In This Story
GAN Limited (GAN-0.26%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $37.1 million from $29.8 million in the same quarter the previous year. This increase is attributed to the expansion of B2B operations in Nevada and recognition of migration service revenue in Michigan.
Cost of revenue for the quarter was $9.9 million, compared to $9.2 million in the same quarter of the previous year. This increase is due to increased gaming taxes in the B2C operations in Latin America.
The company reported a net income of $2.1 million for the quarter, compared to a net loss of $8.2 million in the previous year, with the improvement attributed to increased revenue and decreased operating expenses.
Sales and marketing expenses decreased to $6.8 million from $7.2 million, primarily due to a new affiliate marketing strategy in Latin America.
Product and technology expenses were $8.5 million, down from $9.2 million, reflecting cost-saving initiatives and reduced headcount.
General and administrative expenses increased to $7.8 million from $7.1 million, primarily due to compensation costs.
Depreciation and amortization expenses decreased significantly to $2.0 million from $4.3 million, due to fully amortized assets.
Cash provided by operating activities was $0.1 million, while cash used in investing activities was $2.3 million, primarily for capitalized software development.
GAN had a working capital of $55.5 million as of September 30, 2024. The company highlights its dependence on positive operating results and potential financing to meet future obligations.
The filing also details the merger agreement with SEGA SAMMY CREATION INC., which includes a cash payment of $1.97 per share to GAN shareholders.
GAN continues to focus on expanding its B2B and B2C operations, with a focus on cost-saving initiatives and strategic marketing efforts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GAN Limited quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.