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Falcon's Beyond Global, Inc. (FBYD-0.18%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net income of $39.3 million for the quarter, a significant increase from the $4.3 million in the same quarter the previous year. This increase is attributed to a $40.6 million gain from changes in the fair value of earnout liabilities.
Revenue for the quarter was $2.1 million, up from $1.6 million in the previous year. The increase was primarily due to higher revenue from services provided to equity method investments.
Selling, general, and administrative expenses were $4.5 million, a slight increase from $4.3 million in the previous year, driven by increased payroll and benefits costs.
The company reported a gain of $40.6 million from changes in the fair value of earnout liabilities, which contributed significantly to the net income for the quarter.
Falcon's Beyond Global, Inc. deconsolidated Falcon's Creative Group (FCG) on July 27, 2023, and now accounts for it as an equity method investment. The share of loss from equity method investments was $38,000 for the quarter.
The company identified material weaknesses in its internal controls over financial reporting and is in the process of implementing remediation plans.
The filing also details various financial arrangements, including a $14.765 million term loan with Infinite Acquisitions and a $7.221 million term loan with Katmandu Ventures.
Falcon's Beyond Global, Inc. faces liquidity challenges, with a working capital deficiency of $27 million and $10.3 million in debt maturing in the next 12 months.
The company is involved in ongoing litigation with Guggenheim Securities, LLC, which claims fees and expenses of $11.1 million related to services allegedly performed in connection with a business combination.
Falcon's Beyond Global, Inc. continues to focus on expanding its operations through equity method investments and developing new product offerings, while also seeking additional financing to support its growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Falcon's Beyond Global, Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.