FansUnite Entertainment Inc.

For the three months ended March 31, 2024, revenue was $8.3 million, up from $7.3 million a year ago. Gross margin was 63% versus 65% in the prior-year quarter, with cost of revenue at $3.1 million versus $2.6 million. Net loss from continuing operations improved to $3.9 million from $4.4 million. Research revenue was $451,000, up from $46,000, and North Carolina contributed over $450,000 in revenue in the period. Cash ended the quarter at $1.4 million, down $846,000. Management did not give formal next-quarter or full-year financial guidance on the call.

Scott Burton said the quarter showed the company’s operating plan is working, with Betting Hero benefiting from major events, new-state launches, and stronger research demand. He emphasized first-mover advantages in newly regulated markets, repeat and bespoke research work with large operators, and improving economics in the digital brand Props. His tone was constructive and focused on execution, saying the company is shifting from restructuring to growth and balance-sheet cleanup.

Graeme Moore highlighted revenue growth, stable gross margins above 60%, and a narrower net loss as the main financial positives. He cited lower non-cash expenses, including accretion of contingent consideration down to $264,000 from $569,000 and share-based payments down to $195,000 from $629,000, partly offset by a $433,000 revaluation of contingent consideration. He also pointed to balance-sheet pressure: liabilities rose to $28.2 million from $27.3 million, contingent consideration increased to $18.2 million, and cash fell to $1.4 million after $248,000 of debt repayment, $69,000 of interest, and $316,000 of earnout payments. He said a large portion of the $8.2 million receivables balance has since been collected and that management is focused on optimizing capital structure.

Management confirmed one contingent payment remains outstanding from the Betr Chameleon source code sale: C$750,000 in cash and 500,000 Betr warrants/shares. They said Hero Research can win work before state launches, including in markets like California, Texas, and Georgia if operators request pre-launch research. On Hero Hotline, management said there is no specific launch date yet because the team is prioritizing the digital product first. They also said Props.com performed well, with growth in non-sports-betting areas like fantasy sweepstakes and better ad tools supporting revenue.