Legion M Revenue Falls 62% as First-Half Loss Narrows

Legion M Entertainment, Inc.'s Form 1-SA for the six months ended June 30, 2026, filed September 28 (accession 0001213900-26-103987) and already reflected in AltStreet's October 15 review, reports revenue of $642,383, 62% below the $1,671,067 of the same period a year earlier, and a net loss of $890,616 against $1,193,968. The two numbers moved in opposite directions for a reason the report makes legible: gross profit collapsed to $35,982 from $623,585, but operating spending fell further, by $949,069, most of it marketing that the prior period had spent on a crowdfunding round and a theatrical campaign. Cash used in operations, meanwhile, rose to $2,054,070 from $396,814 as the company paid for its film positions.

What the filing shows

Revenue came principally from Fackham Hall, released in the United States by Bleecker Street Media, which contributed $505,495 ($112,219 in the first quarter and $393,276 in the second). Film and film-related events revenue was $575,864 against $1,610,441; consumer products revenue was $66,519 against $60,626. The report attributes the decline to the absence of a comparable theatrical release in the period. Cost of revenue fell 42% to $606,401 from $1,047,482 and includes $439,561 of amortization of film participation costs for Fackham Hall under the individual-film-forecast method, leaving gross profit of $35,982 against $623,585.

Operating expenses fell 53% to $831,020 from $1,780,089. Sales and marketing fell to $132,627 from $952,816, with user acquisition spend down to $74,589 from $880,027; the report says the prior period included paid media supporting both the Round 10 crowdfunding offering and the theatrical campaign for My Dead Friend Zoe. General and administrative expense fell to $698,393 from $827,273. The loss from operations was $795,038 against $1,156,504, interest expense rose to $99,569 from $37,470, and the net loss was $890,616 against $1,193,968.

Cash was $743,264 at June 30, 2026, from $789,082 at December 31, 2025. Of that, $477,532 was held at the Fade to Black and MDFZ subsidiaries, principally $444,404 in the MDFZ collection account administered by the collection account manager from 2025 sales of My Dead Friend Zoe. Net cash used in operating activities was $2,054,070 against $396,814. The accumulated deficit reached $26,037,897 from $25,147,281; total stockholders' equity fell to $381,970 from $797,669; total liabilities rose to $6,479,097 from $5,256,615, with future production obligations at $3,696,131 from $2,059,357 and about $1,101,110 of loans payable, net of discount, relating to Fade to Black.

The two Film Funds, Legion M Film Fund-1099, LLC and Legion M Film Fund-K1, LLC, formed December 22, 2025, raised $1,629,540 in the half, $1,298,540 in the 1099 Fund and $331,000 in the K-1 Fund, before $51,580 of offering costs. Their economics are project-specific: under co-financing and marketing agreements with Legion M, each fund co-finances the company's commitment to a picture pro rata to its member capital 'in exchange for a pro rata share of gross receipts until each Fund has received 115% of its cash contribution.' The capital went into prints-and-advertising and co-financing positions in Fackham Hall, Coyote vs. Acme and Nimrods; the last two were released theatrically in August 2026, after the period, and no revenue from either is in these statements.

Background

Legion M describes itself as a fan-owned entertainment company and has raised capital from the public since 2016 under Regulation A, Regulation Crowdfunding and Regulation D. Its Form 1-K for 2025, filed April 30, 2026 (accession 0001213900-26-050360), reported a net loss of $1,540,433 for 2025 against $3,549,371 for 2024, an accumulated deficit of $25,147,281 at December 31, 2025, and over $25 million raised from more than 60,000 investors. That annual report carried an unmodified audit opinion with a going-concern paragraph.

The semiannual report repeats the position in the company's words: the purpose of its going-concern statement 'is to alert investors to the fact that the Company does not have enough cash on hand to fund operations for the next 12 months,' and its ability to continue 'is dependent upon its plan to raise more capital from investors.' The company's own Regulation Crowdfunding round continued alongside, with Form C/A amendments on July 28 and August 24, 2026, and the 1099 Fund amended its Form C on September 1.

The pattern in AltStreet's data

AltStreet's review of Legion M, published October 15, 2026, was built from this 1-SA and the 1-K and carries the half-year figures in its performance history, including the Film Funds' $1,629,540 and the equity and share counts at June 30. The review grades the platform a D. This article sets out the income statement and cash flow the review summarizes.

Why it matters

The narrower loss is an expense story, not a revenue story. Gross profit fell by $587,603 while operating expenses fell by $949,069, and the difference is almost entirely marketing that the first half of 2025 had spent on Round 10 and the My Dead Friend Zoe release and the first half of 2026 did not repeat. Revenue itself now depends on one picture's receipts at a time, so a half with no comparable release shows a 62% drop, and the next half will carry whatever Coyote vs. Acme and Nimrods return after their August releases, with the Film Funds taking their pro rata share of gross receipts until each has received 115% of its contribution.

The cash line runs the other way. Operations used $2,054,070 against $396,814 a year earlier because the company's film positions are paid for when committed, under the $1,000,000 Bleecker Street co-financing agreement for Fackham Hall and the $1,000,000 Inaugural Films marketing fund for Nimrods, and reach the income statement only as amortization against each film's receipts. The accounting loss improved while the cash use grew for the same reason: this half bought film positions and reported little of their cost yet. Cash of $743,264, with $477,532 of it sitting at two film subsidiaries, is why the going-concern statement reads as it does.

What the filing does not show

The 1-SA is unaudited and covers only the six months to June 30, 2026; the August releases are outside it. It reports Fackham Hall's revenue to Legion M, not the film's box office or the distributor's receipts. The Film Funds' $1,629,540 is capital contributed to the funds, not revenue to Legion M, and the company's own share of any film proceeds depends on waterfall terms the report summarizes but does not quantify. The report does not break out how much of the $2,054,070 of operating cash use was film investment and how much was overhead. Nothing in the filing changes the 2025 annual figures, which remain the latest audited numbers.