Quarterly report pursuant to Section 13 or 15(d)

22. Segmental Reporting (Tables)

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

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 )