UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-K/A ________________________________ (MARK ONE) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38226 ________________________________ ALLIED ESPORTS ENTERTAINMENT, INC. (Exact Name of Registrant as Specified in Its Charter) ________________________________ Delaware 82-1659427 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ________________________________ 17877 Von Karman Avenue, Suite 300 Irvine, California, 92614 (Address of principal executive offices) (949) 225-2600 (Registrant’s telephone number, including area code) ________________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock AESE NASDAQ Securities registered pursuant to Section 12(g) of the Act: None ________________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K/A or any amendment to this Form 10-K/A. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No The aggregate market value of common stock outstanding, other than shares held by affiliates of the registrant as of June 30, 2019 (the last business day of the registrant’s most recently completed fiscal quarter), was approximately $101,430,761 based on the price of $10.25, the closing price on June 30, 2019. As of March 13, 2020, 23,934,871 shares of common stock, par value $0.0001 per share, were issued and outstanding. EXPLANATORY NOTE This Amendment No. 1 to the Annual Report on Form 10-K/A (the “Report” or “Amended Form 10-K”) of Allied Esports Entertainment Inc. (the “Company”) amends the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 16, 2020 (the “Original Form 10-K”) to correct an inadvertent error in the weighted average shares outstanding in the financial statements for the year ended December 31, 2019. The Company incorrectly stated the weighted average number of shares outstanding — basic and diluted for the year ended December 31, 2019 as 18,098,797 rather than the correct number of 16,159,444. The Company also incorrectly stated the basic and diluted net loss per common share for the year ended December 31, 2019 as $(0.92) rather than the correct amount of $(1.04). As a result, the following items in the original filing have been amended: Part II, Item 8. Financial Statements, Consolidated Statements of Operations; and Part II, Item 8. Notes to Consolidated Financial Statements, Note 3 — Significant Accounting Policies, Net Loss Per Common Share In accordance with applicable generally accepted accounting principles, the Company has calculated and recognized adjustments accordingly. The following table shows the effect of the restatement on the Company’s financial statements for the year ended December 31, 2019: Year Ended December 31, 2019 As Previously Reported Restated Weighted average common shares outstanding used to compute net loss per share, basic and diluted . 18,098,797 16,159,144 Basic and diluted net loss per common share . $ (0.92) $ (1.04) In addition, an updated press release reflecting the foregoing corrections and corrections to the weighted average number of shares outstanding — basic and diluted, and basic and diluted net loss per common share, for the quarters ended December 31, 2019 and 2018 is filed as Exhibit 99.1 to this Form 10-K/A, which supersedes the press release filed by the Company on March 16, 2020. Except as specifically noted above, this Form 10-K/A does not modify or update the Original 10-K or modify or update any related or other disclosures as originally filed, other than as required to reflect the effects of the amendment discussed above. Management has discussed the matters set forth above with the Company’s independent registered public accounting firm. On March 17, 2020, the Company’s Chief Financial Officer concluded that the financial statements and other financial data for the year ended December 31, 2019, as reported in the Original Form 10-K, should not be relied upon because of the error described above which has been corrected in the Amended Form 10-K/A. Additionally, investors, analysts and other persons should not rely upon any press releases, investor presentations or other communications that relate to that information. TABLE OF CONTENTS PAGE Cautionary Note Regarding Forward-Looking Statements . ii PART I Item 1. Business . 1 Item 1A. Risk Factors . 12 Item 1B. Unresolved Staff Comments . 31 Item 2. Properties . 31 Item 3. Legal Proceedings . 31 Item 4. Mine Safety Disclosures . 31 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . 32 Item 6. Selected Financial Data . 35 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations . 36 Item 7A. Quantitative and Qualitative Disclosures About Market Risk . 45 Item 8. Financial Statements and Supplementary Data . 45 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . 46 Item 9A. Controls and Procedures . 46 Item 9B. Other Information . 47 PART III Item 10. Directors, Executive Officers and Corporate Governance . 48 Item 11. Executive Compensation . 55 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . 59 Item 13. Certain Relationships and Related Transactions, and Director Independence . 60 Item 14. Principal Accounting Fees and Services . 63 PART IV Item 15. Exhibits, Financial Statement Schedules . 64 Item 16. Form 10-K/A Summary . 64 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The information in this Report includes “forward-looking statements” under Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Report, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” included in this Report. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Nevertheless, and despite the fact that management’s expectations and estimates are based on assumptions management believes to be reasonable and data management believes to be reliable, our actual results, performance or achievements are subject to future risks and uncertainties, any of which could materially affect our actual performance. Risks and uncertainties