Segment Reporting and Geographic Information

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

23. Segment Reporting and Geographic Information

The Company operates its business along two operating segments, which are segregated on the basis of revenue stream: Service Based Gaming and Virtual Sports. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated.

The following tables present revenue, cost of sales, excluding depreciation and amortization, selling, general and administrative expenses, depreciation and amortization, operating profit/(loss) from continuing operations, total assets and total capital expenditures for the periods ended December 31, 2016 and 2015, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions.

Segmental Information

Period ended December 31, 2016

	Server Based		Virtual		Corporate
	Gaming		Sports		Functions		Total
Revenue:
Service	$	18,220	$	7,023	$	-	$	25,243
Hardware		1,794		-		-		1,794
Total revenue		20,014		7,023		-		27,037
Cost of sales, excluding depreciation and amortization:
Cost of service		(2,895)		(853)		-		(3,748)
Cost of hardware		(1,161)		-		-		(1,161)
Selling, general and administrative expenses		(3,824)		(1,796)		(8,992)		(14,612)
Acquisition related transaction expenses		-		-		(9,615)		(9,615)
Depreciation and amortization		(5,653)		(1,068)		(447)		(7,168)
Segment operating income (loss) from continuing operations		6,481		3,306		(19,054)		(9,267)
Net operating loss								(9,267)
Revenue from major customers:
Customer 1	$	7,806	$	249	$	-	$	8,055
Customer 2		2,931		91		-		3,022
Total revenue from major customers	$	10,737	$	340		-	$	11,077
Total assets at December 31, 2016	$	102,122	$	68,886	$	38,546	$	209,554
Total goodwill at December 31, 2016	$	-	$	43,474	$	-	$	43,474
Total capital expenditures for the period ended December 31, 2016	$	4,974	$	1,677	$	494	$	7,145

Period ended December 31, 2015

	Server Based		Virtual		Corporate
	Gaming		Sports		Functions		Total
Revenue:
Service	$	21,508	$	8,564	$	-	$	30,072
Hardware		743		-		-		743
Total revenue		22,251		8,564		-	$	30,815
Cost of sales, excluding depreciation and amortization:
Cost of service		(3,158)		(1,209)		-		(4,367)
Cost of hardware		(338)		-		-		(338)
Selling, general and administrative expenses		(5,469)		(2,081)		(8,626)		(16,176)
Acquisition related transaction expenses		-		-		(1,278)		(1,278)
Depreciation and amortization		(7,508)		(1,268)		(496)		(9,272)
Segment operating income (loss) from continuing operations		5,778		4,006		(10,400)		(616)
Net operating loss								(616)
Revenue from major customers:
Customer 1	$	9,263	$	136	$	-	$	9,399
Customer 2		3,309		-		-		3,309
Total revenue from major customers	$	12,572	$	136	$	-	$	12,708
Total assets at September 24, 2016	$	104,117	$	77,282	$	8,471	$	189,870
Total goodwill at September 24, 2016	$	-	$	45,705	$	-	$	45,705
Total capital expenditures for the period ended December 31, 2015	$	3,759	$	1,230	$	611	$	5,600

Geographic Information

Geographic information for revenue is set forth below:

	December 31,
	2016		2015
Total revenue
UK	$	19,154	$	22,391
Italy		4,374		5,349
Rest of world		3,509		3,075
Total	$	27,037	$	30,815

Geographic information of our non-current assets excluding goodwill is set forth below:

	December 31, 2016		September 24, 2016
Total non-current assets excluding goodwill
UK	$	69,508	$	73,033
Italy		6,705		7,737
Rest of world		18,366		18,655
Total	$	94,579	$	99,425

Software development costs are included as attributable to the market in which they are utilized.