Quarterly report pursuant to Section 13 or 15(d)

19. Segmental Reporting (Tables)

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

Segment Reporting 

                                 
    September 30, 2022
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of non-current assets   $ 214,805     $ 64,721     $ 76,413     $ 355,939  
Assets                                
Current assets     6,002,886       3,540,566       205,740       9,749,192  
Non-current assets     2,681,303       30,048,147       115,784       32,845,234  
Liabilities                                
Current liabilities     (5,904,785 )     (2,070,572 )     (1,245,773 )     (9,221,130 )
Non-current liabilities     (1,358,907 )     (17,819,917 )     —         (19,178,824 )
Intercompany balances     5,006,155       (3,887,691 )     (1,118,464 )     —    
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:

 

                                         
    Nine months ended September 30, 2022
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
Revenue   $ 30,408,624     $ 1,766,391     $ —       $ —       $ 32,175,015  
Intercompany Service revenue     74,584       1,517,807       —         (1,592,391 )     —    
Total revenue     30,483,208       3,284,198       —         (1,592,391 )     32,175,015  
Operating expenses                                        
Intercompany service expense     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 )     40,824,631  
                                         
Income (Loss) from operations     681,231       (2,647,270 )     (6,683,577 )     —         (8,649,616 )
                                         
Other income (expense)                                        
Other income     90,781       2       —         —         90,783  
Other expense     (47,959 )     (8,580 )     —         —         (56,539 )
Interest expense, net     (1,069 )     (21,572 )     —         —         (22,641 )
Change in fair value of contingent purchase consideration     —         (1,397,833 )     —         —         (1,397,833 )
Gain on marketable securities     —         —         43,250       —         43,250  
Total other income (expense)     41,753       (1,427,983 )     43,250       —         (1,342,980 )
                                         
Income (Loss) before Income Taxes     722,984       (4,075,253 )     (6,640,327 )     —         (9,992,596 )
Income tax provision     (437,042 )     236,524       —         —         (200,518 )
Net Income (Loss)   $ 285,942     $ (3,838,729 )   $ (6,640,327 )   $ —       $ (10,193,114 )

   

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

 

                                 
    September 30, 2021
    Betting establishments   Betting platform software and services   All other   Total
                 
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     6,783,911       43,666,430       1,156,085       51,606,426  
Liabilities                                
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 )     (3,542,814 )     —    
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:

  

                                         
    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  
                                         
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 )