Quarterly report pursuant to Section 13 or 15(d)

20. Segmental Reporting

v3.23.1
20. Segmental Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
20. Segmental Reporting

20. 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.

 

  (ii) Betting platform software and services

 

Provider of certified betting Platform software services to leisure betting establishments in the U.S. and 9 other countries.

 

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

 

                                 
    March 31, 2023
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of Non-Current assets   $ 493,293     $ 520,605     $ 2,264     $ 1,016,162  
Assets                                
Current assets   $ 4,695,890     $ 2,073,507     $ 286,307     $ 7,055,704  
Non-Current assets     3,469,999       13,714,305       54,210       17,238,514  
Liabilities                                
Current liabilities     (7,404,395 )     (3,131,815 )     (1,699,790 )     (12,236,000 )
Non-Current liabilities     (1,685,900 )     (1,905,820 )     (398,640 )     (3,990,360 )
Intercompany balances     6,343,542       (4,564,484 )     (1,779,058 )     —    
Net asset position   $ 5,419,136     $ 6,185,693     $ (3,536,971 )   $ 8,067,858  

 

                                 
    March 31, 2022
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of Non-Current assets   $ 76,620     $ 22,938     $ 5,571     $ 105,129  
Assets                                
Current assets   $ 7,839,520     $ 1,614,877     $ 562,008     $ 10,016,405  
Non-Current assets     2,668,559       30,820,909       92,640       33,582,108  
Liabilities                                
Current liabilities     (6,729,694 )     (1,171,806 )     (1,495,238 )     (9,396,738 )
Non-Current liabilities     (1,318,442 )     (16,697,219 )     —         (18,015,661 )
Intercompany balances     4,551,910       (2,114,610 )     (2,437,300 )     —    
Net asset position   $ 7,011,853     $ 12,452,151     $ (3,277,890 )   $ 16,186,114  

 

 

 

 

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

 

                                         
    Three Months ended March 31, 2023
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
                     
Net Gaming Revenue   $ 11,854,690     $ —       $ —       $ —       $ 11,854,690  
Betting platform and services revenue     —         577,456       —         —         577,456  
Intercompany Service revenue     26,831       795,066       —         (821,897 )     —    
      11,881,521       1,372,522       —         (821,897 )     12,432,146  
Operating expenses                                        
Intercompany service expense     795,066       26,831       —         (821,897 )     —    
Selling expenses     9,826,240       41,914       —         —         9,868,154  
General and administrative expenses     1,654,903       1,312,375       1,480,469       —         4,447,747  
Depreciation and amortization     58,321       282,624       6,378       —         347,323  
 Total operating expenses     12,334,530       1,663,744       1,486,847       (821,897 )     14,663,224  
                                         
Loss from operations     (453,009 )     (291,222 )     (1,486,847 )     —         (2,231,078 )
                                         
Other Income (expenses)                                        
Interest expense, net     (242 )     (18,694 )     (17,000 )     —         (35,936 )
Amortization of debt discount     —         —         (17,560 )     —         (17,560 )
Other income     7,323       1,523       —         —         8,846  
Other expense     (21 )     (7,663 )     (1,344 )     —         (9,028 )
Loss on marketable securities     —         —         (19,000 )     —         (19,000 )
Total other income (expenses)     7,060       (24,834 )     (54,904 )     —         (72,678 )
                                         
Loss before Income Taxes     (445,949 )     (316,056 )     (1,541,751 )             (2,303,756 )
Income tax provision     —         10,395       —         —         10,395  
Net Loss   $ (445,949 )   $ (305,661 )   $ (1,541,751 )   $ —       $ (2,293,361 )

 

 

 

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

 

                                         
    Three months ended March 31, 2022
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
Revenue   $ 11,751,266     $ 484,720     $ —       $ —       $ 12,235,986  
Intercompany Service revenue     56,127       555,693       —         (611,820 )     —    
Total revenue     11,807,394       1,040,412       —         (611,820 )     12,235,986  
Operating expenses                                        
Intercompany service expense     555,693       56,127       —         (611,820 )     —    
Selling expenses     9,253,177       33,055       —         —         9,286,232  
General and administrative expenses     1,412,238       1,507,128       1,651,060       —         4,570,426  
Depreciation and amortization     49,453       387,701       1,804       —         438,958  
Total operating expenses     11,270,561       1,984,011       1,652,864       (611,820 )     14,295,616  
                                         
Income (Loss) from operations     536,833       (943,599 )     (1,652,864 )     —         (2,059,630 )
                                         
Other income (expense)                                        
Other income     39,749       —         —         —         39,749  
Other expense     —         (1,070 )     —         —         (1,070 )
Interest expense, net     (1,212 )     (2,647 )     —         —         (3,859 )
Change in fair value of contingent purchase consideration     —         (450,013 )     —         —         (450,013 )
Gain on marketable securities     —         —         77,500       —         77,500  
Total other income (expense)     38,537       (453,730 )     77,500       —         (337,693 )
                                         
Income (Loss) before Income Taxes     575,370       (1,397,329 )     (1,575,364 )     —         (2,397,323 )
Income tax provision     (229,534 )     72,641       —         —         (156,893 )
Net Income (Loss)   $ 345,836     $ (1,324,688 )   $ (1,575,364 )   $ —       $ (2,554,216 )