NEW YORK, May 11, 2023–(BUSINESS WIRE)–Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a world experiential leisure firm, right this moment introduced monetary outcomes for the primary quarter ended March 31, 2023.

“It has been a strong start to the year so far at Allied and we are continuing to gain momentum in the second quarter as we advance on our strategic objectives,” mentioned Yinghua Chen, the Company’s Chief Executive Officer. “We are also excited to have recently announced our continued relationship with HyperX/HP on the Arena branding side and renewal of sponsorship from Progressive Insurance on our original content programs. These growing relationships are further evidence that Allied is recognized as an established name in the gaming entertainment community and that we offer an inroad to this crucial and fast-growing multi-billion-dollar gaming marketplace.”

First Quarter 2023 Financial Results

Revenues: Total revenues of $1.2 million had been comparatively flat from the fourth quarter of 2022, and down from $2.4 million within the first quarter of 2022. The year-over-year decline was primarily attributable to the timing of the Company’s unique content material collection, ELEVATED, which acknowledged revenues for Season 1 within the first quarter of 2022 and is predicted to acknowledge revenues for Season 2 within the second quarter of 2023.

Costs and bills: Total prices and bills had been $3.8 million, a lower of 38% in comparison with the primary quarter of 2022. The lower was largely attributable to a 26% discount typically & administrative bills, principally money, severance and stock-based compensation, in addition to the aforementioned timing and associated expense recognition of ELEVATED.

Net loss for the primary quarter of 2023 was $1.9 million in comparison with a internet lack of $3.8 million within the prior 12 months interval. Net loss within the first quarter of 2023 consists of roughly $734,000 of curiosity revenue earned on short-term investments.

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Furthermore, adjusted EBITDA loss was $2.0 million for the primary quarter of 2023, a 20% discount from a lack of $2.5 million within the first quarter of 2022. A reconciliation of the GAAP-basis internet loss to adjusted EBITDA is supplied within the desk on the finish of this press launch.

Balance Sheet

As of March 31, 2023, the Company had a money and short-term investments place of $84.4 million, together with $5.0 million of restricted money. This in comparison with $86.8 million in money and short-term investments at December 31, 2022, which additionally included $5.0 million of restricted money. At March 31, 2023, the Company had a working capital place of $75.6 million in comparison with $79.1 million at December 31, 2022. AGAE’s working capital positions on March 31, 2023 and December 31, 2022 had been lowered by working lease liabilities of $1.3 million and $1.2 million, respectively, recorded in reference to the Company’s implementation of the brand new leasing normal (ASC 842) on December 31, 2022. As of March 31, 2023, the Company had roughly 39.1 million shares of excellent frequent inventory.

During the primary quarter, the Company purchased again a complete of 1.1 million shares of its frequent inventory at a mean promoting value of $1.26 for a complete price of $1.43 million, excluding dealer charges. Moving ahead, the style, timing and quantity of any purchases will proceed to be based mostly on an analysis of market circumstances, inventory value and different components.

Operational Update

Allied Esports produced 82 occasions within the first quarter of 2023, with 42 proprietary occasions and 40 third-party occasions. Third-party occasions had been up 5.3% in comparison with the primary quarter of 2022 and had been highlighted by the View Sonic CES Event, the HyperX CES Event, Nighthawk Pictures Production, ReliaQuest, and Astral Clash.

The Allied Esports cell area was additionally energetic with six occasions in the course of the quarter, together with the 2023 Cotton Bowl Classic in Arlington, Texas; the Feld Motorsports eSX Finals in Los Angeles, California; the AIM Sports Volleyball SoCal Cup in Seal Beach, California; The Clash on the Coliseum NASCAR Race in Los Angeles, California; Superbowl LVII in Phoenix, Arizona; and NHL Stadium Series in Raleigh, North Carolina.

Subsequent to the top of the quarter, AGAE introduced that AE Studios, its content material growth, storytelling and manufacturing companies arm, will produce the second season of ELEVATED, Presented by Progressive Insurance, for a complete of ten episodes. Season 2 premiered on May 3, 2023 on numerous creator channels from One True King (OTK), some of the watched content material organizations on Twitch.

Also subsequent to the top of the quarter, the Company introduced the extension of its unique naming rights settlement with HyperX/HP, which ensures that AGAE’s flagship area will stay often known as HyperX Arena Las Vegas. HyperX/HP will proceed to obtain distinguished branding and signage inside and outdoors of the venue, in addition to accomplice with AGAE on quite a lot of co-branded experiences and occasions on the area. In addition, as a part of the enlargement of the settlement, HP Omen will now sponsor the Allied Mobile Esports Truck as properly.

First Quarter 2023 Conference Call

The Company will host a convention name right this moment at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to debate its first quarter 2023 monetary outcomes. Participants could be part of the convention name by dialing 1-844-826-3035 (United States) or 1-412-317-5195 (worldwide).

A dwell webcast of the convention name will even be accessible on Allied Gaming & Entertainment’s Investor Relations web site at ir.alliedgaming.gg. Additionally, monetary data offered on the decision can be accessible on Allied Gaming & Entertainment’s Investor Relations web site. For these unable to take part within the convention name, a telephonic replay of the decision will even be accessible shortly after the completion of the decision, till 11:59 p.m. Eastern Time on Thursday, May 25, 2023, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and utilizing the replay passcode: 10178258.

About Allied Gaming & Entertainment

Allied Gaming & Entertainment Inc. (Nasdaq: AGAE) is a world experiential leisure firm centered on offering a rising world of players with distinctive experiences by famend property, services. For extra data, go to alliedgaming.gg.

Non-GAAP Financial Measures

As a complement to our monetary measures offered in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents sure non-GAAP measures of economic efficiency. These non-GAAP monetary measures should not supposed to be thought of in isolation from, as an alternative choice to, or as extra vital than, the monetary data ready and offered in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they don’t replicate all the gadgets related to the corporate’s outcomes of operations as decided in accordance with GAAP. Non-GAAP monetary measures should not an alternative choice to the Company’s GAAP monetary outcomes and might not be calculated in the identical method as comparable measures offered by different firms.

The Company gives internet revenue (loss) and earnings (loss) per share in accordance with GAAP. In addition, the Company gives EBITDA (outlined as GAAP internet revenue (loss) from persevering with operations earlier than curiosity (revenue) expense, revenue taxes, depreciation, and amortization). The Company defines “Adjusted EBITDA” as EBITDA excluding sure non-cash costs, equivalent to stock-based compensation, inducement expense, extinguishment losses and impairment losses.

In the long run, the Company might also think about whether or not different gadgets also needs to be excluded in calculating the non-GAAP monetary measures utilized by the Company. Management believes that the presentation of those non-GAAP monetary measures gives traders with further helpful data to measure the Company’s monetary and working efficiency. In explicit, these measures facilitate comparability of our working efficiency between intervals and assist traders to raised perceive the working outcomes of the Company by excluding sure gadgets that might not be indicative of the Company’s core enterprise, working outcomes, or future outlook. Additionally, we think about quantitative and qualitative components in assessing whether or not to regulate for the affect of things that could be important or that might have an effect on an understanding of our ongoing monetary and enterprise efficiency or tendencies. Internally, administration makes use of these non-GAAP monetary measures, together with others, in assessing the Company’s working outcomes, measuring compliance with any relevant necessities of the Company’s debt financing agreements in place at such time, in addition to in planning and forecasting.

The Company’s non-GAAP monetary measures should not based mostly on a complete set of accounting guidelines or rules, and our non-GAAP definitions of the “EBITDA” and “Adjusted EBITDA” don’t have a standardized that means. Therefore, different firms could use the identical or equally named measures, however embrace or exclude totally different gadgets, which can not present traders a comparable view of the Company’s efficiency in relation to different firms.

Management compensates for the constraints ensuing from the exclusion of this stuff by contemplating the affect of the gadgets individually and by contemplating the Company’s GAAP, in addition to non-GAAP, monetary outcomes and outlook, and by presenting essentially the most comparable GAAP measures instantly forward of non-GAAP measures, and by offering a reconciliation that signifies and describes the changes made.

Forward Looking Statements

This communication comprises sure forward-looking statements below federal securities legal guidelines. Forward-looking statements could embrace our statements relating to our targets, beliefs, methods, aims, plans, together with product and repair developments, future monetary circumstances, outcomes or projections or present expectations. In some instances, you’ll be able to establish forward-looking statements by terminology equivalent to “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “intend” or “continue,” the detrimental of such phrases, or different comparable terminology. These statements are topic to recognized and unknown dangers, uncertainties, assumptions and different components that will trigger precise outcomes to be materially totally different from these contemplated by the forward-looking statements. These forward-looking statements should not ensures of future efficiency, circumstances or outcomes, and contain quite a few recognized and unknown dangers, uncertainties, assumptions and different vital components, lots of that are outdoors our management, that might trigger precise outcomes or outcomes to vary materially from these mentioned in these forward-looking statements. The inclusion of such data shouldn’t be considered a illustration by the Company, or any individual, that the aims of the Company can be achieved. Important components, amongst others, that will have an effect on precise outcomes or outcomes embrace: dangers related to the long run path or governance of the Company; our capability to execute on our marketing strategy; the substantial uncertainties inherent within the acceptance of present and future services; the power to retain key personnel; potential litigation; common financial and market circumstances impacting demand for our companies; a change in our plans to retain or make investments the web money proceeds from the WPT sale transaction; our lack of ability to enter into a number of future acquisition or strategic transactions utilizing the web proceeds from the WPT sale transaction; and our capability, or a choice to not pursue strategic choices for the esports enterprise. You ought to think about the areas of danger described in reference to any forward-looking statements that could be made herein. The enterprise and operations of AGAE are topic to substantial dangers, which improve the uncertainty inherent within the forward-looking statements contained on this communication. Except as required by legislation, we undertake no obligation to launch publicly the results of any revision to those forward-looking statements that could be made to replicate occasions or circumstances after the date hereof or to replicate the prevalence of unanticipated occasions. Further data on potential components that might have an effect on our enterprise and outcomes is described below “Item 1A. Risk Factors” in our Annual Report on Form 10-Ok for the 12 months ended December 31, 2022, as filed with the SEC on March 24, 2023, in addition to subsequent stories we file with the SEC. Readers are additionally urged to fastidiously overview and think about the assorted disclosures we made in such Annual Report on Form 10-Ok and in subsequent stories with the SEC.

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA are non-GAAP monetary measures and shouldn’t be thought of as an alternative choice to internet revenue (loss), working revenue (loss) or another efficiency measure derived in accordance with United States typically accepted accounting rules (“GAAP”) or as an alternative choice to internet money supplied by working actions as a measure of AGAE’s profitability or liquidity. AGAE’s administration believes EBITDA and Adjusted EBITDA are helpful as a result of they permit exterior customers of its monetary statements, equivalent to trade analysts, traders, lenders and ranking businesses, to extra successfully consider its working efficiency, examine the outcomes of its operations from interval to interval and in opposition to AGAE’s friends with out regard to AGAE’s financing strategies, hedging positions or capital construction and since it highlights tendencies in AGAE’s enterprise that won’t in any other case be obvious when relying solely on GAAP measures. AGAE presents EBITDA and Adjusted EBITDA as a result of it believes EBITDA and Adjusted EBITDA are vital supplemental measures of its efficiency which might be often utilized by others in evaluating firms in its trade. Because EBITDA and Adjusted EBITDA exclude some, however not all, gadgets that have an effect on internet revenue (loss) and should range amongst firms, the EBITDA and Adjusted EBITDA AGAE presents might not be corresponding to equally titled measures of different firms. AGAE defines “EBITDA” as earnings earlier than curiosity, revenue taxes, depreciation and amortization of intangibles. AGAE defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, achieve on forgiveness of PPP loans, transaction prices and different costs associated to the sale of WPT, impairment losses, conversion inducement bills and extinguishment losses.

The following desk presents a reconciliation of EBITDA and Adjusted EBITDA to internet loss from persevering with operations, AGAE’s most instantly comparable monetary measure calculated and offered in accordance with GAAP.

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Contacts

Investor Contact:
Tyler Drew
Addo Investor Relations
ir@alliedgaming.gg