Quarterly report [Sections 13 or 15(d)]

SEGMENT

v3.26.3
SEGMENT
 9 Months Ended
Sep. 30, 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 Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Total Core Revenue

$

4,970,681

 

 

$

4,519,799

 

 

$

14,549,447

 

 

$

14,230,307

 

Total Digital Revenue

 

3,004,538

 

 

 

2,805,343

 

 

 

9,026,223

 

 

 

8,407,459

 

Consolidated Revenue

$

7,975,219

 

 

$

7,325,142

 

 

$

23,575,670

 

 

$

22,637,766

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost and expenses

 

 

 

 

 

 

 

 

 

 

 

  Cost of ancillary products and assembled components

$

63,314

 

 

$

241,139

 

 

$

212,505

 

 

$

617,152

 

  Selling, general and administrative

 

3,791,973

 

 

 

2,340,456

 

 

 

8,520,545

 

 

 

7,017,074

 

  Compensation and related expenses

 

2,260,031

 

 

 

1,893,856

 

 

 

6,976,510

 

 

 

6,248,036

 

  Research and development

 

18,793

 

 

 

17,354

 

 

 

53,811

 

 

 

118,745

 

  Depreciation and amortization

 

896,217

 

 

 

806,483

 

 

 

2,685,390

 

 

 

2,372,215

 

  Stock-based compensation

 

280,153

 

 

 

122,202

 

 

 

388,819

 

 

 

441,605

 

Total costs and expenses

 

7,310,481

 

 

 

5,421,490

 

 

 

18,837,580

 

 

 

16,814,827

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense), net

 

4,520,611

 

 

 

(888,496

)

 

 

2,906,693

 

 

 

(5,748,375

)

(Provision) benefit for income taxes

 

(55,985

)

 

 

23,983

 

 

 

(150,885

)

 

 

(106,350

)

Net income (loss)

$

5,129,364

 

 

$

1,039,139

 

 

$

7,493,898

 

 

$

(31,786

)