Quarterly report [Sections 13 or 15(d)]

SEGMENT

v3.25.2
SEGMENT
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT

NOTE 7. SEGMENT

 

We define operating segments as components of our enterprise for which separate financial information is reviewed regularly by the chief operating decision maker ("CODM"), CEO, Matthew Reback, to evaluate performance and make operating decisions. We currently have two revenue streams (land-based gaming and online gaming), which are aggregated into one reporting segment. The land-based revenue stream derives its revenues from casinos using our proprietary products to enhance their gaming operations. The online gaming ("iGaming") revenue stream derives its revenues from the licensing and distribution of our content to iGaming operators. The Company has intra-entity sales between subsidiaries. The accounting policies of each revenue stream are the same as those described in the summary of significant accounting policies.

 

The CODM assesses performance of the revenue streams and allocates resources based on consolidated net income (loss), which is the primary performance metric. Net income (loss) is used to monitor budget versus actual results and assess the performance of the business. The measure of segment assets is reported on the Condensed Consolidated Balance Sheet as total assets, which are not allocated to individual revenue streams for performance evaluation by the CODM.

 

The following table discloses significant segment expenses. The Company determined the following significant expenses: cost of ancillary products and assembled components, selling, general and administrative, compensation and related expenses, research and development, depreciation and amortization, and stock-based compensation. The CODM reviews these significant expenses as provided in the monthly reporting package.

 

A summary of segment expense activity is as follows:

 

For Three Months Ended June 30,

For Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Total Core Revenue

$

4,694,275

 

 

$

5,980,542

 

 

$

9,710,508

 

 

$

11,378,183

 

Total Digital Revenue

 

2,833,416

 

 

 

2,541,960

 

 

 

5,602,116

 

 

 

5,145,385

 

Consolidated Revenue

$

7,527,691

 

 

$

8,522,502

 

 

$

15,312,624

 

 

$

16,523,568

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses

 

 

 

 

 

 

 

 

 

 

 

  Cost of ancillary products and assembled components

$

188,011

 

 

$

598,696

 

 

$

376,013

 

 

$

1,005,076

 

  Selling, general and administrative

 

2,314,242

 

 

 

2,733,637

 

 

 

4,676,618

 

 

 

5,135,770

 

  Compensation and related expenses

 

2,108,117

 

 

 

1,895,485

 

 

 

4,354,180

 

 

 

3,906,307

 

  Research and development

 

34,273

 

 

 

54,090

 

 

 

101,391

 

 

 

97,849

 

  Depreciation and amortization

 

785,915

 

 

 

701,997

 

 

 

1,565,732

 

 

 

1,388,190

 

  Stock-based compensation

 

153,142

 

 

 

194,613

 

 

 

319,403

 

 

 

335,855

 

Total costs and expenses

$

5,583,700

 

 

$

6,178,518

 

 

$

11,393,337

 

 

$

11,869,047

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

$

950,357

 

 

$

242,697

 

 

$

(1,070,925

)

 

$

451,605