ELYS GAME TECHNOLOGY, CORP. : Results of Operations and Financial Condition, Other Events, Financial Statements and Exhibits (Form 8-K)
Section 2.02. Results of Operations and Financial Condition.
The information contained in this Section 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 , as amended, or otherwise subject to the responsibilities of this section or sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K shall not be incorporated by reference in any filing with the
Item 8.01. Other Events.
The Company has also provided certain estimates regarding operating expenses, before impairment charges, which include selling, general and administrative expenses which are expected to be as follows:
Selling fees, which consist mainly of commissions paid to third parties
agents on the Company's B2C operations in
Europeand calculated as a percentage of turnover, of approximately $36.3 millionincreased by approximately 39% for the fiscal year ended December 31, 2021compared to approximately $26.1 millionin the prior year on the back of an increase in turnover of approximately 47%, all of which is subject to final audit verification.
General and administrative expenses increased by approximately
million or 39% from approximately
$13.8 millionin 2020 to approximately $19.1 millionin 2021, subject to final audit verification. The increase is a direct result of the Company's entry into the U.S. market, including increased expenses related to the acquisition and operation of Bookmakers Company US, LLCand significant expenses incurred in both personnel costs and professional fees to develop and establish a foothold in the U.S. market.
Impairment charges, which are non-cash, are provisionally estimated at
and Canadian markets with their potential for future growth compared to the growth potential measured in more mature European markets; and (ii) an impairment of goodwill related to our recent
The Company is in the process of finalizing its results for the year ended
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are identified by the use of the words “may”, “believe”, “anticipate”, “have intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potential”, “project” and similar expressions intended to identify forward-looking statements and include statements regarding the estimated increase in revenue, the estimated increase in gross revenue from web games, the estimated increase in revenue percentage, the estimated increase in general and administrative expenses, the Company continuing to incur expenses related to its expansion investment in the US market, earning further margin improvement in Multigioco’s B2C operations as the company expands its omnichannel distribution approach, rolling out ant the terrestrial channel of the company’s powerful Elys Gameboard technology in
as expected, challenge for first place in
as expected, the duration and extent of the COVID-19 outbreak worldwide, including the impact on national and local economies, and the risk factors described in the company’s annual report on Form 10- K for the year ended
Section 9.01. Financial statements and supporting documents.
(d) Exhibits. Exhibit Number Exhibit Description 99.1 Press Release issued by
Elys Game Technology, Corp.on March 28, 2022104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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