Quarterly report pursuant to Section 13 or 15(d)

19. Segmental Reporting

v3.22.2.2
19. Segmental Reporting
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
19. Segmental Reporting

19. 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 throughout Italy, and

 

(ii) Betting platform software and services

 

Provider of certified betting Platform software services to global leisure betting establishments in Italy, the U.S. and 8 other countries.

 

The operating assets and liabilities of the reportable segments are as follows:

Segment Reporting 

                                 
    June 30, 2022
    Betting establishments   Betting platform software and services   All other   Total
Purchase of non-current assets   $ 157,296     $ 66,208     $ 5,571     $ 229,075  
Assets                                
Current assets     5,694,098       2,286,286       1,834,260       9,814,644  
Non-current assets     2,524,416       30,455,689       105,835       33,085,940  
Liabilities                                
Current liabilities     (5,289,319 )     (1,536,891 )     (1,498,586 )     (8,324,796 )
Non-current liabilities     (1,197,653 )     (17,067,797 )              (18,265,450 )
Intercompany balances     5,098,265       (3,198,714 )     (1,899,551 )         
Net asset position   $ 6,829,807     $ 10,938,573     $ (1,458,042 )   $ 16,310,338  

 

The segment operating results of the reportable segments are disclosed as follows:

 

                                         
    Six months ended June 30, 2022
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
Revenue   $ 21,498,130     $ 1,085,591     $        $        $ 22,583,721  
Intercompany Service revenue     76,591       1,090,245                (1,166,836 )         
      21,574,721       2,175,836       —         (1,166,836 )     22,583,721  
Operating expenses                                        
Intercompany service expense     1,090,245       76,591                (1,166,836 )         
Selling expenses     16,991,805       163,146                         17,154,951  
General and administrative expenses     2,941,303       3,943,324       2,896,015                9,780,642  
Restructuring and severance expenses                       1,205,689                1,205,689  
      21,023,353       4,183,061       4,101,704       (1,166,836 )     28,141,282  
                                         
Income (Loss) from operations     551,368       (2,007,225 )     (4,101,704 )              (5,557,561 )
Other (expenses) Income                                        
Interest expense, net of interest income     (1,075 )     (12,462 )                       (13,537 )
Other income     66,473       2,379                         68,852  
Change in Fair value of contingent purchase consideration              (915,774 )                       (915,774 )
Other expense     (7 )     (11,004 )                       (11,011 )
Gain on marketable securities                       92,500                92,500  
Total other income (expense)     65,391       (936,681 )     92,500                (778,970 )
                                         
Income (Loss) before Income Taxes     616,759       (2,944,086 )     (4,009,204 )              (6,336,531 )
Income tax provision     (192,021 )     159,077                         (32,944 )
Net Income (Loss)   $ 424,738     $ (2,785,009 )   $ (4,009,204 )   $        $ (6,369,475 )

 

 

The operating assets and liabilities of the reportable segments are as follows:

 

                                 
    June 30, 2021
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of non-current assets   $ 15,005     $ 67,116     $ 40,311     $ 122,432  
Assets                                
Current assets     10,877,808       913,319       9,385,445       21,176,572  
Non-current assets     6,939,721       6,077,751       1,364,113       14,381,585  
Liabilities                                
Current liabilities     (8,146,135 )     (763,734 )     (871,731 )     (9,781,600 )
Non-current liabilities     (762,301 )     (1,178,665 )              (1,940,966 )
Intercompany balances     3,874,380       208,117       (4,082,497 )         
Net asset position   $ 12,783,473     $ 5,256,788     $ 5,795,330     $ 23,835,591  

 

The segment operating results of the reportable segments are disclosed as follows:

 

                                         
    Six months ended June 30, 2021
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
Revenue   $ 25,657,843     $ 189,434     $        $        $ 25,847,277  
Intercompany Service revenue     207,118       2,608,669                (2,815,787 )         
      25,864,961       2,798,103                (2,815,787 )     25,847,277  
Operating expenses                                        
Intercompany service expense     2,608,669       207,118                (2,815,787 )         
Selling expenses     20,269,209       9,190                         20,278,399  
General and administrative expenses     3,507,099       2,505,973       2,887,082                8,900,154  
      26,384,977       2,722,281       2,887,082       (2,815,787 )     29,178,553  
                                         
(Loss) Income from operations     (520,016 )     75,822       (2,887,082 )              (3,331,276 )
Other income (expense)                                        
Interest expense, net of interest income     (4,890 )           (5,154 )              (10,043 )
Interest expense, net of interest income         1                   
Amortization of debt discount                       (12,833 )              (12,833 )
Other income     361,316       1,029       8,017                370,362  
Other expense     (24,119 )     (4,019 )                       (28,138 )
Loss on marketable securities                       (92,500 )              (92,500 )
Total other income (expense)     332,307       (2,989 )     (102,470 )              226,848  
                                         
(Loss) Income before Income Taxes     (187,709 )     72,833       (2,989,552 )              (3,104,428 )
Income tax provision     (192,878 )     (83,623 )                       (276,501 )
Net Loss   $ (380,587 )   $ (10,790 )   $ (2,989,552 )   $        $ (3,380,929 )