Quarterly report pursuant to Section 13 or 15(d)

19. Segmental Reporting (Tables)

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

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 )