Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 4 — Discontinued Operations

The Sports Technology Platform

On December 30, 2021, the Company completed a series of transactions for the purpose of disposing of its interest in SportBLX, as described below:

● On December 21, 2021, SportBLX sold proprietary code to S-BLX Securities, a related party, for $225,000.

● On December 24, 2021, SportBLX repurchased $1,500,000 of its debt from FDC, a related party, for $126,000. FDC is controlled by George E. Hall and Joseph A. De Perio, who are beneficial owners of the Company.

● Finally, on December 30, 2021, the Company completed the disposition of its entire interest in SportBLX, selling all of its shares to FDC for $137,038.

As a result of these transactions, the Company recorded a net gain on the sale and deconsolidation of SportBLX of $16.7 million for the year ended December 31, 2021, the components of which are described in the table below.

	(in millions)
Sale of proprietary code to S-BLX Securities	$	0.2
Gain on repurchase of SportBLX debt from FDC		1.4
Sale of SportBLX to FDC
Proceeds		0.1
Basis in SportBLX		1.3
Goodwill		(8.3	)
Non-controlling interest		22.0
Net gain on the sale and deconsolidation of SportBLX	$	16.7

Results of Discontinued Operations

The operating results for the Sports Technology Platform are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to these businesses that were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:

	For the Years Ended December 31,
	2022		2021
	(In millions)
Net revenue	$	—	$	—
Operating expenses:
Selling, general and administrative		—		1.1
Restructuring and other		—		(0.6	)
Total operating expenses		—		0.5
Operating loss from discontinued operations		—		(0.5	)
Other expense:
Interest expense		—		(0.2	)
Total other expense		—		(0.2	)
Loss from discontinued operations, before income taxes		—		(0.7	)
Gain on sale and deconsolidation of discontinued business		—		16.7
Income tax		—		—
Income (loss) from discontinued operations, net of income taxes	$	—	$	16.0

Restructuring and other includes the net loss attributable to the noncontrolling interest of $0.6 million for the year ended December 31, 2021. This amount was reclassified to discontinued operations due to the sale of the Sports Technology Platform during the year ended December 31, 2021.

The income tax benefit related to discontinued operations was $0.0 million for the years ended December 31, 2022 and 2021. See Note 10 - Income Taxes for additional information.