SharpLink Gaming, Inc. reported its financial results for the nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic direction compared to the previous fiscal period. The company generated revenues of $2.84 million, a 27.7% decline from $3.93 million in the same period of 2023. For the third quarter alone, revenues fell by 34.7% to $881,690 from $1.35 million in Q3 2023. The decrease in revenue was attributed to the company's focus on its Affiliate Marketing segment following the sale of its Sports Gaming Client Services and SportsHub Gaming Network (SHGN) business units to RSports for $22.5 million in January 2024.
Gross profit for the nine months ended September 30, 2024, was $739,987, down 37.4% from $1.18 million in the prior year, with a gross profit margin decrease to 26.1% from 30.1%. Operating expenses also decreased by 25.9% to $4.43 million, reflecting cost-cutting measures across payroll, legal, and marketing expenses. The operating loss for the nine months improved to $(3.47 million) from $(6.59 million) in 2023.
SharpLink reported a net income of $11 million for the nine months ended September 30, 2024, a significant turnaround from a net loss of $(9.11 million) in the same period of 2023. This improvement was largely driven by the income from discontinued operations, which amounted to $14.47 million, compared to a loss of $(2.52 million) in the prior year.
The company’s total assets decreased dramatically to $2.92 million as of September 30, 2024, from $71.28 million at the end of 2023, primarily due to the sale of its business units. Total liabilities also fell to $895,013 from $80.68 million, resulting in total stockholders’ equity rising to $2.02 million, compared to a deficit of $(9.40 million) at the end of 2023.
Strategically, SharpLink completed a domestication merger on February 13, 2024, allowing it to trade under the ticker "SBET" on Nasdaq. The company has also initiated a formal review process to explore strategic alternatives, including potential mergers or sales, following a notice of non-compliance with Nasdaq's minimum bid price requirement in July 2024.
As of September 30, 2024, SharpLink had cash reserves of $1.85 million, down from $2.49 million at the end of 2023, and is considering additional capital raising efforts to support its operations.
About SharpLink Gaming, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.