Super League Reports Fourth Quarter and Full Year 2024 Financial Results and Provides Update on Strategic Discussions to Accelerate Path to Profitability and Diversify Revenues
Ann Hand to Support Strategic Alternative Initiatives as Executive Chair; President Matt Edelman Promoted to the Role of Chief Executive Officer
Renowned Marketing and Advertising Executive Bant Breen Appointed to Board of Directors
SANTA MONICA, Calif., March 28, 2025 (GLOBE NEWSWIRE) -- Super League (Nasdaq: SLE), a leader in redefining the gaming industry as a media channel, today released fourth quarter and full year 2024 financial results.
Super League Executive Chair, Ann Hand Commented:
"The last two years have presented Super League with a unique set of challenges that have tested our resolve. But make no mistake, our conviction and enthusiasm to seize the opportunity in front of us is unwavering. We have worked tirelessly to build our platform over the years and are confident we have the talent, grit and an actionable plan already underway to successfully achieve our long-term objectives.
While we have achieved plenty of success across hundreds of campaigns with blue-chip brands, creating innovative technology and growing our audience base, our financial results in the back half of 2024 did not live up to the results we expected. The micro-cap market has not rebounded in ways that we would like, combined with some macro-economic headwinds and structural shifts in the Roblox ad ecosystem, we have had to quickly adapt and be faster and more assertive in building a successful and sustainable business. Yet, we believe in our long-term prospects, and there are positive signs in Q1 -- notably that revenue diversification is kicking in, margins are recovering and our pipeline is growing.
Our mandate is getting to breakeven for you, our shareholders. In order to do that, we must realign the business. We are aggressively attacking our cost structure to support this priority with an aim to be EBITDA positive in Q4 2025. Concurrently, we are also focusing on larger revenue, higher margin programs to be more selective in where we focus our limited resources.
In addition, as part of our realignment, I am moving to Executive Chair role through the end of 2025 and passing the torch to Matt Edelman to be our new CEO. I will continue to support and mentor Matt through the transition process and exploration of strategic alternatives. Matt has been our fearless President for the last two years and has the intellect, deep product and industry knowledge, work ethic, energy and enthusiasm to hit the ground running.
In an effort to bolster our Board, we are thrilled to appoint Bant Breen as a Director. Bant is a noted marketing and media executive, entrepreneur and academic. Specifically, Bant has spent a vast amount of his career in holding company and operating leadership roles with some of the largest global advertising agencies. When considering our market adoption opportunity, Bant's history in the industry can potentially be a game changer for our pipeline and ultimately our revenue trajectory.
As for the opportunity we announced with Infinite Reality in October 2024, while discussions continue, the deal has not been completed and the exclusivity period has expired. This has allowed us to advance towards exciting alternatives that are very on-strategy for Super League. These pursuits have significant business overlap with us for more material topline and cost synergies -- and they are companies that are close to breakeven or already profitable and could accelerate our path to EBITDA positive with a more dominant position in the playable digital advertising space.
In conclusion, despite the challenges we have faced, we are here and confident in the opportunity that lies ahead. We have responded with a mandate and actionable plan that is already under way. The Board and I are confident that Matt is the right choice to execute this mandate and ultimately deliver value to our shareholders."
Matt Edelman, Super League President and CEO commented, "My conviction and confidence in Super League's path ahead have never been stronger. We have the grit, fortitude, and vision to deliver upon our most important commitments - more value to our shareholders, meaningful business outcomes for our partners, and attention-grabbing playable content to massive audiences across gaming platforms. I'm grateful to the Board for their support and excited for the opportunity."
The Company will host a webinar at 8:30 a.m. Eastern Time today, March 28, 2025, to discuss financial results, provide a corporate update and end with a question-and-answer session. To participate, please use the following information.
Super League Fourth Quarter and Full Year 2024 Earnings Webinar
Date: Friday, March 28, 2025 Time: 8:30 am Eastern Time Dial-in: 1-877-407-0779 International Dial-in: 1-201-389-0914 Webinar: Register Here
A replay will be available within 24 hours after the webinar and can be accessed here or on the Company's investor relations website at https://ir.superleague.com/.
For any questions related to the Company's fourth quarter or full year 2024 financial results, please contact SLE@mzgroup.us.
About Super League
Super League (Nasdaq:SLE) is redefining how brands connect with consumers through the power of playable media. Through solutions within mobile games and the world's largest immersive gaming platforms, Super League provides global brands with ads, content, and experiences that are not only seen - they're played, felt, and remembered. Boasting an award-winning development studio, a vast network of native creators, and proprietary engagement technology, Super League is a one-of-a-kind partner for brands looking to stand out in culture, spark loyalty, and drive meaningful impact. In a world where attention is earned, Super League makes brands relevant - by making them playable. For more information, visit superleague.com.
Investor Relations Contact:
Shannon Devine/ Mark Schwalenberg
MZ North America
Main: 203-741-8811
SLE@mzgroup.us
SUPER LEAGUE ENTERPRISE, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2024 AND 2023
(In U.S. dollars, rounded to the nearest thousands,
except share and per share data)
December 31, 2024 December 31, 2023
------------------- ---------------------
Assets
Cash and cash equivalents $ 1,310,000 $ 7,609,000
Accounts receivable 3,766,000 8,287,000
Prepaid expenses and other
current assets 677,000 862,000
Total current assets 5,753,000 16,758,000
Property and Equipment,
net 24,000 70,000
Intangible and Other
Assets, net 4,070,000 6,636,000
Goodwill 1,864,000 1,864,000
Total assets $ 11,711,000 $ 25,328,000
============== ==============
Liabilities
Accounts payable and
accrued expenses $ 5,282,000 $ 10,420,000
Accrued contingent
consideration 138,000 1,812,000
Promissory note -
contingent consideration 1,735,000 -
Contract liabilities 50,000 339,000
Notes payable and other,
and accrued interest 3,240,000 800,000
Total current liabilities 10,445,000 13,371,000
Accrued contingent
consideration -- long
term - 396,000
Warrant liability 935,000 1,571,000
Total liabilities 11,380,000 15,338,000
-------------- --------------
Stockholders' Equity
Preferred Stock - -
Common Stock 94,000 81,000
Additional paid-in capital 270,111,000 258,923,000
Accumulated deficit (269,874,000) (249,014,000)
-------------- --------------
Total stockholders' equity 331,000 9,990,000
-------------- --------------
Total liabilities and
stockholders' equity $ 11,711,000 $ 25,328,000
============== ==============
SUPER LEAGUE ENTERPRISE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(In U.S. dollars, rounded to the nearest thousands,
except share and per share data)
Three Months Ended Fiscal Year Ended
December 31, December 31,
2024 2023 2024 2023
REVENUE $ 3,426,000 $ 9,510,000 $ 16,182,000 $ 25,079,000
COST OF REVENUE (2,427,000) (5,785,000) (10,080,000) (15,297,000)
---------- ----------- ----------- -----------
GROSS PROFIT 999,000 3,725,000 6,102,000 9,782,000
OPERATING EXPENSES
Selling, marketing
and advertising 2,510,000 3,696,000 9,822,000 12,450,000
Engineering,
Technology and
Development 1,048,000 2,219,000 4,447,000 9,500,000
General and
administrative 2,173,000 3,165,000 8,731,000 10,258,000
Contingent
consideration (129,000) 529,000 (144,000) 1,075,000
Impairment of
goodwill and loss
on disposal of
intangibles - 7,052,000 - 9,336,000
---------- ----------- ----------- -----------
TOTAL OPERATING
EXPENSES 5,602,000 16,661,000 22,856,000 42,619,000
---------- ----------- ----------- -----------
NET OPERATING LOSS (4,603,000) (12,936,000) (16,754,000) (32,837,000)
---------- ----------- ----------- -----------
OTHER INCOME
(EXPENSE)
Gain on sale of
Minehut assets 39,000 - 183,000 -
Change in fair
value of warrant
liability 12,000 346,000 1,115,000 2,898,000
Loss on
extinguishment of
liability - - (336,000) -
Loss on exchange
of preferred
instruments - (681,000) - (681,000)
Interest expense,
including change
in fair value of
promissory notes
carried at fair
value (478,000) (3,000) (559,000) (50,000)
Other (97,000) - (123,000) 27,000
TOTAL OTHER INCOME
(EXPENSE), NET (524,000) (338,000) 280,000 2,194,000
LOSS BEFORE BENEFIT
FROM INCOME TAXES (5,127,000) (13,274,000) (16,474,000) (30,643,000)
BENEFIT FOR INCOME
TAXES - - - 313,000
NET LOSS $(5,127,000) $(13,274,000) $(16,474,000) $(30,330,000)
========== =========== =========== ===========
Net loss
attributable to
common stockholders
- basic and
diluted
Basic and diluted
net loss per
common share $ (0.45) $ (3.47) $ (2.33) $ (13.67)
========== =========== =========== ===========
Weighted-average
number of shares
outstanding,
basic and
diluted $13,794,441 $ 4,264,905 $ 8,940,304 $ 2,799,044
========== =========== =========== ===========
Reconciliation of net loss to net loss attributable
to common stockholders (Numerator in loss per share
calculation):
Net loss $(5,127,000) $(13,274,000) $(16,474,000) $(30,330,000)
Deemed
dividend on
Series AA
Preferred
Stock -- down
round
feature - (1,131,000) - (7,567,000)
Preferred
Dividends
paid in
shares of
common stock (1,096,000) (374,000) (4,386,000) (374,000)
---------- ----------- ----------- -----------
Net loss
attributable
to common
stockholders $(6,223,000) $(14,779,000) $(20,860,000) $(38,271,000)
========== =========== =========== ===========
SUPER LEAGUE ENTERPRISE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
DECEMBER 31, 2024 AND 2023
(In U.S. dollars, rounded to the nearest thousands,
except share and per share data)
Three Months Ended Fiscal Year Ended
December 31, December 31,
2024 2023 2024 2023
GAAP net loss $ (5,127,000) $(13,274,000) $(16,474,000) $ (30,330,000)
------------------- ----------- ----------- ------------------------------
Add back:
Non-cash stock
compensation 303,000 560,000 1,289,000 2,735,000
Non-cash
amortization of
intangibles 647,000 1,406,000 2,543,000 5,238,000
Impairment of
goodwill and
loss on
disposal of
intangibles - 7,052,000 - 9,336,000
Gain on sale of
Minehut assets (39,000) - (183,000) -
Change in fair
value of
warrant
liability (12,000) (346,000) (1,115,000) (2,898,000)
Other 204,000 1,423,000 1,175,000 896,000
Noncash benefit
for income
taxes - - - (313,000)
Proforma net loss $ (4,024,000) $ (3,179,000) $(12,765,000) $ (15,336,000)
=================== =========== =========== ==============================
Pro forma non-GAAP
net earnings
(loss) per common
share -- diluted $ (0.29) $ (0.75) $ (1.43) $ (5.48)
=================== =========== =========== ==============================
Non-GAAP
weighted-average
shares --
diluted 13,794,441 4,264,905 8,940,304 2,799,044
=================== =========== =========== ==============================
SUPER LEAGUE ENTERPRISE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(In U.S. dollars, rounded to the nearest thousands)
Fiscal Year Ended
December 31,
2024 2023
Operating Activities
Net loss $(16,474,000) $ (30,330,000)
Adjustments to reconcile net
loss to net cash used in
operations:
Depreciation and amortization 2,612,000 5,376,000
Stock-based compensation 1,289,000 2,735,000
Change in fair value of
warrant liability (1,115,000) (2,898,000)
Change in fair value of
contingent consideration (252,000) (545,000)
Change in fair value of debt
at fair value 163,000 -
Gain on sale of intangible
assets (183,000) -
Loss on extinguishment of
liability -- contingent
consideration 336,000 -
Loss on exchange of placement
agent warrants - 681,000
Impairment of intangible
assets and goodwill - 7,052,000
Fair value of noncash legal
settlement and other noncash
charges 959,000 -
Loss on intangible asset
disposal - 2,284,000
Amortization of convertible
notes discount and other - 40,000
Changes in assets and
liabilities
Accounts Receivable 4,521,000 (2,113,000)
Prepaid Expenses and Other
Assets 702,000 146,000
Accounts payable and accrued
expenses (3,960,000) 3,412,000
Accrued contingent
consideration (20,000) (1,064,000)
Contract liabilities (289,000) 228,000
Deferred taxes - (313,000)
Accrued interest on notes
payable 130,000 (180,000)
Net Cash Used in Operating
Activities (11,581,000) (15,489,000)
----------- -----------------
Investing Activities
Cash paid in connection with
Melon Acquisition, net - (150,000)
Proceeds from sale of Minehut
Assets 311,000 -
Purchase of property and
equipment (23,000) (8,000)
Capitalization of software
development costs (452,000) (650,000)
Acquisition of other intangibles - (17,000)
-----------------
Net Cash Used in Investing
Activities (164,000) (825,000)
----------- -----------------
Financing Activities
Proceeds from issuance of
preferred stock, net 2,393,000 19,295,000
Proceeds from issuance of common
stock, net of issuance costs 1,000,000 1,885,000
Proceeds from the issuance of
promissory notes, net of
issuance costs 3,257,000 -
Payments on promissory notes (396,000) -
Payments on convertible notes - (539,000)
Accounts receivable facility
advances 1,174,000 800,000
Payments on accounts receivable
facility (1,950,000) -
Other (32,000) -
-----------------
Net Cash Provided by Financing
Activities 5,446,000 21,441,000
----------- -----------------
Net Increase (Decrease) in Cash
and Cash Equivalents (6,299,000) 5,127,000
Cash and Cash Equivalents at
Beginning of the Period 7,609,000 2,482,000
----------- -----------------
Cash and Cash Equivalents at End
of the Period $ 1,310,000 $ 7,609,000
=========== =================
(END) Dow Jones Newswires
March 28, 2025 07:30 ET (11:30 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.