GAN LTD’s Financial Performance: Analysis and Discussion (10-K Summary),

GAN Limited is a Bermuda holding company that operates in two lines of business: a B2B supplier of enterprise Software-as-a-Service solutions for online casino gaming and online sports betting applications, and a B2C developer and operator of an online sports betting and casino platform. Their B2B segment includes GameSTACK technology, GAN Sports, and iSight Back Office that allows casino operators to extend their online presence. Their B2C segment includes the operations of Coolbet, which offers consumers in select markets a digital portal for sports betting, online casino games, and poker.

To improve profitability, GAN Limited plans to increase revenues through organic growth, expansion into newly regulated jurisdictions, margin expansion from the integration of Coolbet’s sports betting technology, and revenue expansion from the roll-out of their Super RGS content offering. They also hold a strategic U.S. patent that governs the linkage of on-property reward cards to internet gambling accounts together with bilateral transmission of reward points between the internet gaming technology system and the land-based casino management system present in all U.S. casino properties.

Their revenue recognition policies require significant judgments and estimates. They determine the stand-alone selling price for their goods and services as a basis for allocating the transaction price to the identified distinct performance obligations in their contracts with customers. They account for business combinations in accordance with ASC 805, Business Combinations, which requires them to recognize all assets acquired and liabilities assumed in the transaction and establish acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination.