Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies	9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies	1. Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies *Company Description and Nature of Operations* We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks. *Management Liquidity Plans* As of September 30, 2022, the Company’s cash on hand was $37.4 million, and the Company had working capital in addition to cash of $13.4 million. The Company recorded net income of $19.2 million and net losses of $35.5 million for the nine months ended September 30, 2022 and 2021, respectively. Net income/losses include non-cash stock-based compensation of $7.9 million and $8.6 million for the nine months ended September 30, 2022 and 2021, respectively, excess capital expenditure over depreciation and amortization, excluding the acquisition of subsidiary assets, of $2.1 million for the nine months ended September 30, 2022, and excess depreciation and amortization over capital expenditure of $18.0 million for the nine months ended September 30, 2021, non-cash debt fees expensed as part of the repayment of the Company’s prior financing of $14.4 million for the nine months ended September 30, 2021 and non-cash changes in fair value of warrant liability of $3.8 million for the nine months ended September 30, 2021. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $39.9 million and $7.0 million for the nine months ended September 30, 2022 and 2021, respectively with the change year on year due to land based operations being subject to lockdown restrictions for part of the nine months ended September 30, 2021. Working capital of $50.8 million includes a non-cash settled item of $4.6 million of deferred income. Management currently believes that, absent any unanticipated COVID-19 impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through November 2023. There have been no COVID-19 restrictions in the United Kingdom since July 2021 and social distancing measures throughout Greece and Italy are no longer in force as of the second quarter of 2022, however, uncertainty remains as to the continuing impact of COVID-19 on the global economy. We continue to protect our existing available liquidity by pro-actively managing capital expenditures and working capital as well as identifying both immediate and longer-term opportunities for cost savings. *Basis of Presentation* The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2021 and 2020. The financial information as of December 31, 2021 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022. The interim results for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods.

Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

1. Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

Company Description and Nature of Operations

We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks.

Management Liquidity Plans

As of September 30, 2022, the Company’s cash on hand was $37.4 million, and the Company had working capital in addition to cash of $13.4 million. The Company recorded net income of $19.2 million and net losses of $35.5 million for the nine months ended September 30, 2022 and 2021, respectively. Net income/losses include non-cash stock-based compensation of $7.9 million and $8.6 million for the nine months ended September 30, 2022 and 2021, respectively, excess capital expenditure over depreciation and amortization, excluding the acquisition of subsidiary assets, of $2.1 million for the nine months ended September 30, 2022, and excess depreciation and amortization over capital expenditure of $18.0 million for the nine months ended September 30, 2021, non-cash debt fees expensed as part of the repayment of the Company’s prior financing of $14.4 million for the nine months ended September 30, 2021 and non-cash changes in fair value of warrant liability of $3.8 million for the nine months ended September 30, 2021. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $39.9 million and $7.0 million for the nine months ended September 30, 2022 and 2021, respectively with the change year on year due to land based operations being subject to lockdown restrictions for part of the nine months ended September 30, 2021. Working capital of $50.8 million includes a non-cash settled item of $4.6 million of deferred income. Management currently believes that, absent any unanticipated COVID-19 impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through November 2023.

There have been no COVID-19 restrictions in the United Kingdom since July 2021 and social distancing measures throughout Greece and Italy are no longer in force as of the second quarter of 2022, however, uncertainty remains as to the continuing impact of COVID-19 on the global economy. We continue to protect our existing available liquidity by pro-actively managing capital expenditures and working capital as well as identifying both immediate and longer-term opportunities for cost savings.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2021 and 2020. The financial information as of December 31, 2021 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022. The interim results for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods.