Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | ALLIED GAMING & ENTERTAINMENT INC. | |
Trading Symbol | AGAE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 36,842,663 | |
Amendment Flag | false | |
Entity Central Index Key | 0001708341 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38226 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-1659427 | |
Entity Address, Address Line One | 745 Fifth Ave | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10151 | |
City Area Code | (646) | |
Local Phone Number | 768-4240 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 10,435,990 | $ 11,167,442 |
Short-term investments | 59,950,000 | 70,000,000 |
Interest receivable | 2,058,576 | 677,397 |
Accounts receivable | 10,673 | 72,739 |
Prepaid expenses and other current assets | 470,390 | 459,274 |
Total Current Assets | 76,425,629 | 82,376,852 |
Restricted cash | 5,000,000 | 5,000,000 |
Property and equipment, net | 3,794,373 | 4,005,622 |
Digital assets | 49,300 | 49,761 |
Intangible assets, net | 688,721 | 72,786 |
Deposits | 380,703 | 379,105 |
Operating lease right-of-use asset | 5,411,841 | 5,845,549 |
Total Assets | 91,750,567 | 97,729,675 |
Current Liabilities | ||
Accounts payable | 470,264 | 317,561 |
Accrued expenses and other current liabilities | 306,270 | 1,645,379 |
Deferred revenue | 357,677 | 108,428 |
Operating lease liability, current portion | 1,390,533 | 1,227,164 |
Total Current Liabilities | 2,524,744 | 3,298,532 |
Operating lease liability, non-current portion | 5,744,166 | 6,527,075 |
Total Liabilities | 8,268,910 | 9,825,607 |
Commitments and Contingencies (Note 5) | ||
Stockholders’ Equity | ||
Preferred stock, $0.0001 par value, 1,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized, 39,085,470 shares issued at September 30, 2023 and December 31, 2022, and 36,842,663 and 38,503,724 shares outstanding at September 30, 2023 and December 31, 2022, respectively | 3,909 | 3,909 |
Additional paid in capital | 198,663,219 | 198,526,614 |
Accumulated deficit | (112,745,327) | (110,235,568) |
Accumulated other comprehensive income | 221,555 | 219,675 |
Treasury stock, at cost, 2,242,807 and 581,746 shares at September 30, 2023 and December 31, 2022, respectively | (2,661,699) | (610,562) |
Total Stockholders’ Equity | 83,481,657 | 87,904,068 |
Total Liabilities and Stockholders’ Equity | 91,750,567 | 97,729,675 |
Related Party | ||
Current Assets | ||
Due from affiliate | $ 3,500,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,085,470 | 39,085,470 |
Common stock, shares outstanding | 36,842,663 | 38,503,724 |
Treasury stock, shares | 2,242,807 | 581,746 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
In-person | $ 1,119,865 | $ 1,551,963 | $ 3,580,968 | $ 3,734,400 |
Multiplatform content | 94 | 13,679 | 2,000,518 | 1,401,130 |
Total Revenues | 1,119,959 | 1,565,642 | 5,581,486 | 5,135,530 |
Costs and Expenses: | ||||
In-person (exclusive of depreciation and amortization) | 575,176 | 1,112,645 | 1,891,229 | 2,784,933 |
Multiplatform content (exclusive of depreciation and amortization) | 31,010 | 1,517,707 | 1,020,886 | |
Selling and marketing expenses | 51,448 | 54,445 | 172,987 | 185,614 |
General and administrative expenses | 894,181 | 2,397,901 | 5,660,553 | 8,762,193 |
Stock-based compensation | ||||
Depreciation and amortization | 239,413 | (328,739) | 1,030,191 | 1,288,106 |
Impairment of digital assets | 164,411 | |||
Total Costs and Expenses | 1,760,218 | 3,267,262 | 10,272,667 | 14,206,143 |
Loss From Operations | (640,259) | (1,701,620) | (4,691,181) | (9,070,613) |
Other Income (Expense): | ||||
Other (expense) income, net | (388) | 34,073 | 15,954 | (45,859) |
Interest income, net | 715,893 | 25,316 | 2,165,468 | 34,093 |
Total Other Income (Expense) | 715,505 | 59,389 | 2,181,422 | (11,766) |
Net income (loss) | 75,246 | (1,642,231) | (2,509,759) | (9,082,379) |
Other comprehensive income: | ||||
Foreign currency translation adjustments | (31,747) | 1,880 | (90,378) | |
Total Comprehensive Income (Loss) | $ 75,246 | $ (1,673,978) | $ (2,507,879) | $ (9,172,757) |
Earnings (Loss) per Common Share | ||||
Basic (in Dollars per share) | $ 0 | $ (0.04) | $ (0.07) | $ (0.23) |
Diluted (in Dollars per share) | $ 0 | $ (0.04) | $ (0.07) | $ (0.23) |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in Shares) | 36,942,149 | 39,094,696 | 37,351,735 | 39,092,133 |
Diluted (in Shares) | 37,134,457 | 39,094,696 | 37,351,735 | 39,092,133 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited) - USD ($) | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 3,912 | $ 197,784,972 | $ 269,606 | $ (99,411,683) | $ 98,646,807 | |
Balance (in Shares) at Dec. 31, 2021 | 39,116,907 | |||||
Stock-based compensation: | ||||||
Restricted common stock | 82,345 | 82,345 | ||||
Stock options | 318,951 | 318,951 | ||||
Net loss | (3,751,197) | (3,751,197) | ||||
Other comprehensive income (loss) | 12,964 | 12,964 | ||||
Balance at Mar. 31, 2022 | $ 3,912 | 198,186,268 | 282,570 | (103,162,880) | 95,309,870 | |
Balance (in Shares) at Mar. 31, 2022 | 39,116,907 | |||||
Balance at Dec. 31, 2021 | $ 3,912 | 197,784,972 | 269,606 | (99,411,683) | 98,646,807 | |
Balance (in Shares) at Dec. 31, 2021 | 39,116,907 | |||||
Stock-based compensation: | ||||||
Net loss | (9,082,379) | |||||
Balance at Sep. 30, 2022 | $ 3,909 | 198,528,534 | 179,228 | (108,494,062) | 90,217,609 | |
Balance (in Shares) at Sep. 30, 2022 | 39,085,470 | |||||
Balance at Mar. 31, 2022 | $ 3,912 | 198,186,268 | 282,570 | (103,162,880) | 95,309,870 | |
Balance (in Shares) at Mar. 31, 2022 | 39,116,907 | |||||
Stock-based compensation: | ||||||
Stock options | 153,093 | 153,093 | ||||
Net loss | (3,688,951) | (3,688,951) | ||||
Other comprehensive income (loss) | (71,595) | (71,595) | ||||
Balance at Jun. 30, 2022 | $ 3,912 | 198,339,361 | 210,975 | (106,851,831) | 91,702,417 | |
Balance (in Shares) at Jun. 30, 2022 | 39,116,907 | |||||
Stock-based compensation: | ||||||
Shares withheld for employee payroll tax | $ (3) | (49,667) | (49,670) | |||
Shares withheld for employee payroll tax (in Shares) | (31,437) | |||||
Stock-based compensation: | ||||||
Stock options | 238,840 | 238,840 | ||||
Net loss | (1,642,231) | (1,642,231) | ||||
Other comprehensive income (loss) | (31,747) | (31,747) | ||||
Balance at Sep. 30, 2022 | $ 3,909 | 198,528,534 | 179,228 | (108,494,062) | 90,217,609 | |
Balance (in Shares) at Sep. 30, 2022 | 39,085,470 | |||||
Balance at Dec. 31, 2022 | $ 3,909 | $ (610,562) | 198,526,614 | 219,675 | (110,235,568) | 87,904,068 |
Balance (in Shares) at Dec. 31, 2022 | 39,085,470 | 581,746 | ||||
Stock-based compensation: | ||||||
Stock options | 5,126 | 5,126 | ||||
Repurchases of common stock | $ (1,459,078) | (1,459,078) | ||||
Repurchases of common stock (in Shares) | 1,105,604 | |||||
Net loss | (1,893,787) | (1,893,787) | ||||
Other comprehensive income (loss) | 1,880 | 1,880 | ||||
Balance at Mar. 31, 2023 | $ 3,909 | $ (2,069,640) | 198,531,740 | 221,555 | (112,129,355) | 84,558,209 |
Balance (in Shares) at Mar. 31, 2023 | 39,085,470 | 1,687,350 | ||||
Balance at Dec. 31, 2022 | $ 3,909 | $ (610,562) | 198,526,614 | 219,675 | (110,235,568) | 87,904,068 |
Balance (in Shares) at Dec. 31, 2022 | 39,085,470 | 581,746 | ||||
Stock-based compensation: | ||||||
Net loss | (2,509,759) | |||||
Balance at Sep. 30, 2023 | $ 3,909 | $ (2,661,699) | 198,663,219 | 221,555 | (112,745,327) | 83,481,657 |
Balance (in Shares) at Sep. 30, 2023 | 39,085,470 | 2,242,807 | ||||
Balance at Mar. 31, 2023 | $ 3,909 | $ (2,069,640) | 198,531,740 | 221,555 | (112,129,355) | 84,558,209 |
Balance (in Shares) at Mar. 31, 2023 | 39,085,470 | 1,687,350 | ||||
Stock-based compensation: | ||||||
Stock options | 66,856 | 66,856 | ||||
Repurchases of common stock | $ (415,313) | (415,313) | ||||
Repurchases of common stock (in Shares) | 372,436 | |||||
Net loss | (691,218) | (691,218) | ||||
Balance at Jun. 30, 2023 | $ 3,909 | $ (2,484,953) | 198,598,596 | 221,555 | (112,820,573) | 83,518,534 |
Balance (in Shares) at Jun. 30, 2023 | 39,085,470 | 2,059,786 | ||||
Stock-based compensation: | ||||||
Stock options | 64,623 | 64,623 | ||||
Repurchases of common stock | $ (176,746) | (176,746) | ||||
Repurchases of common stock (in Shares) | 183,021 | |||||
Net loss | 75,246 | 75,246 | ||||
Balance at Sep. 30, 2023 | $ 3,909 | $ (2,661,699) | $ 198,663,219 | $ 221,555 | $ (112,745,327) | $ 83,481,657 |
Balance (in Shares) at Sep. 30, 2023 | 39,085,470 | 2,242,807 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From Operating Activities | ||
Net loss | $ (2,509,759) | $ (9,082,379) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 136,605 | 793,229 |
Non-cash rent expense | 723,594 | 646,657 |
Digital currency received as revenue | (249,888) | |
Impairment of digital assets | 164,411 | |
Net gains on sale of equipment | (8,388) | |
Expenses paid using digital assets | 461 | 69,533 |
Change in fair value of warrant liabilities | 7,400 | |
Depreciation and amortization | 1,030,191 | 1,288,106 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 62,066 | 266,889 |
Interest receivable | (1,381,179) | |
Prepaid expenses and other current assets | (11,116) | (243,058) |
Deposit returns | (1,598) | |
Accounts payable | 152,701 | 404,715 |
Accrued expenses and other current liabilities | (1,339,109) | (2,079,071) |
Operating lease liability | (909,426) | (808,148) |
Deferred revenue | (543,786) | 269,685 |
Total Adjustments | (2,088,984) | 530,460 |
Net Cash Used In Operating Activities | (4,598,743) | (8,551,919) |
Cash Flows From Investing Activities | ||
Purchases of short-term investments | (19,950,000) | |
Proceeds from maturing of short-term investments | 30,000,000 | |
Loan to affiliate | (3,500,000) | |
Investment in digital assets | (41,026) | |
Proceeds from sale of equipment | 106,914 | |
Purchases of intangibles | (618,930) | |
Purchases of property and equipment | (119,525) | (6,697) |
Net Cash Provided By (Used In) Investing Activities | 5,918,459 | (47,723) |
Cash Flows From Financing Activities | ||
Repurchases of common stock | (2,051,137) | |
Net Cash Used In Financing Activities | (2,051,137) | |
Effect of Exchange Rate Changes on Cash | (31) | (62,388) |
Net Decrease In Cash, Cash Equivalents, And Restricted Cash | (731,452) | (8,662,030) |
Cash, cash equivalents, and restricted cash - Beginning of Period | 16,167,442 | 97,887,030 |
Cash, cash equivalents, and restricted cash - End of Period | 15,435,990 | 89,225,000 |
Cash and restricted cash consisted of the following: | ||
Cash | 10,435,990 | 84,225,000 |
Restricted cash | 5,000,000 | 5,000,000 |
Total cash and restricted cash | 15,435,990 | 89,225,000 |
Non-Cash Investing and Financing Activities: | ||
ROU asset for lease liability | 289,886 | |
Property and equipment received as deferred revenue | $ 793,035 |
Business Organization and Natur
Business Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2023 | |
Business Organization and Nature of Operations [Abstract] | |
Business Organization and Nature of Operations | 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”), and Allied Esports GmbH (“AEG” and together with AEII, AME and ESALV, “Allied Esports”). 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 is engaged in the development and worldwide distribution of mobile casual games. AEE and AEG are currently inactive. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 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, 2022 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on March 24, 2023, as amended on April 27, 2023 and May 3, 2023, on Forms 10-K/A. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of September 30, 2023, and for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the operating results for the full year ending December 31, 2023 or any other period. These unaudited condensed consolidated financial statements have been derived from the Company’s accounting records and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report. Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 - inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). The following table provides information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values: As of September 30, 2023 Level 1 Level 2 Level 3 Total Digital assets $ 49,300 $ - $ - $ 49,300 Sponsor warrants - - 100 100 Total $ 49,300 $ - $ 100 $ 49,400 As of December 31, 2022 Level 1 Level 2 Level 3 Total Digital assets $ 49,761 $ - $ - $ 49,761 Sponsor warrants - - 100 100 Total $ 49,761 $ - $ 100 $ 49,861 The carrying amounts of the Company’s financial instruments, such as cash equivalents, accounts receivable, short-term investments, interest receivable, due from affiliates, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. Short-term investments consist of certificates of deposit with original maturities of greater than three months but less than or equal to twelve months when purchased. The Sponsor Warrants are carried at fair value as of September 30, 2023 and December 31, 2022 and are included in accrued expenses on the accompanying condensed consolidated balance sheets. The Sponsor Warrants are valued using level 3 inputs. The fair value of the Sponsor Warrants is estimated using the Black-Scholes option pricing method. Significant level 3 inputs used to calculate the fair value of the Sponsor Warrants include the share price on the valuation date, expected volatility, expected term and the risk-free interest rate. The following is a roll forward of the Company’s Level 3 instruments during the nine months ended September 30, 2023: Balance, January 1, 2023 $ 100 Change in fair value of sponsor warrants - Balance, March 31, 2023 100 Change in fair value of sponsor warrants - Balance, June 30, 2023 100 Change in fair value of sponsor warrants - Balance, September 30, 2023 $ 100 The key inputs into the Black-Scholes model used to value Sponsor Warrants at the relevant measurement dates were as follows: September 30, December 31, Input 2023 2022 Risk-free rate 5.46 % 4.57 % Remaining term in years 0.86 1.61 Expected volatility 64.0 % 56.0 % Exercise price $ 11.50 $ 11.50 Fair value of common stock $ 0.91 $ 1.05 Net Loss per Common Share Basic loss per common share is computed by dividing net loss attributable to the Company by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus the impact of common shares, if dilutive, resulting from the potential exercise of outstanding stock options and warrants and vesting of restricted stock awards. The following table presents the computation of basic and diluted earnings (loss) per common share: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Numerator: Net income (loss) $ 75,246 $ (1,642,231 ) $ (2,509,759 ) $ (9,082,379 ) Denominator (weighted average quantities): Common shares outstanding 36,942,149 39,094,696 37,351,735 39,109,422 Less: Unvested restricted shares - - - (17,289 ) Denominator for basic net loss per share 36,942,149 39,094,696 37,351,735 39,092,133 Add: Contingent consideration shares 192,308 - - - Denominator for fully diluted net loss per share 37,134,457 39,094,696 37,351,735 39,092,133 Income (Loss) per common shares Basic $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) Diluted $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Options 1,540,000 1,810,000 1,540,000 1,810,000 Warrants 20,091,549 20,091,549 20,091,549 20,091,549 Equity purchase options - 600,000 - 600,000 Contingent consideration shares (1) - 192,308 192,308 192,308 21,631,549 22,693,857 21,823,857 22,693,857 (1) Holders who elected to convert a certain former Bridge Note from the Company into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. Revenue Recognition To determine the proper revenue recognition method, the Company evaluates each of its contractual arrangements to identify its performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The majority of the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service is not separately identifiable from other promises within the contract and is therefore not distinct. Some of the Company’s contracts have multiple performance obligations, primarily related to the provision of multiple goods or services. For contracts with more than one performance obligation, the Company allocates the total transaction price in an amount based on the estimated relative standalone selling prices underlying each performance obligation. The Company recognizes revenue primarily from the following sources: In-person revenue In-person revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Event Revenue $ 420,192 $ 914,386 $ 1,593,277 $ 2,115,530 Sponsorship revenue 457,740 175,299 1,275,218 507,799 Food and beverage revenue 47,535 110,139 173,326 342,253 Ticket and gaming revenue 151,391 143,413 401,096 394,564 Merchandising revenue 43,007 208,726 138,051 374,254 Total in-person revenue $ 1,119,865 $ 1,551,963 $ 3,580,968 $ 3,734,400 Event revenues from the rental of the Allied Esports arena and gaming trucks are recognized over the term of the event based on the number of days completed relative to the total days of the event, as this method best depicts the transfer of control to the customer. In-person revenue also includes revenue from ticket sales, admission fees and food and beverage sales for events held at the Company’s esports properties. Ticket revenue is recognized at the completion of the applicable event. Point of sale revenues, such as food and beverage, gaming and merchandising revenues, are recognized when control of the related goods are transferred to the customer. The Company generates sponsorship revenue from the naming rights of its esports arena which are recognized on a straight-line basis over the contractual term of the agreement. The Company records deferred revenue to the extent that payment has been received for services that have yet to be performed. Multiplatform revenue Multiplatform revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 NFT revenue $ - $ 13,441 $ - $ 249,889 Sponsorship revenue - - 2,000,000 1,150,000 Distribution revenue 94 238 518 1,241 Total multiplatform revenue $ 94 $ 13,679 $ 2,000,518 $ 1,401,130 The Company’s NFT revenue is generated from the sale of non-fungible tokens (NFTs). The Company’s NFTs exist on the Ethereum Blockchain under the Company’s EPICBEAST brand, a digital art collection of 1,958 unique beasts inspired by past and present e-sport games. The Company uses the NFT exchange, OpenSea, to facilitate the sale of NFTs. The Company, through OpenSea, has custody and control of the NFT prior to the delivery to the customer and records revenue at a point in time when the NFT is delivered to the customer and the customer pays. The Company has no obligations for returns, refunds or warranty after the NFT sale. The Company earns a royalty of up to 10% of the sale price when an NFT is resold by its owner in a secondary market transaction. The Company recognizes this royalty as revenue when the sale is consummated. The Company generates sponsorship revenue from the production and distribution of original content programming over live-streaming services. The Company recognizes sponsorship revenue pursuant to the terms of each individual contract when the Company satisfies the respective performance obligations, which could be recognized at a point in time or over the term of the contract. The Company’s distribution revenue is generated primarily through the distribution of content to online channels. Any advertising revenue earned by online channels is shared with the Company. The Company recognizes online advertising revenue at the point in time when the advertisements are placed in the video content. Revenue recognition The following table summarizes our revenue recognized under ASC 606 “Revenue form Contracts with Customers” in our condensed consolidated statements of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Recognized at a Point in Time: Ticket and gaming revenue $ 151,391 $ 143,413 $ 401,096 $ 394,564 NFT revenue - 13,441 - 249,889 Food and beverage revenue 47,535 110,139 173,326 342,253 Merchandising revenue 43,007 208,726 138,051 374,254 Distribution revenue 94 238 518 1,241 Total Revenues Recognized at a Point in Time 242,027 475,957 712,991 1,362,201 Revenues Recognized Over a Period of Time: Event revenue 420,192 914,386 1,593,277 2,115,530 Sponsorship revenue 457,740 175,299 3,275,218 1,657,799 Total Revenues Recognized Over a Period of Time 877,932 1,089,685 4,868,495 3,773,329 Total Revenues $ 1,119,959 $ 1,565,642 $ 5,581,486 $ 5,135,530 The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. As of September 30, 2023 and December 31, 2022, the Company had contract liabilities of $357,677 and $108,428, respectively, which is included in deferred revenue on the condensed consolidated balance sheet. As of September 30, 2023, $94,682 of performance obligations in connection with contract liabilities included within deferred revenue on the December 31, 2022 consolidated balance sheet have been satisfied. The Company expects to satisfy the remaining performance obligations of $13,746 related to its December 31, 2022 deferred revenue balance within the next twelve months. During the nine months ended September 30, 2023 and 2022, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. Digital Assets The Company accepts Ether as a form of payment for NFT sales. The Company accounts for digital assets held as the result of the receipt of Ether, as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other. The Company has ownership of and control over the digital assets and the Company may use third-party custodial services to secure them. The digital assets are initially recorded at cost and are subsequently remeasured net of any impairment losses incurred since the date of acquisition. The Company determines the fair value of its digital assets in accordance with ASC 820, “Fair Value Measurement”, based on quoted prices on the active exchange(s) that the Company has determined is the principal market for Ether (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, or decreases in the quoted prices on active exchanges, indicate that it is more likely than not that the Company’s digital assets are impaired. In determining if an impairment has occurred, the Company considers the lowest market price quoted on an active exchange since acquiring the respective digital asset. If the then-current carrying value of a digital asset exceeds the fair value, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value of such assets. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale, at which point they are presented net of any impairment losses for the same digital assets held. In determining the gain or loss to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. Impairment losses and gains or losses on sales are recognized within operating expenses in our condensed consolidated statements of operations and comprehensive loss. There were $0 and $164,411 of impairment charges during the three and nine months ended September 30, 2023, respectively. There were no digital assets sold during the same time periods. The following table sets forth changes in our digital assets for the nine months ended September 30, 2023: Balance, December 31, 2022 $ 49,761 Expenses paid using digital assets (461 ) Balance, September 30, 2023 $ 49,300 Concentration Risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, due from affiliate and trade accounts receivable. The Company holds cash, cash equivalents and short-term investments at major financial institutions in amounts which often exceed Federal Deposit Insurance Corporation’s insurance limits. As of September 30, 2023, two customers represented 96% of the Company’s accounts receivable balance and one related party affiliate represented 100% of the Company’s due from affiliate balance. Historically, the Company has not experienced any losses due to such concentration of credit risk. During the three months ended September 30, 2023 and 2022, 0.4% and 0.5%, respectively, of the Company’s revenues were from customers in foreign countries. During the nine months ended September 30, 2023 and 2022, 0.3% and 3%, respectively, of the Company’s revenues were from customers in foreign countries. During the three months ended September 30, 2023, the Company’s two largest customers accounted for 36% and 18% of the Company’s consolidated revenues. During the nine months ended September 30, 2023, the Company’s two largest customers accounted for 36% and 20% of the Company’s consolidated revenues. During the three months ended September 30, 2022, the Company’s five largest customers accounted for 22%, 21%, 18%, 10%, and 10% of the Company’s consolidated revenues. During the nine months ended September 30, 2022, the Company’s three largest customers accounted for 20%, 17%, and 11% of the Company’s consolidated revenues. Foreign Currency Translation The Company’s reporting currency is the United States Dollar. The functional currencies of the Company’s operating subsidiaries are their local currencies (United States Dollar and Euro). Euro-denominated assets and liabilities are translated into the United States Dollar using the exchange rate at the balance sheet date 1.0573 and 1.0699 at September 30, 2023 and December 31, 2022, respectively, and revenue and expense accounts are translated using the weighted average exchange rate in effect for that period 1.0883 and 0.9797 for the three months ended September 30, 2023 and 2022, respectively, and 1.0832 and 1.0078 for the nine months ended September 30, 2023 and 2022, respectively. Resulting translation adjustments are made directly to accumulated other comprehensive income. The Company engages in foreign currency denominated transactions with customers and suppliers, as well as between subsidiaries with different functional currencies. Realized losses of $951 and $38,853 arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency for the nine months ended September 30, 2023 and 2022, respectively, are recognized in other income (expense) in the accompanying condensed consolidated statements of operations. Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, other than those disclosed below. Reclassifications Certain prior period balances have been reclassified in order to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or loss per share. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to clarify the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature model. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in-capital. In addition, this ASU improves disclosure requirements for convertible instruments and earnings-per-share guidance. The ASU also revises the derivative scope exception guidance to reduce form-over-substance-based accounting conclusions driven by remote contingent events. The amendments in this update are effective for our fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption will be permitted, but no earlier than for fiscal years beginning after December 15, 2020. The Company early adopted ASU 2020-06 effective January 1, 2023 which eliminated the need to assess whether a beneficial conversion feature needs to be recognized upon the issuance of new convertible instruments. |
Intangible Assets, net
Intangible Assets, net | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, net [Abstract] | |
Intangible Assets, net | Note 3 – Intangible Assets, net Intellectual Property Licenses Software Development Costs Total Intangibles Accumulated Amortization Total Balance as of January 1, 2023 $ 37,165 $ - $ 49,950 $ 87,115 $ (14,329 ) $ 72,786 Purchases of intangibles 3,980 565,000 - 568,980 - 568,980 Software development costs 49,950 49,950 - 49,950 Amortization expense - - - - (2,995 ) (2,995 ) Balance as of September 30, 2023 $ 41,145 $ 565,000 $ 99,900 $ 706,045 $ (17,324 ) $ 688,721 On October 31, 2022, the Company entered into a system development agreement to develop an Allied Gaming membership management system and event organizer system. Pursuant to the terms of the agreement, the Company has committed to spend an aggregate amount of $199,800 in four equal payments of $49,950. The Company has made two payments of $49,950 for a total of $99,900 as of September 30, 2023 which was capitalized and included within other assets on the accompanying condensed consolidated balance sheet. As of September 30, 2023 the system has not yet been placed into service. On February 27, 2023, the Company purchased a five-year exclusive worldwide software license to operate four mobile casual games for $565,000 which will be amortized over a useful life of 5 years. As of September 30, 2023 the software has not yet been placed into service. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 4 – Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: September 30, December 31, 2023 2022 Compensation expense $ 151,121 $ 1,546,805 [1] Event costs 2,696 8,411 Legal and professional fees 68,429 43,676 Property and franchise tax 31,000 22,000 Warrant liabilities 100 100 Other accrued expenses 52,924 24,387 Accrued expenses and other current liabilities $ 306,270 $ 1,645,379 (1) Accrued compensation expense includes a $1 million obligation to a former CEO under a Restricted Stock Unit Agreement dated January 19, 2021, as amended in a certain Release and Separation Agreement with the former CEO dated July 8, 2021. The obligation was settled in July 2023. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 5 – Commitments and Contingencies Litigations, Claims, and Assessments The Company may, from time to time, be involved in various disputes, claims, liens and litigation matters arising out of the normal course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Operating Leases Allied Esports leases an arena in Las Vegas, Nevada, for the purpose of hosting Esports activities (the “Las Vegas Lease”). The arena opened to the public on March 23, 2018 (the “Commencement Date”). Initial lease terms were for minimum monthly payments of $125,000 for 60 months from the Commencement Date with an option to extend for an additional 60 months at $137,500 per month. Additional annual tenant obligations were estimated at $2 per square foot for Allied’s portion of real estate taxes and $5 per square foot for common area maintenance costs. The Las Vegas Lease expired on May 31, 2023 but was extended until July 31, 2023. Effective August 1, 2023, the Las Vegas Lease was extended until May 31, 2028 for minimum monthly payments of $137,500 for 58 months in addition to fixed monthly tenant obligations for real estate tax of $5,000. On July 17, 2023, the Company leased 5,067 square feet of building space in Las Vegas, Nevada, through an operating lease for the purpose of storage of the mobile esports truck. The lease term is for 36 months and ends on July 31, 2026. The monthly base rent ranges from $4,560 to $5,028. The Company also leased office and production space in Germany, pursuant to a lease dated August 1, 2020 which expired on July 31, 2023 (the “Germany Lease”). Rent expense under the lease was €4,000 (approximately $4,280 United States dollars) per month. The Company did not renew the lease after it expired. The Company’s aggregate lease expense incurred during the three months ended September 30, 2023 and 2022 amounted to $438,874 and $421,870, respectively, of which $321,522 and $320,994, respectively, is included within in-person costs and $117,352 and $100,876, respectively, is included in general and administrative expenses on the accompanying condensed consolidated statements of operations. The Company’s aggregate lease expense incurred during the nine months ended September 30, 2023 and 2022 amounted to $1,281,075 and $1,279,508, respectively, of which $964,038 and $962,982, respectively, is included within in-person costs and $317,037 and $316,526, respectively, is included in general and administrative expenses on the accompanying condensed consolidated statements of operations. A summary of the Company’s right-of-use assets and liabilities is as follows: For the Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating activities $ 909,426 $ 808,148 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 289,886 $ - Weighted Average Remaining Lease Term (Years) Operating leases 4.63 5.67 Weighted Average Discount Rate Operating leases 5.00% - 5.75% 5.00 % A summary of the Company’s remaining operating lease liabilities is as follows: For the Year Ending December 31, Amount 2023 $ 441,180 2024 1,765,860 2025 1,768,656 2026 1,745,196 2027 1,710,000 Thereafter 712,500 Total lease payments 8,143,392 Less: amount representing imputed interest (1,008,693 ) Present value of lease liability 7,134,699 Less: current portion (1,390,533 ) Lease liability, non-current portion $ 5,744,166 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 – Related Party Transactions On September 24, 2023, AME-HK advanced Beijing Lianzhong Co., Ltd, a related party (and a subsidiary of AGAE’s largest investor), $3.5 million (the “Bridge Loan”) in connection with a certain Equity Interest Purchase Agreement dated August 16, 2023, under which AME-HK agreed to acquire a 40% equity interest in Beijing Lianzhong Zhihe Technology Co., Ltd (“Z-Tech”), a company engaged in the development and distribution of casual mobile games. The acquisition closed on October 31, 2023 (See Note 10 – Subsequent Event). The Bridge Loan is non-interest bearing and is repayable at the earlier of 90 days from the date of the advance or the closing of the Z-Tech acquisition, at which time the proceeds of the Bridge Loan will we applied to the purchase price of the equity interests. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders’ Equity | Note 7 – Stockholders’ Equity Stock Options A summary of the option activity during the nine months ended September 30, 2023 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2023 1,675,000 $ 3.66 Granted - - Exercised - - Expired (85,000 ) 4.09 Forfeited (50,000 ) 4.09 Outstanding, September 30, 2023 1,540,000 $ 3.62 6.07 $ - Exercisable, September 30, 2023 1,275,000 $ 3.76 6.02 $ - Options outstanding and exercisable as of September 30, 2023 are as follows: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 2.11 40,000 6.75 30,000 $ 2.17 120,000 6.85 120,000 $ 2.21 350,000 7.84 237,500 $ 2.48 120,000 7.60 80,000 $ 4.09 630,000 4.75 527,500 $ 5.66 280,000 5.97 280,000 1,540,000 6.02 1,275,000 For the three months ended September 30, 2023 and 2022, the Company recorded $64,623 and $238,840, respectively, of stock-based compensation expense related to stock options. During the nine months ended September 30, 2023 and 2022, the Company recorded $136,605 and $710,884, respectively, of stock-based compensation expense related to stock options. As of September 30, 2023, there was $132,802 of unrecognized stock-based compensation expense related to the stock options that will be recognized over the weighted average remaining vesting period of 1.74 years. Restricted Common Stock For the three and nine months ended September 30, 2022, the Company recorded $0 and $82,345, respectively, of stock-based compensation expense related to restricted stock. As of September 30, 2022, all restricted common stock was fully vested. |
Employee Retention Credit
Employee Retention Credit | 9 Months Ended |
Sep. 30, 2023 | |
Employee Retention Credit [Abstract] | |
Employee Retention Credit | Note 8 – Employee Retention Credit The employee retention credit (“ERC”), as originally enacted through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) on March 27, 2020, is a refundable credit against certain employment taxes equal to 50% of the qualified wages an eligible employer paid to employees from March 17, 2020 to December 31, 2020. The Disaster Tax Relief Act, enacted on December 27, 2020, extended the ERC for qualified wages paid from January 1, 2021 to June 30, 2021, and the credit was increased to 70% of qualified wages an eligible employer paid to employees during the extended period. The American Rescue Plan Act of 2021, enacted on March 11, 2021, further extended the ERC through December 31, 2021. During the three and nine months ended September 30, 2023 and 2022, the Company recognized employee retention credits of approximately $1.5 million and $0.0, respectively, within general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2023, the Company has a receivable balance of approximately $0.2 million for unsettled ERCs within prepaid expenses and other current assets on the condensed consolidated balance sheet. Commissions paid and payable to a professional advisor to process the ERC claims amounted to approximately $0.3 million and are included within general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 9 – Subsequent Event On October 31, 2023, AME - HK completed its acquisition of a 40% equity interest in Z-Tech for $7 million in cash. The purchase consideration included the application of the $3.5 million loan receivable discussed in Note 6 – Related Party Transactions. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 - inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). The following table provides information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values: As of September 30, 2023 Level 1 Level 2 Level 3 Total Digital assets $ 49,300 $ - $ - $ 49,300 Sponsor warrants - - 100 100 Total $ 49,300 $ - $ 100 $ 49,400 As of December 31, 2022 Level 1 Level 2 Level 3 Total Digital assets $ 49,761 $ - $ - $ 49,761 Sponsor warrants - - 100 100 Total $ 49,761 $ - $ 100 $ 49,861 The carrying amounts of the Company’s financial instruments, such as cash equivalents, accounts receivable, short-term investments, interest receivable, due from affiliates, accounts payable, and accrued liabilities approximate fair value due to the short-term nature of these instruments. Short-term investments consist of certificates of deposit with original maturities of greater than three months but less than or equal to twelve months when purchased. The Sponsor Warrants are carried at fair value as of September 30, 2023 and December 31, 2022 and are included in accrued expenses on the accompanying condensed consolidated balance sheets. The Sponsor Warrants are valued using level 3 inputs. The fair value of the Sponsor Warrants is estimated using the Black-Scholes option pricing method. Significant level 3 inputs used to calculate the fair value of the Sponsor Warrants include the share price on the valuation date, expected volatility, expected term and the risk-free interest rate. The following is a roll forward of the Company’s Level 3 instruments during the nine months ended September 30, 2023: Balance, January 1, 2023 $ 100 Change in fair value of sponsor warrants - Balance, March 31, 2023 100 Change in fair value of sponsor warrants - Balance, June 30, 2023 100 Change in fair value of sponsor warrants - Balance, September 30, 2023 $ 100 The key inputs into the Black-Scholes model used to value Sponsor Warrants at the relevant measurement dates were as follows: September 30, December 31, Input 2023 2022 Risk-free rate 5.46 % 4.57 % Remaining term in years 0.86 1.61 Expected volatility 64.0 % 56.0 % Exercise price $ 11.50 $ 11.50 Fair value of common stock $ 0.91 $ 1.05 |
Net Loss per Common Share | Net Loss per Common Share Basic loss per common share is computed by dividing net loss attributable to the Company by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus the impact of common shares, if dilutive, resulting from the potential exercise of outstanding stock options and warrants and vesting of restricted stock awards. The following table presents the computation of basic and diluted earnings (loss) per common share: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Numerator: Net income (loss) $ 75,246 $ (1,642,231 ) $ (2,509,759 ) $ (9,082,379 ) Denominator (weighted average quantities): Common shares outstanding 36,942,149 39,094,696 37,351,735 39,109,422 Less: Unvested restricted shares - - - (17,289 ) Denominator for basic net loss per share 36,942,149 39,094,696 37,351,735 39,092,133 Add: Contingent consideration shares 192,308 - - - Denominator for fully diluted net loss per share 37,134,457 39,094,696 37,351,735 39,092,133 Income (Loss) per common shares Basic $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) Diluted $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Options 1,540,000 1,810,000 1,540,000 1,810,000 Warrants 20,091,549 20,091,549 20,091,549 20,091,549 Equity purchase options - 600,000 - 600,000 Contingent consideration shares (1) - 192,308 192,308 192,308 21,631,549 22,693,857 21,823,857 22,693,857 (1) Holders who elected to convert a certain former Bridge Note from the Company into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. |
Revenue recognition | Revenue Recognition To determine the proper revenue recognition method, the Company evaluates each of its contractual arrangements to identify its performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The majority of the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service is not separately identifiable from other promises within the contract and is therefore not distinct. Some of the Company’s contracts have multiple performance obligations, primarily related to the provision of multiple goods or services. For contracts with more than one performance obligation, the Company allocates the total transaction price in an amount based on the estimated relative standalone selling prices underlying each performance obligation. The Company recognizes revenue primarily from the following sources: In-person revenue In-person revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Event Revenue $ 420,192 $ 914,386 $ 1,593,277 $ 2,115,530 Sponsorship revenue 457,740 175,299 1,275,218 507,799 Food and beverage revenue 47,535 110,139 173,326 342,253 Ticket and gaming revenue 151,391 143,413 401,096 394,564 Merchandising revenue 43,007 208,726 138,051 374,254 Total in-person revenue $ 1,119,865 $ 1,551,963 $ 3,580,968 $ 3,734,400 Event revenues from the rental of the Allied Esports arena and gaming trucks are recognized over the term of the event based on the number of days completed relative to the total days of the event, as this method best depicts the transfer of control to the customer. In-person revenue also includes revenue from ticket sales, admission fees and food and beverage sales for events held at the Company’s esports properties. Ticket revenue is recognized at the completion of the applicable event. Point of sale revenues, such as food and beverage, gaming and merchandising revenues, are recognized when control of the related goods are transferred to the customer. The Company generates sponsorship revenue from the naming rights of its esports arena which are recognized on a straight-line basis over the contractual term of the agreement. The Company records deferred revenue to the extent that payment has been received for services that have yet to be performed. Multiplatform revenue Multiplatform revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 NFT revenue $ - $ 13,441 $ - $ 249,889 Sponsorship revenue - - 2,000,000 1,150,000 Distribution revenue 94 238 518 1,241 Total multiplatform revenue $ 94 $ 13,679 $ 2,000,518 $ 1,401,130 The Company’s NFT revenue is generated from the sale of non-fungible tokens (NFTs). The Company’s NFTs exist on the Ethereum Blockchain under the Company’s EPICBEAST brand, a digital art collection of 1,958 unique beasts inspired by past and present e-sport games. The Company uses the NFT exchange, OpenSea, to facilitate the sale of NFTs. The Company, through OpenSea, has custody and control of the NFT prior to the delivery to the customer and records revenue at a point in time when the NFT is delivered to the customer and the customer pays. The Company has no obligations for returns, refunds or warranty after the NFT sale. The Company earns a royalty of up to 10% of the sale price when an NFT is resold by its owner in a secondary market transaction. The Company recognizes this royalty as revenue when the sale is consummated. The Company generates sponsorship revenue from the production and distribution of original content programming over live-streaming services. The Company recognizes sponsorship revenue pursuant to the terms of each individual contract when the Company satisfies the respective performance obligations, which could be recognized at a point in time or over the term of the contract. The Company’s distribution revenue is generated primarily through the distribution of content to online channels. Any advertising revenue earned by online channels is shared with the Company. The Company recognizes online advertising revenue at the point in time when the advertisements are placed in the video content. Revenue recognition The following table summarizes our revenue recognized under ASC 606 “Revenue form Contracts with Customers” in our condensed consolidated statements of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Recognized at a Point in Time: Ticket and gaming revenue $ 151,391 $ 143,413 $ 401,096 $ 394,564 NFT revenue - 13,441 - 249,889 Food and beverage revenue 47,535 110,139 173,326 342,253 Merchandising revenue 43,007 208,726 138,051 374,254 Distribution revenue 94 238 518 1,241 Total Revenues Recognized at a Point in Time 242,027 475,957 712,991 1,362,201 Revenues Recognized Over a Period of Time: Event revenue 420,192 914,386 1,593,277 2,115,530 Sponsorship revenue 457,740 175,299 3,275,218 1,657,799 Total Revenues Recognized Over a Period of Time 877,932 1,089,685 4,868,495 3,773,329 Total Revenues $ 1,119,959 $ 1,565,642 $ 5,581,486 $ 5,135,530 The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. As of September 30, 2023 and December 31, 2022, the Company had contract liabilities of $357,677 and $108,428, respectively, which is included in deferred revenue on the condensed consolidated balance sheet. As of September 30, 2023, $94,682 of performance obligations in connection with contract liabilities included within deferred revenue on the December 31, 2022 consolidated balance sheet have been satisfied. The Company expects to satisfy the remaining performance obligations of $13,746 related to its December 31, 2022 deferred revenue balance within the next twelve months. During the nine months ended September 30, 2023 and 2022, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. |
Digital Assets | Digital Assets The Company accepts Ether as a form of payment for NFT sales. The Company accounts for digital assets held as the result of the receipt of Ether, as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other. The Company has ownership of and control over the digital assets and the Company may use third-party custodial services to secure them. The digital assets are initially recorded at cost and are subsequently remeasured net of any impairment losses incurred since the date of acquisition. The Company determines the fair value of its digital assets in accordance with ASC 820, “Fair Value Measurement”, based on quoted prices on the active exchange(s) that the Company has determined is the principal market for Ether (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, or decreases in the quoted prices on active exchanges, indicate that it is more likely than not that the Company’s digital assets are impaired. In determining if an impairment has occurred, the Company considers the lowest market price quoted on an active exchange since acquiring the respective digital asset. If the then-current carrying value of a digital asset exceeds the fair value, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value of such assets. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale, at which point they are presented net of any impairment losses for the same digital assets held. In determining the gain or loss to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. Impairment losses and gains or losses on sales are recognized within operating expenses in our condensed consolidated statements of operations and comprehensive loss. There were $0 and $164,411 of impairment charges during the three and nine months ended September 30, 2023, respectively. There were no digital assets sold during the same time periods. The following table sets forth changes in our digital assets for the nine months ended September 30, 2023: Balance, December 31, 2022 $ 49,761 Expenses paid using digital assets (461 ) Balance, September 30, 2023 $ 49,300 |
Concentration Risks | Concentration Risks Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, due from affiliate and trade accounts receivable. The Company holds cash, cash equivalents and short-term investments at major financial institutions in amounts which often exceed Federal Deposit Insurance Corporation’s insurance limits. As of September 30, 2023, two customers represented 96% of the Company’s accounts receivable balance and one related party affiliate represented 100% of the Company’s due from affiliate balance. Historically, the Company has not experienced any losses due to such concentration of credit risk. During the three months ended September 30, 2023 and 2022, 0.4% and 0.5%, respectively, of the Company’s revenues were from customers in foreign countries. During the nine months ended September 30, 2023 and 2022, 0.3% and 3%, respectively, of the Company’s revenues were from customers in foreign countries. During the three months ended September 30, 2023, the Company’s two largest customers accounted for 36% and 18% of the Company’s consolidated revenues. During the nine months ended September 30, 2023, the Company’s two largest customers accounted for 36% and 20% of the Company’s consolidated revenues. During the three months ended September 30, 2022, the Company’s five largest customers accounted for 22%, 21%, 18%, 10%, and 10% of the Company’s consolidated revenues. During the nine months ended September 30, 2022, the Company’s three largest customers accounted for 20%, 17%, and 11% of the Company’s consolidated revenues. |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is the United States Dollar. The functional currencies of the Company’s operating subsidiaries are their local currencies (United States Dollar and Euro). Euro-denominated assets and liabilities are translated into the United States Dollar using the exchange rate at the balance sheet date 1.0573 and 1.0699 at September 30, 2023 and December 31, 2022, respectively, and revenue and expense accounts are translated using the weighted average exchange rate in effect for that period 1.0883 and 0.9797 for the three months ended September 30, 2023 and 2022, respectively, and 1.0832 and 1.0078 for the nine months ended September 30, 2023 and 2022, respectively. Resulting translation adjustments are made directly to accumulated other comprehensive income. The Company engages in foreign currency denominated transactions with customers and suppliers, as well as between subsidiaries with different functional currencies. Realized losses of $951 and $38,853 arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency for the nine months ended September 30, 2023 and 2022, respectively, are recognized in other income (expense) in the accompanying condensed consolidated statements of operations. |
Subsequent Events | Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, other than those disclosed below. |
Reclassifications | Reclassifications Certain prior period balances have been reclassified in order to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or loss per share. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to clarify the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature model. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in-capital. In addition, this ASU improves disclosure requirements for convertible instruments and earnings-per-share guidance. The ASU also revises the derivative scope exception guidance to reduce form-over-substance-based accounting conclusions driven by remote contingent events. The amendments in this update are effective for our fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption will be permitted, but no earlier than for fiscal years beginning after December 15, 2020. The Company early adopted ASU 2020-06 effective January 1, 2023 which eliminated the need to assess whether a beneficial conversion feature needs to be recognized upon the issuance of new convertible instruments. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies (Tables) [Line Items] | |
Schedule of Financial Assets Measured at Fair Value | The following table provides information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values: As of September 30, 2023 Level 1 Level 2 Level 3 Total Digital assets $ 49,300 $ - $ - $ 49,300 Sponsor warrants - - 100 100 Total $ 49,300 $ - $ 100 $ 49,400 As of December 31, 2022 Level 1 Level 2 Level 3 Total Digital assets $ 49,761 $ - $ - $ 49,761 Sponsor warrants - - 100 100 Total $ 49,761 $ - $ 100 $ 49,861 |
Schedule of Roll Forward of the Company’s Level 3 Instruments | The following is a roll forward of the Company’s Level 3 instruments during the nine months ended September 30, 2023: Balance, January 1, 2023 $ 100 Change in fair value of sponsor warrants - Balance, March 31, 2023 100 Change in fair value of sponsor warrants - Balance, June 30, 2023 100 Change in fair value of sponsor warrants - Balance, September 30, 2023 $ 100 |
Schedule of Key Inputs into the Black-Scholes Model Used to Value Sponsor Warrants | The key inputs into the Black-Scholes model used to value Sponsor Warrants at the relevant measurement dates were as follows: September 30, December 31, Input 2023 2022 Risk-free rate 5.46 % 4.57 % Remaining term in years 0.86 1.61 Expected volatility 64.0 % 56.0 % Exercise price $ 11.50 $ 11.50 Fair value of common stock $ 0.91 $ 1.05 |
Schedule of Basic and Diluted Net Loss Per Common Share | The following table presents the computation of basic and diluted earnings (loss) per common share: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Numerator: Net income (loss) $ 75,246 $ (1,642,231 ) $ (2,509,759 ) $ (9,082,379 ) Denominator (weighted average quantities): Common shares outstanding 36,942,149 39,094,696 37,351,735 39,109,422 Less: Unvested restricted shares - - - (17,289 ) Denominator for basic net loss per share 36,942,149 39,094,696 37,351,735 39,092,133 Add: Contingent consideration shares 192,308 - - - Denominator for fully diluted net loss per share 37,134,457 39,094,696 37,351,735 39,092,133 Income (Loss) per common shares Basic $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) Diluted $ 0.00 $ (0.04 ) $ (0.07 ) $ (0.23 ) |
Schedule of Weighted Average Dilutive Common Shares | The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Options 1,540,000 1,810,000 1,540,000 1,810,000 Warrants 20,091,549 20,091,549 20,091,549 20,091,549 Equity purchase options - 600,000 - 600,000 Contingent consideration shares (1) - 192,308 192,308 192,308 21,631,549 22,693,857 21,823,857 22,693,857 (1) Holders who elected to convert a certain former Bridge Note from the Company into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. |
Schedule of in-Person Revenue | In-person revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Event Revenue $ 420,192 $ 914,386 $ 1,593,277 $ 2,115,530 Sponsorship revenue 457,740 175,299 1,275,218 507,799 Food and beverage revenue 47,535 110,139 173,326 342,253 Ticket and gaming revenue 151,391 143,413 401,096 394,564 Merchandising revenue 43,007 208,726 138,051 374,254 Total in-person revenue $ 1,119,865 $ 1,551,963 $ 3,580,968 $ 3,734,400 |
Schedule of Multiplatform Revenue | Multiplatform revenue was comprised of the following for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 NFT revenue $ - $ 13,441 $ - $ 249,889 Sponsorship revenue - - 2,000,000 1,150,000 Distribution revenue 94 238 518 1,241 Total multiplatform revenue $ 94 $ 13,679 $ 2,000,518 $ 1,401,130 |
Schedule of Changes in our Digital Assets | The following table sets forth changes in our digital assets for the nine months ended September 30, 2023: Balance, December 31, 2022 $ 49,761 Expenses paid using digital assets (461 ) Balance, September 30, 2023 $ 49,300 |
Adjustment under 606 [Member] | |
Significant Accounting Policies (Tables) [Line Items] | |
Schedule of Revenue Recognized | The following table summarizes our revenue recognized under ASC 606 “Revenue form Contracts with Customers” in our condensed consolidated statements of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Recognized at a Point in Time: Ticket and gaming revenue $ 151,391 $ 143,413 $ 401,096 $ 394,564 NFT revenue - 13,441 - 249,889 Food and beverage revenue 47,535 110,139 173,326 342,253 Merchandising revenue 43,007 208,726 138,051 374,254 Distribution revenue 94 238 518 1,241 Total Revenues Recognized at a Point in Time 242,027 475,957 712,991 1,362,201 Revenues Recognized Over a Period of Time: Event revenue 420,192 914,386 1,593,277 2,115,530 Sponsorship revenue 457,740 175,299 3,275,218 1,657,799 Total Revenues Recognized Over a Period of Time 877,932 1,089,685 4,868,495 3,773,329 Total Revenues $ 1,119,959 $ 1,565,642 $ 5,581,486 $ 5,135,530 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, net [Abstract] | |
Schedule of Intangible Assets, net | Intellectual Property Licenses Software Development Costs Total Intangibles Accumulated Amortization Total Balance as of January 1, 2023 $ 37,165 $ - $ 49,950 $ 87,115 $ (14,329 ) $ 72,786 Purchases of intangibles 3,980 565,000 - 568,980 - 568,980 Software development costs 49,950 49,950 - 49,950 Amortization expense - - - - (2,995 ) (2,995 ) Balance as of September 30, 2023 $ 41,145 $ 565,000 $ 99,900 $ 706,045 $ (17,324 ) $ 688,721 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, December 31, 2023 2022 Compensation expense $ 151,121 $ 1,546,805 [1] Event costs 2,696 8,411 Legal and professional fees 68,429 43,676 Property and franchise tax 31,000 22,000 Warrant liabilities 100 100 Other accrued expenses 52,924 24,387 Accrued expenses and other current liabilities $ 306,270 $ 1,645,379 (1) Accrued compensation expense includes a $1 million obligation to a former CEO under a Restricted Stock Unit Agreement dated January 19, 2021, as amended in a certain Release and Separation Agreement with the former CEO dated July 8, 2021. The obligation was settled in July 2023. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Right-of-Use Assets and Liabilities | A summary of the Company’s right-of-use assets and liabilities is as follows: For the Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating activities $ 909,426 $ 808,148 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 289,886 $ - Weighted Average Remaining Lease Term (Years) Operating leases 4.63 5.67 Weighted Average Discount Rate Operating leases 5.00% - 5.75% 5.00 % |
Schedule of Operating Lease Liabilities | A summary of the Company’s remaining operating lease liabilities is as follows: For the Year Ending December 31, Amount 2023 $ 441,180 2024 1,765,860 2025 1,768,656 2026 1,745,196 2027 1,710,000 Thereafter 712,500 Total lease payments 8,143,392 Less: amount representing imputed interest (1,008,693 ) Present value of lease liability 7,134,699 Less: current portion (1,390,533 ) Lease liability, non-current portion $ 5,744,166 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity [Abstract] | |
Schedule of Option Activity | A summary of the option activity during the nine months ended September 30, 2023 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2023 1,675,000 $ 3.66 Granted - - Exercised - - Expired (85,000 ) 4.09 Forfeited (50,000 ) 4.09 Outstanding, September 30, 2023 1,540,000 $ 3.62 6.07 $ - Exercisable, September 30, 2023 1,275,000 $ 3.76 6.02 $ - |
Schedule of Options Outstanding and Exercisable | Options outstanding and exercisable as of September 30, 2023 are as follows: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 2.11 40,000 6.75 30,000 $ 2.17 120,000 6.85 120,000 $ 2.21 350,000 7.84 237,500 $ 2.48 120,000 7.60 80,000 $ 4.09 630,000 4.75 527,500 $ 5.66 280,000 5.97 280,000 1,540,000 6.02 1,275,000 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Significant Accounting Policies (Textual) | |||||
Contingent consideration shares, description | (1)Holders who elected to convert a certain former Bridge Note from the Company into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. | ||||
Royalty percentage | 10% | ||||
Contract liabilities (in Dollars) | $ 357,677 | $ 357,677 | $ 108,428 | ||
Performance obligations realized (in Dollars) | 94,682 | 94,682 | |||
Unrealized performance obligations (in Dollars) | $ 13,746 | ||||
Impairment charges (in Dollars) | $ 0 | $ 164,411 | |||
Percentage of accounts receivable | 100% | ||||
Percentage of customers in foreign countries | 0.40% | 0.50% | 0.30% | 3% | |
Functional currency translation rate for balance sheet (in Dollars per share) | $ 1.0573 | $ 1.0573 | $ 1.0699 | ||
Functional currency translation rate for revenue and expense accounts (in Dollars per share) | $ 1.0883 | $ 0.9797 | $ 1.0832 | $ 1.0078 | |
Realized losses (in Dollars) | $ 951 | $ 38,853 | |||
Customer One [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Percentage of accounts receivable | 96% | ||||
Percentage of consolidate revenues | 36% | 22% | 36% | 20% | |
Customer Two [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Percentage of consolidate revenues | 18% | 21% | 20% | 17% | |
Customer Three [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Percentage of consolidate revenues | 18% | 11% | |||
Customers Four [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Percentage of consolidate revenues | 10% | ||||
Customer Five [Member] | |||||
Significant Accounting Policies (Textual) | |||||
Percentage of consolidate revenues | 10% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of Financial Assets Measured at Fair Value - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Significant Accounting Policies (Details) - Schedule of Financial Assets Measured at Fair Value [Line Items] | ||
Digital assets | $ 49,300 | $ 49,761 |
Sponsor warrants | 100 | 100 |
Total | 49,400 | 49,861 |
Level 1 [Member] | ||
Significant Accounting Policies (Details) - Schedule of Financial Assets Measured at Fair Value [Line Items] | ||
Digital assets | 49,300 | 49,761 |
Sponsor warrants | ||
Total | 49,300 | 49,761 |
Level 2 [Member] | ||
Significant Accounting Policies (Details) - Schedule of Financial Assets Measured at Fair Value [Line Items] | ||
Digital assets | ||
Sponsor warrants | ||
Total | ||
Level 3 [Member] | ||
Significant Accounting Policies (Details) - Schedule of Financial Assets Measured at Fair Value [Line Items] | ||
Digital assets | ||
Sponsor warrants | 100 | 100 |
Total | $ 100 | $ 100 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Roll Forward of the Company’s Level 3 Instruments - Level 3 [Member] - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Significant Accounting Policies (Details) - Schedule of Roll Forward of the Company’s Level 3 Instruments [Line Items] | |||
Balance beginning | $ 100 | $ 100 | $ 100 |
Change in fair value of sponsor warrants | |||
Balance ending | $ 100 | $ 100 | $ 100 |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of Key Inputs into the Black-Scholes Model Used to Value Sponsor Warrants - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Key Inputs into the Black Scholes Model Used to Value Sponsor Warrants [Abstract] | ||
Risk-free rate | 5.46% | 4.57% |
Remaining term in years | 10 months 9 days | 1 year 7 months 9 days |
Expected volatility | 64% | 56% |
Exercise price | $ 11.5 | $ 11.5 |
Fair value of common stock | $ 0.91 | $ 1.05 |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of Basic and Diluted Net Loss Per Common Share - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Basic and Diluted Net Loss Per Common Share [Abstract] | ||||||||
Net income (loss) (in Dollars) | $ 75,246 | $ (691,218) | $ (1,893,787) | $ (1,642,231) | $ (3,688,951) | $ (3,751,197) | $ (2,509,759) | $ (9,082,379) |
Denominator (weighted average quantities): | ||||||||
Common shares outstanding | 36,942,149 | 39,094,696 | 37,351,735 | 39,109,422 | ||||
Less: Unvested restricted shares | (17,289) | |||||||
Denominator for basic net loss per share | 36,942,149 | 39,094,696 | 37,351,735 | 39,092,133 | ||||
Add: Contingent consideration shares | 192,308 | |||||||
Denominator for fully diluted net loss per share | 37,134,457 | 39,094,696 | 37,351,735 | 39,092,133 | ||||
Income (Loss) per common shares | ||||||||
Basic (in Dollars per share) | $ 0 | $ (0.04) | $ (0.07) | $ (0.23) | ||||
Diluted (in Dollars per share) | $ 0 | $ (0.04) | $ (0.07) | $ (0.23) |
Significant Accounting Polici_8
Significant Accounting Policies (Details) - Schedule of Weighted Average Dilutive Common Shares - shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Securities are excluded from calculation of weighted average dilutive common shares | 21,631,549 | 22,693,857 | 21,823,857 | 22,693,857 | ||
Options [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Securities are excluded from calculation of weighted average dilutive common shares | 1,540,000 | 1,810,000 | 1,540,000 | 1,810,000 | ||
Warrants [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Securities are excluded from calculation of weighted average dilutive common shares | 20,091,549 | 20,091,549 | 20,091,549 | 20,091,549 | ||
Equity purchase options [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Securities are excluded from calculation of weighted average dilutive common shares | 600,000 | 600,000 | ||||
Contingent consideration shares [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Securities are excluded from calculation of weighted average dilutive common shares | [1] | 192,308 | [1] | 192,308 | 192,308 | |
[1] Holders who elected to convert a certain former Bridge Note from the Company into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. |
Significant Accounting Polici_9
Significant Accounting Policies (Details) - Schedule of in-Person Revenue - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | $ 1,119,865 | $ 1,551,963 | $ 3,580,968 | $ 3,734,400 |
Event Revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | 420,192 | 914,386 | 1,593,277 | 2,115,530 |
Sponsorship revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | 457,740 | 175,299 | 1,275,218 | 507,799 |
Food and beverage revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | 47,535 | 110,139 | 173,326 | 342,253 |
Ticket and gaming revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | 151,391 | 143,413 | 401,096 | 394,564 |
Merchandising revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total in-person revenue | $ 43,007 | $ 208,726 | $ 138,051 | $ 374,254 |
Significant Accounting Polic_10
Significant Accounting Policies (Details) - Schedule of Multiplatform Revenue - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total multiplatform revenue | $ 94 | $ 13,679 | $ 2,000,518 | $ 1,401,130 |
NFT revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total multiplatform revenue | 13,441 | 249,889 | ||
Sponsorship revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total multiplatform revenue | 2,000,000 | 1,150,000 | ||
Distribution revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total multiplatform revenue | $ 94 | $ 238 | $ 518 | $ 1,241 |
Significant Accounting Polic_11
Significant Accounting Policies (Details) - Schedule of Revenue Recognized - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues Recognized at a Point in Time: | ||||
Total Revenues | $ 1,119,959 | $ 1,565,642 | $ 5,581,486 | $ 5,135,530 |
Ticket and gaming revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 151,391 | 143,413 | 401,096 | 394,564 |
NFT revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 13,441 | 249,889 | ||
Food and beverage revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 47,535 | 110,139 | 173,326 | 342,253 |
Merchandising revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 43,007 | 208,726 | 138,051 | 374,254 |
Distribution revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 94 | 238 | 518 | 1,241 |
Total Revenues Recognized at a Point in Time [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 242,027 | 475,957 | 712,991 | 1,362,201 |
Event revenue [Member] | Point in Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 420,192 | 914,386 | 1,593,277 | 2,115,530 |
Sponsorship revenue [Member] | Over a Period of Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | 457,740 | 175,299 | 3,275,218 | 1,657,799 |
Total Revenues Recognized Over a Period of Time [Member] | Over a Period of Time [Member] | ||||
Revenues Recognized at a Point in Time: | ||||
Total Revenues | $ 877,932 | $ 1,089,685 | $ 4,868,495 | $ 3,773,329 |
Significant Accounting Polic_12
Significant Accounting Policies (Details) - Schedule of Changes in our Digital Assets | Sep. 30, 2023 USD ($) |
Schedule of Changes in Our Digital Assets [Abstract] | |
Balance | $ 49,761 |
Expenses paid using digital assets | (461) |
Balance | $ 49,300 |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) | 9 Months Ended | ||
Feb. 27, 2023 | Oct. 31, 2022 | Sep. 30, 2023 | |
Intangible Assets, net [Line Items] | |||
Aggregate amount of equal payments | $ 199,800 | $ 99,900 | |
Worldwide software license | 49,950 | ||
Minimum [Member] | |||
Intangible Assets, net [Line Items] | |||
Aggregate amount of equal payments | $ 49,950 | $ 49,950 | |
Computer Software, Intangible Asset [Member] | |||
Intangible Assets, net [Line Items] | |||
Worldwide software license | $ 565,000 | ||
Amortized over a useful life | 5 years |
Intangible Assets, net (Detai_2
Intangible Assets, net (Details) - Schedule of Intangible Assets, net | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | $ 72,786 |
Purchases of intangibles | 568,980 |
Software development costs | 49,950 |
Amortization expense | (2,995) |
Balance as of September 30, 2023 | 688,721 |
Intellectual Property [Member] | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | 37,165 |
Purchases of intangibles | 3,980 |
Amortization expense | |
Balance as of September 30, 2023 | 41,145 |
License [Member] | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | |
Purchases of intangibles | 565,000 |
Amortization expense | |
Balance as of September 30, 2023 | 565,000 |
Software and Software Development Costs [Member] | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | 49,950 |
Purchases of intangibles | |
Software development costs | 49,950 |
Amortization expense | |
Balance as of September 30, 2023 | 99,900 |
Total Intangibles [Member] | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | 87,115 |
Purchases of intangibles | 568,980 |
Software development costs | 49,950 |
Amortization expense | |
Balance as of September 30, 2023 | 706,045 |
Accumulated Amortization [Member] | |
Intangible Assets, net (Details) - Schedule of Intangible Assets, net [Line Items] | |
Balance as of January 1, 2023 | (14,329) |
Purchases of intangibles | |
Software development costs | |
Amortization expense | (2,995) |
Balance as of September 30, 2023 | $ (17,324) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued compensation expense | $ 1 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | |||
Compensation expense | $ 151,121 | $ 1,546,805 | [1] |
Event costs | 2,696 | 8,411 | |
Legal and professional fees | 68,429 | 43,676 | |
Property and franchise tax | 31,000 | 22,000 | |
Warrant liabilities | 100 | 100 | |
Other accrued expenses | 52,924 | 24,387 | |
Accrued expenses and other current liabilities | $ 306,270 | $ 1,645,379 | |
[1] Accrued compensation expense includes a $1 million obligation to a former CEO under a Restricted Stock Unit Agreement dated January 19, 2021, as amended in a certain Release and Separation Agreement with the former CEO dated July 8, 2021. The obligation was settled in July 2023. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 3 Months Ended | 9 Months Ended | ||||
Aug. 01, 2023 USD ($) | Sep. 30, 2023 USD ($) ft² | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) ft² | Sep. 30, 2023 EUR (€) | Sep. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Minimum monthly lease payments | $ 125,000 | |||||
Additional monthly lease payments. | $ 137,500 | $ 137,500 | ||||
Real estate taxes (in Square Feet) | ft² | 2 | 2 | ||||
Common area maintenance costs (in Square Feet) | ft² | 5 | 5 | ||||
Monthly real estate tax charges | $ 5,000 | |||||
Area of Land (in Square Feet) | ft² | 5,067 | 5,067 | ||||
Lease term | 36 months | 36 months | ||||
Rent expense | $ 4,280 | € 4,000 | ||||
Expire date | Jul. 31, 2023 | Jul. 31, 2023 | ||||
Aggregate lease expense | $ 438,874 | $ 421,870 | $ 1,281,075 | $ 1,279,508 | ||
Within in-person costs | 321,522 | 320,994 | 964,038 | 962,982 | ||
General and administrative expenses | $ 117,352 | $ 100,876 | 317,037 | $ 316,526 | ||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Rent expense | 4,560 | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Rent expense | $ 5,028 | |||||
Las Vegas Lease [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Minimum monthly payments | $137,500 | $137,500 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Right-of-Use Assets and Liabilities - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used in operating activities | $ 909,426 | $ 808,148 |
Right-of-use assets obtained in exchange for lease obligations | ||
Right-of-use assets obtained in exchange for lease obligations Operating leases | $ 289,886 | |
Weighted Average Remaining Lease Term (Years) | ||
Weighted Average Remaining Lease Term Operating leases | 4 years 7 months 17 days | 5 years 8 months 1 day |
Weighted Average Discount Rate | ||
Weighted Average Discount Rate Operating leases | 5% | |
Minimum [Member] | ||
Weighted Average Discount Rate | ||
Weighted Average Discount Rate Operating leases | 5% | |
Maximum [Member] | ||
Weighted Average Discount Rate | ||
Weighted Average Discount Rate Operating leases | 5.75% |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of Operating Lease Liabilities - Operating Lease [Member] | Dec. 31, 2022 USD ($) |
Commitments and Contingencies (Details) - Schedule of Operating Lease Liabilities [Line Items] | |
2023 | $ 441,180 |
2024 | 1,765,860 |
2025 | 1,768,656 |
2026 | 1,745,196 |
2027 | 1,710,000 |
Thereafter | 712,500 |
Total lease payments | 8,143,392 |
Less: amount representing imputed interest | (1,008,693) |
Present value of lease liability | 7,134,699 |
Less: current portion | (1,390,533) |
Lease liability, non-current portion | $ 5,744,166 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Sep. 24, 2023 USD ($) |
Bridge Loan [Member] | |
Related Party Transaction [Line Items] | |
Related party amount | $ 3.5 |
Maturity period for related party transaction | 90 days |
Beijing Lianzhong ZHihe Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Percentage of equity interest acquired | 40% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stockholders' Equity (Textual) | ||||
Stock-based compensation expense | ||||
Restricted stock of stock-based compensation expense | 0 | 82,345 | ||
Stock Options [Member] | ||||
Stockholders' Equity (Textual) | ||||
Stock-based compensation expense | 64,623 | $ 238,840 | 136,605 | $ 710,884 |
Unrecognized stock based compensation expense | $ 132,802 | $ 132,802 | ||
Weighted average remaining vesting period | 1 year 8 months 26 days |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of Option Activity | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Schedule of Option Activity [Abstract] | |
Number of Options, Outstanding, Beginning balance | shares | 1,675,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 3.66 |
Number of Options, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Number of Options, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Number of Options, Expired | shares | (85,000) |
Weighted Average Exercise Price, Expired | $ / shares | $ 4.09 |
Number of Options, Forfeited | shares | (50,000) |
Weighted Average Exercise Price, Forfeited | $ / shares | $ 4.09 |
Number of Options, Outstanding, Ending balance | shares | 1,540,000 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 3.62 |
Weighted Average Remaining Term, Outstanding | 6 years 25 days |
Intrinsic Value, Outstanding | $ | |
Number of Options, Exercisable | shares | 1,275,000 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 3.76 |
Weighted Average Remaining Term, Exercisable | 6 years 7 days |
Intrinsic Value, Exercisable | $ |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of Options Outstanding and Exercisable | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding Number of Options, Options Outstanding | 1,540,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 6 years 7 days |
Exercisable Number of Options, Options Exercisable | 1,275,000 |
2.11 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 2.11 |
Outstanding Number of Options, Options Outstanding | 40,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 6 years 9 months |
Exercisable Number of Options, Options Exercisable | 30,000 |
2.17 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 2.17 |
Outstanding Number of Options, Options Outstanding | 120,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 6 years 10 months 6 days |
Exercisable Number of Options, Options Exercisable | 120,000 |
2.21 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 2.21 |
Outstanding Number of Options, Options Outstanding | 350,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 7 years 10 months 2 days |
Exercisable Number of Options, Options Exercisable | 237,500 |
2.48 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 2.48 |
Outstanding Number of Options, Options Outstanding | 120,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 7 years 7 months 6 days |
Exercisable Number of Options, Options Exercisable | 80,000 |
4.09 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 4.09 |
Outstanding Number of Options, Options Outstanding | 630,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 4 years 9 months |
Exercisable Number of Options, Options Exercisable | 527,500 |
5.66 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Options Outstanding (in Dollars per share) | $ / shares | $ 5.66 |
Outstanding Number of Options, Options Outstanding | 280,000 |
Weighted Average Remaining Life In Years, Options Exercisable | 5 years 11 months 19 days |
Exercisable Number of Options, Options Exercisable | 280,000 |
Employee Retention Credit (Deta
Employee Retention Credit (Details) - ERC [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Retention Credit [Line Items] | ||||
Percentage of qualified wages | 50% | |||
Percentage in qualified wages after increase | 70% | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Employee Retention Credit [Line Items] | ||||
Amount of receivable balance | $ 0.2 | $ 0.2 | ||
General and Administrative Expense [Member] | ||||
Employee Retention Credit [Line Items] | ||||
Amount of recognized employee retention credit | $ 1.5 | $ 1.5 | 0 | $ 0 |
Commissions paid | $ 0.3 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Oct. 31, 2023 USD ($) | |
Subsequent Event (Details) [Line Items] | |
Equity interest in cash | $ 7 |
Loan receivable amount | $ 3.5 |
Z-Tech [Member] | |
Subsequent Event (Details) [Line Items] | |
Percentage of equity interest | 40% |