Esports Entertainment Group, In
0.3560+0.00 (+0.28%)
Oct 29, 4:00:00 PM EDT · OTC Markets OTCPK · GMBL · USD
Key Stats
Market Cap
407.97KP/E (TTM)
0.00Basic EPS (TTM)
3137.13Dividend Yield
0%Recent Filings
8-K
Auditor change signals scrutiny
Esports Entertainment Group dismissed Marcum LLP as its independent auditor on June 13, 2024, after a clean recommendation from the Board and Audit Committee, citing no disagreements but noting prior going concern doubts and material weaknesses from the 2023 10-K. The company swiftly appointed TAAD LLP on June 20, 2024, for the fiscal year ending June 30, with no prior consultations. This switch underscores ongoing financial scrutiny. Risks persist amid liquidity challenges.
10-Q
Q3 FY2024 results
Esports Entertainment Group posted Q3 FY2024 revenue of $1.7M, down 59% y/y from $4.2M amid the prior-year divestiture of Bethard and Argyll operations, while EEG Games held steady at $0.7M. Gross margin edged up to 72.5% from 69.0%, yet operating loss narrowed to $1.8M from $9.6M as G&A costs plunged 62% on lower payroll and amortization. Net loss stood at $2.8M, or $3.43 per diluted share on 1.1M shares, versus $13.2M last year; the gap to operating loss stemmed from $1.0M in derivative and warrant fair-value shifts. Cash dipped to $1.0M with $5.6M YTD operating burn, offset by $4.7M in financing including a $1.4M secured note at 10% maturing March 2026; no revolver disclosed. Delisting from Nasdaq to OTC in February sharpened focus on core iGaming and esports. EEG Games stabilized. Regulatory hurdles in Europe linger.
8-K
OTCQB listing upgrade
Esports Entertainment Group upgraded its common stock (GMBL) and 10% Series A Preferred Stock (GMBLP) to the OTCQB Venture Market on March 28, 2024, meeting requirements for current reporting and annual certification. This move boosts transparency for shareholders and unlocks public capital market access, as CEO Alex Igelman noted. Yet risks like secured debt and going concern doubts linger.
10-Q
Q2 FY2024 results
Esports Entertainment Group posted Q2 FY2024 revenue of $2.6M, down 59% y/y from $6.4M amid divestitures of Bethard and Argyll operations, while EEG Games dipped 15% y/y to $0.7M on delayed hardware installs. Gross margin held at 73%, but operating loss narrowed to $16.5M from $21.5M y/y, pressured by $13.0M in asset impairments on goodwill and intangibles across segments. Net loss widened to $17.0M, or $64.55 per share on 487K diluted shares, versus $14.1M last year, with the gap to operating loss tied to $0.5M derivative fair-value changes and $11.0M deemed dividends from preferred stock down-rounds. Cash burned $4.1M in operations, ending at $1.1M with $2.4M restricted; financing via $5.2M ATM sales and $1.0M equity raise offset $0.3M preferred redemptions, but $12.5M liabilities exceed $4.7M current assets. Delisting to OTC in February 2024 flagged Nasdaq equity non-compliance. Competition in iGaming erodes margins as rivals scale esports betting.
8-K
Secures $1.42M note, restructures preferred
Esports Entertainment Group secured a $1.42 million non-convertible note from its preferred stock holder on March 7, 2024, maturing March 7, 2026, with 10% in-kind interest and a first-priority lien on all assets. The deal restructures $5.5 million in Series C and D preferred stock, imposing a six-month conversion standstill, monthly limits thereafter, a dividend freeze until maturity, and exemptions for up to $10 million in raises used for operations. Director Chul Woong Lim resigned effective that date, without disagreements. This bolsters liquidity but heightens default risks amid going concern doubts.
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