Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Feb. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 to Form 10-Q (this “Amendment” or “Form 10-Q/A”) amends the Annual Report on Form 10-Q for the quarter ended March 31, 2023 originally filed with the Securities and Exchange Commission (“SEC”) on May 10, 2023 (the “Original Filing”) by Inspired Entertainment, Inc. (the “Company,” “we,” “our” or “us”). | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36689 | |
Entity Registrant Name | INSPIRED ENTERTAINMENT, INC. | |
Entity Central Index Key | 0001615063 | |
Entity Tax Identification Number | 47-1025534 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 250 West 57th Street | |
Entity Address, Address Line Two | Suite 415 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10107 | |
City Area Code | (646) | |
Local Phone Number | 565-3861 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | INSE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,219,021 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||||
Cash | $ 27.8 | $ 25 | ||
Accounts receivable, net | 32.9 | 40.4 | ||
Inventory | 34.6 | 30.3 | ||
Prepaid expenses and other current assets | 30.7 | 31.2 | ||
Total current assets | 126 | 126.9 | ||
Property and equipment, net | 47.4 | 45.1 | ||
Software development costs, net | 19.5 | 18.3 | ||
Other acquired intangible assets subject to amortization, net | 14.3 | 14.6 | ||
Goodwill | 57 | 55.5 | ||
Operating lease right of use asset | 15.7 | 16 | ||
Costs of obtaining and fulfilling customer contracts, net | 7.7 | 7 | ||
Other assets | 4.1 | 3.8 | ||
Total assets | 291.7 | 287.2 | ||
Current liabilities | ||||
Accounts payable | 22.2 | 23.7 | ||
Accrued expenses | 35.6 | 29 | ||
Corporate tax and other current taxes payable | 3.4 | 10.1 | ||
Deferred revenue, current | 4.9 | 4.6 | ||
Operating lease liabilities | 4 | 3.9 | ||
Other current liabilities | 3.2 | 3.6 | ||
Total current liabilities | 73.3 | 74.9 | ||
Long-term debt | 285.5 | 277.6 | ||
Finance lease liabilities, net of current portion | 1.2 | 1.2 | ||
Deferred revenue, net of current portion | 2.3 | 2.8 | ||
Operating lease liabilities | 11.9 | 12.3 | ||
Other long-term liabilities | 4 | 4 | ||
Total liabilities | 378.2 | 372.8 | ||
Commitments and contingencies | ||||
Stockholders’ deficit | ||||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 26,263,070 shares and 25,909,516 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | ||||
Additional paid in capital | 381.2 | 378.2 | ||
Accumulated other comprehensive income | 48.3 | 50.8 | $ 47.6 | $ 43.8 |
Accumulated deficit | (516) | (514.6) | ||
Total stockholders’ deficit | (86.5) | (85.6) | $ (100.7) | $ (108.7) |
Total liabilities and stockholders’ deficit | $ 291.7 | $ 287.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 49,000,000 | 49,000,000 | 49,000,000 |
Common stock, shares issued | 26,263,070 | 25,909,516 | 26,433,562 |
Common stock, shares outstanding | 26,263,070 | 25,909,516 | 26,433,562 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Revenue: | |||
Total revenue | $ 64.9 | $ 60.3 | |
Cost of sales: | |||
Cost of service | [1] | (15) | (16.8) |
Cost of product sales | (6.7) | (2.5) | |
Selling, general and administrative expenses | (29.2) | (23.2) | |
Acquisition and integration related transaction expenses | (0.2) | ||
Depreciation and amortization | (9.4) | (10.7) | |
Net operating income | 4.6 | 6.9 | |
Other expense | |||
Interest expense, net | (6.3) | (6.5) | |
Gain on disposal of business | 0.9 | ||
Other finance income | 0.1 | 0.3 | |
Total other expense, net | (6.2) | (5.3) | |
Net (loss) income before income taxes | (1.6) | 1.6 | |
Income tax benefit (expense) | 0.2 | (0.1) | |
Net (loss) income | (1.4) | 1.5 | |
Other comprehensive income: | |||
Foreign currency translation (loss) gain | (2.9) | 3.5 | |
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 | |
Actuarial gains on pension plan | 0.2 | 0.1 | |
Other comprehensive income | (2.5) | 3.8 | |
Comprehensive (loss) income | $ (3.9) | $ 5.3 | |
Net income (loss) per common share – basic | $ (0.05) | $ 0.05 | |
Net income (loss) per common share - diluted | $ (0.05) | $ 0.05 | |
Weighted average number of shares outstanding during the period – basic | 27,974,182 | 28,437,052 | |
Weighted average number of shares outstanding during the period – diluted | 27,974,182 | 29,362,382 | |
Stock-based compensation included in: | |||
Selling, general and administrative expenses | $ (2.9) | $ (2.8) | |
Service [Member] | |||
Revenue: | |||
Total revenue | 57.5 | 56 | |
Product Sales [Member] | |||
Revenue: | |||
Total revenue | $ 7.4 | $ 4.3 | |
[1]Excluding depreciation and amortization |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2021 | $ 372,300,000 | $ 43,800,000 | $ (524,800,000) | $ (108,700,000) | |
Balance, shares at Dec. 31, 2021 | 26,433,562 | ||||
Foreign currency translation adjustments | 3,500,000 | 3,500,000 | |||
Actuarial gains on pension plan | 100,000 | 100,000 | |||
Reclassification of loss on hedging instrument to comprehensive income | 200,000 | 200,000 | |||
Issuances under stock plans | |||||
Issuances under stock plans, shares | 447,060 | ||||
Stock-based compensation expense | 2,700,000 | 2,700,000 | |||
Net income (loss) | 1,500,000 | 1,500,000 | |||
Balance at Mar. 31, 2022 | 375,000,000 | 47,600,000 | (523,300,000) | (100,700,000) | |
Balance, shares at Mar. 31, 2022 | 26,880,622 | ||||
Balance at Dec. 31, 2022 | 378,200,000 | 50,800,000 | (514,600,000) | (85,600,000) | |
Balance, shares at Dec. 31, 2022 | 25,909,516 | ||||
Foreign currency translation adjustments | (2,900,000) | (2,900,000) | |||
Actuarial gains on pension plan | 200,000 | 200,000 | |||
Reclassification of loss on hedging instrument to comprehensive income | 200,000 | 200,000 | |||
Issuances under stock plans | |||||
Issuances under stock plans, shares | 353,554 | ||||
Stock-based compensation expense | 3,000,000 | 3,000,000 | |||
Net income (loss) | (1,400,000) | (1,400,000) | |||
Balance at Mar. 31, 2023 | $ 381,200,000 | $ 48,300,000 | $ (516,000,000) | $ (86,500,000) | |
Balance, shares at Mar. 31, 2023 | 26,263,070 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1.4) | $ 1.5 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9.4 | 10.7 |
Amortization of right of use asset | 0.8 | 1 |
Profit on sale of trade and assets | (0.9) | |
Stock-based compensation expense | 2.9 | 2.8 |
Contract cost expense | (2.6) | (1.6) |
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 |
Non-cash interest expense relating to senior debt | 0.3 | 0.4 |
Changes in assets and liabilities: | ||
Accounts receivable | 8.3 | (2.2) |
Inventory | (3.5) | (11.6) |
Prepaid expenses and other assets | 1 | |
Corporate tax and other current taxes payable | (6.2) | (7.2) |
Accounts payable | (2.1) | 4.2 |
Deferred revenues and customer prepayment | (0.2) | |
Accrued expenses | 5.6 | 7.1 |
Operating lease liabilities | (0.9) | (1) |
Other long-term liabilities | (0.7) | |
Net cash provided by operating activities | 11.6 | 2.7 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (5.5) | (5.6) |
Acquisition of subsidiary company assets | (0.6) | |
Disposal of trade and assets | 1.3 | |
Acquisition of third-party company trade and assets | (0.6) | |
Purchases of capital software | (2.8) | (3.9) |
Net cash used in investing activities | (8.9) | (8.8) |
Cash flows from financing activities: | ||
Repayments of finance leases | (0.5) | (0.1) |
Net cash used in financing activities | (0.5) | (0.1) |
Effect of exchange rate changes on cash | 0.6 | (0.8) |
Net increase (decrease) in cash | 2.8 | (7) |
Cash, beginning of period | 25 | 47.8 |
Cash, end of period | 27.8 | 40.8 |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | 0.1 | 0.2 |
Cash paid during the period for income taxes | 0.1 | |
Cash paid during the period for operating leases | 2.1 | 1.7 |
Supplemental disclosure of noncash investing and financing activities | ||
Lease liabilities arising from obtaining right of use assets | (0.1) | |
Property and equipment transferred to inventory | $ 0.6 |
Nature of Operations, Managemen
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies, as restated | Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies, as restated 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 March 31, 2023, the Company’s cash on hand was $ 27.8 24.9 1.4 1.5 2.9 2.8 11.6 2.7 52.7 4.9 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. There have been no COVID-19 restrictions in the United States and social distancing measures are no longer in force. While states have varying requirements based on occupation, no mandates related to, or would prohibit, our normal business operations. 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, 2022 and 2021. The financial information as of December 31, 2022 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K/A filed with the SEC on February 27, 2024. The interim results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future interim periods. Newly Adopted Accounting Standards On January 1, 2023, the Company adopted Topic 326 Financial Instruments – Credit Losses (“ASC 326”). ASC 326 affects loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. It requires an entity to recognize expected credit losses rather than incurred losses for financial assets and requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of ASC 326 did not have a material impact. Disclosures with respect to allowances for credit losses are given in footnote 4 to these financial statements. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | 2. Restatement of Previously Issued Financial Statements Restatement Background On November 2, 2023, the Company in concurrence with the Company’s audit committee, concluded that our 2023 and 2022 consolidated financial statements and our unaudited consolidated financial statements as of and for each of the first two quarterly periods in 2023 and all quarterly periods in 2022, included in our Quarterly Reports on Form 10-Q for the respective periods(collectively the “Prior Period Financial Statements”), should no longer be relied upon due to misstatements that are described below, and that we would restate such financial statements to make the necessary accounting corrections. Details of the restated consolidated financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 are provided below (“Restatement Items”). Details of the restated consolidated financial statements as of December 31, 2022 are provided in the amendment to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2022, filed with the SEC as of the date of this report. The Restatements Items reflect adjustments to correct errors in certain financial statement areas including capitalized software and costs to fulfill a contract, revenue and costs to obtain a contract, inventory, goodwill and intangibles, leasing, pension, and other reclassifications and immaterial errors identified. The nature and impact of these adjustments are described below and also detailed in the tables below. The Company issued a revision for capitalized software and related amortization expense in the quarterly report on Form 10-Q filed on August 11, 2023 for the period ended June 30, 2023 (the “Revision”).This revision related to certain completed software development projects that were, but should not have been, delayed in the shift from work in progress to completed projects. Consequently, the commencement of amortization for certain projects was delayed and the reported amortization was lower than the actual amortization. The Revision covers the period ended March 31, 2023 and the year ended December 31, 2022 and is distinct from the capitalized software restatements below. The tables below have been updated to separate the impact of the Restatement Items from the Revision. Restatement Items Capitalized software and Costs to fulfill a contract Costs of Software to Be Sold, Leased or Marketed Intangibles – Goodwill and Other – Internal-Use Software Other Assets and Deferred Costs – Contracts with Customers. In addition, t he Company determined routine software updates and certain minor software enhancements were inappropriately capitalized ertain amortization . The corrections resulted in a decrease in Software development costs, net of $ 17.6 7.2 million as of March 31, 2023. The corrections resulted in an increase to Selling, general and administrative expenses of $ 1.1 0.5 1.1 million and $ 0.7 1.0 Revenue and Costs to obtain a contract – identified corrections needed related to ASC 606, Revenue from Contracts with Customers . identified certain performance obligations were delivered and therefore should have been recognized at a specific point in time (rather than over time). Additionally, identified that (i) for certain Interactive Aggregator contracts, revenue should have been reported on a net, rather than gross, basis and (ii) certain parts the Company acquired and sold to its contract manufacturer should have been reported as revenue. also identified contract that should have been recognized as sales type lease rather than operating lease. Lastly, the Company had historically expensed commissions in the period incurred instead of capitalizing and amortizing them under the accounting framework for costs to obtain contracts with customers pursuant to ASC 606, Revenue from Contracts with Customers, and ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. 0.3 million as of March 31, 2023. The corrections also resulted in a decrease in Deferred revenue, current of $ 0.2 million, a decrease in Deferred revenue, net of current position of $ 0.9 million as of March 31, 2023 and an increase in Costs of obtaining and fulfilling customer contracts, net $ 0.8 million as of March 31, 2023. The corrections also resulted in a decrease in Revenue - service of $ 0.7 million and $ 1.0 million for the three months ended March 31, 2023 and 2022, respectively, a $ 0.3 million decrease in Revenue – product sales for the three months ended March 31, 2023 and an $ 0.7 million increase in Revenue – product sales for the three months ended March 31, 2022, a decrease in Cost of sales – service of $ 2.3 million and $ 1.9 million for the three months ended March 31, 2023 and 2022, respectively, and a $ 0.2 million decrease and $ 0.5 million increase in Cost of sales – product sales for the three months ended March 31, 2023 and 2022, respectively. The corrections also resulted in an increase in Depreciation and amortization increased by $ 1.6 million and $ 1.4 million for the three months ended March 31, 2023 and 2022, respectively. Refer to reference “b” below. Note 6, “Contract Liabilities and Other Disclosures” and Note 16, “Segment Reporting and Geographic Information” have also been corrected. Inventory T he Company capitalized field inventory, repair and consumable items. 1.9 Note 5, “Inventory” has also been corrected. Goodwill and intangibles Through review of the appropriate reporting units and asset groups to assess impairments at under ASC 350, Intangibles – Goodwill and Other ASC 360 , Property, Plant and Equipment, identified a triggering event in the first quarter of 2020, related to the beginning of the COVID-19 pandemic, for which impairment assessment was required for (i) S G and cquired usiness reporting units and (ii) all landbased asset groups. Based on the assessment, we determined that an impairment of goodwill and long-lived assets occurred in the first quarter of 2020. 0.1 1.2 Leasing Leases 7.6 1.2 6.3 Refer to reference “e” below. Note 13, “Leases” has also been corrected. Basic and diluted net income (loss) per share – the Company weighted average number of shares outstanding pursuant to ASC 260, Earnings Per Share. Pension 1.8 Other errors identified reclassification and intangible adjustment , the Company has corrected other adjustments are quantitatively immaterial, individually and in aggregate, because we are correcting for these material errors, we have decided to correct these other adjustments. Income tax Summary impact of Restatement Items to Prior Period Financial Statements The following tables present the effect of the Restatement Items on the Company’s consolidated balance sheets for the periods indicated (in millions, except per share): Schedule of Restatement Items to Prior Period Financial Statements As of March 31, 2023 (unaudited) As Previously Previous Restatement Restatement Reported Revision Adjustments As Restated References Assets Cash $ 27.8 $ - $ - $ 27.8 Accounts receivable, net 33.0 - (0.1 ) 32.9 f Inventory, net 36.5 - (1.9 ) 34.6 c Prepaid expenses and other current assets 31.1 - (0.4 ) 30.7 f Total current assets 128.4 - (2.4 ) 126.0 Property and equipment, net 47.7 - (0.3 ) 47.4 b Software development costs, net 38.1 (1.0 ) (17.6 ) 19.5 a Other acquired intangible assets subject to amortization, net 14.6 - (0.3 ) 14.3 d, f Goodwill 75.8 - (18.8 ) 57.0 d Operating lease right of use asset 8.1 - 7.6 15.7 e Cost of obtaining and fulfilling customer contracts, net - - 7.7 7.7 a, b Other assets 3.8 - 0.3 4.1 f Total assets $ 316.5 $ (1.0 ) $ (23.8 ) $ 291.7 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable 22.2 - - 22.2 Accrued expenses 34.9 - 0.7 35.6 f Corporate tax and other current taxes payable 5.0 - (1.6 ) 3.4 Deferred revenue, current 5.1 - (0.2 ) 4.9 b Operating lease liabilities 2.8 - 1.2 4.0 e Other current liabilities 3.2 - - 3.2 Total current liabilities 73.2 - 0.1 73.3 Long-term debt 285.5 - - 285.5 Finance lease liabilities, net of current portion 1.2 - - 1.2 Deferred revenue, net of current portion 3.2 - (0.9 ) 2.3 b Operating lease liabilities 5.6 - 6.3 11.9 e Other long-term liabilities 2.2 - 1.8 4.0 g Total liabilities $ 370.9 $ - $ 7.3 $ 378.2 Commitments and contingencies Stockholders’ deficit Preferred stock; $ 0.0001 1,000,000 - - - - Common stock; $ 0.0001 49,000,000 25,909,516 26,433,562 - - - - Additional paid in capital 381.2 - - 381.2 Accumulated other comprehensive income 46.8 - 1.5 48.3 Accumulated deficit (482.4 ) (1.0 ) (32.6 ) (516.0 ) Total stockholders’ deficit (54.4 ) (1.0 ) (31.1 ) (86.5 ) Total liabilities and stockholders’ deficit $ 316.5 $ (1.0 ) $ (23.8 ) $ 291.7 The following tables present the effect of the Restatement Items on the Company’s consolidated statement of operations for the periods indicated (in millions, except share and per share amounts): For Three Months Ended March 31, 2023 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Revenue: Service $ 58.3 $ (0.8 ) $ 57.5 b, f Product sales 7.7 (0.3 ) 7.4 b Total Revenue 66.0 (1.1 ) 64.9 Cost of Sales Cost of service (1) (10.9 ) (4.1 ) (15.0 ) b, f Cost of product sales (5.8 ) (0.9 ) (6.7 ) b, c Selling, general and administrative expenses (34.3 ) 5.1 (29.2 ) a, f Acquisition and integration related transaction expenses - - - Depreciation and amortization (8.9 ) (0.5 ) (9.4 ) a, b Net operating income (loss) 6.1 (1.5 ) 4.6 - Other expense Interest expense, net (6.3 ) - (6.3 ) Gain on disposal of business - - - Other finance income (expense) 0.1 - 0.1 Total other expense, net (6.2 ) - (6.2 ) - Net loss before income taxes (0.1 ) (1.5 ) (1.6 ) Income tax (expense) benefit (0.1 ) 0.3 0.2 Net loss (0.2 ) (1.2 ) (1.4 ) Other comprehensive income (loss) Foreign currency translation gain (loss) (1.7 ) (1.2 ) (2.9 ) Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Actuarial gains (losses) on pension plan 2.0 (1.8 ) 0.2 g Other comprehensive income (loss) 0.5 (3.0 ) (2.5 ) Comprehensive income (loss) $ 0.3 $ (4.2 ) $ (3.9 ) Net income (loss) per common share - basic $ (0.01 ) $ (0.04 ) $ (0.05 ) Net income (loss) per common share - diluted $ (0.01 ) $ (0.04 ) $ (0.05 ) Weighted average number of shares outstanding during the year - basic 26,155,346 1,818,836 27,974,182 h Weighted average number of shares outstanding during the year - diluted 26,155,346 1,818,836 27,974,182 Stock-based compensation included in: Selling, general, and administrative expenses $ (2.9 ) $ (2.9 ) (1) Excluding depreciation and amortization For Three Months Ended March 31, 2022 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Revenue: Service $ 57.0 $ (1.0 ) $ 56.0 b Product Sales 3.6 0.7 4.3 b Total Revenue 60.6 (0.3 ) 60.3 Cost of Sales Cost of Service (11.8 ) (5.0 ) (16.8 ) b, f Cost of Product sales (2.1 ) (0.4 ) (2.5 ) b, c Selling, general and administrative expenses (29.6 ) 6.4 (23.2 ) a, f Acquisition and integration related transaction expenses (0.1 ) (0.1 ) (0.2 ) Depreciation and amortization (10.1 ) (0.6 ) (10.7 ) a, b, d Net operating income (loss) 6.9 - 6.9 Other expense Interest expense, net (6.5 ) - (6.5 ) Gain on disposal of business 0.9 - 0.9 Other finance income (expense) 0.3 - 0.3 Total other expense, net (5.3 ) - (5.3 ) Net income before income taxes 1.6 - 1.6 Income tax expense (0.1 ) - (0.1 ) Net income 1.5 - 1.5 Other comprehensive income: Foreign currency translation (loss) gain 2.4 1.1 3.5 Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Actuarial gains (losses) on pension plan 0.7 (0.6 ) 0.1 g Other comprehensive income 3.3 0.5 3.8 Comprehensive income $ 4.8 $ 0.5 $ 5.3 Net income (loss) per common share - basic $ 0.06 $ (0.01 ) $ 0.05 Net income (loss) per common share - diluted $ 0.05 $ - $ 0.05 Weighted average number of shares outstanding during the year - basic 26,850,326 1,586,726 28,437,052 h Weighted average number of shares outstanding during the year - diluted 29,294,973 67,409 29,362,382 The following tables present the effect of the Restatement Items on the Company’s consolidated statements of stockholders’ equity (deficit) for the periods indicated (in millions, except per share amounts): Accumulated Additional other Total Common Stock paid in comprehensive Accumulated stockholders’ Restatement Shares Amount capital income deficit deficit References Balance as of March 31, 2023 (As Previously Reported) 26,263,070 - 381.2 46.8 (482.4 ) (54.4 ) Previous Revision - - - - (1.0 ) (1.0 ) Restatement Items - - - 1.5 (32.6 ) (31.1 ) Balance as of March 31, 2023 (As Restated) (Unaudited) 26,263,070 $ - $ 381.2 $ 48.3 $ (516.0 ) $ (86.5 ) Accumulated Additional other Total Common Stock paid in comprehensive Accumulated stockholders’ Restatement Shares Amount capital income deficit deficit References Balance as of March 31, 2022 (As Previously Reported) 26,880,622 - 375.0 47.1 (492.6 ) (70.5 ) Balance 26,880,622 - 375.0 47.1 (492.6 ) (70.5 ) Restatement Items - - - 0.5 (30.7 ) (30.2 ) Balance as of March 31, 2022 (As Restated) (Unaudited) 26,880,622 $ - $ 375.0 $ 47.6 $ (523.3 ) $ (100.7 ) Balance 26,880,622 $ - $ 375.0 $ 47.6 $ (523.3 ) $ (100.7 ) The following tables present the effect of the Restatement Items on the Company’s consolidated statements of cashflows for the periods indicated (in millions): Three Months Ended March 31, 2023 (unaudited) As Previously Previous Restatement Restatement Reported Revision Adjustments As Restated References Cash flows from operating activities: Net income (loss) $ (0.2 ) $ - $ (1.2 ) $ (1.4 ) a, b, c, f Adjustments to reconcile net income (loss) to net cash provided by operating activities: - Depreciation and amortization 8.9 - 0.5 9.4 a, b, d Amortization of right of use asset 0.5 - 0.3 0.8 e Profit on sale of trade and asset Stock-based compensation expense 2.9 - - 2.9 Contract cost expense - - (2.6 ) (2.6 ) a, b Reclassification of loss on hedging instrument to comprehensive income 0.2 - - 0.2 Non-cash interest expense relating to senior debt 0.3 - - 0.3 Changes in assets and liabilities: - Accounts receivable 8.5 - (0.2 ) 8.3 g Inventory (4.6 ) - 1.1 (3.5 ) c, g Prepaid expenses and other assets 1.6 - (0.6 ) 1.0 f, g Corporate tax and other current taxes payable (3.8 ) - (2.4 ) (6.2 ) g Accounts payable (4.1 ) - 2.0 (2.1 ) g Deferred revenues and customer prepayment (0.3 ) - 0.1 (0.2 ) g Accrued expenses 5.5 - 0.1 5.6 f, g Other lease liabilities (0.6 ) - (0.3 ) (0.9 ) g Other long-term liabilities - - - - Net cash provided by operating activities 14.8 - (3.2 ) 11.6 Cash flows from investing activities: Purchases of property and equipment (6.1 ) - 0.6 (5.5 ) g Acquisition of subsidiary company assets - - - Acquisition of third-party company trade and assets (0.6 ) - - (0.6 ) Disposal of trade and assets Purchases of capital software (4.8 ) - 2.0 (2.8 ) a, g Net cash used in investing activities (11.5 ) - 2.6 (8.9 ) Cash flows from financing activities: Repayments of finance leases (0.5 ) - - (0.5 ) Net cash used in financing activities (0.5 ) - - (0.5 ) Effect of exchange rate changes on cash - - 0.6 0.6 g Net increase (decrease) in cash 2.8 - - 2.8 Cash, beginning of period 25.0 - 0 25.0 Cash, end of period $ 27.8 - 0 27.8 Supplemental cash flow disclosures Cash paid during the period for interest $ 0.1 $ - $ - $ 0.1 Cash paid during the period for income taxes $ 0.1 $ - $ - $ 0.1 Cash paid during the period for operating leases $ 1.2 $ - $ 0.9 $ 2.1 Supplemental disclosure of noncash investing and financing activities Lease liabilities arising from obtaining right of use assets $ (0.1 ) $ $ $ (0.1 ) Property and equipment acquired through finance lease Property and equipment transferred to inventory Reported Adjustments As Restated References Three Months Ended March 31, 2022 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Cash flows from operating activities: Net income (loss) $ 1.5 $ - $ 1.5 a, b, c, d, f Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 10.1 0.6 10.7 a, b, d Amortization of right of use asset 0.7 0.3 1.0 e Profit on sale of trade and asset - (0.9 ) (0.9 ) f Stock-based compensation expense 2.8 - 2.8 Contract Cost expense - (1.6 ) (1.6 ) a, b Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Non-cash interest expense relating to senior debt 0.4 - 0.4 Changes in assets and liabilities: Accounts receivable (2.1 ) (0.1 ) (2.2 ) g Inventory (11.9 ) 0.3 (11.6 ) c, g Prepaid expenses and other assets 0.9 (0.9 ) - g Corporate tax and other current taxes payable (7.2 ) - (7.2 ) Accounts payable 4.3 (0.1 ) 4.2 g Deferred revenues and customer prepayment (0.3 ) 0.3 - a, b, g Accrued expenses 7.1 - 7.1 Operating lease liabilities (0.7 ) (0.3 ) (1.0 ) e Other long-term liabilities (0.7 ) - (0.7 ) Net cash provided by operating activities 5.1 (2.4 ) 2.7 Cash flows from investing activities: Purchases of property and equipment (5.2 ) (0.4 ) (5.6 ) Acquisition of subsidiary company assets (0.6 ) - (0.6 ) Disposal of trade and assets - 1.3 1.3 Purchases of capital software (5.1 ) 1.2 (3.9 ) Net cash used in investing activities (10.9 ) 2.1 (8.8 ) Cash flows from financing activities: Repayments of finance leases (0.1 ) - (0.1 ) Net cash (used in) provided by financing activities (0.1 ) - (0.1 ) Effect of exchange rate changes on cash (1.1 ) 0.3 (0.8 ) g Net increase in cash (7.0 ) - (7.0 ) Cash, beginning of period 47.8 - 47.8 Cash, end of period $ 40.8 $ - $ 40.8 Supplemental cash flow disclosures Cash paid during the period for interest $ 0.2 $ - $ 0.2 Cash paid during the period for income taxes $ - $ - $ - Cash paid during the period for operating leases $ 0.9 $ 0.8 $ 1.7 Supplemental disclosure of noncash investing and financing activities Property and equipment acquired through finance lease $ - $ - $ - Property and equipment transferred to inventory $ 0.6 $ - $ 0.6 |
Acquisitions and Disposals
Acquisitions and Disposals | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Disposals | 3. Acquisitions and Disposals In January 2022, the Company sold its Italian VLT business, including all terminal and other assets, staff costs and facilities and contracts to a non-connected party for total proceeds of € 1.1 1.3 0.8 0.9 |
Allowance for Credit Losses, as
Allowance for Credit Losses, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses, as restated | 4. Allowance for Credit Losses, as restated Changes in the allowance for doubtful accounts are as follows: Schedule of Changes in Allowance for Doubtful accounts March 31, 2023 December 31, 2022 (in millions) Beginning balance $ (1.4 ) $ (1.8 ) Additional provision for doubtful accounts (0.1 ) (0.2 ) Recoveries 0.1 — Write offs — 0.4 Foreign currency translation adjustments — 0.2 Ending balance $ (1.4 ) $ (1.4 ) |
Inventory, as restated
Inventory, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory, as restated | 5. Inventory, as restated Schedule of Inventory March 31, 2023 December 31, 2022 (in millions) Component parts $ 21.4 $ 20.7 Work in progress 2.9 3.6 Finished goods 10.3 6.0 Total inventories $ 34.6 $ 30.3 Component parts include parts for gaming terminals. Our finished goods inventory primarily consists of gaming terminals which are ready for sale. |
Contract Liabilities and Other
Contract Liabilities and Other Disclosures, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Contract Liabilities And Other Disclosures As Restated | |
Contract Liabilities and Other Disclosures, as restated | 6. Contract Liabilities and Other Disclosures, as restated The following table summarizes contract related balances: Schedule of Contract Related Balances Accounts Receivable Unbilled Accounts Receivable Deferred Income Customer Prepayments and Deposits (in millions) At March 31, 2023 $ 36.7 $ 15.4 $ (7.2 ) $ (2.6 ) At December 31, 2022 $ 44.6 $ 18.0 $ (7.4 ) $ (2.4 ) Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $ 1.2 2.5 For the periods ended March 31, 2023 and 2022 respectively, there was no significant amounts of revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied in the respective prior periods. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation A summary of the Company’s RSU activity during the three months ended March 31, 2023 is as follows: Schedule of Restricted Stock Unit Activity Number of Shares Unvested Outstanding at January 1, 2023 1,647,544 Granted (1) 495,225 Forfeited (6,266 ) Vested (219,272 ) Unvested Outstanding at March 31, 2023 1,917,231 (1) The amount shown as granted in the table includes 219,213 0 200 438,426 The Company issued a total of 353,554 332,227 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Income), as restated | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (Income), as restated | 8. Accumulated Other Comprehensive Loss (Income), as restated The accumulated balances for each classification of comprehensive loss (income) are presented below: Schedule of Accumulated Other Comprehensive Loss (Income) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2023 (84.2 ) 0.3 33.1 (50.8 ) Change during the period 2.9 (0.2 ) (0.2 ) 2.5 Balance at March 31, 2023 $ (81.3 ) $ 0.1 $ 32.9 $ (48.3 ) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2022 (71.5 ) 1.0 26.7 (43.8 ) Change during the period (3.5 ) (0.2 ) (0.1 ) (3.8 ) Balance at March 31, 2022 $ (75.0 ) $ 0.8 $ 26.6 $ (47.6 ) In connection with the issuance of Senior Secured Notes and the entry into an RCF Agreement, on May 19, 2021, the Company terminated all of its interest rate swaps. Accordingly, hedge accounting is no longer applicable. The amounts previously recorded in Accumulated Other Comprehensive Income are amortized into Interest expense over the terms of the hedged forecasted interest payments. Losses reclassified from Accumulated Other Comprehensive Income into Interest expense in the Consolidated Statements of Operations and Income for the three months ended March 31, 2023 and March 31, 2022 amounted to $ 0.2 0.2 |
Net Earnings (Loss) per Share,
Net Earnings (Loss) per Share, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) per Share, as restated | 9. Net Earnings (Loss) per Share, as restated Basic income/(loss) per share (“EPS”) is computed by dividing net income/(loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including RSUs, using the treasury stock method, and convertible debt or convertible preferred stock, using the if-converted method, unless the inclusion would be anti-dilutive. The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive: Schedule of Anti-dilutive Securities Excluded from Computation of Earnings per Share 2023 2022 Three Months Ended March 31, 2023 2022 RSUs $ 1,917,231 $ 695,372 The following table reconciles the numerators and denominators of the basic and diluted EPS computations for the three months ended March 31, 2022. There were no reconciling items for the three months ended March 31, 2023. Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations Income (Numerator) Shares (Denominator) Per-Share Amount, Three Months Ended March 31, 2022 (in millions) Basic EPS Income available to common stockholders $ 1.5 28,437,052 $ 0.05 Effect of Dilutive Securities RSUs — 925,330 — Diluted EPS Income available to common stockholders $ 1.5 $ 29,362,382 $ 0.05 The calculation of Basic EPS includes the effects of 1,893,136 1,591,632 |
Other Finance Income (Expense)
Other Finance Income (Expense) | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Finance Income (Expense) | 10. Other Finance Income (Expense) Other finance income (expense) consisted of the following: Schedule of Other Finance Income (expense) 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Pension interest cost $ (0.8 ) $ (0.6 ) Expected return on pension plan assets 0.9 0.9 Other finance income (expense) $ 0.1 $ 0.3 |
Income Taxes, as restated
Income Taxes, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes, as restated | 11. Income Taxes, as restated The effective income tax rate for the three months ended March 31, 2023 and 2022 was 13.2 5.3 0.2 0.1 The effective tax rate reported in any given year will continue to be influenced by a variety of factors including the level of pre-tax income or loss, the income mix between jurisdictions, and any discrete items that may occur. The Company recorded a valuation allowance against all of our deferred tax assets as of both March 31, 2023 and 2022. We intend to continue maintaining a full valuation allowance on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow us to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that we are able to actually achieve. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 12. Related Parties Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”), (an arranger and lending party under our RCF Agreement) is an affiliate of MIHI LLC, which beneficially owned approximately 11.51 0.0 0.0 5 On December 31, 2021, the Company entered into a consultancy agreement with Richard Weil, the brother of A. Lorne Weil, our Executive Chairman, under which he received a success fee in the amount of $ 0.1 10,000 30,000 |
Leases, as restated
Leases, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases, as restated | 13. Leases, as restated Certain of our arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 606, Revenue from Contracts with Customers Leases Lease income from operating leases and from sales type leases is not material for any of the periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Employment Agreements We are party to employment agreements with our executive officers and other employees of the Company and our subsidiaries which contain, among other terms, provisions relating to severance and notice requirements. Arrangements with Daniel B. Silvers, former Executive Vice President and Chief Strategy Officer Effective January 10, 2023, Mr. Silvers stepped down from his position as Executive Vice President and Chief Strategy Officer of the Company. Pursuant to Mr. Silvers’ employment agreement dated December 14, 2016, as amended, Mr. Silvers was entitled to receive a base salary at a rate of $ 385,000 100 200 Legal Matters From time to time, the Company may become involved in lawsuits and legal matters arising in the ordinary course of business. While the Company believes that, currently, it has no such matters that are material, there can be no assurance that existing or new matters arising in the ordinary course of business will not have a material adverse effect on the Company’s business, financial condition or results of operations. |
Pension Plan, as restated
Pension Plan, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension Plan, as restated | 15. Pension Plan, as restated We operate a defined contribution plan in the US, and both defined benefit and defined contribution pension schemes in the UK. The defined contribution scheme assets are held separately from those of the Company in independently administered funds. Defined Benefit Pension Scheme The defined benefit scheme has been closed to new entrants since April 1, 1999 and closed to future accruals for services rendered to the Company for the entire financial statement periods presented. The Actuarial Valuation of the scheme as at March 31, 2021, determined that the statutory funding objective was not met, i.e., there were insufficient assets to cover the scheme’s technical provisions and there was a funding shortfall. In June 2022, a recovery plan was put in place to eliminate the funding shortfall. The plan expects the shortfall to be eliminated by October 31, 2026. Deficit reduction contributions of 1.1 0.3 The total amount of employer contributions paid during the three months ended March 31, 2023 amounted to $ 0.3 The following table presents the components of our net periodic pension benefit: Schedule of Defined Benefit Plans 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Components of net periodic pension benefit: Interest cost $ 0.8 $ 0.6 Expected return on plan assets (0.9 ) (0.9 ) Amortization of net loss 0.2 0.1 Net periodic benefit $ 0.1 $ (0.2 ) The following table sets forth the estimate of the combined funded status of the pension plans and their reconciliation to the related amounts recognized in our consolidated financial statements at the respective measurement dates: Schedule of Pension Plans and their Reconciliation March 31, 2023 December 31, 2022 (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 71.2 $ 122.7 Interest cost 0.8 2.2 Actuarial loss (gain) — (39.0 ) Benefits paid (0.7 ) (3.5 ) Foreign currency translation adjustments 1.9 (11.2 ) Benefit obligation at end of period $ 73.2 $ 71.2 Change in plan assets: Fair value of plan assets at beginning of period $ 69.1 $ 125.7 Actual gain (loss) on plan assets 0.9 (42.4 ) Employer contributions 0.3 1.4 Benefits paid (0.7 ) (3.5 ) Foreign currency translation adjustments 1.8 (12.1 ) Fair value of assets at end of period $ 71.4 $ 69.1 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (1.8 ) $ (2.1 ) Net amount recognized $ (1.8 ) $ (2.1 ) |
Segment Reporting and Geographi
Segment Reporting and Geographic Information, as restated | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information, as restated | 16. Segment Reporting and Geographic Information, as restated The Company operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. 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, stock-based compensation expense and acquisition related transaction expenses, operating profit/(loss), and total capital expenditures for the periods ended March 31, 2023 and March 31, 2022, 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, right of use assets, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions. Segment Information Schedule of Segment Reporting Information by Segment Three Months Ended March 31, 2023 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 20.2 $ 14.8 $ 5.9 $ 16.6 $ — $ 57.5 Product sales 6.9 — — 0.5 — 7.4 Total revenue 27.1 14.8 5.9 17.1 — 64.9 Cost of sales, excluding depreciation and amortization: Cost of service (5.9 ) (0.4 ) (0.3 ) (8.4 ) — (15.0 ) Cost of product sales (5.8 ) — — (0.9 ) — (6.7 ) Selling, general and administrative expenses (5.7 ) (1.7 ) (2.5 ) (6.9 ) (9.5 ) (26.3 ) Stock-based compensation expense (0.3 ) (0.2 ) (0.2 ) (0.1 ) (2.1 ) (2.9 ) Acquisition and integration related transaction expenses — — — — — — Depreciation and amortization (4.5 ) (0.8 ) (0.6 ) (3.1 ) (0.4 ) (9.4 ) Segment operating income (loss) 4.9 11.7 2.3 (2.3 ) (12.0 ) 4.6 Net operating income $ 4.6 Total capital expenditures for the three months ended March 31, 2023 $ 2.4 $ 0.4 $ 1.1 $ 5.2 $ 0.5 $ 9.6 Three Months Ended March 31, 2022 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 21.1 $ 11.3 $ 4.6 $ 19.0 $ — $ 56.0 Product sales 3.7 — — 0.6 — 4.3 Total revenue 24.8 11.3 4.6 19.6 — 60.3 Cost of sales, excluding depreciation and amortization: Cost of service (6.0 ) (0.4 ) (0.3 ) (10.1 ) — (16.8 ) Cost of product sales (2.3 ) — — (0.2 ) — (2.5 ) Selling, general and administrative expenses (5.0 ) (1.7 ) (1.4 ) (6.6 ) (5.7 ) (20.4 ) Stock-based compensation expense (0.3 ) (0.1 ) (0.1 ) (0.2 ) (2.1 ) (2.8 ) Acquisition and integration related transaction expenses (0.1 ) — — — (0.1 ) (0.2 ) Depreciation and amortization (5.2 ) (0.8 ) (0.6 ) (3.6 ) (0.5 ) (10.7 ) Segment operating income (loss) 5.9 8.3 2.2 (1.1 ) (8.4 ) 6.9 Net operating income $ 6.9 Total capital expenditures for the three months ended March 31, 2022 $ 2.9 $ 0.5 $ 0.9 $ 4.0 $ 1.2 $ 9.5 Geographic Information Geographic information for revenue is set forth below: Schedule of Geographic Information 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Total revenue UK $ 49.0 $ 45.9 Greece 5.6 5.6 Rest of world 10.3 8.8 Total $ 64.9 $ 60.3 Total revenue $ 64.9 $ 60.3 UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally. Geographic information of our non-current assets excluding goodwill is set forth below: March 31, 2023 December 31, 2022 (in millions) UK $ 87.5 $ 82.7 Greece 5.1 5.8 Rest of world 16.1 16.3 Total $ 108.7 $ 104.8 Total non-current assets excluding goodwill $ 108.7 $ 104.8 Software development costs are included as attributable to the market in which they are utilized. |
Customer Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | 17. Customer Concentration During the three months ended March 31, 2023, there was one customer that represented at least 10% of the Company’s revenues, accounting for 15 12 At March 31, 2023 no customers represented at least 10 24 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. Other than as described below, and except for the effects of the restatement as discussed in Note 2 to the consolidated financial statements, the Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements. On April 10, 2023, the Company’s Board of Directors adopted the 2023 Omnibus Incentive Plan (the “2023 Plan”), subject to the approval of our stockholders, which was obtained at the Company’s annual meeting of stockholders held on May 9, 2023. The 2023 Plan authorizes a total of 2,700,000 250,000 125,000 |
Nature of Operations, Managem_2
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies, as restated (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Company Description and Nature of Operations | 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 | Management Liquidity Plans As of March 31, 2023, the Company’s cash on hand was $ 27.8 24.9 1.4 1.5 2.9 2.8 11.6 2.7 52.7 4.9 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. There have been no COVID-19 restrictions in the United States and social distancing measures are no longer in force. While states have varying requirements based on occupation, no mandates related to, or would prohibit, our normal business operations. |
Basis of Presentation | 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, 2022 and 2021. The financial information as of December 31, 2022 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K/A filed with the SEC on February 27, 2024. The interim results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future interim periods. |
Newly Adopted Accounting Standards | Newly Adopted Accounting Standards On January 1, 2023, the Company adopted Topic 326 Financial Instruments – Credit Losses (“ASC 326”). ASC 326 affects loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. It requires an entity to recognize expected credit losses rather than incurred losses for financial assets and requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of ASC 326 did not have a material impact. Disclosures with respect to allowances for credit losses are given in footnote 4 to these financial statements. |
Restatement of Previously Iss_2
Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Restatement Items to Prior Period Financial Statements | The following tables present the effect of the Restatement Items on the Company’s consolidated balance sheets for the periods indicated (in millions, except per share): Schedule of Restatement Items to Prior Period Financial Statements As of March 31, 2023 (unaudited) As Previously Previous Restatement Restatement Reported Revision Adjustments As Restated References Assets Cash $ 27.8 $ - $ - $ 27.8 Accounts receivable, net 33.0 - (0.1 ) 32.9 f Inventory, net 36.5 - (1.9 ) 34.6 c Prepaid expenses and other current assets 31.1 - (0.4 ) 30.7 f Total current assets 128.4 - (2.4 ) 126.0 Property and equipment, net 47.7 - (0.3 ) 47.4 b Software development costs, net 38.1 (1.0 ) (17.6 ) 19.5 a Other acquired intangible assets subject to amortization, net 14.6 - (0.3 ) 14.3 d, f Goodwill 75.8 - (18.8 ) 57.0 d Operating lease right of use asset 8.1 - 7.6 15.7 e Cost of obtaining and fulfilling customer contracts, net - - 7.7 7.7 a, b Other assets 3.8 - 0.3 4.1 f Total assets $ 316.5 $ (1.0 ) $ (23.8 ) $ 291.7 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable 22.2 - - 22.2 Accrued expenses 34.9 - 0.7 35.6 f Corporate tax and other current taxes payable 5.0 - (1.6 ) 3.4 Deferred revenue, current 5.1 - (0.2 ) 4.9 b Operating lease liabilities 2.8 - 1.2 4.0 e Other current liabilities 3.2 - - 3.2 Total current liabilities 73.2 - 0.1 73.3 Long-term debt 285.5 - - 285.5 Finance lease liabilities, net of current portion 1.2 - - 1.2 Deferred revenue, net of current portion 3.2 - (0.9 ) 2.3 b Operating lease liabilities 5.6 - 6.3 11.9 e Other long-term liabilities 2.2 - 1.8 4.0 g Total liabilities $ 370.9 $ - $ 7.3 $ 378.2 Commitments and contingencies Stockholders’ deficit Preferred stock; $ 0.0001 1,000,000 - - - - Common stock; $ 0.0001 49,000,000 25,909,516 26,433,562 - - - - Additional paid in capital 381.2 - - 381.2 Accumulated other comprehensive income 46.8 - 1.5 48.3 Accumulated deficit (482.4 ) (1.0 ) (32.6 ) (516.0 ) Total stockholders’ deficit (54.4 ) (1.0 ) (31.1 ) (86.5 ) Total liabilities and stockholders’ deficit $ 316.5 $ (1.0 ) $ (23.8 ) $ 291.7 The following tables present the effect of the Restatement Items on the Company’s consolidated statement of operations for the periods indicated (in millions, except share and per share amounts): For Three Months Ended March 31, 2023 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Revenue: Service $ 58.3 $ (0.8 ) $ 57.5 b, f Product sales 7.7 (0.3 ) 7.4 b Total Revenue 66.0 (1.1 ) 64.9 Cost of Sales Cost of service (1) (10.9 ) (4.1 ) (15.0 ) b, f Cost of product sales (5.8 ) (0.9 ) (6.7 ) b, c Selling, general and administrative expenses (34.3 ) 5.1 (29.2 ) a, f Acquisition and integration related transaction expenses - - - Depreciation and amortization (8.9 ) (0.5 ) (9.4 ) a, b Net operating income (loss) 6.1 (1.5 ) 4.6 - Other expense Interest expense, net (6.3 ) - (6.3 ) Gain on disposal of business - - - Other finance income (expense) 0.1 - 0.1 Total other expense, net (6.2 ) - (6.2 ) - Net loss before income taxes (0.1 ) (1.5 ) (1.6 ) Income tax (expense) benefit (0.1 ) 0.3 0.2 Net loss (0.2 ) (1.2 ) (1.4 ) Other comprehensive income (loss) Foreign currency translation gain (loss) (1.7 ) (1.2 ) (2.9 ) Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Actuarial gains (losses) on pension plan 2.0 (1.8 ) 0.2 g Other comprehensive income (loss) 0.5 (3.0 ) (2.5 ) Comprehensive income (loss) $ 0.3 $ (4.2 ) $ (3.9 ) Net income (loss) per common share - basic $ (0.01 ) $ (0.04 ) $ (0.05 ) Net income (loss) per common share - diluted $ (0.01 ) $ (0.04 ) $ (0.05 ) Weighted average number of shares outstanding during the year - basic 26,155,346 1,818,836 27,974,182 h Weighted average number of shares outstanding during the year - diluted 26,155,346 1,818,836 27,974,182 Stock-based compensation included in: Selling, general, and administrative expenses $ (2.9 ) $ (2.9 ) (1) Excluding depreciation and amortization For Three Months Ended March 31, 2022 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Revenue: Service $ 57.0 $ (1.0 ) $ 56.0 b Product Sales 3.6 0.7 4.3 b Total Revenue 60.6 (0.3 ) 60.3 Cost of Sales Cost of Service (11.8 ) (5.0 ) (16.8 ) b, f Cost of Product sales (2.1 ) (0.4 ) (2.5 ) b, c Selling, general and administrative expenses (29.6 ) 6.4 (23.2 ) a, f Acquisition and integration related transaction expenses (0.1 ) (0.1 ) (0.2 ) Depreciation and amortization (10.1 ) (0.6 ) (10.7 ) a, b, d Net operating income (loss) 6.9 - 6.9 Other expense Interest expense, net (6.5 ) - (6.5 ) Gain on disposal of business 0.9 - 0.9 Other finance income (expense) 0.3 - 0.3 Total other expense, net (5.3 ) - (5.3 ) Net income before income taxes 1.6 - 1.6 Income tax expense (0.1 ) - (0.1 ) Net income 1.5 - 1.5 Other comprehensive income: Foreign currency translation (loss) gain 2.4 1.1 3.5 Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Actuarial gains (losses) on pension plan 0.7 (0.6 ) 0.1 g Other comprehensive income 3.3 0.5 3.8 Comprehensive income $ 4.8 $ 0.5 $ 5.3 Net income (loss) per common share - basic $ 0.06 $ (0.01 ) $ 0.05 Net income (loss) per common share - diluted $ 0.05 $ - $ 0.05 Weighted average number of shares outstanding during the year - basic 26,850,326 1,586,726 28,437,052 h Weighted average number of shares outstanding during the year - diluted 29,294,973 67,409 29,362,382 The following tables present the effect of the Restatement Items on the Company’s consolidated statements of stockholders’ equity (deficit) for the periods indicated (in millions, except per share amounts): Accumulated Additional other Total Common Stock paid in comprehensive Accumulated stockholders’ Restatement Shares Amount capital income deficit deficit References Balance as of March 31, 2023 (As Previously Reported) 26,263,070 - 381.2 46.8 (482.4 ) (54.4 ) Previous Revision - - - - (1.0 ) (1.0 ) Restatement Items - - - 1.5 (32.6 ) (31.1 ) Balance as of March 31, 2023 (As Restated) (Unaudited) 26,263,070 $ - $ 381.2 $ 48.3 $ (516.0 ) $ (86.5 ) Accumulated Additional other Total Common Stock paid in comprehensive Accumulated stockholders’ Restatement Shares Amount capital income deficit deficit References Balance as of March 31, 2022 (As Previously Reported) 26,880,622 - 375.0 47.1 (492.6 ) (70.5 ) Balance 26,880,622 - 375.0 47.1 (492.6 ) (70.5 ) Restatement Items - - - 0.5 (30.7 ) (30.2 ) Balance as of March 31, 2022 (As Restated) (Unaudited) 26,880,622 $ - $ 375.0 $ 47.6 $ (523.3 ) $ (100.7 ) Balance 26,880,622 $ - $ 375.0 $ 47.6 $ (523.3 ) $ (100.7 ) The following tables present the effect of the Restatement Items on the Company’s consolidated statements of cashflows for the periods indicated (in millions): Three Months Ended March 31, 2023 (unaudited) As Previously Previous Restatement Restatement Reported Revision Adjustments As Restated References Cash flows from operating activities: Net income (loss) $ (0.2 ) $ - $ (1.2 ) $ (1.4 ) a, b, c, f Adjustments to reconcile net income (loss) to net cash provided by operating activities: - Depreciation and amortization 8.9 - 0.5 9.4 a, b, d Amortization of right of use asset 0.5 - 0.3 0.8 e Profit on sale of trade and asset Stock-based compensation expense 2.9 - - 2.9 Contract cost expense - - (2.6 ) (2.6 ) a, b Reclassification of loss on hedging instrument to comprehensive income 0.2 - - 0.2 Non-cash interest expense relating to senior debt 0.3 - - 0.3 Changes in assets and liabilities: - Accounts receivable 8.5 - (0.2 ) 8.3 g Inventory (4.6 ) - 1.1 (3.5 ) c, g Prepaid expenses and other assets 1.6 - (0.6 ) 1.0 f, g Corporate tax and other current taxes payable (3.8 ) - (2.4 ) (6.2 ) g Accounts payable (4.1 ) - 2.0 (2.1 ) g Deferred revenues and customer prepayment (0.3 ) - 0.1 (0.2 ) g Accrued expenses 5.5 - 0.1 5.6 f, g Other lease liabilities (0.6 ) - (0.3 ) (0.9 ) g Other long-term liabilities - - - - Net cash provided by operating activities 14.8 - (3.2 ) 11.6 Cash flows from investing activities: Purchases of property and equipment (6.1 ) - 0.6 (5.5 ) g Acquisition of subsidiary company assets - - - Acquisition of third-party company trade and assets (0.6 ) - - (0.6 ) Disposal of trade and assets Purchases of capital software (4.8 ) - 2.0 (2.8 ) a, g Net cash used in investing activities (11.5 ) - 2.6 (8.9 ) Cash flows from financing activities: Repayments of finance leases (0.5 ) - - (0.5 ) Net cash used in financing activities (0.5 ) - - (0.5 ) Effect of exchange rate changes on cash - - 0.6 0.6 g Net increase (decrease) in cash 2.8 - - 2.8 Cash, beginning of period 25.0 - 0 25.0 Cash, end of period $ 27.8 - 0 27.8 Supplemental cash flow disclosures Cash paid during the period for interest $ 0.1 $ - $ - $ 0.1 Cash paid during the period for income taxes $ 0.1 $ - $ - $ 0.1 Cash paid during the period for operating leases $ 1.2 $ - $ 0.9 $ 2.1 Supplemental disclosure of noncash investing and financing activities Lease liabilities arising from obtaining right of use assets $ (0.1 ) $ $ $ (0.1 ) Property and equipment acquired through finance lease Property and equipment transferred to inventory Reported Adjustments As Restated References Three Months Ended March 31, 2022 (unaudited) As Previously Restatement Restatement Reported Adjustments As Restated References Cash flows from operating activities: Net income (loss) $ 1.5 $ - $ 1.5 a, b, c, d, f Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 10.1 0.6 10.7 a, b, d Amortization of right of use asset 0.7 0.3 1.0 e Profit on sale of trade and asset - (0.9 ) (0.9 ) f Stock-based compensation expense 2.8 - 2.8 Contract Cost expense - (1.6 ) (1.6 ) a, b Reclassification of loss on hedging instrument to comprehensive income 0.2 - 0.2 Non-cash interest expense relating to senior debt 0.4 - 0.4 Changes in assets and liabilities: Accounts receivable (2.1 ) (0.1 ) (2.2 ) g Inventory (11.9 ) 0.3 (11.6 ) c, g Prepaid expenses and other assets 0.9 (0.9 ) - g Corporate tax and other current taxes payable (7.2 ) - (7.2 ) Accounts payable 4.3 (0.1 ) 4.2 g Deferred revenues and customer prepayment (0.3 ) 0.3 - a, b, g Accrued expenses 7.1 - 7.1 Operating lease liabilities (0.7 ) (0.3 ) (1.0 ) e Other long-term liabilities (0.7 ) - (0.7 ) Net cash provided by operating activities 5.1 (2.4 ) 2.7 Cash flows from investing activities: Purchases of property and equipment (5.2 ) (0.4 ) (5.6 ) Acquisition of subsidiary company assets (0.6 ) - (0.6 ) Disposal of trade and assets - 1.3 1.3 Purchases of capital software (5.1 ) 1.2 (3.9 ) Net cash used in investing activities (10.9 ) 2.1 (8.8 ) Cash flows from financing activities: Repayments of finance leases (0.1 ) - (0.1 ) Net cash (used in) provided by financing activities (0.1 ) - (0.1 ) Effect of exchange rate changes on cash (1.1 ) 0.3 (0.8 ) g Net increase in cash (7.0 ) - (7.0 ) Cash, beginning of period 47.8 - 47.8 Cash, end of period $ 40.8 $ - $ 40.8 Supplemental cash flow disclosures Cash paid during the period for interest $ 0.2 $ - $ 0.2 Cash paid during the period for income taxes $ - $ - $ - Cash paid during the period for operating leases $ 0.9 $ 0.8 $ 1.7 Supplemental disclosure of noncash investing and financing activities Property and equipment acquired through finance lease $ - $ - $ - Property and equipment transferred to inventory $ 0.6 $ - $ 0.6 |
Allowance for Credit Losses, _2
Allowance for Credit Losses, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Changes in Allowance for Doubtful accounts | Changes in the allowance for doubtful accounts are as follows: Schedule of Changes in Allowance for Doubtful accounts March 31, 2023 December 31, 2022 (in millions) Beginning balance $ (1.4 ) $ (1.8 ) Additional provision for doubtful accounts (0.1 ) (0.2 ) Recoveries 0.1 — Write offs — 0.4 Foreign currency translation adjustments — 0.2 Ending balance $ (1.4 ) $ (1.4 ) |
Inventory, as restated (Tables)
Inventory, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Schedule of Inventory March 31, 2023 December 31, 2022 (in millions) Component parts $ 21.4 $ 20.7 Work in progress 2.9 3.6 Finished goods 10.3 6.0 Total inventories $ 34.6 $ 30.3 |
Contract Liabilities and Othe_2
Contract Liabilities and Other Disclosures, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Contract Liabilities And Other Disclosures As Restated | |
Schedule of Contract Related Balances | The following table summarizes contract related balances: Schedule of Contract Related Balances Accounts Receivable Unbilled Accounts Receivable Deferred Income Customer Prepayments and Deposits (in millions) At March 31, 2023 $ 36.7 $ 15.4 $ (7.2 ) $ (2.6 ) At December 31, 2022 $ 44.6 $ 18.0 $ (7.4 ) $ (2.4 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity during the three months ended March 31, 2023 is as follows: Schedule of Restricted Stock Unit Activity Number of Shares Unvested Outstanding at January 1, 2023 1,647,544 Granted (1) 495,225 Forfeited (6,266 ) Vested (219,272 ) Unvested Outstanding at March 31, 2023 1,917,231 (1) The amount shown as granted in the table includes 219,213 0 200 438,426 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Income), as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss (Income) | The accumulated balances for each classification of comprehensive loss (income) are presented below: Schedule of Accumulated Other Comprehensive Loss (Income) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2023 (84.2 ) 0.3 33.1 (50.8 ) Change during the period 2.9 (0.2 ) (0.2 ) 2.5 Balance at March 31, 2023 $ (81.3 ) $ 0.1 $ 32.9 $ (48.3 ) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2022 (71.5 ) 1.0 26.7 (43.8 ) Change during the period (3.5 ) (0.2 ) (0.1 ) (3.8 ) Balance at March 31, 2022 $ (75.0 ) $ 0.8 $ 26.6 $ (47.6 ) |
Net Earnings (Loss) per Share_2
Net Earnings (Loss) per Share, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings per Share | The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive: Schedule of Anti-dilutive Securities Excluded from Computation of Earnings per Share 2023 2022 Three Months Ended March 31, 2023 2022 RSUs $ 1,917,231 $ 695,372 |
Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations | The following table reconciles the numerators and denominators of the basic and diluted EPS computations for the three months ended March 31, 2022. There were no reconciling items for the three months ended March 31, 2023. Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations Income (Numerator) Shares (Denominator) Per-Share Amount, Three Months Ended March 31, 2022 (in millions) Basic EPS Income available to common stockholders $ 1.5 28,437,052 $ 0.05 Effect of Dilutive Securities RSUs — 925,330 — Diluted EPS Income available to common stockholders $ 1.5 $ 29,362,382 $ 0.05 The calculation of Basic EPS includes the effects of 1,893,136 1,591,632 |
Other Finance Income (Expense)
Other Finance Income (Expense) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Finance Income (expense) | Other finance income (expense) consisted of the following: Schedule of Other Finance Income (expense) 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Pension interest cost $ (0.8 ) $ (0.6 ) Expected return on pension plan assets 0.9 0.9 Other finance income (expense) $ 0.1 $ 0.3 |
Pension Plan, as restated (Tabl
Pension Plan, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans | The following table presents the components of our net periodic pension benefit: Schedule of Defined Benefit Plans 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Components of net periodic pension benefit: Interest cost $ 0.8 $ 0.6 Expected return on plan assets (0.9 ) (0.9 ) Amortization of net loss 0.2 0.1 Net periodic benefit $ 0.1 $ (0.2 ) |
Schedule of Pension Plans and their Reconciliation | The following table sets forth the estimate of the combined funded status of the pension plans and their reconciliation to the related amounts recognized in our consolidated financial statements at the respective measurement dates: Schedule of Pension Plans and their Reconciliation March 31, 2023 December 31, 2022 (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 71.2 $ 122.7 Interest cost 0.8 2.2 Actuarial loss (gain) — (39.0 ) Benefits paid (0.7 ) (3.5 ) Foreign currency translation adjustments 1.9 (11.2 ) Benefit obligation at end of period $ 73.2 $ 71.2 Change in plan assets: Fair value of plan assets at beginning of period $ 69.1 $ 125.7 Actual gain (loss) on plan assets 0.9 (42.4 ) Employer contributions 0.3 1.4 Benefits paid (0.7 ) (3.5 ) Foreign currency translation adjustments 1.8 (12.1 ) Fair value of assets at end of period $ 71.4 $ 69.1 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (1.8 ) $ (2.1 ) Net amount recognized $ (1.8 ) $ (2.1 ) |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information, as restated (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Segment Information Schedule of Segment Reporting Information by Segment Three Months Ended March 31, 2023 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 20.2 $ 14.8 $ 5.9 $ 16.6 $ — $ 57.5 Product sales 6.9 — — 0.5 — 7.4 Total revenue 27.1 14.8 5.9 17.1 — 64.9 Cost of sales, excluding depreciation and amortization: Cost of service (5.9 ) (0.4 ) (0.3 ) (8.4 ) — (15.0 ) Cost of product sales (5.8 ) — — (0.9 ) — (6.7 ) Selling, general and administrative expenses (5.7 ) (1.7 ) (2.5 ) (6.9 ) (9.5 ) (26.3 ) Stock-based compensation expense (0.3 ) (0.2 ) (0.2 ) (0.1 ) (2.1 ) (2.9 ) Acquisition and integration related transaction expenses — — — — — — Depreciation and amortization (4.5 ) (0.8 ) (0.6 ) (3.1 ) (0.4 ) (9.4 ) Segment operating income (loss) 4.9 11.7 2.3 (2.3 ) (12.0 ) 4.6 Net operating income $ 4.6 Total capital expenditures for the three months ended March 31, 2023 $ 2.4 $ 0.4 $ 1.1 $ 5.2 $ 0.5 $ 9.6 Three Months Ended March 31, 2022 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 21.1 $ 11.3 $ 4.6 $ 19.0 $ — $ 56.0 Product sales 3.7 — — 0.6 — 4.3 Total revenue 24.8 11.3 4.6 19.6 — 60.3 Cost of sales, excluding depreciation and amortization: Cost of service (6.0 ) (0.4 ) (0.3 ) (10.1 ) — (16.8 ) Cost of product sales (2.3 ) — — (0.2 ) — (2.5 ) Selling, general and administrative expenses (5.0 ) (1.7 ) (1.4 ) (6.6 ) (5.7 ) (20.4 ) Stock-based compensation expense (0.3 ) (0.1 ) (0.1 ) (0.2 ) (2.1 ) (2.8 ) Acquisition and integration related transaction expenses (0.1 ) — — — (0.1 ) (0.2 ) Depreciation and amortization (5.2 ) (0.8 ) (0.6 ) (3.6 ) (0.5 ) (10.7 ) Segment operating income (loss) 5.9 8.3 2.2 (1.1 ) (8.4 ) 6.9 Net operating income $ 6.9 Total capital expenditures for the three months ended March 31, 2022 $ 2.9 $ 0.5 $ 0.9 $ 4.0 $ 1.2 $ 9.5 |
Schedule of Geographic Information | Geographic information for revenue is set forth below: Schedule of Geographic Information 2023 2022 Three Months Ended March 31, 2023 2022 (in millions) Total revenue UK $ 49.0 $ 45.9 Greece 5.6 5.6 Rest of world 10.3 8.8 Total $ 64.9 $ 60.3 Total revenue $ 64.9 $ 60.3 March 31, 2023 December 31, 2022 (in millions) UK $ 87.5 $ 82.7 Greece 5.1 5.8 Rest of world 16.1 16.3 Total $ 108.7 $ 104.8 Total non-current assets excluding goodwill $ 108.7 $ 104.8 |
Nature of Operations, Managem_3
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies, as restated (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||
Cash on hand | $ 27.8 | $ 25 | |
Additional working capital | 24.9 | ||
Net loss | 1.4 | ||
Net income | (1.4) | $ 1.5 | |
Share based compensation, expense | 2.9 | 2.8 | |
Cash flows provided by operations amount | 11.6 | $ 2.7 | |
Working capital non-cash settled item | 52.7 | ||
Deferred income | $ 4.9 |
Schedule of Restatement Items o
Schedule of Restatement Items on Consolidated Balance Sheets (Unaudited) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||||
Cash | $ 27.8 | $ 25 | ||
Accounts receivable, net | 32.9 | 40.4 | ||
Inventory, net | 34.6 | 30.3 | ||
Prepaid expenses and other current assets | 30.7 | 31.2 | ||
Total current assets | 126 | 126.9 | ||
Property and equipment, net | 47.4 | 45.1 | ||
Software development costs, net | 19.5 | 18.3 | ||
Other acquired intangible assets subject to amortization, net | 14.3 | 14.6 | ||
Goodwill | 57 | 55.5 | ||
Operating lease right of use asset | 15.7 | 16 | ||
Cost of obtaining and fulfilling customer contracts, net | 7.7 | 7 | ||
Other assets | 4.1 | 3.8 | ||
Total assets | 291.7 | 287.2 | ||
Current liabilities | ||||
Accounts payable | 22.2 | 23.7 | ||
Accrued expenses | 35.6 | 29 | ||
Corporate tax and other current taxes payable | 3.4 | 10.1 | ||
Deferred revenue, current | 4.9 | 4.6 | ||
Operating lease liabilities | 4 | 3.9 | ||
Other current liabilities | 3.2 | 3.6 | ||
Total current liabilities | 73.3 | 74.9 | ||
Long-term debt | 285.5 | 277.6 | ||
Finance lease liabilities, net of current portion | 1.2 | 1.2 | ||
Deferred revenue, net of current portion | 2.3 | 2.8 | ||
Operating lease liabilities | 11.9 | 12.3 | ||
Other long-term liabilities | 4 | 4 | ||
Total liabilities | 378.2 | 372.8 | ||
Commitments and contingencies | ||||
Stockholders’ deficit | ||||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | ||||
Additional paid in capital | 381.2 | 378.2 | ||
Accumulated other comprehensive income | 48.3 | 50.8 | $ 47.6 | $ 43.8 |
Accumulated deficit | (516) | (514.6) | ||
Total stockholders’ deficit | (86.5) | (85.6) | (100.7) | $ (108.7) |
Total liabilities and stockholders’ deficit | 291.7 | $ 287.2 | ||
Previously Reported [Member] | ||||
Assets | ||||
Cash | 27.8 | |||
Accounts receivable, net | 33 | |||
Inventory, net | 36.5 | |||
Prepaid expenses and other current assets | 31.1 | |||
Total current assets | 128.4 | |||
Property and equipment, net | 47.7 | |||
Software development costs, net | 38.1 | |||
Other acquired intangible assets subject to amortization, net | 14.6 | |||
Goodwill | 75.8 | |||
Operating lease right of use asset | 8.1 | |||
Cost of obtaining and fulfilling customer contracts, net | ||||
Other assets | 3.8 | |||
Total assets | 316.5 | |||
Current liabilities | ||||
Accounts payable | 22.2 | |||
Accrued expenses | 34.9 | |||
Corporate tax and other current taxes payable | 5 | |||
Deferred revenue, current | 5.1 | |||
Operating lease liabilities | 2.8 | |||
Other current liabilities | 3.2 | |||
Total current liabilities | 73.2 | |||
Long-term debt | 285.5 | |||
Finance lease liabilities, net of current portion | 1.2 | |||
Deferred revenue, net of current portion | 3.2 | |||
Operating lease liabilities | 5.6 | |||
Other long-term liabilities | 2.2 | |||
Total liabilities | 370.9 | |||
Stockholders’ deficit | ||||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | ||||
Additional paid in capital | 381.2 | |||
Accumulated other comprehensive income | 46.8 | |||
Accumulated deficit | (482.4) | |||
Total stockholders’ deficit | (54.4) | (70.5) | ||
Total liabilities and stockholders’ deficit | 316.5 | |||
Previous Revision [Member] | ||||
Assets | ||||
Cash | ||||
Accounts receivable, net | ||||
Inventory, net | ||||
Prepaid expenses and other current assets | ||||
Total current assets | ||||
Property and equipment, net | ||||
Software development costs, net | (1) | |||
Other acquired intangible assets subject to amortization, net | ||||
Goodwill | ||||
Operating lease right of use asset | ||||
Cost of obtaining and fulfilling customer contracts, net | ||||
Other assets | ||||
Total assets | (1) | |||
Current liabilities | ||||
Accounts payable | ||||
Accrued expenses | ||||
Corporate tax and other current taxes payable | ||||
Deferred revenue, current | ||||
Operating lease liabilities | ||||
Other current liabilities | ||||
Total current liabilities | ||||
Long-term debt | ||||
Finance lease liabilities, net of current portion | ||||
Deferred revenue, net of current portion | ||||
Operating lease liabilities | ||||
Other long-term liabilities | ||||
Total liabilities | ||||
Stockholders’ deficit | ||||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | ||||
Additional paid in capital | ||||
Accumulated other comprehensive income | ||||
Accumulated deficit | (1) | |||
Total stockholders’ deficit | (1) | |||
Total liabilities and stockholders’ deficit | (1) | |||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||||
Assets | ||||
Cash | ||||
Accounts receivable, net | (0.1) | |||
Inventory, net | (1.9) | |||
Prepaid expenses and other current assets | (0.4) | |||
Total current assets | (2.4) | |||
Property and equipment, net | (0.3) | |||
Software development costs, net | (17.6) | |||
Other acquired intangible assets subject to amortization, net | (0.3) | |||
Goodwill | (18.8) | |||
Operating lease right of use asset | 7.6 | |||
Cost of obtaining and fulfilling customer contracts, net | 7.7 | |||
Other assets | 0.3 | |||
Total assets | (23.8) | |||
Current liabilities | ||||
Accounts payable | ||||
Accrued expenses | 0.7 | |||
Corporate tax and other current taxes payable | (1.6) | |||
Deferred revenue, current | (0.2) | |||
Operating lease liabilities | 1.2 | |||
Other current liabilities | ||||
Total current liabilities | 0.1 | |||
Long-term debt | ||||
Finance lease liabilities, net of current portion | ||||
Deferred revenue, net of current portion | (0.9) | |||
Operating lease liabilities | 6.3 | |||
Other long-term liabilities | 1.8 | |||
Total liabilities | 7.3 | |||
Stockholders’ deficit | ||||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized | ||||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 25,909,516 shares and 26,433,562 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | ||||
Additional paid in capital | ||||
Accumulated other comprehensive income | 1.5 | |||
Accumulated deficit | (32.6) | |||
Total stockholders’ deficit | (31.1) | $ (30.2) | ||
Total liabilities and stockholders’ deficit | $ (23.8) |
Schedule of Restatement Items_2
Schedule of Restatement Items on Consolidated Balance Sheets (Unaudited) (Details) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Changes and Error Corrections [Abstract] | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 49,000,000 | 49,000,000 | 49,000,000 |
Common stock, shares issued | 26,263,070 | 25,909,516 | 26,433,562 |
Common stock, shares outstanding | 26,263,070 | 25,909,516 | 26,433,562 |
Schedule of Restatement Items_3
Schedule of Restatement Items on Consolidated Statement of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
Revenue: | ||||
Total Revenue | $ 64.9 | $ 60.3 | ||
Cost of Sales | ||||
Cost of Service | [1] | (15) | (16.8) | |
Cost of Product sales | (6.7) | (2.5) | ||
Selling, general and administrative expenses | (29.2) | (23.2) | ||
Acquisition and integration related transaction expenses | (0.2) | |||
Depreciation and amortization | (9.4) | (10.7) | ||
Net operating income | 4.6 | 6.9 | ||
Other expense | ||||
Interest expense, net | (6.3) | (6.5) | ||
Gain on disposal of business | 0.9 | |||
Other finance income (expense) | 0.1 | 0.3 | ||
Total other expense, net | (6.2) | (5.3) | ||
Net income before income taxes | (1.6) | 1.6 | ||
Income tax expense | 0.2 | (0.1) | ||
Net (loss) income | (1.4) | 1.5 | ||
Other comprehensive income: | ||||
Foreign currency translation (loss) gain | (2.9) | 3.5 | ||
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 | ||
Actuarial gains (losses) on pension plan | 0.2 | 0.1 | ||
Other comprehensive income | (2.5) | 3.8 | ||
Comprehensive (loss) income | $ (3.9) | $ 5.3 | ||
Net income (loss) per common share - basic | $ (0.05) | $ 0.05 | ||
Net income (loss) per common share - diluted | $ (0.05) | $ 0.05 | ||
Weighted average number of shares outstanding during the year - basic | 27,974,182 | 28,437,052 | ||
Weighted average number of shares outstanding during the year - diluted | 27,974,182 | 29,362,382 | ||
Stock-based compensation included in: | ||||
Selling, general, and administrative expenses | $ (2.9) | $ (2.8) | ||
Service [Member] | ||||
Revenue: | ||||
Total Revenue | 57.5 | 56 | ||
Product Sales [Member] | ||||
Revenue: | ||||
Total Revenue | 7.4 | 4.3 | ||
Previously Reported [Member] | ||||
Revenue: | ||||
Total Revenue | 66 | 60.6 | ||
Cost of Sales | ||||
Cost of Service | (10.9) | [2] | (11.8) | |
Cost of Product sales | (5.8) | (2.1) | ||
Selling, general and administrative expenses | (34.3) | (29.6) | ||
Acquisition and integration related transaction expenses | (0.1) | |||
Depreciation and amortization | (8.9) | (10.1) | ||
Net operating income | 6.1 | 6.9 | ||
Other expense | ||||
Interest expense, net | (6.3) | (6.5) | ||
Gain on disposal of business | 0.9 | |||
Other finance income (expense) | 0.1 | 0.3 | ||
Total other expense, net | (6.2) | (5.3) | ||
Net income before income taxes | (0.1) | 1.6 | ||
Income tax expense | (0.1) | (0.1) | ||
Net (loss) income | (0.2) | 1.5 | ||
Other comprehensive income: | ||||
Foreign currency translation (loss) gain | (1.7) | 2.4 | ||
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 | ||
Actuarial gains (losses) on pension plan | 2 | 0.7 | ||
Other comprehensive income | 0.5 | 3.3 | ||
Comprehensive (loss) income | $ 0.3 | $ 4.8 | ||
Net income (loss) per common share - basic | $ (0.01) | $ 0.06 | ||
Net income (loss) per common share - diluted | $ (0.01) | $ 0.05 | ||
Weighted average number of shares outstanding during the year - basic | 26,155,346 | 26,850,326 | ||
Weighted average number of shares outstanding during the year - diluted | 26,155,346 | 29,294,973 | ||
Stock-based compensation included in: | ||||
Selling, general, and administrative expenses | $ (2.9) | |||
Previously Reported [Member] | Service [Member] | ||||
Revenue: | ||||
Total Revenue | 58.3 | $ 57 | ||
Previously Reported [Member] | Product Sales [Member] | ||||
Revenue: | ||||
Total Revenue | 7.7 | 3.6 | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||||
Revenue: | ||||
Total Revenue | (1.1) | (0.3) | ||
Cost of Sales | ||||
Cost of Service | (4.1) | [2] | (5) | |
Cost of Product sales | (0.9) | (0.4) | ||
Selling, general and administrative expenses | 5.1 | 6.4 | ||
Acquisition and integration related transaction expenses | (0.1) | |||
Depreciation and amortization | (0.5) | (0.6) | ||
Net operating income | (1.5) | |||
Other expense | ||||
Interest expense, net | ||||
Gain on disposal of business | ||||
Other finance income (expense) | ||||
Total other expense, net | ||||
Net income before income taxes | (1.5) | |||
Income tax expense | 0.3 | |||
Net (loss) income | (1.2) | |||
Other comprehensive income: | ||||
Foreign currency translation (loss) gain | (1.2) | 1.1 | ||
Reclassification of loss on hedging instrument to comprehensive income | ||||
Actuarial gains (losses) on pension plan | (1.8) | (0.6) | ||
Other comprehensive income | (3) | 0.5 | ||
Comprehensive (loss) income | $ (4.2) | $ 0.5 | ||
Net income (loss) per common share - basic | $ (0.04) | $ (0.01) | ||
Net income (loss) per common share - diluted | $ (0.04) | |||
Weighted average number of shares outstanding during the year - basic | 1,818,836 | 1,586,726 | ||
Weighted average number of shares outstanding during the year - diluted | 1,818,836 | 67,409 | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | Service [Member] | ||||
Revenue: | ||||
Total Revenue | $ (0.8) | $ (1) | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | Product Sales [Member] | ||||
Revenue: | ||||
Total Revenue | $ (0.3) | $ 0.7 | ||
[1]Excluding depreciation and amortization[2]Excluding depreciation and amortization |
Schedule of Restatement Items_4
Schedule of Restatement Items on Consolidated Statements of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | $ (86.5) | $ (85.6) | $ (100.7) | $ (108.7) |
Common Stock [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Shares, Outstanding | 26,263,070 | 25,909,516 | 26,880,622 | 26,433,562 |
Additional Paid-in Capital [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | $ 381.2 | $ 378.2 | $ 375 | $ 372.3 |
AOCI Attributable to Parent [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | 48.3 | 50.8 | 47.6 | 43.8 |
Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (516) | $ (514.6) | (523.3) | $ (524.8) |
Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (54.4) | (70.5) | ||
Previously Reported [Member] | Common Stock [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Shares, Outstanding | 26,263,070 | 26,880,622 | ||
Previously Reported [Member] | Additional Paid-in Capital [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | $ 381.2 | $ 375 | ||
Previously Reported [Member] | AOCI Attributable to Parent [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | 46.8 | 47.1 | ||
Previously Reported [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (482.4) | (492.6) | ||
Previous Revision [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (1) | |||
Previous Revision [Member] | Common Stock [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Previous Revision [Member] | Additional Paid-in Capital [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Previous Revision [Member] | AOCI Attributable to Parent [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Previous Revision [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (1) | |||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | (31.1) | (30.2) | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | Common Stock [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | Additional Paid-in Capital [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | AOCI Attributable to Parent [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | 1.5 | 0.5 | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance | $ (32.6) | $ (30.7) |
Schedule of Restatement Items_5
Schedule of Restatement Items on Consolidated Statements of Cashflows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1.4) | $ 1.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 9.4 | 10.7 |
Amortization of right of use asset | 0.8 | 1 |
Profit on sale of trade and asset | (0.9) | |
Stock-based compensation expense | 2.9 | 2.8 |
Contract Cost expense | (2.6) | (1.6) |
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 |
Non-cash interest expense relating to senior debt | 0.3 | 0.4 |
Changes in assets and liabilities: | ||
Accounts receivable | 8.3 | (2.2) |
Inventory | (3.5) | (11.6) |
Prepaid expenses and other assets | 1 | |
Corporate tax and other current taxes payable | (6.2) | (7.2) |
Accounts payable | (2.1) | 4.2 |
Deferred revenues and customer prepayment | (0.2) | |
Accrued expenses | 5.6 | 7.1 |
Operating lease liabilities | (0.9) | (1) |
Other long-term liabilities | (0.7) | |
Net cash provided by operating activities | 11.6 | 2.7 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (5.5) | (5.6) |
Acquisition of subsidiary company assets | (0.6) | |
Acquisition of third-party company trade and assets | (0.6) | |
Disposal of trade and assets | 1.3 | |
Purchases of capital software | (2.8) | (3.9) |
Net cash used in investing activities | (8.9) | (8.8) |
Cash flows from financing activities: | ||
Repayments of finance leases | (0.5) | (0.1) |
Net cash used in financing activities | (0.5) | (0.1) |
Effect of exchange rate changes on cash | 0.6 | (0.8) |
Net increase (decrease) in cash | 2.8 | (7) |
Cash, beginning of period | 25 | 47.8 |
Cash, end of period | 27.8 | 40.8 |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | 0.1 | 0.2 |
Cash paid during the period for income taxes | 0.1 | |
Cash paid during the period for operating leases | 2.1 | 1.7 |
Supplemental disclosure of noncash investing and financing activities | ||
Lease liabilities arising from obtaining right of use assets | (0.1) | |
Property and equipment acquired through finance lease | ||
Property and equipment transferred to inventory | 0.6 | |
Previously Reported [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (0.2) | 1.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 8.9 | 10.1 |
Previously Reported [Member] | Accounting Standards Update [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (0.2) | 1.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 8.9 | 10.1 |
Amortization of right of use asset | 0.5 | 0.7 |
Profit on sale of trade and asset | ||
Stock-based compensation expense | 2.9 | 2.8 |
Contract Cost expense | ||
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | 0.2 |
Non-cash interest expense relating to senior debt | 0.3 | 0.4 |
Changes in assets and liabilities: | ||
Accounts receivable | 8.5 | (2.1) |
Inventory | (4.6) | (11.9) |
Prepaid expenses and other assets | 1.6 | 0.9 |
Corporate tax and other current taxes payable | (3.8) | (7.2) |
Accounts payable | (4.1) | 4.3 |
Deferred revenues and customer prepayment | (0.3) | (0.3) |
Accrued expenses | 5.5 | 7.1 |
Operating lease liabilities | (0.6) | (0.7) |
Other long-term liabilities | (0.7) | |
Net cash provided by operating activities | 14.8 | 5.1 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6.1) | (5.2) |
Acquisition of subsidiary company assets | (0.6) | |
Acquisition of third-party company trade and assets | (0.6) | |
Disposal of trade and assets | ||
Purchases of capital software | (4.8) | (5.1) |
Net cash used in investing activities | (11.5) | (10.9) |
Cash flows from financing activities: | ||
Repayments of finance leases | (0.5) | (0.1) |
Net cash used in financing activities | (0.5) | (0.1) |
Effect of exchange rate changes on cash | (1.1) | |
Net increase (decrease) in cash | 2.8 | (7) |
Cash, beginning of period | 25 | 47.8 |
Cash, end of period | 27.8 | 40.8 |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | 0.1 | 0.2 |
Cash paid during the period for income taxes | 0.1 | |
Cash paid during the period for operating leases | 1.2 | 0.9 |
Supplemental disclosure of noncash investing and financing activities | ||
Lease liabilities arising from obtaining right of use assets | (0.1) | |
Property and equipment acquired through finance lease | ||
Property and equipment transferred to inventory | 0.6 | |
Previous Revision [Member] | Accounting Standards Update [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | ||
Amortization of right of use asset | ||
Stock-based compensation expense | ||
Contract Cost expense | ||
Reclassification of loss on hedging instrument to comprehensive income | ||
Non-cash interest expense relating to senior debt | ||
Changes in assets and liabilities: | ||
Accounts receivable | ||
Inventory | ||
Prepaid expenses and other assets | ||
Corporate tax and other current taxes payable | ||
Accounts payable | ||
Deferred revenues and customer prepayment | ||
Accrued expenses | ||
Operating lease liabilities | ||
Other long-term liabilities | ||
Net cash provided by operating activities | ||
Cash flows from investing activities: | ||
Purchases of property and equipment | ||
Acquisition of subsidiary company assets | ||
Acquisition of third-party company trade and assets | ||
Purchases of capital software | ||
Net cash used in investing activities | ||
Cash flows from financing activities: | ||
Repayments of finance leases | ||
Net cash used in financing activities | ||
Effect of exchange rate changes on cash | ||
Net increase (decrease) in cash | ||
Cash, beginning of period | ||
Cash, end of period | ||
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | ||
Cash paid during the period for income taxes | ||
Cash paid during the period for operating leases | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (1.2) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 0.5 | 0.6 |
Revision of Prior Period, Reclassification, Adjustment [Member] | Accounting Standards Update [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (1.2) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 0.5 | 0.6 |
Amortization of right of use asset | 0.3 | 0.3 |
Profit on sale of trade and asset | (0.9) | |
Stock-based compensation expense | ||
Contract Cost expense | (2.6) | (1.6) |
Reclassification of loss on hedging instrument to comprehensive income | ||
Non-cash interest expense relating to senior debt | ||
Changes in assets and liabilities: | ||
Accounts receivable | (0.2) | (0.1) |
Inventory | 1.1 | 0.3 |
Prepaid expenses and other assets | (0.6) | (0.9) |
Corporate tax and other current taxes payable | (2.4) | |
Accounts payable | 2 | (0.1) |
Deferred revenues and customer prepayment | 0.1 | 0.3 |
Accrued expenses | 0.1 | |
Operating lease liabilities | (0.3) | (0.3) |
Other long-term liabilities | ||
Net cash provided by operating activities | (3.2) | (2.4) |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0.6 | (0.4) |
Acquisition of subsidiary company assets | ||
Acquisition of third-party company trade and assets | ||
Disposal of trade and assets | 1.3 | |
Purchases of capital software | 2 | 1.2 |
Net cash used in investing activities | 2.6 | 2.1 |
Cash flows from financing activities: | ||
Repayments of finance leases | ||
Net cash used in financing activities | ||
Effect of exchange rate changes on cash | 0.6 | 0.3 |
Net increase (decrease) in cash | ||
Cash, beginning of period | 0 | |
Cash, end of period | 0 | |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | ||
Cash paid during the period for income taxes | ||
Cash paid during the period for operating leases | $ 0.9 | 0.8 |
Supplemental disclosure of noncash investing and financing activities | ||
Property and equipment acquired through finance lease | ||
Property and equipment transferred to inventory |
Restatement of Previously Iss_3
Restatement of Previously Issued Financial Statements (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Selling, general and administrative expenses | $ 26.3 | $ 20.4 | |||
Depreciation and amortization | 9.4 | 10.7 | |||
Revenue | 64.9 | 60.3 | |||
Customer contract cost | 7.7 | $ 7 | |||
Cost of service | [1] | 15 | 16.8 | ||
Inventory | 1.9 | ||||
Other acquired intangible assets | 14.3 | 14.6 | |||
Operating lease right of use asset | 15.7 | 16 | |||
Current operating lease liabilities | 4 | 3.9 | |||
Long-term operating lease liabilities | 11.9 | 12.3 | |||
Pension amount | (1.8) | $ (2.1) | |||
Service [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | 57.5 | 56 | |||
Product Sales [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | 7.4 | 4.3 | |||
Revision of Prior Period, Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Depreciation and amortization | 1.6 | 1.4 | |||
Revenue | 0.3 | ||||
Decrease in deferred revenue, current | 0.2 | ||||
Decrease in deferred revenue, current | 0.9 | ||||
Customer contract cost | 0.8 | ||||
Cost of service | 2.3 | 1.9 | |||
Cost of product sales | 0.2 | ||||
Cost of product sales | 0.5 | ||||
Revision of Prior Period, Adjustment [Member] | Service [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | 0.7 | 1 | |||
Revision of Prior Period, Adjustment [Member] | Product Sales [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | 0.3 | 0.7 | |||
Revision of Prior Period, Adjustment [Member] | Short-Term Contract with Customer [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reseach and development expenses | 7.2 | ||||
Revision of Prior Period, Adjustment [Member] | Software Development [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reseach and development expenses | 17.6 | ||||
Revision of Prior Period, Adjustment [Member] | Capitalized Software [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Selling, general and administrative expenses | 1.1 | 0.5 | |||
Depreciation and amortization | 1.1 | 0.7 | |||
Previous Revision [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Customer contract cost | |||||
Other acquired intangible assets | |||||
Operating lease right of use asset | |||||
Current operating lease liabilities | |||||
Long-term operating lease liabilities | |||||
Previous Revision [Member] | Software Development [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reseach and development expenses | 1 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Depreciation and amortization | 0.1 | ||||
Other acquired intangible assets | 1.2 | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Depreciation and amortization | 0.5 | 0.6 | |||
Revenue | (1.1) | (0.3) | |||
Customer contract cost | 7.7 | ||||
Cost of service | 4.1 | [2] | 5 | ||
Other acquired intangible assets | (0.3) | ||||
Operating lease right of use asset | 7.6 | ||||
Current operating lease liabilities | 1.2 | ||||
Long-term operating lease liabilities | 6.3 | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | AOCI Attributable to Parent [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Pension amount | 1.8 | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | Other Noncurrent Liabilities [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Pension amount | 1.8 | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | Service [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | (0.8) | (1) | |||
Revision of Prior Period, Reclassification, Adjustment [Member] | Product Sales [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | $ (0.3) | $ 0.7 | |||
[1]Excluding depreciation and amortization[2]Excluding depreciation and amortization |
Acquisitions and Disposals (Det
Acquisitions and Disposals (Details Narrative) - 1 months ended Jan. 31, 2022 € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Combination and Asset Acquisition [Abstract] | ||
Total proceeds | $ 1.3 | € 1.1 |
Profit on disposal | $ 0.9 | € 0.8 |
Schedule of Changes in Allowanc
Schedule of Changes in Allowance for Doubtful accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Beginning balance | $ (1.4) | $ (1.8) |
Additional provision for doubtful accounts | (0.1) | (0.2) |
Recoveries | 0.1 | |
Write offs | 0.4 | |
Foreign currency translation adjustments | 0.2 | |
Ending balance | $ (1.4) | $ (1.4) |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Component parts | $ 21.4 | $ 20.7 |
Work in progress | 2.9 | 3.6 |
Finished goods | 10.3 | 6 |
Total inventories | $ 34.6 | $ 30.3 |
Schedule of Contract Related Ba
Schedule of Contract Related Balances (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Contract Liabilities And Other Disclosures As Restated | ||
Accounts receivable | $ 36.7 | $ 44.6 |
Unbilled accounts receivable | 15.4 | 18 |
Deferred income | (7.2) | (7.4) |
Customer prepayments and deposits | $ (2.6) | $ (2.4) |
Contract Liabilities and Othe_3
Contract Liabilities and Other Disclosures, as restated (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Contract Liabilities And Other Disclosures As Restated | ||
Revenue recognized in deferred income | $ 1.2 | $ 2.5 |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Activity (Details) - Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] | 3 Months Ended | |
Mar. 31, 2023 shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Unvested Outstanding | 1,647,544 | |
Number of Shares, Granted | 495,225 | [1] |
Number of Shares, Forfeited | (6,266) | |
Number of Shares, Vested | (219,272) | |
Number of Shares, Unvested Outstanding | 1,917,231 | |
[1]The amount shown as granted in the table includes 219,213 0 200 438,426 |
Schedule of Restricted Stock _2
Schedule of Restricted Stock Unit Activity (Details) (Parenthetical) | 3 Months Ended |
Mar. 31, 2023 shares | |
Performance Shares [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 219,213 |
Performance Shares [Member] | Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting percentage | 0% |
Performance Shares [Member] | Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting percentage | 200% |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 438,426 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - Restricted Stock Units (RSUs) [Member] - Share-Based Payment Arrangement, Tranche Three [Member] - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based payment award, shares issued in period | 353,554 | |
Number of shares issued RUSs | 332,227 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Foreign Currency Translation Adjustments, Balance | $ (84.2) | $ (71.5) |
Change in Fair Value of Hedging Instrument, Balance | 0.3 | 1 |
Unrecognized Pension Benefit Costs, Balance | 33.1 | 26.7 |
Accumulated Other Comprehensive (Income), Balance | (50.8) | (43.8) |
Foreign Currency Translation Adjustments, Change during the period | 2.9 | (3.5) |
Change in Fair Value of Hedging Instrument, Change during the period | (0.2) | (0.2) |
Unrecognized Pension Benefit Costs, Change during the period | (0.2) | (0.1) |
Accumulated Other Comprehensive (Income), Change during the period | 2.5 | (3.8) |
Foreign Currency Translation Adjustments, Balance | (81.3) | (75) |
Change in Fair Value of Hedging Instrument, Balance | 0.1 | 0.8 |
Unrecognized Pension Benefit Costs, Balance | 32.9 | 26.6 |
Accumulated Other Comprehensive (Income), Balance | $ (48.3) | $ (47.6) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Income), as restated (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Interest expenses | $ 0.2 | $ 0.2 |
Schedule of Anti-dilutive Secur
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
RSUs | 1,917,231 | 695,372 |
Schedule of Numerators and Deno
Schedule of Numerators and Denominators of the Basic and Diluted EPS Computations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income loss basic | $ 1.5 | |
Weighted average, shares | 27,974,182 | 28,437,052 |
Earnings per share basic | $ (0.05) | $ 0.05 |
Restricted stock units | ||
Restricted stock units | 925,330 | |
RSU, per share amount | ||
Net income loss diluted | $ 1.5 | |
Weighted average, shares | 27,974,182 | 29,362,382 |
Earnings per share diluted | $ (0.05) | $ 0.05 |
Net Earnings (Loss) per Share_3
Net Earnings (Loss) per Share, as restated (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted stock awards not yet issued | 1,893,136 | 1,591,632 |
Schedule of Other Finance Incom
Schedule of Other Finance Income (expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Pension interest cost | $ (0.8) | $ (0.6) |
Expected return on pension plan assets | 0.9 | 0.9 |
Other finance income (expense) | $ 0.1 | $ 0.3 |
Income Taxes, as restated (Deta
Income Taxes, as restated (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 13.20% | 5.30% |
Income tax expense | $ 0.2 | |
Income tax benefit | $ (0.2) | $ 0.1 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 3 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Consultancy Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees | $ 30,000 | $ 30,000 | ||
Consultancy Agreement [Member] | Richard Weil [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees | $ 100,000 | |||
Consultancy Agreement [Member] | Richard Weil [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees | $ 10,000 | |||
Macquarie Corporate Holdings Pty Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party beneficially owneed | 11.51% | |||
Interest and debt expense | $ 0 | $ 0 | ||
Outstanding shares percentage | 5% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Amended Employment Agreement [Member] - Former Executive Vice President And Chief Strategy Officer [Member] | Jan. 10, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Base salary | $ 385,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Target annual bonus | 100% |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Target annual bonus | 200% |
Schedule of Defined Benefit Pla
Schedule of Defined Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Interest cost | $ 0.8 | $ 0.6 |
Expected return on plan assets | (0.9) | (0.9) |
Amortization of net loss | 0.2 | 0.1 |
Net periodic benefit | $ 0.1 | $ (0.2) |
Schedule of Pension Plans and t
Schedule of Pension Plans and their Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Benefit obligation at beginning of period | $ 71.2 | $ 122.7 |
Interest cost | 0.8 | 2.2 |
Actuarial loss (gain) | (39) | |
Benefits paid | (0.7) | (3.5) |
Foreign currency translation adjustments | 1.9 | (11.2) |
Benefit obligation at end of period | 73.2 | 71.2 |
Fair value of plan assets at beginning of period | 69.1 | 125.7 |
Actual gain (loss) on plan assets | 0.9 | (42.4) |
Employer contributions | 0.3 | 1.4 |
Benefits paid | (0.7) | (3.5) |
Foreign currency translation adjustments | 1.8 | (12.1) |
Fair value of assets at end of period | 71.4 | 69.1 |
Overfunded status (non-current) | (1.8) | (2.1) |
Net amount recognized | $ (1.8) | $ (2.1) |
Pension Plan, as restated (Deta
Pension Plan, as restated (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | |||
Employer contributions | $ 0.3 | $ 1.4 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Contingent contributions | $ 1.1 | ||
Expense contributions | $ 0.3 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 64.9 | $ 60.3 | |
Cost of service | [1] | (15) | (16.8) |
Cost of product sales | (6.7) | (2.5) | |
Selling, general and administrative expenses | (26.3) | (20.4) | |
Stock-based compensation expense | (2.9) | (2.8) | |
Acquisition and integration related transaction expenses | (0.2) | ||
Depreciation and amortization | (9.4) | (10.7) | |
Segment operating income (loss) | 4.6 | 6.9 | |
Net operating income | 4.6 | 6.9 | |
Total capital expenditures | 9.6 | 9.5 | |
Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 57.5 | 56 | |
Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 7.4 | 4.3 | |
Gaming [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 27.1 | 24.8 | |
Cost of service | (5.9) | (6) | |
Cost of product sales | (5.8) | (2.3) | |
Selling, general and administrative expenses | (5.7) | (5) | |
Stock-based compensation expense | (0.3) | (0.3) | |
Acquisition and integration related transaction expenses | (0.1) | ||
Depreciation and amortization | (4.5) | (5.2) | |
Segment operating income (loss) | 4.9 | 5.9 | |
Total capital expenditures | 2.4 | 2.9 | |
Gaming [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 20.2 | 21.1 | |
Gaming [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6.9 | 3.7 | |
Virtual Sports [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 14.8 | 11.3 | |
Cost of service | (0.4) | (0.4) | |
Cost of product sales | |||
Selling, general and administrative expenses | (1.7) | (1.7) | |
Stock-based compensation expense | (0.2) | (0.1) | |
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (0.8) | (0.8) | |
Segment operating income (loss) | 11.7 | 8.3 | |
Total capital expenditures | 0.4 | 0.5 | |
Virtual Sports [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 14.8 | 11.3 | |
Virtual Sports [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Interactive [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5.9 | 4.6 | |
Cost of service | (0.3) | (0.3) | |
Cost of product sales | |||
Selling, general and administrative expenses | (2.5) | (1.4) | |
Stock-based compensation expense | (0.2) | (0.1) | |
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (0.6) | (0.6) | |
Segment operating income (loss) | 2.3 | 2.2 | |
Total capital expenditures | 1.1 | 0.9 | |
Interactive [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5.9 | 4.6 | |
Interactive [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Leisure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 17.1 | 19.6 | |
Cost of service | (8.4) | (10.1) | |
Cost of product sales | (0.9) | (0.2) | |
Selling, general and administrative expenses | (6.9) | (6.6) | |
Stock-based compensation expense | (0.1) | (0.2) | |
Acquisition and integration related transaction expenses | |||
Depreciation and amortization | (3.1) | (3.6) | |
Segment operating income (loss) | (2.3) | (1.1) | |
Total capital expenditures | 5.2 | 4 | |
Leisure [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 16.6 | 19 | |
Leisure [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0.5 | 0.6 | |
Corporate Functions [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Cost of service | |||
Cost of product sales | |||
Selling, general and administrative expenses | (9.5) | (5.7) | |
Stock-based compensation expense | (2.1) | (2.1) | |
Acquisition and integration related transaction expenses | (0.1) | ||
Depreciation and amortization | (0.4) | (0.5) | |
Segment operating income (loss) | (12) | (8.4) | |
Total capital expenditures | 0.5 | 1.2 | |
Corporate Functions [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Corporate Functions [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
[1]Excluding depreciation and amortization |
Schedule of Geographic Informat
Schedule of Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 64.9 | $ 60.3 | |
Total non-current assets excluding goodwill | 108.7 | $ 104.8 | |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 49 | 45.9 | |
Total non-current assets excluding goodwill | 87.5 | 82.7 | |
GREECE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 5.6 | 5.6 | |
Total non-current assets excluding goodwill | 5.1 | 5.8 | |
Rest of World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 10.3 | $ 8.8 | |
Total non-current assets excluding goodwill | $ 16.1 | $ 16.3 |
Customer Concentration (Details
Customer Concentration (Details Narrative) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15% | 12% | |
Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24% | ||
Accounts Receivable [Member] | No Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - 2023 Plan [Member] - shares | Apr. 10, 2023 | Jan. 31, 2023 |
Performance Shares [Member] | Amendment to Employment Contract of Weil and Pierce [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate shares | 250,000 | |
Stock Price Based RSUs [Member] | Amendment to Employment Contract of Weil and Pierce [Member] | ||
Subsequent Event [Line Items] | ||
Aggregate shares | 125,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Share based compensation arrangement,number of shares authorized to be issued | 2,700,000 |