Amid an impending delisting notice from the Nasdaq, electronic sports and entertainment company FaZe Holdings Inc. released lukewarm second-quarter results.

FaZe began in 2010 as a group of gamers who posted video clips and highlight reels of “Call of Duty” games. It has since grown into a multimillion-dollar “lifestyle and media platform rooted in gaming and youth culture” that collaborates with brands including Nike Inc. and Champion and owns competitive electronic sports teams with titles such as “Counter-Strike” and “Halo.”

The company reported $11.7 million in sales for the second quarter, down 38% from the second quarter of the prior year. Net loss was $14.4 million, compared to $9.3 million last year.

While FaZe went public last July with a reported valuation of $725 million, the company missed its own revenue forecast for last year and laid off about 40% of its team earlier this year in an effort to reduce “current liability.” FaZe’s second-quarter report included a comment that it is actively exploring “capital structure alternatives,” though its team denied a recent report of a potential acquisition by Enthusiast Games.

“We – and our industry at large – continue to operate in a highly challenging environment, which has adversely impacted our ability to explore new revenue categories and generate a meaningful amount of new brand partnerships,” FaZe said in the report.

Perhaps the most urgent financial matter facing FaZe is its delisting notice from the Nasdaq that states FaZe’s stock must have a closing bid price of at least $1 for 10 consecutive days. The notice was filed in March and gave FaZe the standard 180-day “compliance period,” which is set to end on Sept. 16.

The company’s stock closed at 28 cents Aug. 24 and has not gone above $1 since the end of January. 

“Regarding the notice, we do not expect to be delisted and have taken steps to remedy the current deficiency as needed,” a company spokesperson said.