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SharpLink Gaming Inc (SBET-5.56%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $881,690 from $1,349,331 in the same quarter of the previous year. The decrease is attributed to market conditions softening and the loss of customers.
Cost of revenues for the quarter was $709,045, representing 80.4% of sales, compared to 71.0% in the same quarter of the previous year. This increase in cost ratio is due to higher casino payouts.
The company reported a gross profit of $172,645 for the quarter, compared to $390,666 in the previous year, with the decline attributed to reduced revenues and increased costs.
Selling, general, and administrative expenses decreased to $970,080 from $1,795,057, primarily due to lower payroll, audit, legal, insurance, marketing, and travel-related costs.
Net loss from continuing operations for the quarter was $787,992, down from $2,027,447 in the previous year. The decrease is largely due to cost-cutting measures.
Net loss from discontinued operations was $97,139, compared to $822,100 in the previous year, with the decrease due to the gain on the wind down of MTS business operations.
Cash used in operating activities was $4,434,002 for continuing operations, while cash used in investing and financing activities was $18,709,553 and $18,173,046, respectively.
SharpLink had a working capital of $2,001,113 as of September 30, 2024. The company acknowledges its dependence on additional capital to fund growth and future business operations.
The filing also details the sale of the Sports Gaming Client Services and SHGN business units to RSports for $22.5 million, which was completed in January 2024.
SharpLink does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on its Affiliate Marketing Services segment, which operates a global affiliate network and performance marketing platform.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SharpLink Gaming Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.