Sports Entertainment Gaming Global Media (SEGG) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $201K, down 30% year-over-year, with a net loss of $8.05M for the quarter and $19.77M for the nine months ended September 30, 2024.

• The company continues to operate at a loss, with significant increases in professional fees and ongoing impairment charges to goodwill and intangibles.

• Operations remain limited following the 2022 operational cessation, with a phased plan to relaunch core platforms and expand international operations.

Financial highlights

• Q3 2024 revenue decreased 30% year-over-year; gross profit fell 83% to $117K.

• Operating expenses rose 11% to $3.75M, driven by a 261% increase in professional fees.

• Net loss for Q3 2024 was $8.05M, up from $3.4M in Q3 2023; nine-month net loss was $19.77M, up 82% year-over-year.

• Impairment charges of $4.3M were recorded in Q3 2024 for goodwill and intangibles.

• Cash and restricted cash at September 30, 2024 was $60K, with a negative working capital of $10.2M.

Outlook and guidance

• The company plans to relaunch its B2C platform in early 2025, initially in Texas, and expand to other jurisdictions.

• Management anticipates operational costs will exceed revenues over the next 12 months, with the liquidity gap to be filled by new equity or debt financing.

• There is substantial doubt about the company's ability to continue as a going concern without additional capital.