Factors Affecting Our Results of Operations

In addition to the impact of the COVID-19 pandemic as described above, we believe that the most significant factors affecting our results of operations include:

The following table sets forth our key performance indicators for the three months ended March 31, 2022 and 2021:

Number of licenses sold globally (cumulative total as of period end)(1)

(1) Global franchise licenses sold are presented gross of terminations.

(2) The definition of adjusted EBITDA and a detailed reconciliation of adjusted EBITDA are set forth below under the section entitled "Non-GAAP Financial Measures".

(1) Global franchise licenses sold are presented gross of terminations.

All metrics above, other than adjusted EBITDA, are presented on an adjusted basis to reflect historical information of Rumble and BFT prior to the acquisition by the Company in March and October 2021, respectively. All references to these metrics in this Form 10-Q use this same basis of reporting.

Number of New Studio Openings

The following table presents our condensed consolidated results of operations for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022 versus 2021

Total operating costs and expenses $ 65,136 $ 29,286 $ 35,850

Interest income. Interest income primarily consists of interest on notes receivable and was insignificant in each of the three-month periods ended March 31, 2022 and 2021.

As of March 31, 2022, we had $14.2 million of cash and cash equivalents, excluding $1.6 million of restricted cash for marketing fund purposes.

The following table presents summary cash flow information for the three months ended March 31, 2022 and 2021:

Net cash provided by (used in) operating activities $ 2,888 $ (200 ) Net cash provided by (used in) investing activities

Cash Flows from Operating Activities

increase in cash inflows relating to deferred revenue of $0.9 million due to an increase in sales of additional franchises;

Cash Flows from Investing Activities

Cash Flows from Financing Activities

As of March 31, 2022, we did not have any off-balance sheet arrangements as defined in the rules and regulations of the Securities and Exchange Commission (the "SEC").

Critical Accounting Policies and Estimates

© Edgar Online, source Glimpses