Quarterly report pursuant to Section 13 or 15(d)

22. Segmental Reporting

v3.21.2
22. Segmental Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
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

                                 
    September 30, 2021
    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                                
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                                
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:

 

                                             
    Nine months ended September 30, 2021
    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 )         33,877,359  
Operating expenses                                            
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  
                                             
(Loss) Income from operations     (1,174,401 )     (738,093 )     (4,518,758 )     —             (6,431,252 )
                                             
Other income (expense)                                            
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 marketable securities     —         —         (292,500 )     —             (292,500 )
Total other income (expense)     403,184       (4,604 )     (871,570 )     —             (472,990 ) 
                                             
(Loss) Income before Income Taxes     (771,217 )     (742,697 )     (5,390,328 )     —             (6,904,242 )
Income tax provision     (50,666 )     58,802       —         —             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:

 

                                 
    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:

 

                                         
    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 )