Esports Entertainment Group Reports Fourth Quarter and Fiscal Year 2021 Results

Q4 revenue up 63% over Q3 to $8.8 million

$16.8 million revenue generated for fiscal year 2021

Stockholders' equity increased to $74.8M, up $63.4M over FY20

Company reaffirms FY22 revenue guidance of $100M to $105M

Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the "Company") today announced financial results for its fourth quarter and fiscal year ended June 30, 2021.

Fiscal Fourth Quarter 2021 and Recent Operational Highlights

Completed acquisitions of Helix eSports and ggCircuit
Completed acquisition of BetHard, the B2C business of Gameday Group, adding Swedish and Spanish gaming licenses and substantially increasing revenue base
New Jersey gaming license formally accepted by NJ Division of Gaming Enforcement in May 2021
Opened New Jersey office and expanded hiring ahead of VIE US launch
Completed $35 million private placement of convertible notes with $17.50 conversion price
Partnered with Square, the world-leading point of sale and payment processing provider, to create ggLeap, a premium esports center management software
Partnered with Game Fund Partners to become a part of their venture capital arm and a new planned $300 million game fund
Continued to expand partnerships with professional sports teams, becoming official tournament sponsor for the Cleveland Cavaliers, New York Rangers, Indianapolis Colts, Tampa Bay Buccaneers, LA Chargers, and LAFC
Partnered with Pro Football Retired Players Association, a national membership organization that develops benefits and programs for retired NFL players, to be its official esports partner and tournament provider
Partnered with Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village powered by Johnson Controls, joining Topgolf Swing Suites and Don Shula's among others
Signed agreement with Associated Students of UCLA to launch state-of-the-art Helix eSports gaming facility inside Ackerman Union, located in the heart of UCLA's campus
Launched crypto mining application at ggCircuit LAN centers
Launched "pay-and-play" casino brand targeting the Finnish gaming market
Partnered with Indian Gaming Esports Association and Spectrum Gaming to bring esports to tribal nations and casinos
Partnered with Liquipedia.net to create the most community-centric and responsible betting integration in esports
Launched InVIE esports tournament series with Dota 2 Season 1 in South America
Became official gambling sponsor of Beyond the Summit's May 2021 CS:GO tournament; Beyond the Summit is one of the world's largest esports networks
Signed binding letter of intent to acquire Holodeck Ventures' esports content and media business
Partnered with Riot Games to host the Summer 2021 North American LCS Proving Grounds tournament
The Company's Helix eSports subsidiary partnered with GUNNAR Optiks, the leader in blue-light gaming and computer glasses
Signed agreement to co-produce the 24^th Annual East Coast Gaming Congress in Atlantic City
Signed exclusive content partnership with ESTV EsportsTV, the world's first 24-7 live linear video channel dedicated to esports
Partnered with SG Esports, a Brazilian professional gaming organization, as their primary jersey sponsor
Partnered with Real Cricket 20, the world's top mobile cricket game, to provide software integration services for the dafaNEWS Ecricket World Series
The Company's SportNation brand nominated for eGaming's Marketing Campaign of the Year Award
Partnered with Alpha Esports Tech to design computer vision technology for automated scoring

Fiscal Fourth Quarter 2021 Financial Results

Net revenue of $8.8 million, up $8.8 million over 4Q20 and up 63% compared to 3Q21's $5.4 million
Gross profit of $5.2 million, up $5.2 million over 4Q20 and up 69% compared to 3Q21's $3.1 million
Gross margin as a percentage of net sales was 59%, compared to 57% in 3Q21
Sales and marketing expenses of $5.1 million, up from $0.3 million in 4Q20 and compared to $2.4 million in 3Q21
General and administrative expenses of $10.5 million, up from $1.8 million in 4Q20 and compared to $6.3 million in 3Q21
Operating loss of $10.5 million, up from a loss of $2.1 million in 4Q20 and compared to $5.6 million in 3Q21
GAAP Net loss of $4.8 million or ($2.80) per basic common share, up from a net gain of $1.9 million or $2.09 per basic common share in 4Q20 and compared to a net loss of $12.4 million or ($0.73) per share in 3Q21
Non-GAAP adjusted EBITDA* of ($5.5 million), compared to adjusted EBITDA of ($0.9 million) in 4Q20 and compared to adjusted EBITDA of $2.1 million in 3Q21

Full Year Fiscal 2021 Financial Results

Net revenue of $16.8 million, up $16.8 million over FY20
Gross profit of $8.9 million, up $8.9 million over FY20
Gross margin as a percentage of net sales was 53%
Sales and marketing expenses of $10.0 million, up $9.7 million over FY20
General and administrative expenses of $24.6 million, up $3.7 million over FY20
Operating loss of $25.7 million, up $21.7 million over FY20
GAAP net loss of $26.4 million or $1.68 per basic common share, compared to a net loss of $10.4 million or $1.50 per share in FY20
Non-GAAP adjusted EBITDA* of ($14.0 million), compared to adjusted EBITDA of ($2.3 million) in FY20
Stockholders' equity increased $63.4 million to $74.8 million at the end of FY21, up from $11.4 million at the end of FY20

* Reconciliation on non-GAAP financial measures provided in the tables of this press release.

Fiscal 2022 Financial Outlook

The Company expects net revenue to increase by at least 490% to $100 million to $105 million in FY22, driven primarily by the multiple acquisitions completed in calendar 2021.

Management Commentary

"The formidable foundation we built since our 2020 IPO drove strong performance in the fourth quarter and sets the stage for achieving significant growth in FY22. Based on a new record single-day performance of our iGaming division in late September, I am extremely confident in our ability to hit our guidance target," added Grant Johnson, CEO of Esports Entertainment Group. "The partnerships we have formed, from top professional sports teams to industry-leading esports and gaming companies, clearly demonstrate the strength of our expansive product and service portfolio, and I believe our future is very bright as we continue to execute on our rapid expansion strategy driven by the solidification of our market position and the ongoing growth of our unique assets."

Conference Call

Esports Entertainment Group will host a conference call and webcast today, Wednesday, October 13, at 5:00 p.m. ET to answer questions about the Company's operational and financial highlights for its fourth quarter and fiscal year 2021 as well as other recent developments.

Date: Wednesday, October 13, 2021

Time: 5:00 p.m. Eastern Time

Live Call: +1-800-437-2398 (U.S. Toll-Free) or +1-323-347-3294 (International)

Webcast: https://public.viavid.com/index.php?id=146743

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until October 27 and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 6234338.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media Inquiries
brandon.apter@esportsentertainmentgroup.com

Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

Esports Entertainment Group, Inc.
Condensed Consolidated Balance Sheets


ASSETS		June 30, 2021			June 30, 2020

Current assets
Cash	$	19,917,196		$	12,353,307
Restricted cash		3,443,172			-
Accounts receivable, net		136,681			-
Receivables reserved for users		2,290,105			-
Other receivables		658,745			-
Deposit on business acquisition		-			500,000
Prepaid expenses and other current assets		3,264,344			263,345
Total current assets		29,710,243			13,116,652

Equipment, net		726,942			8,041
Operating lease right-of-use asset		1,272,920			-
Intangible assets, net		45,772,555			2,000
Goodwill		40,937,370			-
Other non-current assets		1,315,009			6,833

TOTAL ASSETS	$	119,735,039		$	13,133,526

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued expenses	$	8,458,689		$	811,549
Liabilities to customers		3,057,942			-
Deferred revenue		22,110			-
Liabilities to be settled in stock		-			927,855
Current portion of long-term debt		223,217			-
Operating lease liability - current		414,215			-
Total current liabilities		12,176,173			1,739,404

Long-term debt		6,523,804			-
Warrant liability		23,500,000			-
Deferred income taxes		1,870,861			-
Operating lease liability - non-current		878,809			-

Total liabilities		44,949,647			1,739,404

Commitments and contingencies (Note 14)

Stockholders' equity
Preferred stock $0.001 par value; 10,000,000 shares authorized, none issued and outstanding		-			-
Common stock $0.001 par value; 500,000,000 shares authorized, 21,896,145 and 11,233,223 shares issued and outstanding as of June 30, 2021 and June 30, 2020, respectively		21,896			11,233
Additional paid-in capital		122,341,002			31,918,491
Accumulated deficit		(46,908,336	)		(20,535,602	)
Accumulated other comprehensive loss		(669,170	)		-
Total stockholders' equity	$	74,785,392			11,394,122

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	119,735,039		$	13,133,526

Esports Entertainment Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss

	Year Ended June 30,
	2021			2020

Net revenue	$	16,783,914		$	-

Operating costs and expenses:
Cost of revenue		7,861,317			-
Sales and marketing		10,038,524			322,517
General and administrative		24,610,511			3,727,198
Total operating expenses		42,510,352			4,049,714

Operating loss		25,726,438			4,049,714

Other income (expense):
Interest expense		(698,973	)		(1,995,458	)
Net amortization of debt discount and premium on convertible debt		-			(1,156,877	)
Change in fair value of derivative liabilities		-			(2,432,302	)
Change in fair value of warrant liability		(1,549,924	)		-
Change in fair value of contingent consideration		(1,748,607	)		-
Loss on extinguishment of debt		-			(2,795,582	)
Gain on warrant exchange		-			1,894,418
Other non-operating income (loss)		(460,328	)		186,498
Total other expense		(4,457,832	)		(6,299,303	)

Loss before income taxes		30,184,270			10,349,017

Income tax benefit (expense)		3,811,536			(2,398	)

Net loss	$	26,372,734		$	10,351,415

Basic and diluted loss per common share	$	(1.68	)	$	(1.50	)
Weighted average number of common shares outstanding, basic and diluted		15,697,058			6,880,321

Esports Entertainment Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss


		Quarter Ended June 30
		Q4 2021			Q4 2020
Net revenue		8,800,621			-

Operating costs and expenses:
Cost of revenue		3,611,428			-
Sales and marketing		5,146,836			322,517
General and administrative		10,528,001			1,814,328
Total operating expenses		19,286,264			2,136,844

Operating loss		10,485,643			2,136,844

Other income (expense):
Interest expense		(699,372	)		290,334
Net amortization of debt discount and premium on convertible debt		-			68,328
Change in fair value of derivative liabilities		-			3,433,149
Change in fair value of warrant liability		3,180,000			-
Change in fair value of contingent consideration		(442,803	)		-
Loss on extinguishment of debt		-			-
Gain on warrant exchange		-			-
Other non-operating income (loss)		(194,625	)		212,277
Total other expense		1,843,200			4,004,088

Loss before income taxes		8,642,443			(1,867,244	)

Income tax benefit (expense)		3,811,536			(2,398	)

Net loss (income)	$	4,830,907		$	(1,864,846	)

Basic and diluted loss per common share		(2.80	)		2.09
Weighted average number of common shares outstanding, basic and diluted		1,722,861			890,702

Non GAAP Items

Net income (loss)	$	(4,830,907	)	$	1,864,846
Increase / (decrease) to adjusted EBITDA
Interest	$	699,372		$	(290,334	)
Income tax	$	(3,811,536	)	$	2,398
Depreciation and amortization	$	1,891,636		$	2,618
Shared based compensation	$	1,074,608		$	1,165,802
Transaction cost	$	2,073,641		$	-
Settlement of litigation	$	(44,497	)	$	35,771
Other non-operating cost	$	194,842		$	(212,277	)
Change in fair value of warant liability	$	(3,180,000	)	$	-
Change in fair value of contingent consideration	$	442,803		$	-
Net amortization of debt discount and premium on convertible debt	$	-		$	(68,328	)
Change in fair value of derivative liabilities	$	-		$	(3,433,149	)
Loss on extinguishment of debt	$	-		$	-
Gain on warrant exchange	$	-		$	-

Adjusted EBITDA loss	$	(5,490,038	)	$	(932,653	)

Adjusted EBITDA

The table below presents our Adjusted EBITDA reconciled to our net loss, the closest U.S. GAAP measure, for the periods indicated:


		Year Ended June 30,
		2021			2020
Net income (loss)	$	(26,372,734	)	$	(10,351,415	)

Adjusted for:
Interest		698,973			1,995,458
Income tax		(3,811,536	)		2,398
Depreciation and amortization		3,578,797			20,631
Shared based compensation		4,129,726			1,614,236
Transaction cost		3,509,429			-
Settlement of litigation		464,409			114,226
Other non-operating cost		460,328			(186,498	)
Change in fair value of warant liability		1,549,924			-
Change in fair value of contingent consideration		1,748,607			-
Net amortization of debt discount and premium on convertible debt		-			1,156,877
Change in fair value of derivative liabilities		-			2,432,302
Loss on extinguishment of debt		-			2,795,582
Gain on warrant exchange		-			(1,894,418	)
Adjusted EBITDA loss	$	(14,044,077	)	$	(2,300,621	)

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses adjusted EBITDA, a non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses this non-GAAP financial measure for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that it provides useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measure used by the Company in this press release may be different from the methods used by other companies.

We define and calculate Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense or benefit, depreciation and amortization, and further adjusted for the following items: stock-based compensation, transaction-related costs, non-core litigation, settlement and related costs, remeasurement of warrant liabilities, and certain other non-recurring, non-cash or non-core items, as described in the reconciliation below.

Adjusted EBITDA excludes certain expenses that are required in accordance with U.S. GAAP because they are non-recurring items (for example, in the case of transaction-related costs), non-cash expenditures (for example, in the case of depreciation, amortization, and stock-based compensation), or are not related to our underlying business performance (for example, in the case of interest income and expense and litigation settlement and related costs).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99520

News Provided by Newsfile via QuoteMedia

gaming investing topic: gaming investing

NorthStar Gaming Announces Revocation of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") is pleased to announce that effective May 16, 2025, the Ontario Securities Commission has revoked the temporary management cease trade order ("MCTO") it had previously granted to the Company on May 8, 2025 under National Policy 12-203 Management Cease Trade Orders, as the Company successfully completed the filing of its annual audited financial statements, management's discussion and analysis, and related certifications for the year ended December 31, 2024 (collectively, the "Annual Filings") on May 14, 2025.

The revocation of the MCTO means members of management are no longer prevented from trading the Company's securities. All of the Annual Filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Reports Year-End 2024 Results

Annual Revenue Growth of 57%, Gross Margin up 91%

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announced its financial results for the three months and year ended December 31, 2024. The Company also announced that it will discuss the results on an investor webinar to be held Thursday, May 15, 2025 at 11:00am (please see below for details). All dollar figures are quoted in Canadian dollars.

"We delivered strong financial results in 2024, highlighted by 57% growth in revenue and a 91% increase in gross margin. At the same time, we held marketing expense to a 10% increase and reduced G&A expense, demonstrating the continually improving operating leverage built into our business model," said Michael Moskowitz, Chair and CEO of NorthStar. "Equally important, our team rolled out innovations in both our sportsbook and casino that have further differentiated NorthStar Bets as a premium offering and helped drive the retention of, and engagement with, our loyal customers."

Restatement of Results

The comparative results for the three months and twelve months ended December 31, 2023 have been restated in the financial statements and management's discussion & analysis ("FY2024 MD&A") for the year ended December 31, 2024 to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements (note 2 of the Financial Statements for the year ended December 31, 2024). The Company's payment processor deducted the additional merchant fee from the daily remittances to the Company, and the deductions were not accounted for by the Company. These additional fees were identified as part of the year-end reconciliation of the amount due from the payment processor, and the financial statements and FY2024 MD&A have been adjusted accordingly. These restatements did not impact the cash balances reported for the years ended December 31, 2022, 2023, or 2024. However, they did result in adjustments to the reported current asset balances for those periods.

Financial Highlights for the Fourth Quarter Ended December 31, 2024 ("Q4 2024"):

Total Wagers¹ at Northstarbets.ca were $303.0 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
Gross Gaming Revenue² at Northstarbets.ca was $10.0 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
Revenue² was $9.5 million in Q4 2024, a 51% increase from $6.3 million in Q4 2023. Revenue in Q4 2024 includes $1.5 million of managed services revenue, which compares to $0.2 million in Q4 2023.
Gross Margin was $3.6 million, a 71% increase from $2.1 million in Q4 2023, while the Gross Margin percentage increased to 38.1%, up from 33.6% in Q4 2023.
Profit/(loss) before marketing and other expenses¹ was $0.6 million in Q4 2024 compared to a loss of $2.5 million in Q4 2023, indicating that gross margin is now sufficient to cover the Company's overhead expenses.

Financial Highlights for the Year Ended December 31, 2024 ("FY 2024"):

Total Wagers² at Northstarbets.ca were $980.0 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
Gross Gaming Revenue² at Northstarbets.ca was $34.0 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
Revenue² was $29.6 million in FY 2024, a 57% increase from $18.8 million in FY 2023. Revenue in FY 2024 includes $2.3 million of managed services revenue, which compares to $0.5 million in FY 2023.³
Gross Margin was $10.5 million, marking a 91% increase from $5.5 million in FY 2023, with the Gross Margin increasing to 35.7%, up from 29.3% in FY 2023.
Profit/(loss) before marketing and other expenses¹ was $0.1 million in FY 2024 compared to a loss of $6.7 million in YTD 2023, an improvement of $6.8 million.

"Early in 2025, we completed our most significant fund-raising to date, with a $43.4 million debt financing. This capital gives us a long runway on which to continue our trajectory of growth in wagering, gross margins and improving operating leverage. This was a milestone event for our business," added Mr. Moskowitz.

2024 Operating Highlights:

Completed the inaugural Blackjack Championship tournament, an innovative online competition that helped drive the acquisition of new high-value players and engagement for existing customers while increasing Blackjack wagering activity.
Implemented a series of enhancements to the NorthStar Bets platform, highlighted by streamlined navigation in both the Casino and Sportsbook sections, a doubling of Casino game selection since the start of 2024, personalized prop bets and intelligent parlay suggestions.
Introduced the "NorthStar Elite" program and branded tables to help secure the loyalty and satisfaction of our most active players and reinforcing the Company's positioning as a premium offering.
Launched "Sports Insights 2.0," a robust suite of enhancements to our content vertical that includes a redesigned home page, comprehensive team and player statistics, injury and player news feeds, added coverage of popular sports and strengthened casino content.
Gained significant traction outside the Ontario market with managed services revenue from Northstarbets.com site, owned by the Abenaki Council of Wolinak, increasing from $0.5 million in FY 2023 to $2.3 million in FY 2024.
Outpaced the industry growth rates reported by iGaming Ontario in 2024 in both Total Wagers (51% for NorthStar vs. 33% for the industry) and Gross Gaming Revenue (51% for NorthStar vs. 31.5% for the industry).

Outlook

"We expect our consistent pattern of year-over-year revenue increases to continue throughout 2025, based on our ongoing success in attracting and engaging high-value players," said Mr. Moskowitz. "We will maintain disciplined control over costs so that incremental gross margin falls primarily to the bottom line. As we continue to focus on operational excellence, we remain confident that we have the capital necessary to reach profitability based on our current business platform."

FY 2024 Corporate Update Webinar

On May 15, 2025, Michael Moskowitz will present an in-depth Corporate Update, including a discussion of the Company's FY 2024 Earnings, current operations and strategic priorities. All investors and other interested parties are invited to register for the webinar at the link below.

Date: Thursday, May 15, 2025
Time: 11:00 am EDT
Register: Webinar Registration

Management will be available to answer your questions following the presentation on the webinar platform. You may also submit your question(s) beforehand in the registration form linked above.

Extension of Strategic Marketing Agreement

The Company also announced that its wholly owned subsidiary, NorthStar Gaming (Ontario) Inc. ("NorthStar Ontario"), has extended its strategic partnership with Playtech Software Limited ("Playtech Software") through the renewal of their previously announced strategic marketing agreement. Under the agreement, Playtech Software contributes services designed to accelerate NorthStar Ontario's player acquisition strategy in the province. The agreement was first implemented in June 2023 and has since been renewed several times. Pursuant to the latest renewal, Playtech Software will reimburse marketing expenses valued at a total of up to $1.5 million over a 3-month period through to March 31, 2025. Playtech Software will be compensated through a share of revenue from the income generated in connection with the marketing initiatives to which it contributes. The Transaction between Playtech and NorthStar Ontario is exempted from Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions.

"We are very pleased to renew the marketing services agreement with Playtech Software," said Michael Moskowitz, Chair and CEO of NorthStar. "The agreement serves to extend our marketing budget and has contributed to our tremendous growth in Ontario. Playtech plc continues to be a valuable strategic partner and we look forward to further collaboration."

Continuous Disclosure

Further to a review by the staff of the Ontario Securities Commission (the "OSC") of the Company's continuous disclosure, the FY2024 MD&A includes enhanced disclosures with respect to:

the Company's regulatory framework, licensing regimes applicable to its business operations and the legal authorizations necessary to conduct its business operations;
specific risk factors relating to the Company's business operations which include risks relating to operating in a heavily regulated industry, cyber security risks and risks relating to conflicts of interest with respect to directors and officers of the Company; and
the relationship between the Abenaki Council of Wolinak and the Company as well as its subsidiary, Slapshot Media Inc.

Such amended disclosure is being included in the FY2024 MD&A to address comments received from the OSC on its management's discussion & analysis, for the period ended September 30, 2024, and to improve the Company's disclosure.

As a result of having to include such enhanced disclosure after the OSC review, the Company will be placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three (3) years.

Additional Information

For additional information, please refer to the Company's condensed consolidated financial statements for the year ended December 31, 2024, and the corresponding FY2024 MD&A. These documents are available on SEDAR+ at www.sedarplus.ca, and on the Company's corporate website at www.northstargaming.ca.

About NorthStar

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-IFRS Financial Measures [/ Reconciliation of Non-IFRS Measures to IFRS Measures]

Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" "Total Wagers" and "Profit/(Loss) before marketing and other expenses" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.

Total Wagers

Total Wagers are calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.

Gross Gaming Revenue

Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.

Reconciliation of Non-IFRS Measures to IFRS Measures

In Q4 2024, the Company reported $10.0 million of Gross Gaming Revenue ($34.0 million in FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows: $ Millions (unaudited)	Unaudited Three months ended		Year ended
	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Gross gaming revenue from wagered games	$10.0	$ 7.6	$ 34.0	$22.5
Bonuses, promotional costs and free bets	(2.0)	(1.5)	(6.7)	(4.2)
Sub-total Gaming revenue	8.0	6.1	27.3	18.3
Other revenue from managed services	1.5	0.2	2.3	0.5
Revenue	$ 9.5	$ 6.3	$ 29.6	$ 18.8

Operating Results

Marketing expenses are a key driver of the business but are completely discretionary. Management considers "Profit/(Loss) before marketing and other expenses" to be a good indication of the extent to which the business' Gross Margin is in excess of its overhead costs, and therefore offsetting some portion of marketing expenses, reflecting improving economies of scale.

$ Millions (unaudited)	Unaudited Three months ended		Year ended
$ Millions (unaudited)	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Revenue	$ 9,478	$ 6,275	$ 29,556	$ 18,845
Cost of Revenues	5,868	4,167	19,013	13,317
Gross Margin	3,610	2,108	10,543	5,528
General and administrative expenses	3,033	4,452	10,453	12,277
Profit/(Loss) before marketing and other expenses (1)	577	(2,344)	90	(6,749)
Marketing	5,249	5,472	15,456	14,094
Loss before other expenses (1)	(4,672)	(7,816)	(15,366)	(20,843)
Other expenses	(1,070)	149	3,645	6,547
Net loss	$ (3,602)	$ (7,965)	$ (19,011)	$ (27,390)

(1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities, and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company's control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Company Contact:

Corey Goodman
Chief Development Officer 647-530-2387
investorrelations@northstargaming.ca

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Announces Receipt of Management Cease Trade Order

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces that its principal regulator, the Ontario Securities Commission, has granted its request for a management cease trade order ("MCTO") effective May 8, 2025.

As previously announced on April 29, 2025, the Company applied for the MCTO due to a delay in filing its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (the "Annual Filings") which were required to be filed by April 30, 2025.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Announces Delay of Annual Filings

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") today announces an anticipated delay in the filing of its annual audited financial statements, management's discussion and analysis and related certifications for the financial year ended December 31, 2024 (collectively, the "Annual Filings"). The Company does not expect to file its Annual Filings by the regular filing deadline of April 30, 2025, as required, due to an unanticipated delay relating to the audit of the Annual Filings. The Company is working diligently with its auditor to finalize the Annual Filings and expects to file the Annual Filings no later than May 15, 2025.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

NorthStar Gaming Changes Date of Q4 and Year-End 2024 Earnings Webinar to May 1st

NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) ("NorthStar" or the "Company") has announced a change of date for its upcoming Q4 and Year-End 2024 Earnings Webinar to May 1, 2025 at 11:00 am EDT. Further, the Company now expects to announce its fourth quarter and year-end 2024 financial results and file its condensed consolidated financial statements for the year ended December 31, 2024 ("FY2024 Financial Statements") and associated management's discussion and analysis as soon as possible, but no later than April 30, 2025, as permitted under applicable securities laws. The webinar is being delayed because the Company requires additional time to finalize its FY2024 Financial Statements and complete its year-end audit process.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less

Esports Entertainment Group Reports Fourth Quarter and Fiscal Year 2021 Results

Investor Insight

Overview

Financial Performance

Company Highlights

Key Brands

NorthStarBets.ca

NorthStarBets.com

Management Team

Michael Moskowitz – CEO and Chairman

Corey Goodman – Chief Development Officer, Counsel and Corporate Secretary

Chin Dhushenthen – Chief Financial Officer

Barry Shafran – Lead Director

Vic Bertrand – Director

Brian Cooper – Director

Sylvia Prentice – Director

Dean MacDonald – Director

Chris McGinnis – Director

Alex Latner – Director, General Counsel, Playtech

Mike Cormack – Head of Content & Integrations

Latest News

Latest Press Releases

Related News

TOP STOCKS