| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Combination The accompanying condensed consolidated financial
statements of the Company have been prepared in accordance with United States generally accepted accounting principles ("GAAP")
and include the financial statements of Gaming US, its wholly-owned subsidiary, Vale Gaming, Inc., and its wholly-owned foreign subsidiary,
Gaming UK. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of expenses during the reporting period. Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under
the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates
utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After
such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant
estimates are expected to include those related to assumptions used in calculating accruals for potential liabilities, valuing equity
instruments issued for services, and the realization of deferred tax assets. Cash The Company maintains its cash balances with financial
institutions with high credit ratings. The Company has not experienced any losses to date resulting from this practice. As of June 30, 2022 and December 31, 2021, the
Company's cash balances by currency consisted of the following:
Schedule of cash
June 30, 2022 December 31, 2021
GBP £ – £ 90,467
USD $ – $ 284,410 Cash balances in British Pounds are maintained
in the United Kingdom and cash balances in United States Dollars are maintained in the United States. Concentration of Risk The Company may periodically contract with consultants
and vendors to provide services related to the Company's business development activities. Agreements for these services may be for a specific
time period or for a specific project or task. The Company did not have any such agreements at June 30, 2022 or December 31, 2021. Tax Credits and Receivables The Company is registered for provincial goods
and services taxes in the United Kingdom. As such, the Company is obligated to collect from third parties, and is entitled to claim sales
taxes paid on its expenses and capital expenditures incurred in the United Kingdom. In addition, the Company may be entitled to a receivable
in the form of tax credit or incentive on certain research and development activities. The Company records tax credits as a reduction
of expense and receivable when the Company can reasonably estimate the amounts and it is more likely than not, they will be received.
During the period ended June 30, 2022, the Company recorded a receivable of $ 281,600 Revenue Recognition The Company recognizes revenue in accordance with
ASC Topic 606, Revenue From Contracts With Customers
· Identification of the contract with a customer
· Identification of the performance obligations in the contract
· Determination of the transaction price
· Allocation of the transaction price to the performance obligations in the contract
· Recognition of revenue when, or as, the Company satisfies a performance obligation The Company operates an online betting platform
allowing users to place wagers on casino games. Each wager placed by users create a single performance obligation for the Company to administer
each event wagered. Net gaming revenue is the aggregate of gaming wins and losses based on results of each event that customers wager
bets on. Gross gaming revenue is split with our partners, whose share of gross gaming revenue is recorded as a reduction to net gaming
revenue. Cost of Revenue Cost of revenue consists primarily of variable
costs related to our contract with Big Bola. These include mainly (i) payment processing fees and chargebacks, (ii) product
taxes, (iii) technology costs, (iv) revenue share / market access arrangements, and (v) feed / provider services. The Company
incurs payment processing fees on user deposits, withdrawals and deposit reversals from payment processors (“chargebacks”).
Chargebacks have not been material to date. Cost of revenue also includes expenses related to the distribution of our services, amortization
of intangible assets and compensation of revenue associated personnel. Stock-Based Compensation The Company issues common stock and intends to
issue stock options to officers, directors and consultants for services rendered. Options will vest and expire according to terms established
at the issuance date of each grant. Stock grants, which are generally time vested, will be measured at the grant date fair value and charged
to operations ratably over the vesting period. The fair value of stock options granted as stock-based
compensation will be determined utilizing the Black-Scholes option-pricing model, and can be affected by several variables, the most significant
of which are the life of the equity award, the exercise price of the stock option as compared to the fair market value of the common stock
on the grant date, and the estimated volatility of the common stock. Estimated volatility will be based on the historical volatility of
the Company's common stock over an appropriate calculation period, or, if not available, by reference to the volatility of a representative
sample of comparable public companies. The risk-free interest rate will be based on the U.S. Treasury yield curve in effect at the time
of grant. The fair market value of the common stock will be determined by reference to the quoted market price of the Company's common
stock on the grant date, or, if not available, by reference to an appropriate alternative valuation methodology. The Company will recognize the fair value of stock-based
compensation awards in general and administrative costs or in software development costs, as appropriate, in the Company's condensed consolidated
statements of operations. The Company will issue new shares of common stock to satisfy stock option exercises. As of June 30, 2022 and December 31, 2021, the
Company did no Comprehensive Income (Loss) Comprehensive income or loss is defined as the
change in equity during a period from transactions and other events and circumstances from non-owner sources. Components of comprehensive
income or loss, including net income or loss, unrealized gains or losses on available-for-sale securities, unrealized gains or losses
on other financial investments, unrealized gains or losses on pension and retirement benefit plans, and foreign currency translation adjustments,
are reported in the financial statements in the period in which they are recognized. Net income (loss) and other comprehensive income
(loss) are reported net of any related tax effect to arrive at comprehensive income (loss). The Company's comprehensive income (loss)
for the three months ended June 30, 2021 and 2020 consists of foreign currency translation adjustments. Earnings (Loss) Per Share The Company's computation of earnings (loss) per
share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders
divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive
effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, warrants and stock
options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares
that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation
of diluted EPS. Loss per common share is computed by dividing
net loss by the weighted average number of shares of common stock outstanding during the respective periods. At June 30, 2022 and December
31, 2021, the Company excluded warrants to acquire 1,540,141 The Company has adopted ASU 2017-11, Earnings
per share (Topic 260), provided that when determining whether certain financial instruments should be classified as liability or equity
instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s
own stock. Fair Value of Financial Instruments The authoritative guidance with respect to fair
value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels
and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below.
Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Level 1. Observable inputs such as quoted prices
in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial
assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included
within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable
market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives,
mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is
little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets
and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds and
are measured using present value pricing models. The Company will determine the level in the fair
value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to
the fair value measurement in its entirety. In determining the appropriate levels, the Company will perform an analysis of the assets
and liabilities at each reporting period end. The carrying value of financial instruments (consisting
of cash and accounts payable and accrued expenses) is considered to be representative of their respective fair values due to the short-term
nature of those instruments. Foreign Currency The accompanying condensed consolidated financial
statements are presented in United States dollars ("USD"). The functional currency of Gaming UK, the Company's foreign subsidiary,
is the British Pound (“GBP”), the local currency in the United Kingdom. Accordingly, assets and liabilities of the foreign
subsidiary are translated at the current exchange rate at the end of the period, and revenues and expenses are translated at average exchange
rates during the six months ended June 30, 2022 and the year ended December 31, 2021. The resulting translation adjustments of the balance
sheet amounts are recorded as a component of shareholders' equity (deficiency). Gains and losses from translation of revenues and expenses
from foreign currency transactions are included in net income (loss). Translation of amounts from the local currencies
of the foreign subsidiary, Gaming UK, into USD has been made at the following exchange rates for the respective periods: Translation of amounts from the local currencies
of the foreign subsidiary, Gaming UK, into USD has been made at the following exchange rates for the respective periods:
Foreign currency exchange rates table
As of and for the
Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Period-end GBP to USD1.00 exchange rate 1.2162 1.3801
Period-average GBP to USD1.00 exchange rate 1.2556 1.3885 Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic
326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes how entities
measure credit losses for most financial assets, including accounts and notes receivables. ASU 2016-13 will replace the current "incurred
loss" approach with an “expected loss” model, under which companies will recognize allowances based on expected rather
than incurred losses. Entities will apply the provisions of ASU 2016-13 as a cumulative-effect adjustment to retained earnings as of the
beginning of the first reporting period in which ASU 2016-13 is effective. As small business filer, ASU 2016-13 will be effective for
the Company for interim and annual reporting periods beginning after December 15, 2022. Management is currently in the process of assessing
the impact of adopting ASU-2016-13 on the Company's financial statements and related disclosures. Other recent
accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants,
and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present
or future consolidated financial statements and related disclosures. |
