Allied Gaming & Entertainment Inc. Q2 FY2024 earnings call

• Z-Tech is performing well, with the HyperX Arena in high demand and hosting 65 events this quarter, 40 of which were third-party. - Announced the creation of the World Mahjong Tour (WMT) modeled after the World Poker Tour, to debut later this year with the inaugural season culminating in a final at HyperX Arena in spring 2025. - Allied Experiential Entertainment (AEE) is involved in WMT and in close negotiations to partner with a music festival in Macau. - Allied Mobile Entertainment's (AME) investment in Z-Tech is progressing well, with Z-Tech releasing Balloon Pop Mania in May, and in-game ad revenue up 53% Q2 over Q1.

Total revenues for the second quarter of 2024 were $2.6 million, up 11% from the first quarter but down 19% from the second quarter of 2023. The decline in year-over-year revenue was primarily due to a $2 million decrease in revenues from the branded content production arm, offset by a $1.7 million increase in casual mobile gaming revenues from Z-Tech. Z-Tech's in-game ad revenue rose 53% over Q1.

• Optimistic about the opportunities from the World Mahjong Tour and strong momentum leading to the inaugural finale in spring 2025. - Look forward to sharing third quarter 2024 results in November.

• Approximately $3 million of the increase in expenses was driven by costs related to Knighted Pastures' counterproductive actions, including litigation filed by them against AGAE in their hostile attempt to take over the company at a discounted price.