Quarterly report [Sections 13 or 15(d)]

SEGMENT

v3.26.1
SEGMENT
 3 Months Ended
Mar. 31, 2026
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, which we refer to as core revenue, derives its revenues from casinos using our proprietary products to enhance their gaming operations. The online gaming ("iGaming") revenue stream, which we refer to as digital revenue, 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 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 significant segment expense activity is as follows:

 

For the Quarter Ended March 31,

 

 

2026

 

 

2025

 

Revenue:

 

 

 

 

 

Total Core Revenue

$

4,777,581

 

 

$

5,016,233

 

Total Digital Revenue

 

2,884,980

 

 

 

2,768,700

 

Consolidated Revenue

$

7,662,561

 

 

$

7,784,933

 

 

 

 

 

 

 

Cost and expenses

 

 

 

 

 

  Cost of ancillary products and assembled components

$

67,188

 

 

$

188,002

 

  Selling, general and administrative

 

2,177,808

 

 

 

2,362,376

 

  Compensation and related expenses

 

2,303,214

 

 

 

2,246,063

 

  Research and development

 

17,888

 

 

 

67,118

 

  Depreciation and amortization

 

869,951

 

 

 

779,817

 

  Stock-based compensation

 

52,847

 

 

 

166,261

 

Total costs and expenses

$

5,488,896

 

 

$

5,809,637

 

 

 

 

 

 

 

Net income (loss)

$

1,367,556

 

 

$

(2,021,282

)