Exhibit
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Description
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NEOGAMES S.A.
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By:
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/s/ Moti Malul
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Name: Moti Malul
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Title: Chief Executive Officer
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• |
Revenues were $11.9 million during the third quarter of 2021, compared to $13.1 million during the third quarter of 2020. In addition, the Company’s share of NPI revenues was $8.3 million during the third quarter of 2021, compared to
$2.5 million during the third quarter of 2020, representing an increase of 233.2% year-over-year. The total of revenues and the Company’s share of NPI’s revenues was $20.2 million during the third quarter of 2021 compared to $15.6 million
during the third quarter of 2020, representing an increase of 29.7% year-over-year.
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• |
Comprehensive income was $1.5 million, or $0.06 per share, during the third quarter of 2021, compared to comprehensive income of $2.5 million, or $0.11 per share, during the third quarter of 2020.
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• |
Adjusted EBITDA was $7.5 million during the third quarter of 2021, compared to an Adjusted EBITDA of $7.8 million during the third quarter of 2020 representing a decrease of 3.8% year-over-year.1
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• |
Network NGR was $179 million during the third quarter of 2021, compared to $126 million during the third quarter of 2020, representing an increase of 42.1% year-over-year.1
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• |
Rolled out progressive jackpot instant content with three customers representing an innovative development for iLottery players across our platform.
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Virginia iLottery program continued its growth performance, with significant growth each quarter it has been live since launch in Q3 2020.
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Launched online sport betting in Alberta, which follows the recent launches of Live Dealer and draw-based games in previous quarters.
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Went live with Ceasars Entertainment’s in Arizona as part of the Liberty platform, which is now live in 10 states with an online sport betting and/or iGaming offering.
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Subsequent to the quarter end, launched the Company’s suite of premium eInstant games with Lottomatica, further expanding NeoGames’ footprint in the Italian lottery market.
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Completed an underwritten public offering of ordinary shares including full exercise of the underwriters’ option to purchase additional ordinary shares.
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September 30,
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December 31,
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||||||
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2021
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2020
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Unaudited
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Audited
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||||||
ASSETS
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||||||||
CURRENT ASSETS
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||||||||
Cash and cash equivalents
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$
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68,199
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$
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59,767
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Designated Cash
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167
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-
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||||||
Restricted deposits
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12
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12
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||||||
Prepaid expenses and other receivables
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2,347
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1,446
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||||||
Due from Aspire Group
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1,194
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56
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||||||
Due from the Michigan Joint Operation and NPI
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3,061
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3,192
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||||||
Trade receivables
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3,053
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3,701
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||||||
Total Current Assets
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$
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78,033
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$
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68,174
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NON-CURRENT ASSETS
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||||||||
Restricted deposits
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154
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164
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||||||
Restricted deposits - Joint Venture
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3,848
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3,773
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Property and equipment
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2,104
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1,301
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||||||
Intangible assets
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21,206
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17,835
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||||||
Right-of-use assets
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8,294
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3,127
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Deferred taxes
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262
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211
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||||||
Total Non-Current Assets
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35,868
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26,411
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Total assets
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$
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113,901
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$
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94,585
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LIABILITIES AND EQUITY
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CURRENT LIABILITIES
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Trade and other payables
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$
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6,266
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$
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4,910
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Lease liabilities
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1,046
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1,651
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Capital notes, loans and accrued interest due to Aspire Group
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20,183
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-
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Loans and other due to William Hill, net
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-
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1,972
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Employees withholding payable
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167
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-
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Employees' related payables and accruals
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4,551
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3,562
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Total Current Liabilities
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$
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32,213
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$
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12,095
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NON-CURRENT LIABILITIES
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Capital notes, loans and accrued interest due to Aspire Group
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$
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-
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$
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17,739
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Loans and other due to William Hill, net
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12,326
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10,666
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||||||
Company share of Joint Venture net liabilities
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840
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1,025
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Lease liabilities
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7,376
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1,855
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Accrued severance pay, net
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468
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384
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Total Non-Current Liabilities
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$
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21,010
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$
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31,669
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EQUITY
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Share capital
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45
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44
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||||||
Reserve with respect to transaction under common control
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(8,467
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)
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(8,467
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)
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Reserve with respect to funding transactions with related parties
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20,072
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20,072
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Share premium
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70,697
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68,608
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Share based payments reserve
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3,464
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3,907
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Accumulated losses
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(25,133
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)
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(33,343
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)
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Total Equity
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60,678
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50,821
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Total liabilities and equity
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$
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113,901
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$
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94,585
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Quarter ended September 30,
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Year to date September 30,
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2021
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2020
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2021
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2020
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Revenues
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$
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11,973
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$
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13,124
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$
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38,209
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$
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35,195
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Distribution expenses
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2,429
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1,833
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7,515
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4,696
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||||||||||||
Development expenses
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1,792
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1,674
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5,966
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5,110
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Selling and marketing expenses
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396
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330
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1,003
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1,094
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||||||||||||
General and administrative expenses
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2,965
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2,125
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8,507
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5,377
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||||||||||||
Initial public offering expenses
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556
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-
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1,645
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Depreciation and amortization
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3,749
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2,957
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10,656
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8,496
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||||||||||||
11,331
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9,475
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33,647
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26,418
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|||||||||||||
Profit from operations
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642
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3,649
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4,562
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8,777
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Interest expenses with respect to funding from related parties
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1,171
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1,208
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3,585
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3,261
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Finance income
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-
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1
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-
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(21
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)
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|||||||||||
Finance expenses
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169
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208
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404
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690
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||||||||||||
Profit (loss) before income taxes expenses
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(698
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)
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2,232
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573
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4,847
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|||||||||||
Income taxes expenses
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(572
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)
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(280
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)
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(1,641
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)
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(706
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)
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Profit (loss) after income taxes expenses
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(1,270
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)
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1,952
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(1,068
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)
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4,141
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The Company’ share in profits (losses) of Joint Venture
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2,755
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555
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9,278
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(121
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)
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Net and total comprehensive income
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$
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1,485
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$
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2,507
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$
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8,210
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$
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4,020
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Net income per ordinary share outstanding, basic
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$
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0.06
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$
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0.11
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$
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0.33
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$
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0.18
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Net income per ordinary share outstanding, diluted
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$
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0.06
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$
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0.11
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$
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0.31
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$
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0.17
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Weighted average number of ordinary shares outstanding:
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Basic
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25,516,453
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21,983,757
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25,218,941
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21,983,757
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||||||||||||
Diluted
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26,641,667
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23,433,597
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26,627,124
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23,433,597
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Quarter ended September 30,
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Year to date September 30,
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|||||||||||||||
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2021
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2020
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2021
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2020
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Net and total comprehensive income
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$
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1,485
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$
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2,507
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$
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8,210
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$
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4,020
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||||||||
Income Taxes
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572
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280
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1,641
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706
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||||||||||||
Interest and finance-related expenses
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1,340
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1,417
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3,989
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3,930
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||||||||||||
EBIT
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3,397
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4,204
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13,840
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8,656
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||||||||||||
Depreciation and amortization
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3,749
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2,957
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10,656
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8,496
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||||||||||||
EBITDA
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7,146
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7,161
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24,496
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17,152
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Initial public offering costs
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-
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556
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-
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1,645
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||||||||||||
Share based compensation
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280
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8
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820
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531
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||||||||||||
Company share of NPI depreciation and amortization
|
57
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51
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165
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151
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||||||||||||
Adjusted EBITDA
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$
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7,483
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$
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7,776
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$
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25,481
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$
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19,479
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Quarter ended September 30,
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Year to date September 30,
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|||||||||||||||
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2021
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2020
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2021
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2020
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Royalties from turnkey contracts
|
$
|
6,775
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$
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9,002
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$
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22,840
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$
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23,432
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||||||||
Royalties from games contracts
|
465
|
423
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1,444
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1,223
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||||||||||||
Use of IP rights
|
1,986
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1,588
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5,850
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4,682
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||||||||||||
Development and other services – Aspire
|
349
|
516
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1,277
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1,864
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||||||||||||
Development and other services – NPI
|
2,021
|
1,179
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5,745
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2,923
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||||||||||||
Development and other services – Michigan Joint Operation
|
377
|
416
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1,053
|
1,071
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||||||||||||
Revenues
|
$
|
11,973
|
$
|
13,124
|
$
|
38,209
|
$
|
35,195
|
||||||||
NeoGames’ NPI Revenues Interest
|
$
|
8,256
|
$
|
2,478
|
$
|
25,010
|
$
|
5,057
|