Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (30,330,000) $ (85,451,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 5,376,000 5,403,000
Stock-based compensation 2,735,000 4,263,000
Change in fair value of warrant liability (2,898,000) (0)
Change in fair value of contingent consideration (545,000)  
Loss on exchange of placement agent warrants 681,000 0
Impairment of intangible assets and goodwill 7,052,000 50,263,000
Write off of intangible asset 0 423,000
Loss on intangible asset disposal 2,284,000 0
Amortization of convertible notes discount (Note 6) 40,000 280,000
Changes in assets and liabilities:    
Accounts receivable (2,113,000) 193,000
Prepaid expenses and other current assets 146,000 182,000
Accounts payable and accrued expenses 3,412,000 1,402,000
Accrued contingent consideration (Note 5) (1,064,000) 3,206,000
Contract liabilities 228,000 35,000
Deferred taxes (313,000) (205,000)
Accrued interest on notes payable (180,000) 180,000
Net cash used in operating activities (15,489,000) (19,826,000)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (8,000) (149,000)
Purchase of third-party game properties 0 (500,000)
Capitalization of software development costs (650,000) (923,000)
Acquisition of other intangible and other assets (17,000) (118,000)
Net cash used in investing activities (825,000) (1,690,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of preferred stock, net of issuance costs (Note 7) 19,295,000 8,926,000
Proceeds from issuance of common stock, net of issuance costs (Note 7) 1,885,000 320,000
Proceeds from note payable (Note 6) 0 4,000,000
Payments on convertible notes (Note 6) (539,000) (3,781,000)
Proceeds from accounts receivable facility 800,000 0
Net cash provided by financing activities 21,441,000 9,465,000
(DECREASE)INCREASE IN CASH AND CASH EQUIVALENTS 5,127,000 (12,051,000)
CASH AND CASH EQUIVALENTS – beginning of year 2,482,000 14,533,000
CASH AND CASH EQUIVALENTS – end of year 7,609,000 2,482,000
Melon Acquisition [Member]    
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash paid in connection with Acquisition (150,000) 0
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock in connection with Acquisition 722,000 0
Superbiz Acquisition [Member]    
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock in connection with Acquisition 548,000 0
Bannerfy Acquisition [Member]    
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock in connection with Acquisition $ 70,000 $ 220,000