RE:RE:Money printer in the making ????Re: cash...far from money printing. We're low on cash at ~4.5m and now have a loan to service, but FANS is doing what they can to reduce burn rate, including pausing all RNG work and reducing such expenses (related note - see the impairments for this Q to this business unit that has not performed well).
For Q4, we'll see what net value dragonbet starts to bring to the table. I think the timing for more financing will become clear based on peformance during Q1 of next year assuming that:
1) FANS/BETR have licenses and are able to go live in Ohio in Jan;
2) McBookie margings improve from transferring over to FANS tech and license and stop relying on third party;
3) a couple of quarters in the books for dragonbet.
4) AmAff has a another strong Q similar to the same period last year.
I wouldn't be surprised if some small/birdge financing was done in Q1 though. Performance from our B2B side for the North America market is critical and must start bearing fruit, starting with our player account mgt partnership with BETR for Ohio and beyond. That's the key, we need these B2B deals in 2023. No more talk. Paid for the seeds and "relationships", etc., now show us the B2B deals.
Re: Net earnings for this period, its appears a bit odd because of the bump from the ~$51m revaluation of contingent considerations (see the line item of the same name in the Q report under Expenses), which reflects the new AmAff contractual change for how earnout payments are calculated. In the original deal with AmAff, there was a quarterly pay for performance regime setup for a few years given the relatively low acquisition/reverse takeover costs, but given FANS doesn't have much cash, this has been paid out every quarter since the merger via shares. Given the share price has cratered since the merger, we were experiecing high quantities of shares being paid out to those AmAff members every quarter (refer to note 7b and d in the Q report for more details about this for example). The parties recognized this and have improved/reduced the multiple in the formula as well as secured a loan (mentioned above) to enable FANS to pay AmAff cash in the short-term for these earnouts, rather than shares at sub 10c rates.