Annual report pursuant to Section 13 and 15(d)

Segmental Reporting (Tables)

v3.21.1
Segmental Reporting (Tables)
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

The operating assets and liabilities of the reportable segments are as follows:

 

    December 31, 2020
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of Non-Current assets   $ 172,095     $ 117,703     $ 1,703     $ 291,501  
Assets                                
Current assets     10,966,901       430,625       9,796,140       21,193,666  
Non-Current assets     7,475,455       6,250,418       938,440       14,664,313  
Liabilities                                
Current liabilities     (8,238,101 )     (648,881 )     (4,427,053 )     (13,314,035 )
Non-Current liabilities     (1,130,752 )     (1,225,477 )     (31,362 )     (2,387,591 )
Intercompany balances     4,259,281       382,598       (4,641,879 )     —    
Net asset position   $ 13,332,784     $ 5,189,283     $ 1,634,286     $ 20,156,353  

 

The segment operating results of the reportable segments are disclosed as follows:

 

    Year ended December 31, 2020
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
                     
Net Gaming Revenue   $ 37,121,603     $ 144,764     $ —       $ —       $ 37,266,367  
Intercompany Service revenue     84,172       3,604,523       —         (3,688,695 )     —    
      37,205,775       3,749,287       —         (3,688,695 )     37,266,367  
Operating expenses                                        
Intercompany service expense     3,604,523       84,172       —         (3,688,695 )     —    
Selling expenses     26,107,189       2,032       —         —         26,109,221  
General and administrative expenses     4,918,986       3,906,439       4,963,966       —         13,789,391  
Impairment of license     4,900,000       —         —         —         4,900,000  
      39,530,698       3,992,643       4,963,966       (3,688,695 )     44,798,612  
                                         
Loss from operations     (2,324,923 )     (243,356 )     (4,963,966 )     —         (7,532,245 )
                                         
Other (expense) income                                        
Interest expense, net     (6,492 )     (71 )     (322,100 )     —         (328,663  
Amortization of debt discount     —         —         (818,182 )     —         (818,182 )
Other income     161,472       3,903       —         —         165,375  
Other expense     (28,757 )     (58,176 )     —         —         (86,933 )
Loss on extinguishment of convertible debt     —         —         (719,390 )     —         (719,390 )
Gain on marketable securities     —         —         290,000       —         290,000  
Total other (expenses) income     126,223       (54,344 )     (1,569,672 )     —         (1,497,793 )
                                         
Loss before Income Taxes     (2,198,700 )     (297,700 )     (6,533,638 )     —         (9,030,038 )
Income tax provision     (796,991 )     52,459       (162,112 )     —         (906,644 )
Net Loss   $ (2,995,691 )   $ (245,241 )   $ (6,695,750 )   $ —       $ (9,936,682 )

   

The operating assets and liabilities of the reportable segments are as follows:

 

    December 31, 2019
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of Non-Current assets   $ 202,042     $ 5,456,358     $ —       $ 5,658,400  
Assets                                
Current assets     6,620,800       470,127       216,948       7,307,875  
Non-Current assets     12,761,177       6,615,905       1,183,550       20,560,632  
Liabilities                                
Current liabilities     (5,395,212 )     (615,564 )     (10,450,390 )     (16,461,166 )
Non-Current liabilities     (1,266,145 )     (1,339,911 )     —         (2,696,056 )
Intercompany balances     5,461,766       423,926       (5,885,692 )     —    
Net asset position   $ 18,182,386     $ 5,554,483     $ (14,935,584 )   $ 8,801,285  

 

The segment operating results of the reportable segments are disclosed as follows:

 

    Year ended December 31, 2019
     
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
                     
Net Gaming Revenue   $ 35,209,477     $ 373,654     $ —       $ —       $ 35,583,131  
Intercompany Service revenue     452,776       2,839,211       —         (3,291,987 )     —    
      35,662,253       3,212,865       —         (3,291,987 )     35,583,131  
Operating expenses                                        
Intercompany service expense     2,839,211       452,776       —         (3,291,987 )     —    
Selling expenses     25,583,913       2,000,579       —         —         27,584,492  
General and administrative expenses     5,109,135       1,294,617       4,590,802       —         10,994,554  
      33,532,259       3,747,972       4,590,802       (3,291,987 )     38,579,046  
                                         
(Loss) income from operations     2,129,994       (535,107 )     (4,590,802 )     —         (2,995,915 )
                                         
Other (expense) income                                        
Interest expense, net     (190,206 )     3       (782,240 )     —         (972,443 )
Amortization of debt discount     —         —         (4,154,922 )     —         (4,154,922 )
Virtual Generation earnout     —         —         (561,351 )     —         (561,351 )
Loss on share issuances     —         —         (44,063 )     —         (44,063 )
Other income     114,818       —         34,747       —         149,565  
Loss on marketable securities     —         —         (97,500 )     —         (97,500 )
Total other (expenses) income     (75,388 )     3       (5,605,329 )     —         (5,680,714 )
                                         
Loss before Income Taxes     2,054,606       (535,104 )     (10,196,131 )     —         (8,676,629 )
Income tax provision     (641,528 )     (43,352 )     —         —         (598,176 )
Net Loss   $ 1,413,078     $ (491,752 )   $ (10,196,131 )   $ —       $ (9,274,802 )