Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 $0.0001 per share | |
Trading Symbol | INSE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,571,308 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash | $ 35.3 | $ 40 |
Accounts receivable, net | 37.5 | 40.6 |
Inventory, net | 31.7 | 32.3 |
Prepaid expenses and other current assets | 39.6 | 39.6 |
Total current assets | 144.1 | 152.5 |
Property and equipment, net | 63.2 | 62.8 |
Software development costs, net | 21.9 | 21.8 |
Other acquired intangible assets subject to amortization, net | 12.9 | 13.4 |
Goodwill | 58.3 | 58.8 |
Operating lease right of use asset | 15.2 | 14.2 |
Costs of obtaining and fulfilling customer contracts, net | 9.7 | 9.4 |
Other assets | 5.8 | 8 |
Total assets | 331.1 | 340.9 |
Current liabilities | ||
Accounts payable and accrued expenses | 57.6 | 60.8 |
Corporate tax and other current taxes payable | 3.2 | 6.3 |
Deferred revenue, current | 4.9 | 5.6 |
Operating lease liabilities | 5.1 | 4.7 |
Current portion of long-term debt | 18.9 | 19.1 |
Other current liabilities | 4.4 | 4.2 |
Total current liabilities | 94.1 | 100.7 |
Long-term debt | 293.3 | 295.6 |
Finance lease liabilities, net of current portion | 2.5 | 1.6 |
Deferred revenue, net of current portion | 8 | 7.1 |
Operating lease liabilities | 10.5 | 9.8 |
Other long-term liabilities | 3.9 | 4.1 |
Total liabilities | 412.3 | 418.9 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Preferred stock; $0.0001 par value; 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively. | ||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 26,559,756 shares and 26,219,021 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | ||
Additional paid in capital | 387.3 | 386.1 |
Accumulated other comprehensive income | 45.8 | 44.5 |
Accumulated deficit | (514.3) | (508.6) |
Total stockholders’ deficit | (81.2) | (78) |
Total liabilities and stockholders’ deficit | $ 331.1 | $ 340.9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 49,000,000 | 49,000,000 |
Common stock, shares issued | 26,559,756 | 26,219,021 |
Common stock, shares outstanding | 26,559,756 | 26,219,021 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Revenue: | |||
Total revenue | $ 63.1 | $ 64.9 | |
Cost of sales: | |||
Cost of service | [1] | (15.9) | (15) |
Cost of product sales | (4.5) | (6.7) | |
Selling, general and administrative expenses | (34.2) | (29.2) | |
Depreciation and amortization | (9.9) | (9.4) | |
Net operating (loss) income | (1.4) | 4.6 | |
Other expense | |||
Interest expense, net | (6.6) | (6.3) | |
Other finance income | 0.1 | 0.1 | |
Total other expense, net | (6.5) | (6.2) | |
Loss before income taxes | (7.9) | (1.6) | |
Income tax benefit | 2.2 | 0.2 | |
Net loss | (5.7) | (1.4) | |
Other comprehensive income (loss): | |||
Foreign currency translation gain (loss) | 1 | (2.9) | |
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | ||
Actuarial gains on pension plan | 0.3 | 0.2 | |
Other comprehensive income (loss) | 1.3 | (2.5) | |
Comprehensive loss | $ (4.4) | $ (3.9) | |
Earnings Per Share, Basic | $ (0.20) | $ (0.05) | |
Earnings Per Share, Diluted | $ (0.20) | $ (0.05) | |
Weighted average number of shares outstanding during the period - basic | 28,603,734 | 27,974,182 | |
Weighted average number of shares outstanding during the period - diluted | 28,603,734 | 27,974,182 | |
Stock-based compensation included in: | |||
Selling, general and administrative expenses | $ (2.3) | $ (2.9) | |
Service [Member] | |||
Revenue: | |||
Total revenue | 57.1 | 57.5 | |
Product Sales [Member] | |||
Revenue: | |||
Total revenue | $ 6 | $ 7.4 | |
[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, 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 | |||
Issuances under stock plans | |||||
Issuances under stock plans, shares | 353,554 | ||||
Stock-based compensation expense | 3,000,000 | 3,000,000 | |||
Net loss | (1,400,000) | (1,400,000) | |||
Reclassification of loss on hedging instrument to comprehensive income | 200,000 | 200,000 | |||
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 | ||||
Balance at Dec. 31, 2023 | 386,100,000 | 44,500,000 | (508,600,000) | (78,000,000) | |
Balance, shares at Dec. 31, 2023 | 26,219,021 | ||||
Foreign currency translation adjustments | 1,000,000 | 1,000,000 | |||
Actuarial gains on pension plan | 300,000 | 300,000 | |||
Issuances under stock plans | (800,000) | (800,000) | |||
Issuances under stock plans, shares | 340,735 | ||||
Stock-based compensation expense | 2,000,000 | 2,000,000 | |||
Net loss | (5,700,000) | (5,700,000) | |||
Balance at Mar. 31, 2024 | $ 387,300,000 | $ 45,800,000 | $ (514,300,000) | $ (81,200,000) | |
Balance, shares at Mar. 31, 2024 | 26,559,756 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (5.7) | $ (1.4) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9.9 | 9.4 |
Amortization of right of use asset | 1.1 | 0.8 |
Stock-based compensation expense | 2.3 | 2.9 |
Contract cost expense | (2.4) | (2.6) |
Reclassification of loss on hedging instrument to comprehensive income | 0.2 | |
Non-cash interest expense relating to senior debt | 0.2 | 0.3 |
Changes in assets and liabilities: | ||
Accounts receivable | 2.7 | 8.3 |
Inventory | 0.4 | (3.5) |
Prepaid expenses and other assets | 4.3 | 1 |
Corporate tax and other current taxes payable | (6.3) | (6.2) |
Accounts payable and accrued expenses | (2.6) | 3.5 |
Deferred revenues and customer prepayment | 0.6 | (0.2) |
Operating lease liabilities | (1) | (0.9) |
Other long-term liabilities | 0.1 | |
Net cash provided by operating activities | 3.6 | 11.6 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4.4) | (5.5) |
Acquisition of third-party company trade and assets | (0.6) | |
Purchases of capital software | (3.3) | (2.8) |
Net cash used in investing activities | (7.7) | (8.9) |
Cash flows from financing activities: | ||
Repayments of finance leases | (0.2) | (0.5) |
Net cash used in financing activities | (0.2) | (0.5) |
Effect of exchange rate changes on cash | (0.4) | 0.6 |
Net (decrease) increase in cash | (4.7) | 2.8 |
Cash, beginning of period | 40 | 25 |
Cash, end of period | 35.3 | 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 | |
Cash paid during the period for operating leases | 2.1 | 2.1 |
Supplemental disclosure of noncash investing and financing activities | ||
Additional paid in capital from net settlement of RSUs | (0.8) | |
Lease liabilities arising from obtaining right of use assets | (2.2) | (0.1) |
Property and equipment acquired through finance lease | $ 1.3 |
Nature of Operations, Managemen
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies | Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies Company Description and Nature of Operations We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks. Liquidity Discussions As of March 31, 2024, the Company’s cash on hand was $ 35.3 14.7 5.7 1.4 2.3 2.9 3.6 11.6 Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2025. 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 applicable rules and regulations of the 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, 2023 and 2022. The financial information as of December 31, 2023 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 15, 2024. The financial information for the three months ended March 31, 2023 is derived from the unaudited consolidated financial statements presented in the Company’s Annual Report on Form 10-Q/A for the three months ended March 31, 2023 filed with the SEC on February 27, 2024. The interim results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Allowance for Credit Losses | 2. Allowance for Credit Losses Changes in the allowance for credit losses are as follows: Schedule of Changes in Allowance for Credit Losses March 31, 2024 December 31, 2023 (in millions) Beginning balance $ (1.1 ) $ (1.4 ) Additional allowance for credit losses — (0.2 ) Recoveries — 0.2 Write offs — 0.4 Foreign currency translation adjustments — (0.1 ) Ending balance $ (1.1 ) $ (1.1 ) |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory Inventory consists of the following: Schedule of Inventory March 31, 2024 December 31, 2023 (in millions) Component parts $ 22.5 $ 23.3 Work in progress 1.0 0.4 Finished goods 8.2 8.6 Total inventories $ 31.7 $ 32.3 Component parts include parts for gaming terminals. Our finished goods inventory primarily consists of gaming terminals which are ready for sale. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 4. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: Schedule of Accounts Payable and Accrued Expenses March 31, 2024 December 31, 2023 (in millions) Accounts payable $ 35.2 $ 41.9 Interest payable 8.4 — Payroll and related costs 5.1 5.5 Cost of sales including inventory 5.0 6.4 Other creditors 3.9 7.0 Total accounts payable and accrued expenses $ 57.6 $ 60.8 |
Contract Related Disclosures
Contract Related Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract Related Disclosures | 5. Contract Related Disclosures The following table summarizes contract related balances: Schedule of Contract Related Balances Accounts Receivable Unbilled Accounts Receivable Right to recover asset Deferred Income Customer Prepayments and Deposits (in millions) At March 31, 2024 $ 36.7 $ 20.5 $ 0.6 $ (12.9 ) $ (3.1 ) At December 31, 2023 $ 42.8 $ 24.0 $ 0.6 $ (12.7 ) $ (2.9 ) Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $ 1.9 1.2 For the periods ended March 31, 2024 and 2023 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. Transaction Price Allocated to Remaining Performance Obligations At March 31, 2024, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $ 102.6 30 50 20 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation A summary of the Company’s restricted stock unit (“RSU”) activity during the three months ended March 31, 2024 is as follows: Schedule of Restricted Stock Unit Activity Number of Shares Unvested Outstanding at January 1, 2024 (1) 1,242,175 Granted (2) 604,709 Forfeited (29,599 ) Vested (10,166 ) Unvested Outstanding at March 31, 2024 1,807,119 (1) The amount shown as “unvested outstanding at January 1, 2024” does not include certain tranches of Adjusted EBITDA RSUs that have performance criteria for annual periods later than 2023 (an aggregate of 312,500 62,500 (2) The amount shown as “granted” includes 245,694 0 200 491,388 62,500 Adjusted EBITDA RSUs (subject to performance criteria for 2024) which can be earned at up to 100 The Company issued a total of 340,735 333,161 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Income) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (Income) | 7. 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, 2024 $ (78.3 ) $ — $ 33.8 $ (44.5 ) Change during the period (1.0 ) — (0.3 ) (1.3 ) Balance at March 31, 2024 $ (79.3 ) $ — $ 33.5 $ (45.8 ) 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 ) In connection with the issuance of Senior Secured Notes and the entry into a Revolving Credit Facility (“RCF”) Agreement (the “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, 2024 and March 31, 2023 amounted to $ 0.0 0.2 |
Net Earnings (Loss) per Share
Net Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) per Share | 8. Net Earnings (Loss) per Share 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 stock options and RSUs, 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 2024 2023 Three Months Ended March 31, 2024 2023 RSUs $ 1,807,119 $ 1,917,231 There were no reconciling items for the three months ended March 31, 2024 or March 31, 2023. The calculation of Basic EPS includes the effects of 1,840,165 1,893,136 |
Other Finance Income (Expense)
Other Finance Income (Expense) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Finance Income (Expense) | 9. Other Finance Income (Expense) Other finance income (expense) consisted of the following: Schedule of Other Finance Income (Expense) Three Months Ended March 31, 2024 2023 (in millions) Pension interest cost $ (0.9 ) $ (0.8 ) Expected return on pension plan assets 1.0 0.9 Other finance income (Costs) $ 0.1 $ 0.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective income tax rate for the three months ended March 31, 2024 and 2023 was 27.4 13.2 2.2 0.2 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, 2024 and 2023. 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, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | 11. 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 11.4 2.1 18.9 0.1 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 Richard Weil received a success fee for services provided in connection with our acquisition of Sportech Lotteries, LLC. The success fee was paid during the year ended December 31, 2022. Under the agreement, as extended in November 2022 and in July 2023 and December 2023, he will provide consulting services to the Company relating to the lottery in the Dominican Republic through December 31, 2024, for which he was compensated at a rate of $ 10,000 12,500 37,500 30,000 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 12. Leases 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, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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. 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
Pension Plan | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Pension Plan | 14. Pension Plan 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. The following table presents the components of our net periodic pension cost: Schedule of Net Periodic Pension Cost Three Months Ended March 31, 2024 2023 (in millions) Components of net periodic pension cost: Interest cost $ 0.9 $ 0.8 Expected return on plan assets (1.0 ) (0.9 ) Amortization of net loss 0.3 0.2 Net periodic cost $ 0.2 $ 0.1 |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 15. Segment Reporting and Geographic Information 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, 2024 and March 31, 2023, 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 and capital expenditures relating to corporate/shared functions. Segment Information Schedule of Segment Reporting Information by Segment Three Months Ended March 31, 2024 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 18.6 $ 12.4 $ 8.1 $ 18.0 $ — $ 57.1 Product sales 5.4 — — 0.6 — 6.0 Total revenue 24.0 12.4 8.1 18.6 — 63.1 Cost of sales, excluding depreciation and amortization: Cost of service (5.8 ) (0.4 ) (0.6 ) (9.1 ) — (15.9 ) Cost of product sales (4.3 ) — — (0.2 ) — (4.5 ) Selling, general and administrative expenses (6.6 ) (1.6 ) (3.1 ) (7.5 ) (13.1 ) (31.9 ) Stock-based compensation expense (0.2 ) (0.1 ) (0.1 ) (0.1 ) (1.8 ) (2.3 ) Depreciation and amortization (4.3 ) (0.9 ) (1.2 ) (3.0 ) (0.5 ) (9.9 ) Segment operating income (loss) 2.8 9.4 3.1 (1.3 ) (15.4 ) (1.4 ) Net operating loss $ (1.4 ) Total capital expenditures for the three months ended March 31, 2024 $ 2.0 $ 1.2 $ 0.5 $ 4.9 $ 0.5 $ 9.1 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 Geographic Information Geographic information for revenue is set forth below: Schedule of Geographic Information Three Months Ended March 31, 2024 2023 (in millions) Total revenue UK $ 47.2 $ 49.0 Greece 6.1 5.6 Rest of world 9.8 10.3 Total $ 63.1 $ 64.9 Total revenue $ 63.1 $ 64.9 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, 2024 December 31, 2023 (in millions) UK $ 90.0 $ 91.9 Greece 14.7 15.3 Rest of world 24.0 22.4 Total $ 128.7 $ 129.6 Total non- current assets excluding goodwill $ 128.7 $ 129.6 Software development costs are included as attributable to the market in which they are utilized. |
Customer Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | 16. Customer Concentration During the three months ended March 31, 2024, there was one customer that represented at least 10% of the Company’s revenues, accounting for approximately 11 15 At March 31, 2024 no customers represented at least 10% of the Company’s accounts receivable. At December 31, 2023, there was one customer that represented at least 10% of the Company’s accounts receivable, accounting for approximately 24 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. 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. The Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements. |
Nature of Operations, Managem_2
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. |
Liquidity Discussions | Liquidity Discussions As of March 31, 2024, the Company’s cash on hand was $ 35.3 14.7 5.7 1.4 2.3 2.9 3.6 11.6 Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2025. |
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 applicable rules and regulations of the 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, 2023 and 2022. The financial information as of December 31, 2023 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 15, 2024. The financial information for the three months ended March 31, 2023 is derived from the unaudited consolidated financial statements presented in the Company’s Annual Report on Form 10-Q/A for the three months ended March 31, 2023 filed with the SEC on February 27, 2024. The interim results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Changes in Allowance for Credit Losses | Changes in the allowance for credit losses are as follows: Schedule of Changes in Allowance for Credit Losses March 31, 2024 December 31, 2023 (in millions) Beginning balance $ (1.1 ) $ (1.4 ) Additional allowance for credit losses — (0.2 ) Recoveries — 0.2 Write offs — 0.4 Foreign currency translation adjustments — (0.1 ) Ending balance $ (1.1 ) $ (1.1 ) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: Schedule of Inventory March 31, 2024 December 31, 2023 (in millions) Component parts $ 22.5 $ 23.3 Work in progress 1.0 0.4 Finished goods 8.2 8.6 Total inventories $ 31.7 $ 32.3 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: Schedule of Accounts Payable and Accrued Expenses March 31, 2024 December 31, 2023 (in millions) Accounts payable $ 35.2 $ 41.9 Interest payable 8.4 — Payroll and related costs 5.1 5.5 Cost of sales including inventory 5.0 6.4 Other creditors 3.9 7.0 Total accounts payable and accrued expenses $ 57.6 $ 60.8 |
Contract Related Disclosures (T
Contract Related Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Related Balances | The following table summarizes contract related balances: Schedule of Contract Related Balances Accounts Receivable Unbilled Accounts Receivable Right to recover asset Deferred Income Customer Prepayments and Deposits (in millions) At March 31, 2024 $ 36.7 $ 20.5 $ 0.6 $ (12.9 ) $ (3.1 ) At December 31, 2023 $ 42.8 $ 24.0 $ 0.6 $ (12.7 ) $ (2.9 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit (“RSU”) activity during the three months ended March 31, 2024 is as follows: Schedule of Restricted Stock Unit Activity Number of Shares Unvested Outstanding at January 1, 2024 (1) 1,242,175 Granted (2) 604,709 Forfeited (29,599 ) Vested (10,166 ) Unvested Outstanding at March 31, 2024 1,807,119 (1) The amount shown as “unvested outstanding at January 1, 2024” does not include certain tranches of Adjusted EBITDA RSUs that have performance criteria for annual periods later than 2023 (an aggregate of 312,500 62,500 (2) The amount shown as “granted” includes 245,694 0 200 491,388 62,500 Adjusted EBITDA RSUs (subject to performance criteria for 2024) which can be earned at up to 100 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Income) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 $ (78.3 ) $ — $ 33.8 $ (44.5 ) Change during the period (1.0 ) — (0.3 ) (1.3 ) Balance at March 31, 2024 $ (79.3 ) $ — $ 33.5 $ (45.8 ) 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 ) |
Net Earnings (Loss) per Share (
Net Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Three Months Ended March 31, 2024 2023 RSUs $ 1,807,119 $ 1,917,231 |
Other Finance Income (Expense)
Other Finance Income (Expense) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) Three Months Ended March 31, 2024 2023 (in millions) Pension interest cost $ (0.9 ) $ (0.8 ) Expected return on pension plan assets 1.0 0.9 Other finance income (Costs) $ 0.1 $ 0.1 |
Pension Plan (Tables)
Pension Plan (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Cost | The following table presents the components of our net periodic pension cost: Schedule of Net Periodic Pension Cost Three Months Ended March 31, 2024 2023 (in millions) Components of net periodic pension cost: Interest cost $ 0.9 $ 0.8 Expected return on plan assets (1.0 ) (0.9 ) Amortization of net loss 0.3 0.2 Net periodic cost $ 0.2 $ 0.1 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Segment Information Schedule of Segment Reporting Information by Segment Three Months Ended March 31, 2024 Gaming Virtual Sports Interactive Leisure Corporate Functions Total (in millions) Revenue: Service $ 18.6 $ 12.4 $ 8.1 $ 18.0 $ — $ 57.1 Product sales 5.4 — — 0.6 — 6.0 Total revenue 24.0 12.4 8.1 18.6 — 63.1 Cost of sales, excluding depreciation and amortization: Cost of service (5.8 ) (0.4 ) (0.6 ) (9.1 ) — (15.9 ) Cost of product sales (4.3 ) — — (0.2 ) — (4.5 ) Selling, general and administrative expenses (6.6 ) (1.6 ) (3.1 ) (7.5 ) (13.1 ) (31.9 ) Stock-based compensation expense (0.2 ) (0.1 ) (0.1 ) (0.1 ) (1.8 ) (2.3 ) Depreciation and amortization (4.3 ) (0.9 ) (1.2 ) (3.0 ) (0.5 ) (9.9 ) Segment operating income (loss) 2.8 9.4 3.1 (1.3 ) (15.4 ) (1.4 ) Net operating loss $ (1.4 ) Total capital expenditures for the three months ended March 31, 2024 $ 2.0 $ 1.2 $ 0.5 $ 4.9 $ 0.5 $ 9.1 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 |
Schedule of Geographic Information | Geographic Information Geographic information for revenue is set forth below: Schedule of Geographic Information Three Months Ended March 31, 2024 2023 (in millions) Total revenue UK $ 47.2 $ 49.0 Greece 6.1 5.6 Rest of world 9.8 10.3 Total $ 63.1 $ 64.9 Total revenue $ 63.1 $ 64.9 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, 2024 December 31, 2023 (in millions) UK $ 90.0 $ 91.9 Greece 14.7 15.3 Rest of world 24.0 22.4 Total $ 128.7 $ 129.6 Total non- current assets excluding goodwill $ 128.7 $ 129.6 |
Nature of Operations, Managem_3
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounting Policies [Abstract] | |||
Cash on hand | $ 35.3 | $ 40 | |
Additional working capital | 14.7 | ||
Net loss | 5.7 | $ 1.4 | |
Stock-based compensation | 2.3 | 2.9 | |
Net cash provided by operating activities | $ 3.6 | $ 11.6 |
Schedule of Changes in Allowanc
Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Receivables [Abstract] | ||
Beginning balance | $ (1.1) | $ (1.4) |
Additional allowance for credit losses | (0.2) | |
Recoveries | 0.2 | |
Write offs | 0.4 | |
Foreign currency translation adjustments | (0.1) | |
Ending balance | $ (1.1) | $ (1.1) |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Component parts | $ 22.5 | $ 23.3 |
Work in progress | 1 | 0.4 |
Finished goods | 8.2 | 8.6 |
Total inventories | $ 31.7 | $ 32.3 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 35.2 | $ 41.9 |
Interest payable | 8.4 | |
Payroll and related costs | 5.1 | 5.5 |
Cost of sales including inventory | 5 | 6.4 |
Other creditors | 3.9 | 7 |
Total accounts payable and accrued expenses | $ 57.6 | $ 60.8 |
Schedule of Contract Related Ba
Schedule of Contract Related Balances (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 36.7 | $ 42.8 |
Unbilled accounts receivable | 20.5 | 24 |
Right to recover asset | 0.6 | 0.6 |
Deferred income | (12.9) | (12.7) |
Customer prepayments and deposits | $ (3.1) | $ (2.9) |
Contract Related Disclosures (D
Contract Related Disclosures (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Revenue recognized in deferred income | $ 1.9 | $ 1.2 |
Remaining performance obligations | $ 102.6 | |
Through December 31, 2024 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Revenue percentage | 30% | |
Through December 31, 2026 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Revenue percentage | 50% | |
Through December 31, 2029 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Revenue percentage | 20% |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Activity (Details) - shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Shares, Vested | (1,840,165) | (1,893,136) | |
Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of Shares, Unvested Outstanding | [1] | 1,242,175 | |
Number of Shares, Granted | [2] | 604,709 | |
Number of Shares, Forfeited | (29,599) | ||
Number of Shares, Vested | [2] | (10,166) | |
Number of Shares, Unvested Outstanding | 1,807,119 | ||
[1]The amount shown as “unvested outstanding at January 1, 2024” does not include certain tranches of Adjusted EBITDA RSUs that have performance criteria for annual periods later than 2023 (an aggregate of 312,500 62,500 245,694 0 200 491,388 62,500 Adjusted EBITDA RSUs (subject to performance criteria for 2024) which can be earned at up to 100 |
Schedule of Restricted Stock _2
Schedule of Restricted Stock Unit Activity (Details) (Parenthetical) | 3 Months Ended |
Mar. 31, 2024 shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unvested outstanding of shares | 312,500 |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 491,388 |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unvested outstanding of shares | 62,500 |
Performance Shares [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 245,694 |
Performance Shares [Member] | RSU [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 100% |
Performance Shares [Member] | Chief Executive Officer [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock shares granted | 62,500 |
Performance Shares [Member] | Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share based compensation arrangement,vesting percentage | 0% |
Performance Shares [Member] | Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share based compensation arrangement,vesting percentage | 200% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - Restricted Stock Units (RSUs) [Member] - Share-Based Payment Arrangement, Tranche One [Member] - shares | 3 Months Ended | |
Dec. 29, 2023 | Mar. 31, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based payment award, shares issued in period | 340,735 | |
Number of shares issued RUSs | 333,161 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Loss (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Foreign currency translation adjustments, beginning balance | $ (78.3) | $ (84.2) |
Change in fair value of hedging instrument, beginning balance | 0.3 | |
Unrecognized pension benefit costs, beginning balance | 33.8 | 33.1 |
Accumulated other comprehensive (income), beginning balance | (44.5) | (50.8) |
Foreign currency translation adjustments, change during the period | (1) | 2.9 |
Change in fair value of hedging instrument, change during the period | (0.2) | |
Unrecognized pension benefit costs, change during the period | (0.3) | (0.2) |
Accumulated other comprehensive (Income), change during the period | (1.3) | 2.5 |
Foreign currency translation adjustments, ending balance | (79.3) | (81.3) |
Change in fair value of hedging instrument, ending balance | 0.1 | |
Unrecognized pension benefit costs, ending balance | 33.5 | 32.9 |
Accumulated other comprehensive (income), ending balance | $ (45.8) | $ (48.3) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Income) (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Interest expenses | $ 0 | $ 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, 2024 | Mar. 31, 2023 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
RSUs | 1,807,119 | 1,917,231 |
Net Earnings (Loss) per Share_2
Net Earnings (Loss) per Share (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Effect of RSU awards vested | 1,840,165 | 1,893,136 |
Schedule of Other Finance Incom
Schedule of Other Finance Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Pension interest cost | $ (0.9) | $ (0.8) |
Expected return on pension plan assets | 1 | 0.9 |
Other finance income (Costs) | $ 0.1 | $ 0.1 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 27.40% | 13.20% |
Income tax benefit | $ 2.2 | $ 0.2 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | |
Consultancy Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees | $ 37,500 | $ 30,000 | |||
Consultancy Agreement [Member] | Richard Weil [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees | $ 12,500 | $ 10,000 | |||
Macquarie Corporate Holdings Pty Limited [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party beneficially owned | 11.40% | ||||
Proceeds from lines of credit | $ 2,100,000 | $ 18,900,000 | |||
Interest and debt expense | $ 100,000 | $ 0 | |||
Outstanding shares percentage | 5% |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Interest cost | $ 0.9 | $ 0.8 |
Expected return on plan assets | (1) | (0.9) |
Amortization of net loss | 0.3 | 0.2 |
Net periodic cost | $ 0.2 | $ 0.1 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 63.1 | $ 64.9 | |
Cost of service | [1] | (15.9) | (15) |
Cost of product sales | (4.5) | (6.7) | |
Selling, general and administrative expenses | (31.9) | (26.3) | |
Stock-based compensation expense | (2.3) | (2.9) | |
Depreciation and amortization | (9.9) | (9.4) | |
Segment operating income (loss) | (1.4) | 4.6 | |
Net operating income | (1.4) | 4.6 | |
Total capital expenditures | 9.1 | 9.6 | |
Acquisition and integration related transaction expenses | |||
Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 57.1 | 57.5 | |
Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6 | 7.4 | |
Gaming [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 24 | 27.1 | |
Cost of service | (5.8) | (5.9) | |
Cost of product sales | (4.3) | (5.8) | |
Selling, general and administrative expenses | (6.6) | (5.7) | |
Stock-based compensation expense | (0.2) | (0.3) | |
Depreciation and amortization | (4.3) | (4.5) | |
Segment operating income (loss) | 2.8 | 4.9 | |
Total capital expenditures | 2 | 2.4 | |
Acquisition and integration related transaction expenses | |||
Gaming [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18.6 | 20.2 | |
Gaming [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5.4 | 6.9 | |
Virtual Sports [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 12.4 | 14.8 | |
Cost of service | (0.4) | (0.4) | |
Cost of product sales | |||
Selling, general and administrative expenses | (1.6) | (1.7) | |
Stock-based compensation expense | (0.1) | (0.2) | |
Depreciation and amortization | (0.9) | (0.8) | |
Segment operating income (loss) | 9.4 | 11.7 | |
Total capital expenditures | 1.2 | 0.4 | |
Acquisition and integration related transaction expenses | |||
Virtual Sports [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 12.4 | 14.8 | |
Virtual Sports [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Interactive [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 8.1 | 5.9 | |
Cost of service | (0.6) | (0.3) | |
Cost of product sales | |||
Selling, general and administrative expenses | (3.1) | (2.5) | |
Stock-based compensation expense | (0.1) | (0.2) | |
Depreciation and amortization | (1.2) | (0.6) | |
Segment operating income (loss) | 3.1 | 2.3 | |
Total capital expenditures | 0.5 | 1.1 | |
Acquisition and integration related transaction expenses | |||
Interactive [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 8.1 | 5.9 | |
Interactive [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Leisure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18.6 | 17.1 | |
Cost of service | (9.1) | (8.4) | |
Cost of product sales | (0.2) | (0.9) | |
Selling, general and administrative expenses | (7.5) | (6.9) | |
Stock-based compensation expense | (0.1) | (0.1) | |
Depreciation and amortization | (3) | (3.1) | |
Segment operating income (loss) | (1.3) | (2.3) | |
Total capital expenditures | 4.9 | 5.2 | |
Acquisition and integration related transaction expenses | |||
Leisure [Member] | Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18 | 16.6 | |
Leisure [Member] | Product Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0.6 | 0.5 | |
Corporate Functions [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | |||
Cost of service | |||
Cost of product sales | |||
Selling, general and administrative expenses | (13.1) | (9.5) | |
Stock-based compensation expense | (1.8) | (2.1) | |
Depreciation and amortization | (0.5) | (0.4) | |
Segment operating income (loss) | (15.4) | (12) | |
Total capital expenditures | 0.5 | 0.5 | |
Acquisition and integration related transaction expenses | |||
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 63.1 | $ 64.9 | |
Total non- current assets excluding goodwill | 128.7 | $ 129.6 | |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 47.2 | 49 | |
Total non- current assets excluding goodwill | 90 | 91.9 | |
GREECE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 6.1 | 5.6 | |
Total non- current assets excluding goodwill | 14.7 | 15.3 | |
Rest of World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 9.8 | $ 10.3 | |
Total non- current assets excluding goodwill | $ 24 | $ 22.4 |
Customer Concentration (Details
Customer Concentration (Details Narrative) - Customer Concentration Risk [Member] - Customer One [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11% | 15% | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24% |