Audience Grows 82% Year-Over-Year To More Than
1.5 Billion Pageviews in Q2
The Arena Group Holdings, Inc. (NYSE American: AREN) (the
“Company” or “The Arena Group”), a tech-powered media company home
to more than 240 brands, including Sports Illustrated, TheStreet,
Inc. (“TheStreet”), Parade Media (“Parade”), and HubPages, Inc.
(“HubPages”) operating on a single technology platform, today
announced financial results for the second quarter of 2022, the
three and six months ended June 30, 2022.
Second Quarter 2022 Financial and Operational
Highlights
- Total revenue increased 87% to $65.1 million from $34.7 million
in the prior year period.
- Digital advertising revenue increased 114% in the second
quarter to $24.7 million from $11.5 million in the prior year
period, driven by traffic improvements of 82% and an over 40%
growth in display CPMs.
- Quarterly gross profit grew to $18.3 million from $9.4 million
in the prior year period, a 94% improvement year-over-year.
- Net loss increased slightly to $22.2 million in the second
quarter of 2022 compared to a net loss of $20.7 million in the
second quarter of 2021. The net loss in each period includes $14.9
million and $11.1 million for the quarters ended June 30, 2022 and
2021, respectively, in non-cash charges primarily related to
stock-based compensation and depreciation and amortization,
partially offset by deferred income taxes.
- The company generated $5.8 million in net cash from operating
activities, as compared to net cash used from operating activities
of $8.4 million in the prior year quarter, a $14.3 million
improvement.
- Adjusted EBITDA* improved by 32% to a negative $4.9 million for
the second quarter of 2022 as compared to a loss of $7.2 million
for the second quarter of 2021.
- The Arena Group signed 37 new publishing partners predominantly
in the Sports vertical, further expanding its partnership model to
more than 200 sites, adding millions of new users, impressions and
potential for revenue and profit at little to no incremental
upfront cost to the company.
*This press release includes reference to non-GAAP financial
measures. Please see the heading “Use of Non-GAAP Financial
Measures” below for a more complete explanation.
Management Commentary
Chairman and Chief Executive Officer of The Arena Group Ross
Levinsohn said, “The Arena Group continues to deliver robust
revenue growth and improvements to the bottom line. Growth was
achieved across our three core verticals – Sports, Finance and
Lifestyle. We have outpaced our competitive set in both digital
advertising revenue and audience growth. Our playbook and improved
performance drove a 114% year-over-year increase in digital
advertising revenue, as our properties increasingly reach coveted
consumers at scale and our overall audience expanded by 82%
year-over-year, according to Google Analytics.”
The Company generated impactful growth across all key KPIs
within each vertical in the second quarter. Highlights include:
- The Sports vertical, anchored by Sports Illustrated and
featuring local team sites brand FanNation, The Spun and Sports
Illustrated Media Group partners, increased monthly average
pageviews by 174% year-over-year, and sports betting-related
monthly average pageviews grew by 93% year-over-year, according to
Google Analytics. Sports Illustrated continues to have the Facebook
#1 share of voice for link stories among major sports publishers,
according to CrowdTangle.
- The Finance vertical grew monthly average pageviews 157%
year-over-year, and 21% sequentially, reaching an average of nearly
30 million consumers online each month, according to Google
Analytics. The Street’s second quarter Facebook Engagement has
grown 205% as compared to the prior year quarter, according to
ListenFirst.
- Our Lifestyle vertical, anchored by Parade, which the Company
acquired in April and migrated onto its technology infrastructure
in July, is already seeing improvements in audience and CPMs.
- The Company’s pets brand, PetHelpful, one of more than 30
brands within the HubPages business, continues to show rapid
growth, with monthly average pageviews of 42 million, an increase
of over 600% year-over-year.
“Our highly efficient platform and proven ability to produce
relevant content that engages consumers has enabled us to
successfully navigate the well-publicized industry-wide challenges
in advertising related to a slowing economy,” added Mr. Levinsohn.
“The continued growth in partners, traffic, data and impressions
allows us to provide attractive returns for advertisers.”
“Digital revenues and audience are growing rapidly, and second
quarter core KPIs are all seeing significant growth versus the same
period last year – digital ad revenue is up 114%; monthly average
pageviews are up 82%; social video views are up 71%; display CPMs
are up 41% excluding Parade,” added Mr. Levinsohn. “The digital
integration of Parade has gone exceedingly well, with rapid
improvements in efficiency and digital margins. We expect to see
the full benefit of this integration and the inherent value of our
innovative playbook in the second half of 2022. However, during the
second quarter, we experienced pressure on the print business due
to inflation and supply chain factors. We are optimizing our
business for Parade just as we did for Sports Illustrated when we
took over operations, ensuring that our print business will be cash
flow positive.”
Recent Business Highlights
- The Arena Group completed its acquisition of Athlon Media
Group, a premium multimedia company with brands including Parade
Media, Relish, and Spry Living, enabling the creation of the
Company’s new Lifestyle vertical in April 2022. The Arena Group
acquired 100% of the issued and outstanding equity interests of
Athlon Media Group for a preliminary purchase price of $16.3
million, net of cash acquired.
- The Arena Group’s second quarter total pageviews topped 1.5
billion, up 82% as compared to the prior year quarter, according to
Google Analytics. More than half of the pageview growth was
organic.
- Second quarter finance vertical monthly average pageviews
increased 157% year-over-year and 21% sequentially, according to
Google Analytics; while second quarter Sports vertical monthly
average pageviews increased 174% year-over-year.
- The Arena Group’s sports betting partnership with 888 expanded
into a second state, Virginia, with a third state planned before
the end of the year. Sports betting-related monthly average
pageviews grew by 93% as compared to the prior year quarter,
according to Google Analytics.
- The Arena Group joined the Russell 2000® as well as the Russell
3000® and the Russell Microcap® Indexes at the conclusion of the
Russell indexes annual reconstitution in June 2022.
Financial Results for the Three Months Ended June 30, 2022
Compared to the Three Months Ended June 30, 2021
Revenue was $65.1 million for the second quarter of fiscal 2022,
an increase of 87% compared to $34.7 million in the second quarter
of fiscal 2021. The increase was driven by a 75% increase in total
digital revenue to $35.1 million in the second quarter of 2022,
which included a $13.2 million, or 114%, increase in digital
advertising revenue. 84% of the digital advertising growth was
organic, driven by significantly higher traffic across all of
properties in the second quarter of fiscal 2022 as compared to the
prior year, and a greater contribution of digital direct ad
impressions. Total print revenue increased 105% to $30.0 million in
the second quarter of fiscal 2022 from $14.7 million in the second
quarter of fiscal 2021, driven by the acquisition of Athlon Media
Group, including Parade Media, in April 2022.
Gross profit increased 94% to $18.3 million, compared to a gross
profit of $9.4 million in the prior-year quarter. Cost of revenue
increased by 85%, due to the acquisition of Athlon Media
Group/Parade and costs related to the SI Swim magazine, which was
launched in the second quarter of 2022, but was launched in the
third quarter of 2021. The increase in cost of revenue also
reflects the full year effect of investments we made in audience
development and data analytics personnel in the second half of
2021, which have been key in driving traffic and digital
advertising growth.
Total operating expenses were $39.7 million in the second
quarter of 2022 compared to $32.7 million in the second quarter of
2021. The increase was primarily driven by the addition of the
Athlon Media Group/Parade business.
Net loss increased to $22.2 million for the second quarter of
2022 as compared to $20.7 million in the prior year period. The
second quarter of 2022 included $14.9 million of non-cash charges
as compared to $11.1 million of non-cash charges in the second
quarter of the prior year.
Adjusted EBITDA* for the second quarter of fiscal 2022 improved
32% to negative $4.9 million, compared to a loss of $7.2 million
for the second quarter of fiscal 2021, representing a $2.3 million
improvement.
*Adjusted EBITDA is a non-GAAP financial measure. A disclaimer
and reconciliation are provided below.
Financial Results for the Six Months Ended June 30, 2022
Compared to the Six Months Ended June 30, 2021
Revenue was $113.3 million for the first six months of fiscal
2022, an increase of 66% compared to $68.4 million in the first six
months of fiscal 2021. Gross profit was $38.1 million in the first
six months of 2022, representing a 34% gross profit percentage as
compared to a gross profit of $17.3 million, representing a 25%
gross profit in the first six months of 2021. Total operating
expenses were $74.9 million in the first six months of 2022
compared to $62.3 million in the first six months of 2021.
Net loss narrowed to $40.7 million for the first six months of
2022 as compared to $46.1 million in the prior year period. The
first six months of 2022 included $30.0 million of non-cash charges
as compared to $25.3 million of non-cash charges in the first six
months last year. Adjusted EBITDA* for the first six months of
fiscal 2022 was negative $6.1 million, compared to negative $17.2
million for the first six months of fiscal 2021, a 65%
improvement.
*Adjusted EBITDA is a non-GAAP financial measure. A disclaimer
and reconciliation are provided below.
Balance Sheet and Liquidity as of June 30, 2022
Cash and cash equivalents were $14.8 million at June 30, 2022,
compared to $22.5 million at March 31, 2022. In the quarter, net
cash generated from operating activities was $5.8 million, which
was offset by $9.9 million of net acquisition payments, $1.5
million of capital expenditures and a $1.5 million paydown of our
line of credit.
Conference Call
Ross Levinsohn, The Arena Group’s Chief Executive Officer and
Doug Smith, Chief Financial Officer, will host a conference call
and live webcast to review the quarterly results and provide a
corporate update on Tuesday, August 9, 2022 at 4:30 p.m. ET. To
access the call, please dial 833-492-0063 (toll free) or
973-528-0011 and if requested, reference conference ID 658565. 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 August 9,
2022 until 11:59 p.m. ET on August 23, 2022 by dialing 877-481-4010
(United States) or 919-882-2331 (international) and using the
passcode 46229.
About The Arena Group
The Arena Group creates robust digital destinations that delight
consumers with powerful journalism and news about the things they
love – their favorite sports teams, advice on investing, the inside
scoop on personal finance, and the latest on lifestyle essentials.
With powerful technology, editorial expertise, data management, and
marketing savvy, the transformative company enables brands like
Sports Illustrated, TheStreet and Parade to deliver highly relevant
content and experiences that consumers love. To learn more, 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 The Arena Group
Holdings, Inc. in its public filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K and
Quarterly Reports on Form 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.
THE ARENA GROUP HOLDINGS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
June 30, 2022
(unaudited)
December 31, 2021
($ in thousands, except share
data)
Assets
Current assets:
Cash and cash equivalents
$
14,839
$
9,349
Restricted cash
502
502
Accounts receivable, net
34,450
21,660
Subscription acquisition costs, current
portion
28,603
30,162
Royalty fees
3,750
11,250
Prepayments and other current assets
4,863
4,748
Total current assets
87,007
77,671
Property and equipment, net
832
636
Operating lease right-of-use assets
455
528
Platform development, net
10,240
9,299
Subscription acquisition costs, net of
current portion
7,651
8,235
Acquired and other intangible assets,
net
56,221
57,356
Other long-term assets
626
639
Goodwill
23,416
19,619
Total assets
$
186,448
$
173,983
Liabilities, mezzanine equity and
stockholders’ deficiency
Current liabilities:
Accounts payable
$
19,733
$
11,982
Accrued expenses and other
18,579
24,011
Line of credit
7,808
11,988
Unearned revenue
60,907
54,030
Subscription refund liability
2,394
3,087
Operating lease liabilities
400
374
Liquidated damages payable
5,497
5,197
Current portion of long-term debt
5,873
5,744
Total current liabilities
121,191
116,413
Unearned revenue, net of current
portion
12,591
15,277
Operating lease liabilities, net of
current portion
579
785
Liquidating damages payable, net of
current portion
-
7,008
Other long-term liabilities
7,108
7,556
Deferred tax liabilities
389
362
Long-term debt
65,179
64,373
Total liabilities
207,037
211,774
Commitments and contingencies
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; Series G shares issued and outstanding: 168; common shares
issuable upon conversion: 8,582 at June 30, 2022 and December 31,
2021
168
168
Series H convertible preferred stock,
$0.01 par value, $1,000 per share liquidation value and 23,000
shares designated; aggregate liquidation value: $14,556 and
$15,066; Series H shares issued and outstanding: 14,556 and 15,066;
common shares issuable upon conversion: 2,008,728 and 2,075,200 at
June 30, 2022 and December 31, 2021, respectively
13,207
13,718
Total mezzanine equity
13,375
13,886
Stockholders’ deficiency:
Common stock, $0.01 par value, authorized
1,000,000,000 shares; issued and outstanding: 17,827,526 and
12,632,947 shares at June 30, 2022 and December 31, 2021,
respectively
178
126
Common stock to be issued
-
-
Additional paid-in capital
258,727
200,410
Accumulated deficit
(292,869
)
(252,213
)
Total stockholders’ deficiency
(33,964
)
(51,677
)
Total liabilities, mezzanine equity 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 thousands, except share
data)
Revenue
$
65,075
$
34,746
$
113,318
$
68,361
Cost of revenue (includes amortization of
developed technology and platform development for three 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 profit
18,346
9,439
38,092
17,312
Operating expenses
Selling and marketing
19,307
16,202
36,523
31,340
General 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 assets
-
-
257
-
Total operating expenses
39,715
32,701
74,904
62,297
Loss from operations
(21,369
)
(23,262
)
(36,812
)
(44,985
)
Other (expense) income
Change in valuation of warrant derivative
liabilities
-
360
-
(305
)
Interest expense, net
(2,506
)
(2,363
)
(5,326
)
(5,183
)
Liquidated damages
(128
)
(1,109
)
(300
)
(1,364
)
Gain upon debt extinguishment
-
5,717
-
5,717
Total other (expense) income
(2,634
)
2,605
(5,626
)
(1,135
)
Loss before income taxes
(24,003
)
(20,657
)
(42,438
)
(46,120
)
Income taxes
1,796
-
1,782
-
Net loss
$
(22,207
)
$
(20,657
)
$
(40,656
)
$
(46,120
)
Basic and diluted net loss per common
share
$
(1.22
)
$
(1.88
)
$
(2.41
)
$
(4.30
)
Weighted average number of common shares
outstanding – basic 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 thousands)
Cash flows from operating activities
Net loss
$
(40,656
)
$
(46,120
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation of property and equipment
245
220
Amortization of platform development and
intangible assets
13,087
12,031
Gain upon debt extinguishment
-
(5,717
)
Amortization of debt discounts
934
1,001
Loss on impairments of assets
257
-
Change in valuation of warrant derivative
liabilities
-
305
Noncash and accrued interest
69
3,632
Liquidated damages
300
1,364
Stock-based compensation
16,466
13,215
Deferred income taxes
(1,782
)
-
Other
469
(759
)
Change in operating assets and liabilities
net of effect of business combination:
Accounts receivable
5
4,375
Subscription acquisition costs
2,143
(13,784
)
Royalty fees
7,500
7,500
Prepayments and other current assets
264
(4,060
)
Other long-term assets
13
(121
)
Accounts payable
335
4
Accrued expenses and other
(7,131
)
1,714
Unearned revenue
945
14,934
Subscription refund liability
(693
)
737
Operating lease liabilities
(107
)
(404
)
Other long-term liabilities
(128
)
-
Net cash used in operating activities
(7,465
)
(9,933
)
Cash flows from investing activities
Purchases of property and equipment
(379
)
(182
)
Capitalized platform development
(2,784
)
(1,971
)
Proceeds from sale of equity
investment
2,450
-
Payments for acquisition of business, net
of cash acquired
(9,481
)
(7,057
)
Net cash used in investing activities
(10,194
)
(9,210
)
Cash flows from financing activities
Borrowings (repayments) under line of
credit
(4,180
)
(2,249
)
Proceeds from common stock public
offering, net of offering costs
32,058
-
Payments of issuance costs from common
stock public offering
(1,568
)
-
Payment of The Spun deferred cash
payment
(453
)
-
Proceeds from common stock private
placement
-
20,005
Payments of issuance costs from common
stock private placement
-
(167
)
Payment for taxes related to repurchase of
restricted common stock
(556
)
(41
)
Payment of restricted stock
liabilities
(2,152
)
(716
)
Net cash provided by financing
activities
23,149
16,832
Net increase (decrease) in cash, cash
equivalents, and restricted cash
5,490
(2,311
)
Cash, cash equivalents, and restricted
cash – beginning of period
9,851
9,535
Cash, cash equivalents, and restricted
cash – end of period
$
15,341
$
7,224
Cash, cash equivalents, and restricted
cash
Cash and cash equivalents
$
14,839
$
6,723
Restricted cash
502
501
Total cash, cash equivalents, and
restricted cash
$
15,341
$
7,224
Supplemental disclosure of cash flow
information
Cash paid for interest
$
4,323
$
289
Cash paid for income taxes
-
-
Noncash investing and financing
activities
Reclassification of stock-based
compensation to platform development
$
1,125
$
859
Issuance of common stock in connection
with settlement of liquidated damages
7,008
-
Issuance of common stock in connection
with professional services
-
125
Common stock issued in connection with
acquisition of Athlon
3,141
-
Deferred cash payments in connection with
acquisition of Athlon
1,889
-
Assumption of liabilities in connection
with acquisition of Athlon
12,642
-
Deferred cash payments in connection with
acquisition of The Spun
-
1,639
Assumption of liabilities in connection
with acquisition of The Spun
-
2
Conversion of Series H convertible
preferred stock into common stock
511
-
THE ARENA GROUP HOLDINGS, INC.
AND SUBSIDIARIES
NET LOSS TO ADJUSTED EBITDA
RECONCILIATION
(unaudited)
The following table presents a
reconciliation of Adjusted EBITDA to net loss, which is the most
directly comparable GAAP measure, for the periods 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:
Interest expense (1)
2,506
2,363
5,326
5,183
Deferred income taxes
(1,796
)
-
(1,782
)
-
Depreciation and amortization (2)
6,819
6,121
13,332
12,251
Stock-based compensation (3)
9,099
8,116
16,466
13,215
Change in derivative valuations
-
(360
)
-
305
Liquidated damages (4)
128
1,109
300
1,364
Gain upon debt extinguishment (5)
-
(5,717
)
-
(5,717
)
Loss on impairment of assets (6)
-
-
257
-
Professional and vendor fees (7)
-
1,719
-
2,124
Employee restructuring payments (8)
505
66
679
241
Adjusted EBITDA
$
(4,946
)
$
(7,240
)
$
(6,078
)
$
(17,154
)
(1)
Represents interest expense (net of
interest income) of $2,506 and $2,363, for the three months ended
June 30, 2022 and 2021, respectively, and interest expense (net of
interest income) of $5,326 and $5,183, for the six months ended
June 30, 2022 and 2021, respectively. Interest expense is related
to our capital structure. Interest expense varies over time due to
a variety of financing transactions. Interest expense includes $274
and $307 for amortization of debt discounts for the three months
ended June 30, 2022 and 2021, respectively, and $934 and $1,001 for
amortization of debt discounts for the six months ended June 30,
2022 and 2021, as presented in our condensed consolidated
statements of cash flows, which are a noncash item. Investors
should note that interest expense will recur in future periods.
(2)
Represents depreciation and amortization
related to our developed technology and Platform included within
cost of revenues of $2,375 and $2,157, for the three months ended
June 30, 2022 and 2021, respectively, and depreciation and
amortization included within operating expenses of $4,444 and
$3,964 for the three months ended June 30, 2022 and 2021,
respectively. Represents depreciation and amortization related to
our developed technology and Platform included within cost of
revenues of $4,686 and $4,324, for the six months ended June 30,
2022 and 2021, respectively, and depreciation and amortization
included within operating expenses of $8,646 and $7,927 for the six
months ended June 30, 2022 and 2021, respectively. We believe (i)
the amount of depreciation and amortization expense in any specific
period may not directly correlate to the underlying performance of
our business operations and (ii) such expenses can vary
significantly between periods as a result of new acquisitions and
full amortization of previously acquired tangible and intangible
assets. Investors should note that the use of tangible and
intangible assets contributed to revenue in the periods presented
and will contribute to future revenue generation and should also
note that such expense will recur in future periods.
(3)
Represents noncash costs arising from the
grant of stock-based awards to employees, consultants and
directors. We believe that excluding the effect of stock-based
compensation from Adjusted EBITDA assists management and investors
in making period-to-period comparisons in our operating performance
because (i) the amount of such expenses in any specific period may
not directly correlate to the underlying performance of our
business operations, and (ii) such expenses can vary significantly
between periods as a result of the timing of grants of new
stock-based awards, including grants in connection with
acquisitions. Additionally, we believe that excluding stock-based
compensation from Adjusted EBITDA assists management and investors
in making meaningful comparisons between our operating performance
and the operating performance of other companies that may use
different forms of employee compensation or different valuation
methodologies for their stock-based compensation. Investors should
note that stock-based compensation is a key incentive offered to
employees whose efforts contributed to the operating results in the
periods presented and are expected to contribute to operating
results in future periods. Investors should also note that such
expenses will recur in the future.
(4)
Represents damages (or interest expense
related to accrued liquidated damages) we owe to certain of our
investors in private placements offerings conducted in fiscal years
2018 through 2020, pursuant to which we agreed to certain covenants
in the respective securities purchase agreements and registration
rights agreements, including the filing of resale registration
statements and becoming current in our reporting obligations, which
we were not able to timely meet.
(5)
Represents a gain upon extinguishment of
the Paycheck Protection Program Loan.
(6)
Represents our impairment of certain
assets that no longer are useful.
(7)
Represents professional and vendor fees
recorded in connection with services provided by consultants,
accountants, lawyers, and other vendors related to the preparation
of periodic reports in order for us to become current in our
reporting obligations (“Delinquent Reporting Obligations
Services”). With respect to the Delinquent Reporting Obligations
Services, we incurred professional and vendor fees in the first
quarter of 2021 related to the preparation of our annual reports
for fiscal years 2018 and 2019 (which contained the financial
information for the quarterly periods during fiscal 2019), and our
quarterly reports fiscal 2020. The amount of fees incurred in
connection with the Delinquent Reporting Obligations Services is
adjusted based on our best estimate of the amount we expect we
would ordinarily incur to meet our reporting obligations pursuant
to the Exchange Act.
(8)
Represents severance payments to the
former Chief Financial Officer of Athlon and our former Chief
Executive Officer for the three and six months ended June 30, 2022
and 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005852/en/
Investor Relations Contact Rob Fink FNK IR aren@fnkir.com
646.809.4048
Media Contacts: Rachael Fink Communications Manager, The
Arena Group rachael.fink@thearenagroup.net
Andrew Rhodes DKC arena@dkcnews.com
Arena (AMEX:AREN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Arena (AMEX:AREN)
Historical Stock Chart
From Apr 2023 to Apr 2024