Segment Reporting |
Segment
Reporting
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September 30, 2022 |
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Betting establishments |
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Betting platform software and services |
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All other |
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Total |
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|
|
|
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Purchase of non-current assets |
|
$ |
214,805 |
|
|
$ |
64,721 |
|
|
$ |
76,413 |
|
|
$ |
355,939 |
|
Assets |
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|
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Current assets |
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6,002,886 |
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|
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3,540,566 |
|
|
|
205,740 |
|
|
|
9,749,192 |
|
Non-current assets |
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|
2,681,303 |
|
|
|
30,048,147 |
|
|
|
115,784 |
|
|
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32,845,234 |
|
Liabilities |
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Current liabilities |
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(5,904,785 |
) |
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(2,070,572 |
) |
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(1,245,773 |
) |
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(9,221,130 |
) |
Non-current liabilities |
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(1,358,907 |
) |
|
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(17,819,917 |
) |
|
|
— |
|
|
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(19,178,824 |
) |
Intercompany balances |
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|
5,006,155 |
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(3,887,691 |
) |
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(1,118,464 |
) |
|
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— |
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Net asset position |
|
$ |
6,426,652 |
|
|
$ |
9,810,533 |
|
|
$ |
(2,042,713 |
) |
|
$ |
14,194,472 |
|
The segment
operating results of the reportable segments are disclosed as follows:
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Nine months ended September 30, 2022 |
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Betting establishments |
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Betting platform software and services |
|
All other |
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Adjustments |
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Total |
Revenue |
|
$ |
30,408,624 |
|
|
$ |
1,766,391 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,175,015 |
|
Intercompany Service revenue |
|
|
74,584 |
|
|
|
1,517,807 |
|
|
|
— |
|
|
|
(1,592,391 |
) |
|
|
— |
|
Total revenue |
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|
30,483,208 |
|
|
|
3,284,198 |
|
|
|
— |
|
|
|
(1,592,391 |
) |
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|
32,175,015 |
|
Operating expenses |
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|
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|
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Intercompany service expense |
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1,517,807 |
|
|
|
74,584 |
|
|
|
— |
|
|
|
(1,592,391 |
) |
|
|
— |
|
Selling expenses |
|
|
23,896,814 |
|
|
|
132,718 |
|
|
|
— |
|
|
|
— |
|
|
|
24,029,532 |
|
General and administrative expenses |
|
|
4,387,356 |
|
|
|
5,724,166 |
|
|
|
5,477,888 |
|
|
|
— |
|
|
|
15,589,410 |
|
Restructuring and Severance expenses |
|
|
— |
|
|
|
— |
|
|
|
1,205,689 |
|
|
|
— |
|
|
|
1,205,689 |
|
Total operating expenses |
|
|
29,801,977 |
|
|
|
5,931,468 |
|
|
|
6,683,577 |
|
|
|
(1,592,391 |
) |
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|
40,824,631 |
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Income (Loss) from operations |
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681,231 |
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(2,647,270 |
) |
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(6,683,577 |
) |
|
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— |
|
|
|
(8,649,616 |
) |
|
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|
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|
|
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Other income (expense) |
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|
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Other income |
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|
90,781 |
|
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|
2 |
|
|
|
— |
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|
|
— |
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|
90,783 |
|
Other expense |
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|
(47,959 |
) |
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|
(8,580 |
) |
|
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— |
|
|
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— |
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(56,539 |
) |
Interest expense, net |
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|
(1,069 |
) |
|
|
(21,572 |
) |
|
|
— |
|
|
|
— |
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|
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(22,641 |
) |
Change in fair value of contingent purchase consideration |
|
|
— |
|
|
|
(1,397,833 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,397,833 |
) |
Amortization of present value discount |
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|
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|
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Gain on marketable securities |
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— |
|
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|
— |
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|
43,250 |
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— |
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|
43,250 |
|
Total other income (expense) |
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|
41,753 |
|
|
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(1,427,983 |
) |
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|
43,250 |
|
|
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— |
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(1,342,980 |
) |
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Income (Loss) before Income Taxes |
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722,984 |
|
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(4,075,253 |
) |
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(6,640,327 |
) |
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— |
|
|
|
(9,992,596 |
) |
Income tax provision |
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|
(437,042 |
) |
|
|
236,524 |
|
|
|
— |
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|
|
— |
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|
|
(200,518 |
) |
Net Income (Loss) |
|
$ |
285,942 |
|
|
$ |
(3,838,729 |
) |
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$ |
(6,640,327 |
) |
|
$ |
— |
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|
$ |
(10,193,114 |
) |
The operating assets and liabilities
of the reportable segments are as follows:
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September 30, 2021 |
|
|
Betting establishments |
|
Betting platform software and services |
|
All other |
|
Total |
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|
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|
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|
|
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 |
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|
6,783,911 |
|
|
|
43,666,430 |
|
|
|
1,156,085 |
|
|
|
51,606,426 |
|
Liabilities |
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|
|
|
|
|
|
|
|
|
|
|
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|
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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 |
) |
|
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(3,542,814 |
) |
|
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— |
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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:
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|
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|
|
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Loss 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 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 |
) |
|