Exhibit
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Description
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NEOGAMES S.A.
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By:
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/s/ Moti Malul
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Name: Moti Malul
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Title: Chief Executive Officer
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The total of Revenues and the Company’s share in NPI revenues was $22.4 million during the first quarter of 2022 compared to $21.6 million during the first quarter of 2021, representing an increase of 3.8% year-over-year. Revenues were
$13.2 million during the first quarter of 2022, compared to $13.3 million during the first quarter of 2021, representing a decrease of 0.7% year-over-year. In addition, the Company’s share in NPI revenues was $9.2 million during the first
quarter of 2022, compared to $8.2 million during the first quarter of 2021, representing an increase of 11.2% year-over-year.
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• |
Comprehensive loss was $(0.9) million, or $(0.03) per share, during the first quarter of 2022, compared to comprehensive income of $4.0 million, or $0.16 per share, during the first quarter of 2021. The change in comprehensive income was
impacted by several items, including Aspire transaction-related , stock-based compensation expense (granted in Q4 2021), and additional G&A related to further build out of operations.
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• |
Adjusted EBITDA1 was $8.5 million during the first quarter of 2022, compared to $9.7 million during the first quarter of 2021 representing a decrease of 12.0% year-over-year.
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Network Net Gaming Revenue (“NGR”) was $199.7 million during the first quarter of 2022, compared to $195.8 million during the first quarter of 2021, representing an increase of 2% year-over-year.
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• |
On April 26, 2022, we published the prospectus, offer document and acceptance form related to the Aspire Global prospective acquisition. The acceptance period runs from April 27 through May 25 with an expected settlement date of June
14, 2022. The acquisition is expected to close during the second quarter of 2022.
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• |
Virginia continued its strong growth with quarter-over-quarter and year-over-year increases in revenue and near market-leading per capita volumes.
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Michigan continued its growth trend, which started in the second half of the fourth quarter 2021.
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Benefiting from the broader product mix rolled out in the region, Alberta expanded to become our second largest turn-key account in terms of revenues, demonstrating the benefits of our collaboration with Aspire Global, as Pariplay has
increased its market share during the quarter.
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March 31,
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December 31,
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2022
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2021
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|||||||
Unaudited
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Audited
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ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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$
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40,932
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$
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66,082
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||||
Designated cash
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-
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167
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||||||
Restricted deposit
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5
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9
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||||||
Prepaid expenses and other receivables
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3,393
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2,494
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||||||
Due from Aspire Group
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608
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1,483
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||||||
Due from the Michigan Joint Operation and NPI
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3,641
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3,560
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Trade receivables
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5,797
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3,724
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Total current assets
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$
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54,376
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$
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77,519
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NON-CURRENT ASSETS
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||||||||
Restricted deposit
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154
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154
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||||||
Restricted deposits - Joint Venture
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3,848
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3,848
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Property and equipment
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2,870
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2,159
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||||||
Intangible assets
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23,877
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22,354
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Right-of-use assets
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7,689
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7,882
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Deferred taxes
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2,075
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1,839
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Total non-current assets
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40,513
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38,236
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Total assets
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$
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94,889
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$
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115,755
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LIABILITIES AND EQUITY
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CURRENT LIABILITIES
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Trade and other payables
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$
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8,652
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$
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7,902
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Lease liabilities
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678
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769
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||||||
Capital notes and accrued interest due to Aspire Group
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-
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21,086
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Employees withholding payable
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-
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167
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Employees' related payables and accruals
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3,852
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4,202
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Total current liabilities
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$
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13,182
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$
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34,126
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NON-CURRENT LIABILITIES
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||||||||
Loans and other due to Caesars, net
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$
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13,287
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$
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12,899
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Company share of Joint Venture net liabilities
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778
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830
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Lease liabilities
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7,767
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7,820
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Accrued severance pay, net
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380
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286
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||||||
Total non-current liabilities
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$
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22,212
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$
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21,835
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EQUITY
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Share capital
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45
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45
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Reserve with respect to transaction under common control
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(8,467
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)
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(8,467
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)
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Reserve with respect to funding transactions with related parties
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20,072
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20,072
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Share premium
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71,862
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70,812
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Share based payments reserve
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5,567
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6,023
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Accumulated losses
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(29,584
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)
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(28,691
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)
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Total equity
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59,495
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59,794
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Total liabilities and equity
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$
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94,889
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$
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115,755
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Quarter ended March 31,
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2022
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2021
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Revenues
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$
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13,250
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$
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13,349
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Distribution expenses
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2,465
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2,646
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Development expenses
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2,542
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2,238
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Selling and marketing expenses
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521
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278
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General and administrative expenses
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3,704
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2,661
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Prospective acquisition related expenses
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2,221
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-
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Depreciation and amortization
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3,954
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3,355
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15,407
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11,178
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Profit (loss) from operations
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(2,157
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)
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2,171
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Interest expenses with respect to funding from related parties
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1,640
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1,184
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Finance expenses
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499
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224
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||||||
The Company’ share in profits of Joint Venture
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3,887
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3,844
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||||||
Profit (loss) before income taxes expenses
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(409
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)
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4,607
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Taxes expenses
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(484
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)
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(657
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)
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Net and total comprehensive income (loss)
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$
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(893
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)
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$
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3,950
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Net income (loss) per common share outstanding, basic
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$
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(0.03
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)
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$
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0.16
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Net income (loss) per common share outstanding, diluted
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$
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(0.03
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)
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$
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0.15
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Weighted average number of ordinary shares outstanding:
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Basic
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25,593,101
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24,983,855
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Diluted
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25,593,101
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26,612,949
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Quarter ended March 31,
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2022
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2021
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Net and total comprehensive (loss) income
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$
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(893
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)
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$
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3,950
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Taxes expenses
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484
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657
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Interest and finance-related expenses
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2,139
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1,408
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EBIT
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1,730
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6,015
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Depreciation and amortization
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3,954
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3,355
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EBITDA
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5,684
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9,370
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Prospective acquisition related expenses
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2,221
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-
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Share based compensation
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595
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266
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Company share of NPI depreciation and amortization
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29
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53
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Adjusted EBITDA
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$
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8,529
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$
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9,689
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Quarter ended March 31,
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2022
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2021
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Royalties from turnkey contracts
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$
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6,960
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$
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8,445
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Royalties from games contracts
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536
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476
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Use of IP rights
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3,320
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1,863
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Development and other services – Aspire
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426
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480
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Development and other services – NPI
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1,676
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1,799
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Development and other services – Michigan Joint Operation
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332
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286
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Revenues
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$
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13,250
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$
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13,349
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NeoGames’ NPI Revenues Interest
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$
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9,170
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$
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8,248
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