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