Fri, May 17, 9:19 PM (157 days ago)
The Arena Group Holdings, Inc. reported a net loss of $103,358 for Q1 2024, significantly higher than the $19,377 loss in Q1 2023, primarily driven by discontinued operations in the Sports Illustrated media business. Revenue increased slightly by 1.8% to $28,941, with digital advertising revenue up 19.1%. However, the gross profit margin decreased to 30.9% from 36.3%, influenced by higher Publisher Partner revenue share and content costs. Operating expenses fell by 15.7%, mainly due to reduced selling, marketing, and general administrative costs. Interest expense rose marginally to $4,339. The company's working capital deficit widened to $225,009 from $145,622, exacerbated by a cash balance drop to $4,003. The company faces substantial doubt about its ability to continue as a going concern unless it refinances or modifies its current debt and completes a planned business combination with Bridge Media Networks, LLC. Management is focusing on these strategic moves to stabilize financial health and ensure future operations.