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Segment Information
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Segment Information [Abstract]    
Segment information

11. Segment information

The Company has five operating segments, Falcon’s Creative Group, PDP, Sierra Parima, Destinations Operations and Falcon’s Beyond Brands, all of which are reportable segments. The Company’s Chief Operating Decision Makers are its Executive Chairman and Chief Executive Officer, who review financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Operating segments are organized based on product lines and, for our location-based entertainment, by geography. Results of operating segments include costs directly attributable to the segment including project costs, payroll and payroll-related expenses and overhead directly related to the business segment operations. Unallocated corporate expenses which include payroll and related benefits for executive, accounting, finance, marketing, human resources, legal and information technology support services, audit, tax corporate legal expenses are presented as Unallocated corporate overhead as a reconciling item between total income (losses) from reportable segments and the Company’s unaudited condensed consolidated financial statement results.

Falcon’s Creative Group provides master planning, media, interactive and audio production, project management, experiential technology and attraction hardware development services and attraction hardware sales on a work-for-hire model. Pursuant to the Subscription Agreement, Falcon’s Creative Group is now deconsolidated effective July 27, 2023, and accounted for as an equity method investment in the Company’s unaudited condensed consolidated financial statements. The operating segment still remains a reportable segment for the Company.

The Company’s equity method investments, PDP and Sierra Parima (before Katmandu Park DR was closed to visitors on March 7, 2024), develop, own and operate hotels, theme parks and retail, dining and entertainment venues. Destinations Operations provides development and management services for themed entertainment to PDP, Sierra Parima and new development opportunities, including our investment in Karnival. The Company collectively refers to the Destination Operations, PDP and Sierra Parima as Falcon’s Beyond Destinations.

Reportable segments’ measure of profit and loss is earnings before interest, taxes, foreign exchange gain (loss), gain on deconsolidation of FCG, impairments, depreciation and amortization and change in fair values in warrant and earnout liabilities. See Note 7 — Related party transactions for transactions between the Company’s wholly-owned businesses and equity method investments.

 

Three months ended September 30, 2024
   

Falcon’s
Creative
Group

  

Falcon’s Beyond
Destinations

  

Falcon’s
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total
   

Destination
Operations

  

PDP

  

Revenue

  

$
 

 

  

$

347

 

  

$

—

  

$

1

 

  

$

—

  

$

1,721

 

  

$

2,069

 

Share of gain or (loss) from equity method investments

  

 

(1,658

)

  

 

77

 

  

 

1,619

  

 
 

 

  

 
 
  

 
 

 

  

 

38

 

Segment income (loss) from operations

  

 

(1,658

)

  

 

(91

)

  

 

1,619

  

 

(706

)

  

 

 

  

 

(1,586

)

  

 

(2,422

)

Depreciation and amortization expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

(1

)

Interest expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

(421

)

Interest income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

4

 

Change in fair value of warrant liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

676

 

Change in fair value of earnout liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

40,649

 

Foreign exchange transaction gain

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

816

 

Income tax benefit

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

—

 

Net income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

$

39,301

 
 

Three months ended September 30, 2023
   

Falcon’s
Creative
Group

  

Falcon’s Beyond
Destinations

  

Falcon’s
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total
   

Destination
Operations

  

PDP

  

Sierra
Parima

  

Revenue

  

$

1,267

​(1)

  

$

274

 

  

$

—

  

$

—

 

  

$

1

 

  

$

39

 

  

$

—

 

  

$

1,581

 

Share of gain or (loss) from equity method investments

  

 

(1,044

)(2)

  

 

84

 

  

 

1,527

  

 

(1,413

)

  

 

—

 

  

 

(709

)

  

 

—

 

  

 

(1,555

)

Segment income (loss)

  

 

(4,868

)

  

 

(526

)

  

 

1,527

  

 

(1,413

)

  

 

(2,356

)

  

 

(671

)

  

 

(11,216

)

  

 

(19,523

)

Depreciation and amortization expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(59

)

Gain on deconsolidation FCG

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

27,402

 

Impairment of intangible assets

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(2,377

)

Interest expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(321

)

Interest income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

47

 

Foreign exchange transaction
loss

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(866

)

Income tax benefit

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

7

 

Net income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

$

4,310

 

____________

​(1)      Revenue for the period ended July 27, 2023 (prior to FCG’s deconsolidation).

​(2)      The Company’s share of its equity method investment in FCG subsequent to deconsolidation on July 27, 2023.

 

Nine months ended September 30, 2024
   

Falcon’s
Creative
Group

  

Falcon’s Beyond
Destinations

  

Falcons
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total
   

Destination
Operations

  

PDP

  

Revenue

  

$

  

 

  

$

445

 

  

$

    

$

1

 

  

$

    

$

4,937

 

  

$

5,383

 

Share of gain or (loss) from equity method investments

  

 

(137

)

  

 

239

 

  

 

2,810

  

 

  

 

  

 

    

 

  

 

  

 

2,912

 

Segment income (loss) from operations

  

 

(137

)

  

 

(846

)

  

 

2,810

  

 

(2,162

)

  

 

 

  

 

(8,045

)

  

 

(8,380

)

Depreciation and amortization expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

(4

)

Share of equity method investee’s impairment of fixed assets

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

Interest expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

(1,128

)

Interest income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

10

 

Change in fair value of warrant liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

(1,715

)

Change in fair value of earnout liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

172,271

 

Foreign exchange transaction gain

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

298

 

Income tax benefit

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

 

1

 

Net income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

    

 

  

 

  

$

161,353

 
 

Nine months ended September 30, 2023
   

Falcon’s
Creative
Group

  

Falcon’s Beyond Destinations

  

Falcons
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total
   

Destination
Operations

  

PDP

  

Sierra
Parima

  

Revenue

  

$

14,514

​(1)

  

$

380

 

  

$

—

  

$

—

 

  

$

1,482

 

  

$

(279

)

  

$

—

 

  

$

16,097

 

Share of gain or (loss) from equity method investments

  

 

(1,044

)(2)

  

 

212

 

  

 

1,902

  

 

(4,049

)

  

 

  

 

  

 

(711

)

  

 

  

 

  

 

(3,690

)

Segment income (loss)

  

 

(5,596

)

  

 

(1,324

)

  

 

1,902

  

 

(4,049

)

  

 

(3,450

)

  

 

(913

)

  

 

(23,197

)

  

 

(36,627

)

Depreciation and amortization expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(1,575

)

Gain on deconsolidation FCG

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

27,402

 

Impairment of intangible assets

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(2,377

)

Interest expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(887

)

Other income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

92

 

Foreign exchange transaction loss

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(396

)

Income tax benefit

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

26

 

Net loss

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

$

(14,342

)

____________

​(1)      Revenue for the period ended July 27, 2023 (prior to FCG’s deconsolidation).

​(2)      The Company’s share of its equity method investment in FCG subsequent to deconsolidation on July 27, 2023.

16.    Segment information

The Company has five operating segments, Falcon’s Creative Group, PDP, Sierra Parima, Destinations Operations and Falcon’s Beyond Brands, all of which are reportable segments. The Company’s Chief Operating Decision Makers are its Executive Chairman and Chief Executive Officer, who review financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Operating segments are organized based on product lines and, for our location-based entertainment, by geography. Results of operating segments include costs directly attributable to the segment including project costs, payroll and payroll-related expenses and overhead directly related to the business segment operations. Unallocated corporate expenses which include payroll and related benefits for executive, accounting, finance, marketing, human resources, legal and information technology support services, audit, tax corporate legal expenses are presented as Unallocated corporate overhead as a reconciling item between total income (losses) from reportable segments and the Company’s consolidated financial statement results. During the year ended December 31, 2022, the Company created a new operating segment, Falcon’s Beyond Brands, which is utilized for the development and commercialization of Company owned and third-party intellectual property through consumer products and media.

Falcon’s Creative Group provides master planning, media, interactive and audio production, project management, experiential technology and attraction hardware development services and attraction hardware sales on a work-for-hire model. Pursuant to the Subscription Agreement, Falcon’s Creative Group is now deconsolidated effective July 27, 2023, and accounted for as an equity method investment in the Company’s consolidated financial statements. The operating segment still remains a reportable segment for the Company. See Deconsolidation of Falcon’s Creative Group, LLC under Note 1 — Description of business and basis of presentation and Note 8 — Investments and advances to equity method investments. Falcon’s Creative Group provides services for projects located worldwide. See Note 3 — Revenue.

The Company’s equity method investments, PDP and Sierra Parima develop, own and operate hotels, theme parks and retail, dining and entertainment venues. See Note 8 — Investment and advances to equity method investments. Destinations Operations provides development and management services for themed entertainment to PDP, Sierra Parima and new development opportunities. The Company collectively refers to the Destinations Operations, PDP and Sierra Parima as Falcon’s Beyond Destinations.

Reportable segments measure of profit and loss is earnings before interest, taxes, foreign exchange gain (loss), gain on deconsolidation of FCG, impairments and depreciation and amortization. See Note 11 — Related party transactions for transactions between the Company’s wholly-owned businesses and equity method investments.

 

Year ended December 31, 2023

Falcon’s
Creative
Group

  

Falcon’s Beyond Destinations

  

Falcons
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total

Destinations
Operations

  

PDP

  

Sierra
Parima

  

Revenue

  

$

14,514

 

  

$

481

 

  

$

—

  

$

—

 

  

$

1,482

 

  

$

(279

)

  

$

2,046

 

  

$

18,244

 

Share of gain or (loss) from equity method investments, excluding impairments

  

 

(6,024

)

  

 

288

 

  

 

1,192

  

 

(5,614

)

  

 

—

 

  

 

(2,140

)

  

 

—

 

  

 

(12,298

)

Segment income (loss) from operations

  

 

(10,577

)

  

 

(1,807

)

  

 

1,192

  

 

(5,614

)

  

 

(4,015

)

  

 

(2,341

)

  

 

(42,342

)

  

 

(65,504

)

Depreciation and amortization expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(1,576

)

Gain on deconsolidation of FCG

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

27,402

 

Share of equity method investee’s impairment of fixed assets

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(26,084

)

Impairment of equity method investments

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(14,069

)

Impairment of intangible assets

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(2,377

)

Interest expense

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(1,124

)

Interest income

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

95

 

Change in fair value of warrant liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(2,972

)

Change in fair value of earnout liabilities

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(345,413

)

Foreign exchange transaction gains (losses)

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

367

 

Income tax benefit

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

325

 

Net loss

  

 

  

 

  

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

$

(430,930

)

(1)      Revenue for the period ended July 27, 2023 (prior to FCG’s deconsolidation).

(2)      The Company’s share of gain or loss from its equity method investment in FCG subsequent to deconsolidation on July 27, 2023.

 

Year ended December 31, 2022
   

Falcon’s
Creative
Group

  

Falcon’s Beyond Destinations

  

Falcons
Beyond
Brands

  

Intersegment
eliminations

  

Unallocated
corporate
overhead

  

Total
   

Destinations
Operations

  

PDP

  

Sierra
Parima

  

Revenue

  

$

17,460

  

$

293

 

  

$

—

  

$

—

 

  

$

—

 

  

$

(1,803

)

  

$

  

 

  

$

15,950

 

Share of gain or (loss) from equity method investments

  

 

    

 

3

 

  

 

3,229

  

 

(1,719

)

  

 

  

 

  

 

  

 

  

 

  

 

  

 

1,513

 

Segment income (loss) from operations

  

 

698

  

 

(1,195

)

  

 

3,229

  

 

(1,719

)

  

 

(3,699

)

  

 

(553

)

  

 

(11,852

)

  

 

(15,091

)

Depreciation and amortization expense

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(737

)

Interest expense

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(1,113

)

Other expense

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(9

)

Foreign exchange transaction loss

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

(478

)

Net loss

  

 

    

 

  

 

  

 

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

$

(17,428

)

Identifiable assets as of December 31, 2023 and December 31, 2022 are as follows:

 

As of December 31,
   

2023

  

2022

Falcon’s Creative Group

  

$

30,930

  

$

28,650

Destinations Operations

  

 

6,964

  

 

7,811

PDP

  

 

22,870

  

 

23,688

Sierra Parima

  

 

—

  

 

41,562

Falcons Beyond Brands

  

 

—

  

 

4,275

Unallocated corporate assets and intersegment eliminations

  

 

2,595

  

 

6,284

Total assets

  

$

63,359

  

$

112,270

Assets for PDP and Sierra Parima represent the Company’s investment and advances to these equity method investments — See Note 8 — Investments and advances to equity method investments. These investments are held by a subsidiary located in Mallorca, Spain.

Total capital expenditures for the Company were $0.3 million for the year ended December 31, 2023 and 2022. Capital expenditures were primarily for computer and office equipment located in the United States.