The Arena Group Reports Record Revenue and Positive Net Cash Generated from Operating Activities within the Second Quarter of 2022; Total Revenue Increases 87%, As Digital Ad Revenue Grows 114% Year-Over-Year

The Arena Group Reports Record Revenue and Positive Net Cash Generated from Operating Activities within the Second Quarter of 2022; Total Revenue Increases 87%, As Digital Ad Revenue Grows 114% Year-Over-Year

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NEW YORK–(BUSINESS WIRE)–The Arena Group Holdings, Inc. (NYSE American: AREN) (the “Firm” or “The Arena Group”), a tech-powered media firm dwelling to greater than 240 manufacturers, together with Sports activities Illustrated, TheRoad, Inc. (“TheRoad”), Parade Media (“Parade”), and HubPages, Inc. (“HubPages”) working on a single know-how platform, right now introduced monetary outcomes for the second quarter of 2022, the three and 6 months ended June 30, 2022.

Second Quarter 2022 Monetary and Operational Highlights

  • Total income elevated 87% to $65.1 million from $34.7 million within the prior yr interval.
  • Digital promoting income elevated 114% within the second quarter to $24.7 million from $11.5 million within the prior yr interval, pushed by visitors enhancements of 82% and an over 40% development in show CPMs.
  • Quarterly gross revenue grew to $18.3 million from $9.4 million within the prior yr interval, a 94% enchancment year-over-year.
  • Net loss elevated barely to $22.2 million within the second quarter of 2022 in comparison with a web lack of $20.7 million within the second quarter of 2021. The web loss in every interval contains $14.9 million and $11.1 million for the quarters ended June 30, 2022 and 2021, respectively, in non-cash costs primarily associated to stock-based compensation and depreciation and amortization, partially offset by deferred earnings taxes.
  • The firm generated $5.8 million in web money from working actions, as in comparison with web money used from working actions of $8.4 million within the prior yr quarter, a $14.3 million enchancment.
  • Adjusted EBITDA* improved by 32% to a destructive $4.9 million for the second quarter of 2022 as in comparison with a lack of $7.2 million for the second quarter of 2021.
  • The Arena Group signed 37 new publishing companions predominantly within the Sports activities vertical, additional increasing its partnership mannequin to greater than 200 websites, including tens of millions of latest customers, impressions and potential for income and revenue at little to no incremental upfront value to the corporate.

*This press launch contains reference to non-GAAP monetary measures. Please see the heading “Use of Non-GAAP Monetary Measures” under for a extra full clarification.

Administration Commentary

Chairman and Chief Government Officer of The Arena Group Ross Levinsohn stated, “The Arena Group continues to ship strong income development and enhancements to the underside line. Development was achieved throughout our three core verticals – Sports activities, Finance and Way of life. We’ve got outpaced our aggressive set in each digital promoting income and viewers development. Our playbook and improved efficiency drove a 114% year-over-year improve in digital promoting income, as our properties more and more attain coveted shoppers at scale and our general viewers expanded by 82% year-over-year, in accordance with Google Analytics.”

The Firm generated impactful development throughout all key KPIs inside every vertical within the second quarter. Highlights embrace:

  • The Sports activities vertical, anchored by Sports activities Illustrated and that includes native workforce websites model FanNation, The Spun and Sports activities Illustrated Media Group companions, elevated month-to-month common pageviews by 174% year-over-year, and sports activities betting-related month-to-month common pageviews grew by 93% year-over-year, in accordance with Google Analytics. Sports activities Illustrated continues to have the Fb #1 share of voice for hyperlink tales amongst main sports activities publishers, in accordance with CrowdTangle.
  • The Finance vertical grew month-to-month common pageviews 157% year-over-year, and 21% sequentially, reaching a median of practically 30 million shoppers on-line every month, in accordance with Google Analytics. The Road’s second quarter Fb Engagement has grown 205% as in comparison with the prior yr quarter, in accordance with ListenFirst.
  • Our Way of life vertical, anchored by Parade, which the Firm acquired in April and migrated onto its know-how infrastructure in July, is already seeing enhancements in viewers and CPMs.
  • The Firm’s pets model, PetHelpful, certainly one of greater than 30 manufacturers inside the HubPages enterprise, continues to indicate speedy development, with month-to-month common pageviews of 42 million, a rise of over 600% year-over-year.

“Our extremely environment friendly platform and confirmed capability to provide related content material that engages shoppers has enabled us to efficiently navigate the well-publicized industry-wide challenges in promoting associated to a slowing economic system,” added Mr. Levinsohn. “The continued development in companions, visitors, knowledge and impressions permits us to offer enticing returns for advertisers.”

“Digital revenues and viewers are rising quickly, and second quarter core KPIs are all seeing vital development versus the identical interval final yr – digital advert income is up 114%; month-to-month common pageviews are up 82%; social video views are up 71%; show CPMs are up 41% excluding Parade,” added Mr. Levinsohn. “The digital integration of Parade has gone exceedingly effectively, with speedy enhancements in effectivity and digital margins. We count on to see the total good thing about this integration and the inherent worth of our revolutionary playbook within the second half of 2022. Nevertheless, through the second quarter, we skilled stress on the print enterprise attributable to inflation and provide chain elements. We’re optimizing our enterprise for Parade simply as we did for Sports activities Illustrated after we took over operations, guaranteeing that our print enterprise will probably be money stream optimistic.”

Current Enterprise Highlights

  • The Arena Group accomplished its acquisition of Athlon Media Group, a premium multimedia firm with manufacturers together with Parade Media, Relish, and Spry Dwelling, enabling the creation of the Firm’s new Way of life vertical in April 2022. The Arena Group acquired 100% of the issued and excellent fairness pursuits of Athlon Media Group for a preliminary buy worth of $16.3 million, web of money acquired.
  • The Arena Group’s second quarter whole pageviews topped 1.5 billion, up 82% as in comparison with the prior yr quarter, in accordance with Google Analytics. Greater than half of the pageview development was natural.
  • Second quarter finance vertical month-to-month common pageviews elevated 157% year-over-year and 21% sequentially, in accordance with Google Analytics; whereas second quarter Sports activities vertical month-to-month common pageviews elevated 174% year-over-year.
  • The Arena Group’s sports activities betting partnership with 888 expanded right into a second state, Virginia, with a 3rd state deliberate earlier than the top of the yr. Sports activities betting-related month-to-month common pageviews grew by 93% as in comparison with the prior yr quarter, in accordance with Google Analytics.
  • The Arena Group joined the Russell 2000® in addition to the Russell 3000® and the Russell Microcap® Indexes on the conclusion of the Russell indexes annual reconstitution in June 2022.

Monetary Outcomes for the Three Months Ended June 30, 2022 In comparison with the Three Months Ended June 30, 2021

Revenue was $65.1 million for the second quarter of fiscal 2022, a rise of 87% in comparison with $34.7 million within the second quarter of fiscal 2021. The improve was pushed by a 75% improve in whole digital income to $35.1 million within the second quarter of 2022, which included a $13.2 million, or 114%, improve in digital promoting income. 84% of the digital promoting development was natural, pushed by considerably increased visitors throughout all of properties within the second quarter of fiscal 2022 as in comparison with the prior yr, and a larger contribution of digital direct advert impressions. Total print income elevated 105% to $30.0 million within the second quarter of fiscal 2022 from $14.7 million within the second quarter of fiscal 2021, pushed by the acquisition of Athlon Media Group, together with Parade Media, in April 2022.

Gross revenue elevated 94% to $18.3 million, in comparison with a gross revenue of $9.4 million within the prior-year quarter. Price of income elevated by 85%, because of the acquisition of Athlon Media Group/Parade and prices associated to the SI Swim journal, which was launched within the second quarter of 2022, however was launched within the third quarter of 2021. The improve in value of income additionally displays the total yr impact of investments we made in viewers growth and knowledge analytics personnel within the second half of 2021, which have been key in driving visitors and digital promoting development.

Total working bills had been $39.7 million within the second quarter of 2022 in comparison with $32.7 million within the second quarter of 2021. The improve was primarily pushed by the addition of the Athlon Media Group/Parade enterprise.

Net loss elevated to $22.2 million for the second quarter of 2022 as in comparison with $20.7 million within the prior yr interval. The second quarter of 2022 included $14.9 million of non-cash costs as in comparison with $11.1 million of non-cash costs within the second quarter of the prior yr.

Adjusted EBITDA* for the second quarter of fiscal 2022 improved 32% to destructive $4.9 million, in comparison with a lack of $7.2 million for the second quarter of fiscal 2021, representing a $2.3 million enchancment.

*Adjusted EBITDA is a non-GAAP monetary measure. A disclaimer and reconciliation are offered under.

Monetary Outcomes for the Six Months Ended June 30, 2022 In comparison with the Six Months Ended June 30, 2021

Revenue was $113.3 million for the primary six months of fiscal 2022, a rise of 66% in comparison with $68.4 million within the first six months of fiscal 2021. Gross revenue was $38.1 million within the first six months of 2022, representing a 34% gross revenue share as in comparison with a gross revenue of $17.3 million, representing a 25% gross revenue within the first six months of 2021. Total working bills had been $74.9 million within the first six months of 2022 in comparison with $62.3 million within the first six months of 2021.

Net loss narrowed to $40.7 million for the primary six months of 2022 as in comparison with $46.1 million within the prior yr interval. The first six months of 2022 included $30.0 million of non-cash costs as in comparison with $25.3 million of non-cash costs within the first six months final yr. Adjusted EBITDA* for the primary six months of fiscal 2022 was destructive $6.1 million, in comparison with destructive $17.2 million for the primary six months of fiscal 2021, a 65% enchancment.

*Adjusted EBITDA is a non-GAAP monetary measure. A disclaimer and reconciliation are offered under.

Stability Sheet and Liquidity as of June 30, 2022

Cash and money equivalents had been $14.8 million at June 30, 2022, in comparison with $22.5 million at March 31, 2022. Within the quarter, web money generated from working actions was $5.8 million, which was offset by $9.9 million of web acquisition funds, $1.5 million of capital expenditures and a $1.5 million paydown of our line of credit score.

Convention Name

Ross Levinsohn, The Arena Group’s Chief Government Officer and Doug Smith, Chief Monetary Officer, will host a convention name and reside webcast to evaluation the quarterly outcomes and supply a company replace on Tuesday, August 9, 2022 at 4:30 p.m. ET. To entry the decision, please dial 833-492-0063 (toll free) or 973-528-0011 and if requested, reference convention ID 658565. The convention name can even be webcast reside on the Investor Relations part of The Arena Group’s web site at https://buyers.thearenagroup.web/news-and-events/occasions.

Following the conclusion of the reside name, a replay of the webcast will probably be obtainable on the Investor Relations part of the Firm’s web site for at the least 90 days. A telephonic replay of the convention name can even be obtainable from 7 p.m. ET on August 9, 2022 till 11:59 p.m. ET on August 23, 2022 by dialing 877-481-4010 (United States) or 919-882-2331 (worldwide) and utilizing the passcode 46229.

About The Arena Group

The Arena Group creates strong digital locations that delight shoppers with highly effective journalism and information in regards to the issues they love – their favourite sports activities groups, recommendation on investing, the within scoop on private finance, and the newest on way of life necessities. With highly effective know-how, editorial experience, knowledge administration, and advertising savvy, the transformative firm permits manufacturers like Sports activities Illustrated, TheRoad and Parade to ship extremely related content material and experiences that buyers love. To be taught extra, go to www.thearenagroup.web.

Ahead Trying Statements

This press launch contains statements that represent forward-looking statements. Ahead-looking statements could also be recognized by way of phrases corresponding to “forecast,” “steering,” “plan,” “estimate,” “will,” “would,” “undertaking,” “preserve,” “intend,” “count on,” “anticipate,” “prospect,” “technique,” “future,” “probably,” “could,” “ought to,” “imagine,” “proceed,” “alternative,” “potential,” and different related expressions that predict or point out future occasions or tendencies or that aren’t statements of historic issues, and embrace, for instance, statements associated to the anticipated results on the Firm’s enterprise from the COVID-19 pandemic. These forward-looking statements are primarily based on info obtainable on the time the statements are made and/or administration’s good religion perception as of that point with respect to future occasions, and are topic to dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed in or prompt by the forward-looking statements. Elements that might trigger or contribute to such variations embrace, however will not be restricted to, the period and scope of the COVID-19 pandemic and influence on the demand for the Firm merchandise; the flexibility of the Firm to develop its verticals; the Firm’s capability to develop its subscribers; the Firm’s capability to develop its promoting income; normal financial uncertainty in key world markets and a worsening of world financial situations or low ranges of financial development; the consequences of steps that the Firm may take to scale back working prices; the shortcoming of the Firm to maintain worthwhile gross sales development; circumstances or developments that will make the Firm unable to implement or understand the anticipated advantages, or that will improve the prices, of its present and deliberate enterprise initiatives; and people elements detailed by The Arena Group Holdings, Inc. in its public filings with the Securities and Change Fee, together with its Annual Report on Type 10-Ok and Quarterly Reports on Type 10-Q. Ought to a number of of those dangers, uncertainties, or details materialize, or ought to underlying assumptions show incorrect, precise outcomes could differ materially from these indicated or anticipated by the forward-looking statements contained herein. Accordingly, you might be cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the date they’re made. Ahead-looking statements shouldn’t be learn as a assure of future efficiency or outcomes and won’t essentially be correct indications of the occasions at, or by, which such efficiency or outcomes will probably be achieved. Besides as required underneath the federal securities legal guidelines and the foundations and rules of the Securities and Change Fee, we wouldn’t have any intention or obligation to replace publicly any forward-looking statements, whether or not because of new info, future occasions, or in any other case.

 

THE ARENA GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

June 30, 2022

(unaudited)

 

December 31, 2021

 

 

($ in 1000’s, besides share knowledge)

Asunits

 

 

 

 

Present property:

 

 

 

 

 

 

Cash and money equivalents

 

$

14,839

 

 

$

9,349

 

Restricted money

 

 

502

 

 

 

502

 

Accounts receivable, web

 

 

34,450

 

 

 

21,660

 

Subscription acquisition prices, present portion

 

 

28,603

 

 

 

30,162

 

Royalty charges

 

 

3,750

 

 

 

11,250

 

Prepayments and different present property

 

 

4,863

 

 

 

4,748

 

Total present property

 

 

87,007

 

 

 

77,671

 

Property and gear, web

 

 

832

 

 

 

636

 

Operating lease right-of-use property

 

 

455

 

 

 

528

 

Platform growth, web

 

 

10,240

 

 

 

9,299

 

Subscription acquisition prices, web of present portion

 

 

7,651

 

 

 

8,235

 

Acquired and different intangible property, web

 

 

56,221

 

 

 

57,356

 

Different long-term property

 

 

626

 

 

 

639

 

Goodwill

 

 

23,416

 

 

 

19,619

 

Total property

 

$

186,448

 

 

$

173,983

 

Liabilities, mezzanine fairness and stockholders’ deficiency

 

 

 

 

 

 

Present liabilities:

 

 

 

 

 

 

Accounts payable

 

$

19,733

 

 

$

11,982

 

Accrued bills and different

 

 

18,579

 

 

 

24,011

 

Line of credit score

 

 

7,808

 

 

 

11,988

 

Unearned income

 

 

60,907

 

 

 

54,030

 

Subscription refund legal responsibility

 

 

2,394

 

 

 

3,087

 

Operating lease liabilities

 

 

400

 

 

 

374

 

Liquidated damages payable

 

 

5,497

 

 

 

5,197

 

Present portion of long-term debt

 

 

5,873

 

 

 

5,744

 

Total present liabilities

 

 

121,191

 

 

 

116,413

 

Unearned income, web of present portion

 

 

12,591

 

 

 

15,277

 

Operating lease liabilities, web of present portion

 

 

579

 

 

 

785

 

Liquidating damages payable, web of present portion

 

 

 

 

 

7,008

 

Different long-term liabilities

 

 

7,108

 

 

 

7,556

 

Deferred tax liabilities

 

 

389

 

 

 

362

 

Lengthy-term debt

 

 

65,179

 

 

 

64,373

 

Total liabilities

 

 

207,037

 

 

 

211,774

 

Commitments and contingencies

 

 

 

 

 

 

Mezzanine fairness:

 

 

 

 

 

 

Collection G redeemable and convertible most well-liked inventory, $0.01 par worth, $1,000 per share liquidation worth and 1,800 shares designated; mixture liquidation worth: $168; Collection G shares issued and excellent: 168; widespread shares issuable upon conversion: 8,582 at June 30, 2022 and December 31, 2021

 

 

168

 

 

 

168

 

Collection H convertible most well-liked inventory, $0.01 par worth, $1,000 per share liquidation worth and 23,000 shares designated; mixture liquidation worth: $14,556 and $15,066; Collection H shares issued and excellent: 14,556 and 15,066; widespread shares issuable upon conversion: 2,008,728 and a pair of,075,200 at June 30, 2022 and December 31, 2021, respectively

 

 

13,207

 

 

 

13,718

 

Total mezzanine fairness

 

 

13,375

 

 

 

13,886

 

Stockholders’ deficiency:

 

 

 

 

 

 

Frequent inventory, $0.01 par worth, licensed 1,000,000,000 shares; issued and excellent: 17,827,526 and 12,632,947 shares at June 30, 2022 and December 31, 2021, respectively

 

 

178

 

 

 

126

 

Frequent inventory to be issued

 

 

 

 

 

 

Additional paid-in capital

 

 

258,727

 

 

 

200,410

 

Accrued deficit

 

 

(292,869

)

 

 

(252,213

)

Total stockholders’ deficiency

 

 

(33,964

)

 

 

(51,677

)

Total liabilities, mezzanine fairness and stockholders’ deficiency

 

$

186,448

 

 

$

173,983

 

 

THE ARENA GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

2022

 

2021

 

 

($ in 1000’s, besides share knowledge)

Revenue

 

$

65,075

 

 

$

34,746

 

 

$

113,318

 

 

$

68,361

 

Price of income (contains amortization of developed know-how and platform growth for 3 months ended 2022 and 2021 of $2,375 and $2,157, respectively and for the six months ended 2022 and 2021 of $4,686 and $4,324, respectively)

 

 

46,729

 

 

 

25,307

 

 

 

75,226

 

 

 

51,049

 

Gross revenue

 

 

18,346

 

 

 

9,439

 

 

 

38,092

 

 

 

17,312

 

Operating bills

 

 

 

 

 

 

 

 

 

 

 

 

Promoting and advertising

 

 

19,307

 

 

 

16,202

 

 

 

36,523

 

 

 

31,340

 

Common and administrative

 

 

15,964

 

 

 

12,535

 

 

 

29,478

 

 

 

23,030

 

Depreciation and amortization

 

 

4,444

 

 

 

3,964

 

 

 

8,646

 

 

 

7,927

 

Loss on impairment of property

 

 

 

 

 

 

 

 

257

 

 

 

 

Total working bills

 

 

39,715

 

 

 

32,701

 

 

 

74,904

 

 

 

62,297

 

Loss from operations

 

 

(21,369

)

 

 

(23,262

)

 

 

(36,812

)

 

 

(44,985

)

Different (expense) earnings

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation of warrant spinoff liabilities

 

 

 

 

 

360

 

 

 

 

 

 

(305

)

Curiosity expense, web

 

 

(2,506

)

 

 

(2,363

)

 

 

(5,326

)

 

 

(5,183

)

Liquidated damages

 

 

(128

)

 

 

(1,109

)

 

 

(300

)

 

 

(1,364

)

Achieve upon debt extinguishment

 

 

 

 

 

5,717

 

 

 

 

 

 

5,717

 

Total different (expense) earnings

 

 

(2,634

)

 

 

2,605

 

 

 

(5,626

)

 

 

(1,135

)

Loss earlier than earnings taxes

 

 

(24,003

)

 

 

(20,657

)

 

 

(42,438

)

 

 

(46,120

)

Revenue taxes

 

 

1,796

 

 

 

 

 

 

1,782

 

 

 

 

Net loss

 

$

(22,207

)

 

$

(20,657

)

 

$

(40,656

)

 

$

(46,120

)

Fundamental and diluted web loss per widespread share

 

$

(1.22

)

 

$

(1.88

)

 

$

(2.41

)

 

$

(4.30

)

Weighted common variety of widespread shares excellent – primary and diluted

 

 

18,258,890

 

 

 

11,012,866

 

 

 

16,847,920

 

 

 

10,737,555

 

 

THE ARENA GROUP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

 

($ in 1000’s)

Cash flows from working actions

 

 

 

 

 

 

Net loss

 

$

(40,656

)

 

$

(46,120

)

Adjustments to reconcile web loss to web money utilized in working actions:

 

 

 

 

 

 

Depreciation of property and gear

 

 

245

 

 

 

220

 

Amortization of platform growth and intangible property

 

 

13,087

 

 

 

12,031

 

Achieve upon debt extinguishment

 

 

 

 

 

(5,717

)

Amortization of debt reductions

 

 

934

 

 

 

1,001

 

Loss on impairments of property

 

 

257

 

 

 

 

Change in valuation of warrant spinoff liabilities

 

 

 

 

 

305

 

Noncash and accrued curiosity

 

 

69

 

 

 

3,632

 

Liquidated damages

 

 

300

 

 

 

1,364

 

Inventory-based compensation

 

 

16,466

 

 

 

13,215

 

Deferred earnings taxes

 

 

(1,782

)

 

 

 

Different

 

 

469

 

 

 

(759

)

Change in working property and liabilities web of impact of enterprise mixture:

 

 

 

 

 

 

Accounts receivable

 

 

5

 

 

 

4,375

 

Subscription acquisition prices

 

 

2,143

 

 

 

(13,784

)

Royalty charges

 

 

7,500

 

 

 

7,500

 

Prepayments and different present property

 

 

264

 

 

 

(4,060

)

Different long-term property

 

 

13

 

 

 

(121

)

Accounts payable

 

 

335

 

 

 

4

 

Accrued bills and different

 

 

(7,131

)

 

 

1,714

 

Unearned income

 

 

945

 

 

 

14,934

 

Subscription refund legal responsibility

 

 

(693

)

 

 

737

 

Operating lease liabilities

 

 

(107

)

 

 

(404

)

Different long-term liabilities

 

 

(128

)

 

 

 

Net money utilized in working actions

 

 

(7,465

)

 

 

(9,933

)

Cash flows from investing actions

 

 

 

 

 

 

Purchases of property and gear

 

 

(379

)

 

 

(182

)

Capitalized platform growth

 

 

(2,784

)

 

 

(1,971

)

Proceeds from sale of fairness funding

 

 

2,450

 

 

 

 

Funds for acquisition of enterprise, web of money acquired

 

 

(9,481

)

 

 

(7,057

)

Net money utilized in investing actions

 

 

(10,194

)

 

 

(9,210

)

Cash flows from financing actions

 

 

 

 

 

 

Borrowings (repayments) underneath line of credit score

 

 

(4,180

)

 

 

(2,249

)

Proceeds from widespread inventory public providing, web of providing prices

 

 

32,058

 

 

 

 

Funds of issuance prices from widespread inventory public providing

 

 

(1,568

)

 

 

 

Cost of The Spun deferred money fee

 

 

(453

)

 

 

 

Proceeds from widespread inventory personal placement

 

 

 

 

 

20,005

 

Funds of issuance prices from widespread inventory personal placement

 

 

 

 

 

(167

)

Cost for taxes associated to repurchase of restricted widespread inventory

 

 

(556

)

 

 

(41

)

Cost of restricted inventory liabilities

 

 

(2,152

)

 

 

(716

)

Net money offered by financing actions

 

 

23,149

 

 

 

16,832

 

Net improve (lower) in money, money equivalents, and restricted money

 

 

5,490

 

 

 

(2,311

)

Cash, money equivalents, and restricted money – starting of interval

 

 

9,851

 

 

 

9,535

 

Cash, money equivalents, and restricted money – finish of interval

 

$

15,341

 

 

$

7,224

 

Cash, money equivalents, and restricted money

 

 

 

 

 

 

Cash and money equivalents

 

$

14,839

 

 

$

6,723

 

Restricted money

 

 

502

 

 

 

501

 

Total money, money equivalents, and restricted money

 

$

15,341

 

 

$

7,224

 

Supplemental disclosure of money stream info

 

 

 

 

 

 

Cash paid for curiosity

 

$

4,323

 

 

$

289

 

Cash paid for earnings taxes

 

 

 

 

 

 

Noncash investing and financing actions

 

 

 

 

 

 

Reclassification of stock-based compensation to platform growth

 

$

1,125

 

 

$

859

 

Issuance of widespread inventory in reference to settlement of liquidated damages

 

 

7,008

 

 

 

 

Issuance of widespread inventory in reference to skilled companies

 

 

 

 

 

125

 

Frequent inventory issued in reference to acquisition of Athlon

 

 

3,141

 

 

 

 

Deferred money funds in reference to acquisition of Athlon

 

 

1,889

 

 

 

 

Assumption of liabilities in reference to acquisition of Athlon

 

 

12,642

 

 

 

 

Deferred money funds in reference to acquisition of The Spun

 

 

 

 

 

1,639

 

Assumption of liabilities in reference to acquisition of The Spun

 

 

 

 

 

2

 

Conversion of Collection H convertible most well-liked inventory into widespread inventory

 

 

511

 

 

 

 

 

THE ARENA GROUP HOLDINGS, INC. AND SUBSIDIARIES

NET LOSS TO ADJUSTED EBITDA RECONCILIATION

(unaudited)

 

The following desk presents a reconciliation of Adjusted EBITDA to web loss, which is probably the most straight comparable GAAP measure, for the durations indicated:

 
 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

2022

 

2021

Net loss

 

$

(22,207

)

 

$

(20,657

)

 

$

(40,656

)

 

$

(46,120

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Curiosity expense (1)

 

 

2,506

 

 

 

2,363

 

 

 

5,326

 

 

 

5,183

 

Deferred earnings taxes

 

 

(1,796

)

 

 

 

 

 

(1,782

)

 

 

 

Depreciation and amortization (2)

 

 

6,819

 

 

 

6,121

 

 

 

13,332

 

 

 

12,251

 

Inventory-based compensation (3)

 

 

9,099

 

 

 

8,116

 

 

 

16,466

 

 

 

13,215

 

Change in spinoff valuations

 

 

 

 

 

(360

)

 

 

 

 

 

305

 

Liquidated damages (4)

 

 

128

 

 

 

1,109

 

 

 

300

 

 

 

1,364

 

Achieve upon debt extinguishment (5)

 

 

 

 

 

(5,717

)

 

 

 

 

 

(5,717

)

Loss on impairment of property (6)

 

 

 

 

 

 

 

 

257

 

 

 

 

Skilled and vendor charges (7)

 

 

 

 

 

1,719

 

 

 

 

 

 

2,124

 

Worker restructuring funds (8)

 

 

505

 

 

 

66

 

 

 

679

 

 

 

241

 

Adjusted EBITDA

 

$

(4,946

)

 

$

(7,240

)

 

$

(6,078

)

 

$

(17,154

)

 

(1)

Represents curiosity expense (web of curiosity earnings) of $2,506 and $2,363, for the three months ended June 30, 2022 and 2021, respectively, and curiosity expense (web of curiosity earnings) of $5,326 and $5,183, for the six months ended June 30, 2022 and 2021, respectively. Curiosity expense is said to our capital construction. Curiosity expense varies over time attributable to a wide range of financing transactions. Curiosity expense contains $274 and $307 for amortization of debt reductions for the three months ended June 30, 2022 and 2021, respectively, and $934 and $1,001 for amortization of debt reductions for the six months ended June 30, 2022 and 2021, as offered in our condensed consolidated statements of money flows, that are a noncash merchandise. Traders ought to word that curiosity expense will recur in future durations.

 

(2)

Represents depreciation and amortization associated to our developed know-how and Platform included inside value of revenues of $2,375 and $2,157, for the three months ended June 30, 2022 and 2021, respectively, and depreciation and amortization included inside working bills of $4,444 and $3,964 for the three months ended June 30, 2022 and 2021, respectively. Represents depreciation and amortization associated to our developed know-how and Platform included inside value of revenues of $4,686 and $4,324, for the six months ended June 30, 2022 and 2021, respectively, and depreciation and amortization included inside working bills of $8,646 and $7,927 for the six months ended June 30, 2022 and 2021, respectively. We imagine (i) the quantity of depreciation and amortization expense in any particular interval could in a roundabout way correlate to the underlying efficiency of our enterprise operations and (ii) such bills can differ considerably between durations because of new acquisitions and full amortization of beforehand acquired tangible and intangible property. Traders ought to word that the usage of tangible and intangible property contributed to income within the durations offered and can contribute to future income technology and also needs to word that such expense will recur in future durations.

 

(3)

Represents noncash prices arising from the grant of stock-based awards to workers, consultants and administrators. We imagine that excluding the impact of stock-based compensation from Adjusted EBITDA assists administration and buyers in making period-to-period comparisons in our working efficiency as a result of (i) the quantity of such bills in any particular interval could in a roundabout way correlate to the underlying efficiency of our enterprise operations, and (ii) such bills can differ considerably between durations because of the timing of grants of latest stock-based awards, together with grants in reference to acquisitions. Additionally, we imagine that excluding stock-based compensation from Adjusted EBITDA assists administration and buyers in making significant comparisons between our working efficiency and the working efficiency of different corporations that will use totally different types of worker compensation or totally different valuation methodologies for his or her stock-based compensation. Traders ought to word that stock-based compensation is a key incentive provided to workers whose efforts contributed to the working ends in the durations offered and are anticipated to contribute to working ends in future durations. Traders also needs to word that such bills will recur sooner or later.

 

(4)

Represents damages (or curiosity expense associated to accrued liquidated damages) we owe to sure of our buyers in personal placements choices performed in fiscal years 2018 by 2020, pursuant to which we agreed to sure covenants within the respective securities buy agreements and registration rights agreements, together with the submitting of resale registration statements and changing into present in our reporting obligations, which we weren’t in a position to well timed meet.

 

(5)

Represents a achieve upon extinguishment of the Paycheck Safety Program Mortgage.

 

(6)

Represents our impairment of sure property that not are helpful.

 

(7)

Represents skilled and vendor charges recorded in reference to companies offered by consultants, accountants, attorneys, and different distributors associated to the preparation of periodic stories to ensure that us to turn into present in our reporting obligations (“Delinquent Reporting Obligations Providers”). With respect to the Delinquent Reporting Obligations Providers, we incurred skilled and vendor charges within the first quarter of 2021 associated to the preparation of our annual stories for fiscal years 2018 and 2019 (which contained the monetary info for the quarterly durations throughout fiscal 2019), and our quarterly stories fiscal 2020. The quantity of charges incurred in reference to the Delinquent Reporting Obligations Providers is adjusted primarily based on our greatest estimate of the quantity we count on we’d ordinarily incur to fulfill our reporting obligations pursuant to the Change Act.

 

(8)

Represents severance funds to the previous Chief Monetary Officer of Athlon and our former Chief Government Officer for the three and 6 months ended June 30, 2022 and 2021.

 

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