Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT

v3.26.1
SEGMENT
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT

NOTE 13. 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 Consolidated Balance Sheet as total assets, which are not allocated to individual revenue streams for performance evaluation by the CODM.

 

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:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

Revenue:

 

 

 

 

 

Total Core Revenue

$

19,156,855

 

 

$

21,387,092

 

Total Digital Revenue

 

11,716,697

 

 

 

10,350,374

 

Consolidated Revenue

$

30,873,552

 

 

$

31,737,466

 

 

 

 

 

 

 

Cost and expenses

 

 

 

 

 

  Cost of ancillary products and assembled components

$

780,377

 

 

$

1,509,776

 

  Selling, general and administrative

 

9,819,406

 

 

 

12,057,139

 

  Compensation and related expenses

 

8,185,853

 

 

 

8,454,485

 

  Research and development

 

158,220

 

 

 

231,016

 

  Depreciation and amortization

 

3,209,679

 

 

 

2,863,507

 

  Stock-based compensation

 

540,407

 

 

 

919,649

 

Total costs and expenses

$

22,693,942

 

 

$

26,035,572

 

 

 

 

 

 

 

Net income (loss)

$

1,483,619

 

 

$

(2,627,110

)