Esports Entertainment Group, Inc. (EEG) reported a significant decrease in net revenue for the quarter ended December 31, 2023, with a total of $2.6 million compared to $6.4 million for the same period in the previous year. This 59% decline is largely attributed to the sale of the Bethard Business and the wind down of Argyll entities. The EEG iGaming segment saw a decrease of $3.7 million in revenue, while the EEG Games segment experienced a $0.1 million drop. Cost of revenue also decreased by 70% to $0.7 million due to the aforementioned disposals and reduced iGaming operations. Sales and marketing expenses fell by 61% to $0.7 million, primarily due to lower affiliate costs. General and administrative expenses decreased by 37% to $4.8 million, with reductions in payroll, depreciation, amortization, and IT costs...Show More

Esports Entertainment Group, Inc. (EEG) reported a significant decrease in net revenue for the quarter ended December 31, 2023, with a total of $2.6 million compared to $6.4 million for the same period in the previous year. This 59% decline is largely attributed to the sale of the Bethard Business and the wind down of Argyll entities. The EEG iGaming segment saw a decrease of $3.7 million in revenue, while the EEG Games segment experienced a $0.1 million drop. Cost of revenue also decreased by 70% to $0.7 million due to the aforementioned disposals and reduced iGaming operations. Sales and marketing expenses fell by 61% to $0.7 million, primarily due to lower affiliate costs. General and administrative expenses decreased by 37% to $4.8 million, with reductions in payroll, depreciation, amortization, and IT costs. The company recognized asset impairment charges of $13.0 million, including goodwill and intangible assets from the EEG iGaming segment and goodwill from the EEG Games segment. Other income (expense) shifted from an income of $7.4 million in the previous year to an expense of $0.5 million, mainly due to the recognition of a derivative liability related to the Series C Convertible Preferred Stock. The net loss for the quarter was $17.0 million, compared to $14.1 million in the prior year. The company's liquidity concerns persist, with an accumulated deficit of $203.3 million and net current liabilities of $7.8 million. Cash used in operating activities was $4.1 million, and the company continues to seek additional financing to support operations.