BALLANTYNE STRONG, INC.

CIK:0000946454|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total net revenues	$ 11,094	$ 10,274	$ 39,226	$ 29,442
Total cost of revenues	7,988	7,534	26,193	21,772
Gross profit	3,106	2,740	13,033	7,670
Selling and administrative expenses:
Selling	501	499	1,653	1,723
Administrative	3,347	2,533	13,672	7,887
Total selling and administrative expenses	3,848	3,032	15,325	9,610
Gain on disposal of assets			6
Loss from operations	(742)	(292)	(2,286)	(1,940)
Other income (expense):
Interest income				7
Interest expense	(183)	(91)	(432)	(238)
Foreign currency transaction gain (loss)	124	517	(183)	382
Unrealized loss on equity holdings	(976)	(1,301)	(5,514)	(3,752)
Other income (expense), net	19	11	27	(187)
Total other expense	(1,016)	(864)	(6,102)	(3,788)
Loss before income taxes and equity method holding loss	(1,758)	(1,156)	(8,388)	(5,728)
Income tax beneft (expense)	101	(245)	45	(292)
Equity method holding loss	(1,668)	(798)	(4,362)	(2,578)
Net loss	(3,325)	(2,199)	(12,705)	(8,598)
Net loss attributable to non-controlling interest	(4)		(122)
Net loss attributable to FG Group Holdings	$ (3,321)	$ (2,199)	$ (12,583)	$ (8,598)
Net loss per share:
Basic	$ (0.17)	$ (0.11)	$ (0.64)	$ (0.45)
Diluted	$ (0.17)	$ (0.11)	$ (0.64)	$ (0.45)
Weighted-average shares used in computing net loss per share:
Basic	19,648	19,437	19,530	19,235
Diluted	19,648	19,437	19,530	19,235
Product [Member]
Total net revenues	$ 7,994	$ 7,690	$ 23,609	$ 22,076
Total cost of revenues	5,699	5,543	17,414	16,234
Service [Member]
Total net revenues	3,100	2,584	15,617	7,366
Total cost of revenues	$ 2,289	$ 1,991	$ 8,779	$ 5,538

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (12,705)	$ (8,598)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:
(Recovery of) provision for doubtful accounts	(32)	11
Benefit from obsolete inventory	(47)
Provision for warranty	131	9
Depreciation and amortization	2,814	1,038
Amortization and accretion of operating leases	88	166
Equity method holding loss	4,362	2,578
Adjustment to SageNet promissory note in connection with prepayment		202
Unrealized loss on equity holdings	5,514	3,752
Deferred income taxes	124	(435)
Stock-based compensation expense	1,415	511
Changes in operating assets and liabilities:
Accounts receivable	(1,213)	(394)
Inventories	(158)	(556)
Current income taxes	(666)	117
Other assets	(9,760)	1,455
Accounts payable and accrued expenses	7,053	(1,490)
Deferred revenue and customer deposits	(248)	(975)
Operating lease obligations	(98)	(161)
Net cash used in operating activities	(3,426)	(2,770)
Cash flows from investing activities:
Capital expenditures	(306)	(858)
Acquisition of programming rights	(511)	(407)
Sale (purchase) of equity holdings	198	(2,000)
Receipt of SageNet promissory note		2,300
Net cash used in investing activities	(619)	(965)
Cash flows from financing activities:
Principal payments on short-term debt	(678)	(487)
Principal payments on long-term debt	(152)	(114)
Proceeds from Strong Global Entertainment initial public offering	2,411
Borrowings under credit facility	6,790
Repayments under credit facility	(4,483)
Payments of withholding taxes for net share settlement of equity awards	(131)	(15)
Payments on finance lease obligations	(109)	(5)
Net cash provided by (used in) financing activities	3,648	(621)
Effect of exchange rate changes on cash and cash equivalents	80	(184)
Net decrease in cash and cash equivalents and restricted cash	(317)	(4,540)
Cash and cash equivalents and restricted cash at beginning of period	3,789	8,882
Cash and cash equivalents and restricted cash at end of period	3,472	4,342
Components of cash and cash equivalents and restricted cash:
Cash and cash equivalents	3,472	4,191
Restricted cash		151
Total cash and cash equivalents and restricted cash	3,472	4,342
Supplemental disclosure of non-cash investing and financing activities:
Short-term borrowings to finance insurance	338	392
Issuance of Strong Global Entertainment common stock in connection with acquisition of Unbounded (Note 9)	1,206
Issuance of debt, common shares, and warrants in connection with purchase of Digital Ignition building		7,609
Amount payable to Landmark Studio Group in connection with acquisition of projects (Note 10)		$ 1,345

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 3,472	$ 3,789
Accounts receivable (net of credit allowances of $221 and $409, respectively)	7,453	6,167
Inventories, net	3,597	3,389
Other current assets	1,725	4,871
Total current assets	16,247	18,216
Property, plant and equipment, net	12,247	12,649
Operating lease right-of-use assets	229	310
Finance lease right-of-use asset	1,053	666
Equity holdings	27,450	37,522
Film and television programming rights, net	8,205	1,501
Goodwill	2,049	882
Other assets		7
Total assets	67,480	71,753
Current liabilities:
Accounts payable	3,885	4,375
Accrued expenses	7,563	5,167
Short-term debt	5,206	2,510
Current portion of long-term debt	222	216
Current portion of operating lease obligations	104	116
Current portion of finance lease obligations	216	117
Deferred revenue and customer deposits	1,541	1,787
Total current liabilities	18,737	14,288
Operating lease obligations, net of current portion	182	257
Finance lease obligations, net of current portion	851	550
Long-term debt, net of current portion and deferred debt issuance costs, net	4,916	5,004
Deferred income taxes	3,891	4,851
Other long-term liabilities	621	105
Total liabilities	29,198	25,055
Commitments, contingencies and concentrations (Note 17)
Stockholders’ equity:
Preferred stock, par value $.01 per share; authorized 1,000 shares, none outstanding
Common stock, par value $.01 per share; authorized 50,000 shares; issued 22,477 and 22,264 shares at September 30, 2023 and December 31, 2022, respectively; outstanding 19,683 and 19,470 shares at September 30, 2023 and December 31, 2022, respectively	225	223
Additional paid-in capital	55,674	53,882
Retained earnings	3,830	16,437
Treasury stock, 2,794 shares at cost	(18,586)	(18,586)
Accumulated other comprehensive loss	(4,978)	(5,258)
Total FG Group Holdings shareholders’ equity	36,165	46,698
Equity attributable to non-controlling interest	2,117
Total stockholders’ equity	38,282	46,698
Total liabilities and stockholders’ equity	$ 67,480	$ 71,753