Annual report pursuant to Section 13 and 15(d)

23. Segmental Reporting (Tables)

v3.22.1
23. Segmental Reporting (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

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 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 )