Falcon's Beyond Global, Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance for the three months ended March 31, 2024. The company operates as an entertainment company with a focus on creating master plans, designing attractions, producing content, and engaging in media and audio production, among other activities. It operates in various locations globally, including the United States, Saudi Arabia, Caribbean, and Hong Kong. Falcon's Beyond Global has three business divisions, conducted through five operating segments.
In the 10-Q report, the company's management provided an overview of its business operations and discussed the financial condition and results of operations. Falcon's Beyond Global aims to engage, inspire, and entertain people through creativity and innovation, connecting individuals with brands and each other through a combination of digital and physical experiences. The report highlighted the company's listing on Nasdaq in October 2023 following a Business Combination with FAST Acquisition Corp. II.
The report also addressed the company's liquidity and going concern, stating that it had incurred a loss from operations, an accumulated deficit, and negative cash flows from operating activities for the three months ended March 31, 2024. Falcon's Beyond Global evaluated its ability to continue as a going concern and mentioned its reliance on stockholders and third parties for additional financing to fund its working capital needs and expansion plans.
The 10-Q report provided a comprehensive overview of Falcon's Creative Group division (FCG), which has been deconsolidated and accounted for as an equity method investment since July 27, 2023. It discussed the strategic investment in FCG and the establishment of the Falcon’s Beyond Global, LLC Long-Term Incentive Plan to reward eligible employees. Additionally, the report addressed the company's recent term loan agreements with Katmandu Ventures, LLC and Universal Kat Holdings, LLC.
Furthermore, the report included a detailed analysis of the company's results of operations for the three months ended March 31, 2024, and March 31, 2023. It provided a breakdown of revenue, expenses, and the change in fair value of warrant liabilities, among other financial metrics. The report highlighted a decrease in revenue for the three months ended March 31, 2024, compared to the same period in 2023, primarily attributable to the deconsolidation of FCG.
Moreover, the 10-Q report discussed the changes in selling, general and administrative expenses, credit loss expenses, research and development expenses, and depreciation and amortization expenses. It also provided insights into the share of gain or loss from equity method investments, detailing the performance of various segments.
Today the company's shares have moved 2.0% to a price of $10.2. For more information, read the company's full 10-Q submission here.
