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Deposits
9 Months Ended
Sep. 30, 2025
Deposits [Abstract]  
Deposits

Note 5 – Deposits

 

On August 25, 2025, AEI agreed in principle to negotiate and enter into a Project and Venue Operation & Management Agreement (the “COFCO Agreement”) with Hainan Tourism Investment Duty Free Co., Ltd. and Bethune Capital Limited (collectively, the “Parties”) under which the Parties will collaborate on the transformation of the COFCO Yalong Bay International Conference Center located in Sanya, Hainan, China into a comprehensive entertainment complex known as the Allied Esports Arena Asia (the “Project”). AEI made a $2.4 million deposit to participate in the COFCO Agreement, which will grant the Company the right to use the facility and participate in the cash flows generated from the Project. As the definitive agreement has not been executed by all three parties as of September 30, 2025, the Company recorded the $2.4 million as a non-current deposit in the Company’s Condensed Consolidated Balance Sheet at September 30, 2025. The deposit is refundable if the COFCO agreement is not ultimately signed by all three parties. Operating lease security deposits amounted to approximately $395k at September 30, 2025.