22. Segmental Reporting |
22. Segmental
Reporting
The Company
has two reportable operating segments. These segments are:
(i) Betting
establishments
The
operating of web based as well as land based leisure betting establishments situated throughout Italy; and only web
based distribution through our Austrian subsidiary in the Italian market until June
2021, and
(ii) Betting
platform software and services
Provider
of certified betting Platform software services to global leisure betting establishments and operators.
The operating
assets and liabilities of the reportable segments are as follows:
Segment Reporting
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September 30, 2021 |
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|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Total |
|
|
|
|
|
|
|
|
|
Purchase of non-current assets |
|
$ |
25,502 |
|
|
$ |
37,881,164 |
|
|
$ |
43,552 |
|
|
$ |
37,950,218 |
|
Assets |
|
|
|
|
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|
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|
|
|
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|
|
|
Current assets |
|
|
8,587,092 |
|
|
|
1,308,003 |
|
|
|
2,230,792 |
|
|
|
12,125,887 |
|
Non-current assets |
|
|
6,783,911 |
|
|
|
43,666,430 |
|
|
|
1,156,085 |
|
|
|
51,606,426 |
|
Liabilities |
|
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Current liabilities |
|
|
(6,499,182 |
) |
|
|
(915,762 |
) |
|
|
(1,225,532 |
) |
|
|
(8,640,476 |
) |
Non-current liabilities |
|
|
(765,779 |
) |
|
|
(3,618,200 |
) |
|
|
(25,286,034 |
) |
|
|
(29,670,013 |
) |
Intercompany balances |
|
|
4,247,985 |
|
|
|
(705,171 |
) |
|
|
(3,542,814 |
) |
|
|
— |
|
Net asset position |
|
$ |
12,354,027 |
|
|
$ |
39,735,300 |
|
|
$ |
(26,667,503 |
) |
|
$ |
25,421,824 |
|
The segment
operating results of the reportable segments are disclosed as follows:
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Nine months ended September 30, 2021 |
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Betting establishments |
|
Betting platform software and services |
|
All other |
|
Adjustments |
|
Total |
Revenue |
|
$ |
33,448,435 |
|
|
$ |
428,924 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
$ |
33,877,359 |
|
Intercompany Service revenue |
|
|
271,518 |
|
|
|
3,323,848 |
|
|
|
— |
|
|
|
(3,595,366 |
) |
|
|
|
|
— |
|
Total revenue |
|
|
33,719,953 |
|
|
|
3,752,772 |
|
|
|
— |
|
|
|
(3,595,366 |
) |
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|
|
|
33,877,359 |
|
Operating expenses |
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Intercompany service expense |
|
|
3,323,848 |
|
|
|
271,518 |
|
|
|
— |
|
|
|
(3,595,366 |
) |
|
|
|
|
— |
|
Selling expenses |
|
|
26,318,643 |
|
|
|
14,513 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
26,333,156 |
|
General and administrative expenses |
|
|
5,251,863 |
|
|
|
4,204,834 |
|
|
|
4,518,758 |
|
|
|
— |
|
|
|
|
|
13,975,455 |
|
Total operating expenses |
|
|
34,894,354 |
|
|
|
4,490,865 |
|
|
|
4,518,758 |
|
|
|
(3,595,366 |
) |
|
|
|
|
40,308,611 |
|
|
|
|
|
|
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|
|
|
|
|
|
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|
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|
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(Loss) Income from operations |
|
|
(1,174,401 |
) |
|
|
(738,093 |
) |
|
|
(4,518,758 |
) |
|
|
— |
|
|
|
|
|
(6,431,252 |
) |
|
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|
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|
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Other income (expense) |
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|
|
|
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|
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|
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Other income |
|
|
434,624 |
|
|
|
2,073 |
|
|
|
7,992 |
|
|
|
— |
|
|
|
|
|
444,689 |
|
Other expense |
|
|
(23,954 |
) |
|
|
(4,568 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
(28,522 |
) |
Interest expense, net |
|
|
(7,486 |
) |
|
|
(2,109 |
) |
|
|
(5,153 |
) |
|
|
— |
|
|
|
|
|
(14,748 |
) |
Change in fair value of contingent purchase consideration
|
|
|
— |
|
|
|
— |
|
|
|
(569,076 |
) |
|
|
— |
|
|
|
|
|
(569,076
|
) |
Amortization of present value discount |
|
|
— |
|
|
|
— |
|
|
|
(12,833 |
) |
|
|
— |
|
|
|
|
|
(12,833 |
) |
Loss on conversion of debt |
|
|
|
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|
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|
|
|
|
|
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|
|
|
|
|
|
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|
Loss on marketable securities |
|
|
— |
|
|
|
— |
|
|
|
(292,500 |
) |
|
|
— |
|
|
|
|
|
(292,500 |
) |
Total other income (expense) |
|
|
403,184 |
|
|
|
(4,604 |
) |
|
|
(871,570 |
) |
|
|
— |
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|
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|
(472,990 |
) |
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(Loss) Income before Income Taxes |
|
|
(771,217 |
) |
|
|
(742,697 |
) |
|
|
(5,390,328 |
) |
|
|
— |
|
|
|
|
|
(6,904,242 |
) |
Income tax provision |
|
|
(50,666 |
) |
|
|
58,802 |
|
|
|
— |
|
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|
— |
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|
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|
8,136 |
|
Net Loss |
|
$ |
(821,883 |
) |
|
$ |
(683,895 |
) |
|
$ |
(5,390,328 |
) |
|
$ |
— |
|
|
|
|
$ |
(6,896,106 |
) |
The operating assets and liabilities
of the reportable segments are as follows:
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|
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|
September 30, 2020 |
|
|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Total |
Purchase of non-current assets |
|
$ |
112,506 |
|
|
$ |
60,168 |
|
|
$ |
— |
|
|
$ |
172,674 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
6,940,838 |
|
|
|
265,782 |
|
|
|
4,944,614 |
|
|
|
12,151,234 |
|
Non-current assets |
|
|
12,490,886 |
|
|
|
6,311,200 |
|
|
|
620,090 |
|
|
|
19,422,176 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
(5,847,368 |
) |
|
|
(489,859 |
) |
|
|
(5,385,225 |
) |
|
|
(11,722,452 |
) |
Non-current liabilities |
|
|
(1,320,714 |
) |
|
|
(1,279,434 |
) |
|
|
(30,023 |
) |
|
|
(2,630,171 |
) |
Intercompany balances |
|
|
4,591,801 |
|
|
|
(61,400 |
) |
|
|
(4,530,401 |
) |
|
|
— |
|
Net asset position |
|
$ |
16,855,443 |
|
|
$ |
4,746,289 |
|
|
$ |
(4,380,945 |
) |
|
$ |
17,220,787 |
|
The segment operating results of
the reportable segments are disclosed as follows:
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|
Nine months ended September 30, 2020 |
|
|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Adjustments |
|
Total |
Net Gaming Revenue |
|
$ |
24,623,487 |
|
|
$ |
58,752 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,682,239 |
|
Intercompany Service revenue |
|
|
62,159 |
|
|
|
1,971,089 |
|
|
|
— |
|
|
|
(2,033,248 |
) |
|
|
— |
|
Total Revenue |
|
|
24,685,646 |
|
|
|
2,029,841 |
|
|
|
— |
|
|
|
(2,033,248 |
) |
|
|
24,682,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany service expense |
|
|
1,971,089 |
|
|
|
62,159 |
|
|
|
— |
|
|
|
(2,033,248 |
) |
|
|
— |
|
Selling expenses |
|
|
17,316,388 |
|
|
|
10,762 |
|
|
|
— |
|
|
|
— |
|
|
|
17,327,150 |
|
General and administrative expenses |
|
|
3,216,798 |
|
|
|
2,750,780 |
|
|
|
2,893,315 |
|
|
|
— |
|
|
|
8,860,893 |
|
Total operating expenses |
|
|
22,504,275 |
|
|
|
2,823,701 |
|
|
|
2,893,315 |
|
|
|
(2,033,248 |
) |
|
|
26,188,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
|
2,181,371 |
|
|
|
(793,860 |
) |
|
|
(2,893,315 |
) |
|
|
— |
|
|
|
(1,505,804 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
62,888 |
|
|
|
45 |
|
|
|
— |
|
|
|
— |
|
|
|
62,933 |
|
Other expense |
|
|
(109,098 |
) |
|
|
(525 |
) |
|
|
— |
|
|
|
— |
|
|
|
(109,623 |
) |
Interest expense, net |
|
|
(2,292 |
) |
|
|
(66 |
) |
|
|
(226,808 |
) |
|
|
— |
|
|
|
(229,166 |
) |
Amortization of present value discount |
|
|
— |
|
|
|
— |
|
|
|
(780,678 |
) |
|
|
— |
|
|
|
(780,678 |
) |
Loss on conversion of debt |
|
|
— |
|
|
|
— |
|
|
|
(719,390 |
) |
|
|
— |
|
|
|
(719,390 |
) |
Loss on marketable securities |
|
|
— |
|
|
|
— |
|
|
|
472,500 |
|
|
|
— |
|
|
|
472,500 |
|
Total other (expenses) income |
|
|
(48,502 |
) |
|
|
(546 |
) |
|
|
(1,254,376 |
) |
|
|
— |
|
|
|
(1,303,424 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before Income Taxes |
|
|
2,132,869 |
|
|
|
(794,406 |
) |
|
|
(4,147,691 |
) |
|
|
— |
|
|
|
(2,809,228 |
) |
Income tax provision |
|
|
(674,273 |
) |
|
|
64,386 |
|
|
|
(162,112 |
) |
|
|
— |
|
|
|
(771,999 |
) |
Net Income (Loss) |
|
$ |
1,458,596 |
|
|
$ |
(730,020 |
) |
|
$ |
(4,309,803 |
) |
|
$ |
— |
|
|
$ |
(3,581,227 |
) |
|