10-Q - Angel Studios, Inc. (0001671941) (Filer)

Mon, Jun 3, 9:28 PM (390 days ago)

Angel Studios, Inc. reported a significant increase in quarterly revenue to $28.9 million for Q1 2024, up 45% from the same period in 2023. This growth was driven by theatrical release revenues and the launch of the Angel Guild. However, operating expenses surged by 119% to $48.4 million, primarily due to higher selling and marketing costs, and legal expenses related to arbitration with The Chosen. Consequently, the company posted a net loss of $14.9 million, a substantial increase from the $2.2 million loss in Q1 2023. Cash and cash equivalents decreased by 48% to $13 million, mainly due to operating losses and increased liabilities. The termination of the Chosen Agreement following an arbitration ruling could impact future revenues. Management believes it has sufficient liquidity for the next 12 months but anticipates the need for additional funding to support growth.