited. The company's working capital of surplus to find its current assets minus current liabilities was $61.8 million at June 30, 2024 compared to $66.4 million at December 31, 2023. I will now turn the call back over to you. Thank you, Roy.
Yinghua Chen: We are thrilled to speak with you today about the upward trajectory of our business, as we continue to gain traction, advancing our strategic initiatives.
Yinghua Chen: Before closing the call out, I'd like to reiterate my experiments for all the positive momentum we are experiencing at LI Gaming and its payments and say with full confidence that I believe our measurement team and board have the right skills and expertise to lead the company forward. Our three subsidiaries all have revenue calculates in the near future. We're especially optimistic about the opportunities presented by the World Module Tour and our ability to gain strong momentum leading up to the inaugural finale in the spring of 2025. The highly popular and resurgent game of Module offers vast untapped multi-potential that were eager to capitalize on.
Yinghua Chen: Notably, the tech is performing well.
Yinghua Chen: Our HyperX Arena remains in high demand, and just this morning, we announced the creation of the World Margin Tour, WMT.
Yinghua Chen: More than after the highly successful World Prokator, WMT will debuts later this year, and I will provide more details on that shortly.
Yinghua Chen: Our World Class HyperX Arena continues to be a hub of activities, hosting a wide variety of events this quarter, totaling 65 events dates, 40 of which were third party events.
Yinghua Chen: Thank you for your time today. We look forward to speaking with you again when we release our third quarter 2024 results in November.
Yinghua Chen: We collaborated with the World Prokator on several of these events, which will be invaluable as we developed the World Margin Tour.
Yinghua Chen: Among the highlights was the WPT Seminole Heart Rock Poker Showdown Final Table, held at the Arena on May 29th, where Josh Richards claimed victory at nearly $1 million in price money.
Yinghua Chen: The following day, on May 30th, we hosted the WPT Chapter Championship Final Table, where James Mackie secured the title and the seat at the upcoming WPT World Prokator Championship, and other notable events this quarter included the Sonic boom on official level-up after party.
Yinghua Chen: The Mobile Legends bang bang 2024 North America Challenger tournament spring grand finale and the licensing international excellence award.
Yinghua Chen: The Hatherec Serena truly embodies versatility, posing events that range from world-class poker tournaments to prestigious industry awards ceremonies besides our esports and gaming events.
Yinghua Chen: Now, let me turn to this morning's exciting announcement, the launch of the World Modjant Tour, a groundbreaking series of events that will bring the kind of game of Modjant to a global stage.
Yinghua Chen: Why is this so compelling for us?
Yinghua Chen: For starters, Modjant is a game of skill, strategy, and a touch of luck, with a history spanning over a century. Its popularity has been resturging in recent years, especially among the younger generation of the population.
Yinghua Chen: While it has always been a beloved game, it has never been monetized or brought to the market on a global scale, until now.
Yinghua Chen: Additionally, the WPT model has proven to be sustainable and we have the experience required having owned, operated, and recently partnered with the World Poker Tour.
Operator: This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.
Yinghua Chen: For the inaugural season, we will host a series of regional tournaments and events, dominating in the final at Hatherec Serena in the spring of 2025.
Yinghua Chen: WMT will leverage expertise from all three of AGE subsidiaries as we will introduce our proprietary mobile games, Modjant themed content production, and a comprehensive membership service model. This multi-faceted approach will drive brand awareness and will provide fans and players with a unique and immersive experience, both online and offline.
Yinghua Chen: We've been working diligently behind the scenes on this endeavor for the past year, and we are very optimistic that WMT will be a game-changer for us.
Yinghua Chen: While we will utilize resources from across the company, allied experiential entertainment or AEE will be very involved in all aspects of WMT, and we are also excited with AEE's progress in other areas of business as it continues to expand on its opportunities in Asia.
Yinghua Chen: Noteably, we are a close negotiation to partner with the popular annual music festival in the count, and we look forward to sharing more details in the future as negotiations are finalized.
Yinghua Chen: Moving on to Ally Mobile Entertainment, or AME, our strategic investment in VTAC, a prominent developer and operator of casual mobile games is progressing well. VTAC had a busy quarter, having released a brand-new casual mobile game, the Loom Pop Mania, a popular match-three category in May, its second release of the year. The new casual mobile game is very fun and interactive. So far, it has been popular with gamers and the feedback from those who have downloaded it has been very positive.
Yinghua Chen: We're also utilizing VTAC for its game distribution capabilities and are currently assessing which games within our AME catalog are best suited for marketing and distribution on the platform.
Yinghua Chen: VTAC's momentum is evidence.
Yinghua Chen: With Q2 in-game ad revenue rising 53% over Q1, the business is well positioned for a robust second half of the 2024 and sustained revenue growth.
Roy Anderson: I will now turn the call over to our CFO, Roy Anderson, to provide updates on our Q2 financials.
Roy Anderson: Thank you, Yinghua.
Roy Anderson: Good afternoon, everyone, and thank you for joining us today.
Roy Anderson: Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter, but down 19% from the second quarter of 2023. The decline in year and year over year revenue was primarily due to a $2 million decrease in revenues from our branded content production on offset by a $1.7 million increase in casual mobile gaming revenues.
Roy Anderson: Now that ZTAC has been integrated into the business and is performing well. Total cost and expenses for the second quarter were $7.9 million and increased from $4.7 million in the prior year period. Unfortunately, approximately $3 million of the increase in expenses was driven by costs related to the counterproductive actions of mited pastures, including litigation filed by them against AGE and their hostile attempt to take over the company at a meaningfully discounted price.
Roy Anderson: Our net loss was $3.9 million for the second quarter of 2024 compared to a loss of $1.8 million in the prior quarter and a loss of $0.7 million in the second quarter of 2023. Our adjusted a beta loss was $1.4 million compared to a loss of $1.7 million in the prior quarter and a loss of $1.1 million in the second quarter of 2023. Our adjusted a beta includes adjustments for the depreciation and amortization of fixed and intangible assets, stock-based compensation, non-recurring legal fees, and interest income.
Roy Anderson: Now moving on to our balance sheet at June 30, 2024, our cash and short-term investments position total $95.2 million including $5 million of restricted cash compared to $78.6 million at December 31, 2023.
Roy Anderson: The increase in our cash and short-term investments is primarily attributable to the proceeds of low and non-interest bearing loans from Morgan Stanley Bank, Asia limited.
Roy Anderson: The company's working capital of surplus to find its current assets minus current liabilities was $61.8 million at June 30, 2024 compared to $66.4 million at December 31, 2023.
Roy Anderson: I will now turn the call back over to you.
Yinghua Chen: Thank you, Roy.
Yinghua Chen: Before closing the call out, I'd like to reiterate my experiments for all the positive momentum we are experiencing at LI Gaming and its payments and say with full confidence that I believe our measurement team and board have the right skills and expertise to lead the company forward.
Yinghua Chen: Our three subsidiaries all have revenue calculates in the near future. We're especially optimistic about the opportunities presented by the World Module Tour and our ability to gain strong momentum leading up to the inaugural finale in the spring of 2025.
Yinghua Chen: The highly popular and resurgent game of Module offers vast untapped multi-potential that were eager to capitalize on.
Yinghua Chen: Thank you for your time today.
Yinghua Chen: We look forward to speaking with you again when we release our third quarter 2024 results in November.
Yinghua Chen: This does conclude today's program.
Yinghua Chen: Thank you for your participation.
Yinghua Chen: You may disconnect at any time and have a wonderful evening.