Company Summary: Allied Gaming & Entertainment Inc.

Business Overview

• Company Name: Allied Gaming & Entertainment Inc.
• Headquarters: 745 Fifth Ave, Suite 500, New York, NY 10151
• Ticker Symbol: AGAE (NASDAQ Capital Market)

Core Operations

• Industry Focus: Experiential entertainment & gaming
• Segments:
  • Esports & Competitive Gaming: Operates through its subsidiary Allied Esports International (AEI), providing global esports arenas and content.
  • In-Person Entertainment: Owns and operates HyperX Arena Las Vegas, one of the world's most recognized esports facilities, located at Luxor Hotel, Las Vegas.
  • Mobile Gaming: Owns a 40% equity stake in Beijing Lianzhong Zhihe Technology Co., Ltd (Z-Tech), a developer and operator of casual mobile games primarily focusing on card and Mahjong games.
  • Content Creation: Produces original esports content, tournaments, live and virtual entertainment, and gaming events.
  • Experiential Events: Organizes live music festivals, branded shows, and community events blending gaming, music, fashion, and influencer culture.
  • Mobile Esports & Interactive Services: Focuses on mobile gaming, including casual games, card, and Mahjong categories, leveraging community-building and in-game monetization.

Strategic Initiatives

• Expansion of physical entertainment hubs in Las Vegas, Hainan, and Japan.
• Hosting large-scale esports tournaments, live fan engagement events, and cross-cultural entertainment festivals.
• Developing multiplatform content for distribution through streaming, social media, and licensing.
• Promoting interactive digital services like mobile gaming, in-game advertising, sponsorships, and Web3/blockchain integrations.

Employees & Customer Base

• Number of Employees: 71 (as of May 27, 2025)
• Customer Demographics: Primarily Gen Y, Z, and Alpha consumers, fostering vibrant communities around gaming and entertainment content.

Revenue & Financials (2024)

• Total Revenue: $9.08 million (up from $7.66 million in 2023)
  • In-Person Revenue: $4.67 million
  • Multiplatform Content: Revenue recognized from Season 2 of Elevated (ended in 2023, dropped to $0 in 2024)
  • Casual Mobile Gaming: $4.41 million (significant growth due to full-year revenue recognition following October 2023 acquisition of Z-Tech)
• Net Loss: $22.58 million (improved from a net loss of $3.6 million in 2023)
• Operating Expenses: $32.39 million (substantially higher than $14.26 million in 2023, reflecting increased investments and impairment charges)
• Legal & Administrative Costs: Increased due to shareholder litigation and strategic transactions.

Key Developments in 2024

• Completed a sale of the World Poker Tour (WPT) business in July 2021 for approximately $106 million.
• Began operation of the HyperX Esports Arena in Las Vegas.
• Acquired a 40% stake in Z-Tech in October 2023, establishing presence in casual mobile gaming.
• Entered into and subsequently terminated a strategic purchase and partnership agreement with Blue Planet and Yellow River, resulting in refunds and transfer of shares.
• Facing legal proceedings involving significant shareholder activism and litigation, notably with Knighted Pastures LLC and Timothy G. Schubel, impacting costs and operations.

Market & Industry Context

• The global gaming market generated revenues of $187.7 billion in 2024, rising 2.1% from the prior year.
• Mobile gaming accounted for $92.5 billion, roughly 50% of total gaming revenues.
• Esports continues to grow with global viewership expected to reach 1.21 billion viewers by 2025.
• The industry is characterized by rapid technological change, content fragmentation, and high competition from major publishers, live entertainment firms, and media companies.

Summary

Allied Gaming & Entertainment Inc. is a diversified experiential entertainment company focusing on esports, mobile gaming, live events, and content production. It owns high-profile esports venues, develops and licenses mobile games, and produces event and multimedia content for global audiences. Its strategic initiatives aim to expand physical venues, digital platforms, and cross-media entertainment, leveraging a community-centric, IP-rich growth model amid industry growth in gaming and esports markets.