NIP Group (NIPG) Registration Filing summary

Company overview and business model

• Operates as a leading global esports organization with teams and operations across Asia, Europe, and South America, under the brands Ninjas in Pyjamas and eStar Gaming.

• Business model centers on competitive esports, talent management, event production, and creative studios, with diversified revenue streams from team operations, talent management, and event production.

• Pursues an “esports+” strategy, expanding into areas such as esports education, digital collectibles, IP licensing, and real estate.

• Completed a major merger in January 2023, integrating Ninjas in Pyjamas Gaming AB, enhancing global reach and operational scale.

Financial performance and metrics

• Net revenues grew from $65.8 million in 2022 to $83.7 million in 2023, with gross profit rising from $3.7 million to $7.2 million and gross margin improving from 5.7% to 8.6%.

• Operating loss increased from $8.1 million in 2022 to $14.7 million in 2023; net loss widened from $6.3 million to $13.3 million.

• Adjusted EBITDA was negative $1.7 million in 2023, compared to negative $0.6 million in 2022.

• As of December 31, 2023, cash and cash equivalents were $7.6 million; total assets were $313.8 million, with $61.1 million in total liabilities and $322.5 million in mezzanine equity.

Use of proceeds and capital allocation

• Estimated net proceeds of $16.24 million (assuming $10.00 per ADS) will be allocated: 50% to strategic acquisitions/investments, 30% to marketing and fan base growth, 20% to expanding esports teams and talent/event production, and the remainder to working capital and general purposes.

• Proceeds may be invested in short-term, interest-bearing instruments pending use.