23. Segmental Reporting |
23. 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.
|
(ii) |
Betting platform software and services |
Provider of certified betting Platform software services
to leisure betting establishments in Italy and 9 other countries.
The operating assets and liabilities of the
reportable segments are as follows:
Segment Reporting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Total |
|
|
|
|
|
|
|
|
|
Purchase of Non-Current assets |
|
$ |
135,272 |
|
|
$ |
538,256 |
|
|
$ |
43,552 |
|
|
$ |
717,080 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
8,648,505 |
|
|
|
1,291,700 |
|
|
|
1,443,280 |
|
|
|
11,383,485 |
|
Non-Current assets |
|
|
1,980,100 |
|
|
|
31,203,882 |
|
|
|
11,374 |
|
|
|
33,195,356 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
(7,610,577 |
) |
|
|
(652,368 |
) |
|
|
(1,564,234 |
) |
|
|
(9,827,179 |
) |
Non-Current liabilities |
|
|
(667,871 |
) |
|
|
(16,342,274 |
) |
|
|
- |
|
|
|
(17,010,145 |
) |
Intercompany balances |
|
|
4,359,786 |
|
|
|
(1,677,692 |
) |
|
|
(2,682,094 |
) |
|
|
— |
|
Net asset position |
|
$ |
6,709,943 |
|
|
$ |
13,823,248 |
|
|
$ |
(2,791,674 |
) |
|
$ |
17,741,517 |
|
The segment operating results of the reportable segments are disclosed
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2021 |
|
|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Adjustments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Net Gaming Revenue |
|
$ |
44,508,078 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
44,508,078 |
|
Betting platform and services revenue |
|
|
152,550 |
|
|
|
886,163 |
|
|
|
— |
|
|
|
— |
|
|
|
1,038,713 |
|
Intercompany Service revenue |
|
|
321,775 |
|
|
|
4,211,774 |
|
|
|
— |
|
|
|
(4,533,549 |
) |
|
|
— |
|
|
|
|
44,982,403 |
|
|
|
5,097,937 |
|
|
|
— |
|
|
|
(4,533,549 |
) |
|
|
45,546,791 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany service expense |
|
|
4,211,774 |
|
|
|
321,775 |
|
|
|
— |
|
|
|
(4,533,549 |
) |
|
|
— |
|
Selling expenses |
|
|
36,227,544 |
|
|
|
47,208 |
|
|
|
— |
|
|
|
— |
|
|
|
36,274,752 |
|
General and administrative expenses |
|
|
6,634,535 |
|
|
|
5,848,437 |
|
|
|
6,334,987 |
|
|
|
— |
|
|
|
18,817,959 |
|
Impairment of license |
|
|
4,827,914 |
|
|
|
12,522,714 |
|
|
|
— |
|
|
|
— |
|
|
|
17,350,628 |
|
|
|
|
51,901,767 |
|
|
|
18,740,134 |
|
|
|
6,334,987 |
|
|
|
(4,533,549 |
) |
|
|
72,443,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(6,919,364 |
) |
|
|
(13,642,197 |
) |
|
|
(6,334,987 |
) |
|
|
— |
|
|
|
(26,896,548 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(11,169 |
) |
|
|
(4,662 |
) |
|
|
(5,154 |
) |
|
|
— |
|
|
|
(20,985 |
) |
Amortization of debt discount |
|
|
— |
|
|
|
— |
|
|
|
(12,833 |
) |
|
|
— |
|
|
|
(12,833 |
) |
Change in fair value of contingent purchase consideration |
|
|
— |
|
|
|
11,857,558 |
|
|
|
— |
|
|
|
— |
|
|
|
11,857,558 |
|
Other income |
|
|
217,251 |
|
|
|
2,560 |
|
|
|
7,977 |
|
|
|
— |
|
|
|
227,788 |
|
Other expense |
|
|
(23,705 |
) |
|
|
(26,262 |
) |
|
|
— |
|
|
|
— |
|
|
|
(49,967 |
) |
Loss on extinguishment of convertible debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on marketable securities |
|
|
— |
|
|
|
— |
|
|
|
(460,000 |
) |
|
|
— |
|
|
|
(460,000 |
) |
Total other income (expenses) |
|
|
182,377 |
|
|
|
11,829,194 |
|
|
|
(470,010 |
) |
|
|
— |
|
|
|
11,541,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before Income Taxes |
|
|
(6,736,987 |
) |
|
|
(1813,003 |
) |
|
|
(6,804,997 |
) |
|
|
— |
|
|
|
(15,354,987 |
) |
Income tax provision |
|
|
119,890 |
|
|
|
170,586 |
|
|
|
— |
|
|
|
— |
|
|
|
290,476 |
|
Net Loss |
|
$ |
(6,617,097 |
) |
|
$ |
(1,642,417 |
) |
|
$ |
(6,804,997 |
) |
|
$ |
— |
|
|
$ |
(15,064,511 |
) |
Notes to the Consolidated Financial Statements
23. Segmental Reporting (continued)
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 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,121,603 |
|
Betting platform and other services revenue |
|
|
— |
|
|
|
144,764 |
|
|
|
— |
|
|
|
— |
|
|
|
144,764 |
|
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 |
) |
|