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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

The Arena Group Reports Record Revenues and Audience Growth for Third Quarter of 2021

November 15, 2021 GMT

NEW YORK--(BUSINESS WIRE)--Nov 15, 2021--

TheMaven, Inc. operating under the brand name “The Arena Group” (OTCQX: MVEN), a tech-powered media company (“Company”), today announced financial results for the three and nine-month period ended September 30, 2021.

2021 Financial and Operational Highlights

  • Total revenue increased 86% to $59.6 million in the third quarter of 2021 compared to $32.1 million in the third quarter of 2020.
  • Revenue for the first nine months of 2021 increased 50% to $127.9 million compared to $85.6 million, effectively matching the full-year 2020 revenue.
  • Advertising revenue increased 130% to $21.7 million in the third quarter of 2021 compared to $9.4 million in the third quarter of 2020, reflecting the improved monetization and efficiency of the Company’s unified technology platform.
  • The company ended the third quarter with recurring subscription revenue accounting for more than 50% of all revenues.
  • Magazine circulation revenue increased 102% to $26.0 million in the third quarter of 2021 compared to $12.9 million in the third quarter of 2020, reflecting higher subscriber levels and the diminishing effect of acquisition accounting adjustments from the commencement of Sports Illustrated media group operations in 2019.
  • Quarterly gross profit percentage doubled to 46% compared to 23% in the third quarter of 2020.
  • Net Loss, inclusive of a $7.3 million non-cash charge for exiting the Company’s New York City office lease, was $24.7 million, or $(0.10) per basic and diluted share for the quarter, compared to a net loss of $21.4 million, or $(0.55) per basic and diluted share, in the third quarter of 2020, a 68% improvement year-over-year.

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Recent Business Highlights

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  • The successful launch of the Sports Illustrated Sportsbook in September has provided robust content offerings for sports bettors and fantasy players nationwide, and the opportunity for fans to place bets in Colorado.
  • A strategic partnership in podcasting and audio with iHeartMedia, the leading audio and media company in America, kicked off during the third quarter of 2021
  • Since acquiring The Spun in June, monthly revenue has tripled to more than $2 million with expenses remaining relatively flat; its monthly audience has increased by 50% to more than 30 million users; and monthly page views have doubled to more than 110 million. The Company paid a net $7.4 million in cash as part of the purchase price for The Spun, and expects to recover this cash outlay from The Spun’s operations before the end of this year.
  • SI Swim executed a rebranding and pivot towards becoming a female lifestyle brand. As a result, revenues doubled over the same period in 2020 and impressions grew by more than 15 billion year-over-year.
  • The Arena Group’s social presence has expanded with video views across social platforms increasing to over 170 million, highlighted by two original series on Snap; a large presence on TikTok and the growth of its brands across Instagram.

Management Commentary

​​ “Since I was asked to lead this business last September, the executive team and I have already achieved our initial goals to transform this company and make it a highly efficient, data driven, technology powered media company that could scale operations, grow audiences, expand margins and drive profitable growth,” said Ross Levinsohn, Chairman and Chief Executive Officer of The Arena Group. “With a proven model, and tremendous momentum heading into 2022, we believe we will expand our footprint and business operations into new verticals, and new areas of growth including the launch of a commerce initiative and plans to enter both the NFT and Metaverse in the year ahead. With premium brands, award-winning content and broad distribution reaching more than 120 million people every month, we are well-positioned to grow in the fourth quarter of 2021, fiscal 2022 and beyond.”

“Over the past year, we have successfully expanded our sports vertical, anchored by Sports Illustrated, the most trusted brand in sports,” added Levinsohn. “Premium content delivered to multiple platforms and diversified revenue has helped us grow exponentially this year. Our sports vertical is the fastest growing media property in the United States, according to Comscore, growing unique visitors by 166% year-over-year. Importantly, our sports media vertical reached nearly 53 million monthly users according to Comscore in September. This impressive improvement in content, traffic, and monetization serves as the formula for additional verticals that we plan to pursue.”

“Our financial vertical, anchored by The Street.com, and featuring a robust, highly profitable subscription business, will follow this clear and proven roadmap,” continued Levinsohn. “We anticipate announcing several important developments about the future of this flagship product over the course of the coming weeks and months. In addition, we expect to expand into additional verticals in the same fashion, with the goal of launching new verticals over the next 16 months, all benefiting from our innovative and expert approach and our scalable technology platform.”

“In the first nine months of 2021, we have generated approximately $128 million in revenue, essentially matching our full-year revenue last year, demonstrating rapid growth,” added Levinsohn. “With accelerating momentum and continued optimization and growth of our traffic, we anticipate a meaningful improvement in profitability going forward. We have begun the process of uplisting to a national exchange, and while we do not control the timing or outcome of this process, we plan to move as quickly as possible.”

Financial Results for the Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020

Revenue was $59.6 million for the quarter, up 86% compared to $32.1 million. The increase was due to a 130% increase in advertising revenue to $21.7 million. The increase in advertising revenue was primarily due to additional revenue of approximately $6.8 million generated as a result of a doubling of advertising sponsorships of the Sports Illustrated Swim business and other growth in the Sports Illustrated media business, and approximately $5.5 million from the addition of The Spun, which was acquired during the second quarter of 2021. In addition, magazine circulation revenue increased by 102% to $26.0 million for the third quarter of 2021 reflecting a drive to increase subscribers in the fourth quarter of 2020 and the diminishing effect of acquisition accounting adjustments on the subscribers that existed when the Company began operating the Sports Illustrated Media Group in October of 2019. Other revenue (primarily licensing and e-commerce revenue) increased by 216% to $4.2 million during the third quarter of 2021 driven in part by an increase in advertising and sponsorships related to the SI Swim and other Sports Illustrated media businesses. These increases were partially offset by a 9% decrease in digital subscription revenue to $7.7 million for the third quarter of 2021, compared to approximately $8.5 million for the third quarter of 2020. Digital subscription revenue represented approximately 12.9% of total revenue in the third quarter of 2021 compared to 26.4% during the same period last year.

Gross profit was $27.4 million, representing a 46% gross profit percentage for the third quarter of 2021, which was double the gross profit percentage of 23% on gross profit of $7.4 million for the third quarter of 2020. For the three months ended September 30, 2021 and 2020, the Company recognized cost of revenue of approximately $32.2 million and approximately $24.7 million, respectively. The increase in cost of revenue of approximately $7.5 million is primarily related to:

  • printing, distribution, and fulfillment costs of approximately $3.4 million, reflecting increase production costs related the SI Swim issue and sponsorships;
  • payroll, stock-based compensation, and related expenses for customer support, technology maintenance, and occupancy costs of related personnel of approximately $2.6 million;
  • other costs of revenue related to SI Swim events of approximately $1.3 million; and
  • amortization of our platform of approximately $0.2 million.

Total operating expenses were approximately $49.8 million in the third quarter of 2021 compared to $21.2 million in the third quarter of 2020. The increase was due to a $7.3 million non-cash charge related to exiting the Company’s lease in its New York City office, a $4.2 million non-cash increase in stock-based compensation expense and a $9.4 million increase in circulation expenses tied to the increase of $13.1 million in magazine circulation revenue.

Net loss was $24.7 million, or $(0.10) per basic and diluted share for the third quarter of 2021, compared to a net loss of $21.4 million, or $(0.55) per basic and diluted share for the third quarter of 2020, a 82% improvement year over year.

Financial Results for the Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

Revenue was $127.9 million year-to-date, up 50% compared to $85.6 million. The increase reflects a diversification of revenue including a 61% increase in advertising revenue, a 57% increase in magazine circulation revenue, a 12% increase in digital subscription revenue and a 119% increase in other revenue.

Gross profit for the nine months ended September 2021, was $44.0 million compared to $9.3 million during the same period last year. Total operating expenses were $111.3 million during this period, compared to approximately $64.8 million for the same period last year. However, of the $46.5 million increase in costs, $16.4 million were non-cash items including stock based compensation and a charge related to the exiting of our New York City lease, and $22.4 million was an increase in circulation expense, which was correlated to a $19.3 million increase in magazine circulation revenue.

Net loss was $70.8 million, or $(0.29) per basic and diluted share for the nine months ended September 30, 2021, compared to a net loss of $67.2 million, or $(1.72) per basic and diluted share for the prior year period.

Balance Sheet and Liquidity as of September 30, 2021

Cash and cash equivalents were $8.2 million as of September 30, 2021, compared to $6.7 million as of June 30, 2021 and $9.0 million as of December 31, 2020.

For the nine months ended September 30, 2021, net cash used in operating activities was approximately $8.3 million, as compared to $20.3 million in the prior year period, a $12.0 million improvement. The improvement was a result of a $42.9 million increase in cash received from customers (including payments received in advance of performance obligations) to $125.1 million in the nine months ended September 30, 2021 from $82.1 million in the prior year period, offset by a $30.5 million increase in cash paid (a) to employees, publisher partners, expert contributors, suppliers, and vendors, and (b) for revenue share arrangements and professional services and (c) cash paid for interest to $132.5 million in the nine months ended September 30, 2021 as compared $102.0 million for the nine months ended September 30, 2020.

For the nine months ended September 30, 2021, net cash used in investing activities was approximately $10.7 million, consisting primarily of: (a) approximately $7.4 million used to acquire The Spun; (b) approximately $0.3 million for property and equipment; and (c) approximately $3.0 million for capitalized costs for the Company’s platform; as compared to the nine months ended September 30, 2020, where net cash used in investing activities was approximately $4.3 million consisting primarily of: (x) approximately $0.3 million used for the acquisition of a business; (y) approximately $1.1 million for property and equipment; and (z) approximately $2.9 million for capitalized costs for the Company’s platform.

Conference Call

Management will host a conference call to discuss these results today at 5 p.m. ET. To access the call, please dial 888-506-0062 (toll free) or 973-528-0011 and if requested, reference conference ID 306741. The conference call will also be webcast live on the Investor Relations section of The Arena Group’s website at https://investors.thearenagroup.net/news-and-events/events.

Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company’s website for at least 90 days. A telephonic replay of the conference call will also be available from 7 p.m. ET on November 15, 2021 until 11:59 p.m. ET on November 29, 2021 by dialing 877-481-4010 (United States) or 919-882-2331 (international) and using the passcode 43643.

About The Arena Group

The Arena Group creates dynamic, digital destinations that delight consumers with stories and news about the things they love – their favorite sports teams, the inside scoop on personal finance, and the latest on lifestyle essentials. The Company’s robust media ecosystem brings together consumers, publishers and advertisers while harnessing the authority of trusted brands and the editorial prowess of leading writers and editors. For more on best-in-class capabilities in direct sales and programmatic advertising, data, SEO, social, and operations, visit www.thearenagroup.net.

Forward Looking Statements

This press release includes statements that constitute forward-looking statements. Forward-looking statements may be identified by the use of words such as “forecast,” “guidance,” “plan,” “estimate,” “will,” “would,” “project,” “maintain,” “intend,” “expect,” “anticipate,” “prospect,” “strategy,” “future,” “likely,” “may,” “should,” “believe,” “continue,” “opportunity,” “potential,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, and include, for example, statements related to the expected effects on the Company’s business from the COVID-19 pandemic. These forward-looking statements are based on information available at the time the statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the duration and scope of the COVID-19 pandemic and impact on the demand for the Company products; the ability of the Company to expand its verticals; the Company’s ability to grow its subscribers; the Company’s ability to grow its advertising revenue; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps that the Company could take to reduce operating costs; the inability of the Company to sustain profitable sales growth; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; and those factors detailed by theMaven, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

THEMAVEN, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

September 30,

2021

 

 

December 31,

2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,227,840

 

 

$

9,033,872

 

Restricted cash

 

 

500,809

 

 

 

500,809

 

Accounts receivable, net

 

 

19,519,147

 

 

 

16,497,626

 

Subscription acquisition costs, current portion

 

 

31,257,268

 

 

 

28,146,895

 

Royalty fees, current portion

 

 

15,000,000

 

 

 

15,000,000

 

Prepayments and other current assets

 

 

4,875,177

 

 

 

4,667,263

 

Total current assets

 

 

79,380,241

 

 

 

73,846,465

 

Property and equipment, net

 

 

668,663

 

 

 

1,129,438

 

Operating lease right-of-use assets

 

 

2,048,900

 

 

 

18,292,196

 

Platform development, net

 

 

8,011,707

 

 

 

7,355,608

 

Royalty fees, net of current portion

 

 

-

 

 

 

11,250,000

 

Subscription acquisition costs, net of current portion

 

 

18,682,545

 

 

 

13,358,585

 

Acquired and other intangible assets, net

 

 

57,817,905

 

 

 

71,501,835

 

Other long-term assets

 

 

692,021

 

 

 

1,330,812

 

Goodwill

 

 

22,861,872

 

 

 

16,139,377

 

Total assets

 

$

190,163,854

 

 

$

214,204,316

 

Liabilities, mezzanine equity and stockholders’ deficiency

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,443,576

 

 

$

8,228,977

 

Accrued expenses and other

 

 

21,287,989

 

 

 

14,718,193

 

Line of credit

 

 

6,705,391

 

 

 

7,178,791

 

Unearned revenue

 

 

71,305,655

 

 

 

61,625,676

 

Subscription refund liability

 

 

4,379,364

 

 

 

4,035,531

 

Operating lease liabilities

 

 

282,011

 

 

 

1,059,671

 

Liquidated damages payable

 

 

11,765,706

 

 

 

9,568,091

 

Current portion of long-term debt

 

 

4,565,982

 

 

 

-

 

Warrant derivative liabilities

 

 

651,083

 

 

 

1,147,895

 

Total current liabilities

 

 

130,386,757

 

 

 

107,562,825

 

Unearned revenue, net of current portion

 

 

19,207,736

 

 

 

23,498,597

 

Restricted stock liabilities, net of current portion

 

 

521,621

 

 

 

1,995,810

 

Operating lease liabilities, net of current portion

 

 

1,972,165

 

 

 

19,886,083

 

Other long-term liabilities

 

 

8,072,442

 

 

 

753,365

 

Deferred tax liabilities

 

 

577,960

 

 

 

210,832

 

Long-term debt, net of current portion

 

 

58,718,289

 

 

 

62,194,272

 

Total liabilities

 

 

219,456,970

 

 

 

216,101,784

 

Commitments and contingencies (1)

 

 

-

 

 

 

-

 

Mezzanine equity:

 

 

 

 

 

 

 

 

Series G redeemable and convertible preferred stock, $0.01 par value, $1,000 per share liquidation value and 1,800 shares designated; aggregate liquidation value: $168,496; Series G shares issued and outstanding: 168,496; common shares issuable upon conversion: 188,791 at September 30, 2021 and December 31, 2020

 

 

168,496

 

 

 

168,496

 

Series H convertible preferred stock, $0.01 par value, $1,000 per share liquidation value; aggregate liquidation value $19,546,000 and $19,596,000; Series H shares designated: 23,000; Series H shares issued and outstanding: 19,546 and 19,596; common shares issuable upon conversion: 59,243,926 and 59,395,476 shares at September 30, 2021 and December 31, 2020, respectively

 

 

18,197,496

 

 

 

18,247,496

 

Total mezzanine equity

 

 

18,365,992

 

 

 

18,415,992

 

Stockholders’ deficiency:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 1,000,000,000 shares; issued and outstanding: 264,246,777 and 229,085,167 shares at September 30, 2021 and December 31, 2020, respectively

 

 

2,642,467

 

 

 

2,290,851

 

Common stock to be issued

 

 

10,809

 

 

 

10,809

 

Additional paid-in capital

 

 

182,787,419

 

 

 

139,658,166

 

Accumulated deficit

 

 

(233,099,803

)

 

 

(162,273,286

)

Total stockholders’ deficiency

 

 

(47,659,108

)

 

 

(20,313,460

)

Total liabilities, mezzanine equity and stockholders’ deficiency

 

$

190,163,854

 

 

$

214,204,316

 

THEMAVEN, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

59,573,508

 

 

$

32,089,993

 

 

$

127,935,501

 

 

$

85,593,786

 

Cost of revenue (includes amortization of developed technology and platform development for three months ended 2021 and 2020 of $2,241,243 and $2,089,286, respectively, and for nine months ended 2021 and 2020 of $6,565,600 and $6,348,619, respectively)

 

 

32,173,859

 

 

 

24,708,941

 

 

 

83,978,050

 

 

 

76,321,953

 

Gross profit

 

 

27,399,649

 

 

 

7,381,052

 

 

 

43,957,451

 

 

 

9,271,833

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

22,712,193

 

 

 

9,928,901

 

 

 

55,122,357

 

 

 

27,698,182

 

General and administrative

 

 

23,023,883

 

 

 

7,172,175

 

 

 

44,230,360

 

 

 

24,852,891

 

Depreciation and amortization

 

 

4,055,432

 

 

 

4,053,184

 

 

 

11,981,998

 

 

 

12,276,990

 

Total operating expenses

 

 

49,791,508

 

 

 

21,154,260

 

 

 

111,334,715

 

 

 

64,828,063

 

Loss from operations

 

 

(22,391,859

)

 

 

(13,773,208

)

 

 

(67,377,264

)

 

 

(55,556,230

)

Other (expense) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in valuation of warrant derivative liabilities

 

 

801,755

 

 

 

(517,405

)

 

 

496,812

 

 

 

(134,910

)

Change in valuation of embedded derivative liabilities

 

 

-

 

 

 

(2,370,000

)

 

 

-

 

 

 

2,173,000

 

Interest expense

 

 

(2,512,637

)

 

 

(4,253,180

)

 

 

(7,695,317

)

 

 

(12,169,315

)

Interest income

 

 

-

 

 

 

1,116

 

 

 

471

 

 

 

4,499

 

Liquidated damages

 

 

(833,612

)

 

 

(319,903

)

 

 

(2,197,615

)

 

 

(1,487,577

)

Other expenses

 

 

-

 

 

 

(31,851

)

 

 

-

 

 

 

(31,851

)

Gain upon debt extinguishment

 

 

-

 

 

 

-

 

 

 

5,716,697

 

 

 

-

 

Total other expense

 

 

(2,544,494

)

 

 

(7,491,223

)

 

 

(3,678,952

)

 

 

(11,646,154

)

Loss before income taxes

 

 

(24,936,353

)

 

 

(21,264,431

)

 

 

(71,056,216

)

 

 

(67,202,384

)

Income taxes

 

 

229,699

 

 

 

-

 

 

 

229,699

 

 

 

-

 

Net loss

 

 

(24,706,654

)

 

 

(21,264,431

)

 

 

(70,826,517

)

 

 

(67,202,384

)

Deemed dividend on Series H convertible preferred stock

 

 

-

 

 

 

(132,663

)

 

 

-

 

 

 

(132,663

)

Net loss attributable to common stockholders

 

$

(24,706,654

)

 

$

(21,397,094

)

 

$

(70,826,517

)

 

$

(67,335,047

)

Basic and diluted net loss per common stock

 

$

(0.10

)

 

$

(0.55

)

 

$

(0.29

)

 

$

(1.72

)

Weighted average number of common stock outstanding – basic and diluted

 

 

252,811,058

 

 

 

39,186,432

 

 

 

244,209,151

 

 

 

39,177,864

 

THEMAVEN, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(70,826,517

)

 

$

(67,202,384

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

333,891

 

 

 

536,729

 

Amortization of platform development and intangible assets

 

 

18,213,707

 

 

 

18,088,880

 

Loss on disposition of assets

 

 

862,442

 

 

 

105,123

 

Loss upon lease termination

 

 

7,344,655

 

 

 

-

 

Gain upon debt extinguishment

 

 

(5,716,697

)

 

 

-

 

Amortization of debt discounts

 

 

1,533,537

 

 

 

4,899,625

 

Change in valuation of warrant derivative liabilities

 

 

(496,812

)

 

 

134,910

 

Change in valuation of embedded derivative liabilities

 

 

-

 

 

 

(2,173,000

)

Accrued interest

 

 

5,273,159

 

 

 

6,832,376

 

Liquidated damages

 

 

2,197,615

 

 

 

1,487,577

 

Stock-based compensation

 

 

21,688,226

 

 

 

11,185,953

 

Deferred income taxes

 

 

(229,699

)

 

 

-

 

Other

 

 

(1,014,932

)

 

 

(296,019

)

Change in operating assets and liabilities net of effect of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(173,266

)

 

 

4,893,512

 

Subscription acquisition costs

 

 

(8,434,333

)

 

 

(11,053,054

)

Royalty fees

 

 

11,250,000

 

 

 

11,250,000

 

Prepayments and other current assets

 

 

(78,347

)

 

 

327,088

 

Other long-term assets

 

 

638,791

 

 

 

(376,142

)

Accounts payable

 

 

1,214,599

 

 

 

(968,581

)

Accrued expenses and other

 

 

5,566,243

 

 

 

(2,484,525

)

Unearned revenue

 

 

5,389,118

 

 

 

2,871,080

 

Subscription refund liability

 

 

343,833

 

 

 

(169,693

)

Operating lease liabilities

 

 

(2,448,282

)

 

 

1,837,138

 

Other long-term liabilities

 

 

(692,255

)

 

 

-

 

Net cash used in operating activities

 

 

(8,261,324

)

 

 

(20,273,407

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(299,999

)

 

 

(1,085,392

)

Capitalized platform development

 

 

(3,016,924

)

 

 

(2,885,788

)

Payments for acquisition of businesses, net of cash acquired

 

 

(7,356,949

)

 

 

(315,289

)

Net cash used in investing activities

 

 

(10,673,872

)

 

 

(4,286,469

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

-

 

 

 

11,702,725

 

Borrowings (repayments) under line of credit

 

 

(473,400

)

 

 

3,328,431

 

Proceeds from common stock private placement

 

 

20,005,000

 

 

 

-

 

Proceeds from issuance of Series H convertible preferred stock

 

 

-

 

 

 

113,000

 

Proceeds from issuance of Series J convertible preferred stock

 

 

-

 

 

 

6,000,000

 

Payments of issuance costs from common stock private placement

 

 

(167,243

)

 

 

-

 

Payment for taxes related to repurchase of restricted common stock

 

 

(70,238

)

 

 

(322,778

)

Payment of restricted stock liabilities

 

 

(1,164,955

)

 

 

-

 

Net cash provided by financing activities

 

 

18,129,164

 

 

 

20,821,378

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

(806,032

)

 

 

(3,738,498

)

Cash, cash equivalents, and restricted cash – beginning of period

 

 

9,534,681

 

 

 

9,473,090

 

Cash, cash equivalents, and restricted cash – end of period

 

$

8,728,649

 

 

$

5,734,592

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

896,580

 

 

$

437,314

 

Cash paid for income taxes

 

 

-

 

 

 

-

 

Noncash investing and financing activities

 

 

 

 

 

 

 

 

Reclassification of stock-based compensation to platform development

 

$

1,347,624

 

 

$

1,259,163

 

Issuance of common stock in connection with professional services

 

 

125,000

 

 

 

-

 

Deferred cash payments in connection with acquisition of The Spun

 

 

905,109

 

 

 

-

 

Assumption of liabilities in connection with acquisition of The Spun

 

 

1,500

 

 

 

-

 

Debt discount on delayed draw term note

 

 

-

 

 

 

913,865

 

Restricted stock units issued in connection with acquisition of LiftIgniter

 

 

-

 

 

 

500,000

 

Assumption of liabilities in connection with acquisition of LiftIgniter

 

 

-

 

 

 

140,381

 

Restricted stock issued in connection with acquisition of Fulltime Fantasy

 

 

502,500

 

 

 

-

 

Deferred cash payments in connection with acquisition of Fulltime Fantasy

 

 

419,367

 

 

 

 

 

Deemed dividend on Series H convertible preferred stock

 

 

-

 

 

 

132,663

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211115006254/en/

CONTACT: Rob Fink

FNK IR

Arena@fnkir.com

646.809.4048

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: TECHNOLOGY COMMUNICATIONS OTHER TECHNOLOGY PUBLISHING

SOURCE: The Arena Group

Copyright Business Wire 2021.

PUB: 11/15/2021 04:06 PM/DISC: 11/15/2021 04:06 PM

http://www.businesswire.com/news/home/20211115006254/en