Quarterly report pursuant to Section 13 or 15(d)

19. Segmental Reporting

v3.23.3
19. Segmental Reporting
 9 Months Ended
Sep. 30, 2023
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.

 

  (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:    

                                 
    September 30, 2023
    Betting establishments   Betting platform software and services   All other   Total
                 
Purchase of Non-Current assets   $ 565,412     $ 530,771     $ 18,971     $ 1,115,154  
Assets                                
Current assets   $ 4,603,773     $ 3,056,110     $ 508,937     $ 8,168,820  
Non-Current assets     2,829,148       11,292,675       56,437       14,178,260  
Liabilities                                
Current liabilities     (8,575,115 )     (3,591,448 )     (1,149,880 )     (13,316,443 )
Non-Current liabilities     (1,565,673 )     (1,617,009 )     (3,145,398 )     (6,328,080 )
Intercompany balances     7,070,429       (7,481,138 )     410,709       —    
Net asset position   $ 4,362,562     $ 1,659,190     $ (3,319,195 )   $ 2,702,557  

  

 

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

                                 

    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, 2023
    Betting establishments   Betting platform software and services   All other   Adjustments   Total
                     
Net Gaming Revenue   $ 30,575,558     $  —       $  —       $  —       $  30,575,558  
Betting platform and services revenue     —         1,657,820       —         —         1,657,820  
Intercompany Service revenue     424,340       1,732,034       —         (2,156,374 )     —    
      30,999,898       3,389,854       —         (2,156,374 )     32,233,378  
Operating expenses                                        
Intercompany service expense     1,732,034       —         424,340       (2,156,374 )     —    
Selling expenses     25,963,591       194,758       —         —         26,158,349  
General and administrative expenses     4,835,954       4,507,051       4,155,140       —         13,498,145  
Depreciation and amortization     194,093       830,209       19,130       —         1,043,432  
 Total operating expenses     32,725,672       5,532,018       4,598,610       (2,156,374 )     40,699,926  
                                         
Loss from operations     (1,725,774 )     (2,142,164 )     (4,598,610 )     —         (8,466,548 )
                                         
Other Income (expenses)                                        
Interest expense, net     (4,784 )     (49,895 )     (219,022 )     —         (273,701 )
Amortization of debt discount     —         —         (215,651 )     —         (215,651 )
Other income     12,227       1,294       —         —         13,521  
Other expense     (2,398 )     (2,544 )     (2,075 )     —         (7,017 )
Loss on marketable securities     —         —         (19,999 )     —         (19,999 )
Total other income (expenses)     5,045       (51,145 )     (456,747 )     —         (502,847 )
                                         
Loss before Income Taxes     (1,720,729 )     (2,193,309 )     (5,055,357 )     —         (8,969,395 )
Income tax provision     —         67,199       —         —         67,199  

Net Loss from continuing operations

   $ (1,720,729 )     (2,126,110 )     (5,055,357 )     —         (8,902,196 )
Discontinued operations                                        
Operating losses     —         (198,335 )      —         —         (198,335 ) 
Loss on rescission     —         (42,201 )      —         —         (42,201 ) 
    —         (240,536 )      —         —         (240,536 ) 
Net Loss   $ (1,720,729 )     (2,366,646 )     (5,055,357 )     —         (9,142,732 )

   

 

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 )