| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 52.00 | | | | | $ | 1,664,000,000 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 1.17 | | | | | $ | 37,440,000 | | |
Proceeds, before expenses, to us
|
| | | $ | 50.83 | | | | | $ | 813,280,000 | | |
Proceeds, before expenses, to the selling stockholders
|
| | | $ | 50.83 | | | | | $ | 813,280,000 | | |
| Credit Suisse | | |
Goldman Sachs & Co. LLC
|
|
| BofA Securities | | |
Morgan Stanley
|
| |
UBS Investment Bank
|
|
| Canaccord Genuity | | |
Evercore ISI
|
| |
Oppenheimer & Co.
|
|
| Craig-Hallum Capital Group | | |
Deutsche Bank Securities
|
| |
Macquarie Capital
|
|
| Needham & Company | | |
Northland Capital Markets
|
| |
Rosenblatt Securities
|
|
| The Benchmark Company | | |
Truist Securities
|
| |
Wolfe Capital Markets and Advisory
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | v | | | |
| | | | | 1 | | | |
| | | | | 11 | | | |
| | | | | 12 | | | |
| | | | | 48 | | | |
| | | | | 49 | | | |
| DILUTION | | | | | 50 | | |
| | | | | 51 | | | |
| | | | | 52 | | | |
| | | | | 55 | | | |
| | | | | 60 | | | |
| | | | | 65 | | | |
| | | | | 94 | | | |
| | | | | 99 | | | |
| | | | | 122 | | | |
| | | | | 133 | | | |
| | | | | 144 | | | |
| | | | | 156 | | | |
| | | | | 166 | | | |
| | | | | 169 | | | |
| | | | | 172 | | | |
| | | | | 180 | | | |
| | | | | 184 | | | |
| | | | | 189 | | | |
| | | | | 189 | | | |
| | | | | 190 | | | |
| | | | | F-1 | | |
|
Class A common stock offered by us
|
| | 16,000,000 shares (or 20,800,000 shares if the underwriters exercise their option to purchase additional shares in full) | |
|
Class A common stock offered by selling stockholders
|
| | 16,000,000 shares | |
|
Option to purchase additional shares of Class A common stock
|
| | We have granted the underwriters an option to purchase up to an aggregate of 4,800,000 shares of Class A common stock. This option is exercisable, in whole or in part, within 30 days after the date of this prospectus. | |
|
Class A common stock to be outstanding immediately after this offering
|
| | 373,441,854 shares (or 378,241,854 shares if the underwriters exercise their option to purchase additional shares in full) | |
|
Use of proceeds
|
| |
We estimate that after deducting underwriting discounts and commissions and estimated offering expenses payable by us, we will receive approximately $813.28 million of net proceeds from this offering (or $1,057.26 million if the underwriters exercise their option to purchase additional shares).
We currently intend to use the net proceeds from the offering for general corporate purposes.
We will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. We will, however, bear the costs associated with the sale of shares by the selling stockholders, other than underwriting discounts and commissions. See “Use of Proceeds.”
|
|
|
Risk Factors
|
| | Investing in our Class A common stock involves a high degree of risk. See “Risk Factors” in this prospectus. | |
|
Ticker Symbol
|
| | “DKNG” for our Class A common stock. | |
| | |
Pro Forma
Combined |
| |||
| | |
(in thousands,
except share and per share data) |
| |||
Summary Unaudited Pro Forma Condensed Combined Statement of Operations
Data Six Months Ended June 30, 2020 |
| | | | | | |
Revenue
|
| | |
$
|
188,443
|
| |
Net loss per share – basic and diluted
|
| | | $ | (0.69) | | |
Weighted-average Class A shares outstanding — basic and diluted
|
| | | | 351,964,934 | | |
Summary Unaudited Pro Forma Condensed Combined Statement of Operations
Data Year Ended December 31, 2019 |
| | | | | | |
Revenue
|
| | | $ | 431,834 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.50) | | |
Weighted-average Class A shares outstanding — basic and diluted
|
| | | | 351,964,934 | | |
| | |
As of June 30,
2020 |
| | | | | | | |||
| | |
Actual
|
| |
As adjusted
|
| ||||||
Cash and cash equivalents
|
| | | $ | 1,244,266 | | | | | $ | 2,059,546 | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Class A common stock, $0.0001 par value; 354,251 shares issued and
outstanding at June 30, 2020 |
| | | | 35 | | | | | | 37 | | |
Class B common stock, $0.0001 par value; 393,014 shares issued and
outstanding at June 30, 2020 |
| | | | 39 | | | | | | 39 | | |
Additional paid-in capital
|
| | | | 3,395,129 | | | | | | 4,210,407 | | |
Accumulated deficit
|
| | | | (1,228,901) | | | | | | (1,228,901) | | |
Accumulated other comprehensive income
|
| | | | 24,986 | | | | | | 24,986 | | |
Total parent stockholders’ equity
|
| | | | 2,191,288 | | | | | | 3,006,568 | | |
Total Capitalization
|
| | | | 2,191,288 | | | | | | 3,006,568 | | |
|
Assumed public offering price per share
|
| | | | | | | | | $ | 52.00 | | |
|
Net tangible book value per share as of June 30, 2020
|
| | | $ | 3.30 | | | | | | | | |
|
Increase in as adjusted net tangible book value per share attributable to investors in this offering
|
| | | $ | 2.06 | | | | | | | | |
|
As adjusted net tangible book value per share after this offering
|
| | | | | | | | | $ | 5.36 | | |
|
As adjusted dilution per share to investors in this offering
|
| | | | | | | | | $ | 46.64 | | |
| | |
For the six months ended June 30,
|
| |
For the year ended December 31,
|
| ||||||||||||||||||||||||
Statement of Operations Data
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(audited)
|
| |
(audited)
|
| |
(audited)
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Revenue
|
| | | $ | 159,473 | | | | | $ | 125,482 | | | | | $ | 323,410 | | | | | $ | 226,277 | | | | | $ | 191,844 | | |
Total costs and expenses
|
| | | | 386,034 | | | | | | 184,220 | | | | | | 469,955 | | | | | | 303,058 | | | | | | 265,042 | | |
Loss from operations
|
| | | | (226,561) | | | | | | (58,738) | | | | | | (146,545) | | | | | | (76,781) | | | | | | (73,198) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net
|
| | | | (2,939) | | | | | | 1,087 | | | | | | 1,348 | | | | | | 666 | | | | | | (1,541) | | |
Gain on initial equity method
investment |
| | | | — | | | | | | — | | | | | | 3,000 | | | | | | — | | | | | | — | | |
Other expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (607) | | |
Income Tax Provision
|
| | | | 332 | | | | | | 16 | | | | | | 58 | | | | | | 105 | | | | | | 210 | | |
Loss from equity method investment
|
| | | | 285 | | | | | | — | | | | | | 479 | | | | | | — | | | | | | — | | |
Net Loss
|
| | | $ | (230,117) | | | | | $ | (57,667) | | | | | $ | (142,734) | | | | | $ | (76,220) | | | | | $ | (75,556) | | |
Statement of Cash Flows Data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities
|
| | | | (134,971) | | | | | | (39,813) | | | | | | (78,880) | | | | | | (45,579) | | | | | | (88,437) | | |
Net cash provided by (used in) investing activities
|
| | | | (198,652) | | | | | | (19,420) | | | | | | (42,271) | | | | | | (26,672) | | | | | | (7,715) | | |
Net cash provided by (used in) financing activities
|
| | | | 1,501,100 | | | | | | 8,775 | | | | | | 79,776 | | | | | | 140,892 | | | | | | 118,531 | | |
| | |
As of June 30,
|
| |
As of December 31,
|
| ||||||||||||
Balance Sheet Data
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(unaudited)
|
| |
(audited)
|
| |
(audited)
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Total assets
|
| | | $ | 2,516,137 | | | | | $ | 330,725 | | | | | $ | 299,393 | | |
Total liabilities
|
| | | | 324,849 | | | | | | 380,305 | | | | | | 223,343 | | |
Total redeemable convertible preferred stock and stockholders’ deficit
|
| | | | 2,191,288 | | | | | | (49,580) | | | | | | 76,050 | | |
| | |
Six months ended June 30,
|
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Revenue
|
| | | $ | 159,473 | | | | | $ | 125,482 | | | | | $ | 323,410 | | | | | $ | 226,227 | | | | | $ | 191,844 | | |
Net Loss
|
| | | | (230,117) | | | | | | (57,667) | | | | | | (142,734) | | | | | | (76,220) | | | | | | (75,556) | | |
Adjusted EBITDA(1)
|
| | | $ | (106,956) | | | | | $ | (41,516) | | | | | $ | (98,640) | | | | | $ | (58,850) | | | | | $ | (48,884) | | |
Total Consideration (in 000s)
|
| |
Amounts
|
| |||
Share consideration – DraftKings
|
| | | $ | 3,620,939 | | |
Cash consideration – SBTech(1)
|
| | | | 186,476 | | |
Share consideration – SBTech(2)
|
| | | | 789,065 | | |
Total Merger Consideration
|
| | | $ | 4,596,480 | | |
| | |
For the
Six Months ended June 30, 2020 |
| |
For the
period from January 1, 2020 to April 23, 2020 |
| |
For the
period from January 1, 2020 to April 23, 2020 |
| |
Accounting
Policies and Reclassification Adjustments (Note 2) |
| | | | | | | | | | | | | |
Purchase
Accounting Adjustments (Note 4 – PPA) |
| | | | | | | |
For the
Six Months ended June 30, 2020 |
| | ||||||||||||||||||||
| | |
DraftKings
(Historical) |
| |
DEAC
(Historical) |
| |
SBTech
(As Adjusted) (Note 3) |
| |
Pro Forma
Adjustments (Note 4 – PF) |
| | | | | | | | | | | | | |
Pro Forma
Combined |
| | |||||||||||||||||||||||||||||
Revenue
|
| | | $ | 159,473 | | | | | $ | — | | | | | $ | 28,970 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 188,443 | | | | ||
Cost of revenue
|
| | | | 90,746 | | | | | | — | | | | | | 12,609 | | | | | | — | | | | | | — | | | | | | | | | | | | 18,275 | | | | |
|
AA
|
| | | | | 121,630 | | | | ||
Gross Profit
|
| | | | 68,727 | | | | | | — | | | | | | 16,361 | | | | | | — | | | | | | — | | | | | | | | | | | | (18,275) | | | | | | | | | | | | 66,813 | | | | ||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 99.894 | | | | | | — | | | | | | 4,346 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 104,240 | | | | ||
General and administrative
|
| | | | 146,804 | | | | | | 1,979 | | | | | | 12,291 | | | | | | — | | | | | | (20,569) | | | | |
|
AA
|
| | | | | 16 | | | | |
|
BB
|
| | | | | 130,625 | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 250 | | | | |
|
DD
|
| | | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | (10,146) | | | | |
|
EE
|
| | | | | | |||||||||||||||||
Product and technology
|
| | | | 48,590 | | | | | | — | | | | | | — | | | | | | 17,635 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 66,225 | | | | ||
Research and development expenses
|
| | | | — | | | | | | — | | | | | | 17,635 | | | | | | (17,635) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||
Total Operating Expenses
|
| | | | 295,288 | | | | | | 1,979 | | | | | | 34,272 | | | | | | — | | | | | | (30,465) | | | | | | | | | | | | 16 | | | | | | | | | | | | 301,090 | | | | ||
(Loss) / Income from Operations
|
| | | | (226,561) | | | | | | (1,979) | | | | | | (17,911) | | | | | | — | | | | | | 30,465 | | | | | | | | | | | | (18,291) | | | | | | | | | | | | (234,277) | | | | ||
Interest income (expense)
|
| | | | (2,939) | | | | | | — | | | | | | — | | | | | | (460) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (3,399) | | | | ||
Other income - interest on Trust Account
|
| | | | — | | | | | | 1,444 | | | | | | — | | | | | | — | | | | | | (1,444) | | | | |
|
BB
|
| | | | | — | | | | | | | | | | | | — | | | | ||
Financial Income
|
| | | | — | | | | | | — | | | | | | 14 | | | | | | (14) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||
Financial Expenses
|
| | | | — | | | | | | — | | | | | | (474) | | | | | | 474 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||
(Loss)/Income before Income Tax Expense
|
| | | | (229,500) | | | | | | (535) | | | | | | (18,371) | | | | | | — | | | | | | 29,021 | | | | | | | | | | | | (18,291) | | | | | | | | | | | | (237,676) | | | | ||
Income Tax Expense/(Benefit)
|
| | | | 332 | | | | | | 316 | | | | | | 121 | | | | | | — | | | | | | 8,008 | | | | |
|
CC
|
| | | | | (5,048) | | | | |
|
CC
|
| | | | | 3,729 | | | | ||
Loss from equity method investment
|
| | | | 285 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 285 | | | | ||
Net (Loss)/Income
|
| | | | (230,117) | | | | | | (851) | | | | | | (18,492) | | | | | | — | | | | | | 21,013 | | | | | | | | | | | | (13,243) | | | | | | | | | | | | (241,690) | | | | ||
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Weighted average Class A shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 351,964,934 | | | | ||
Loss per share (Basic and Diluted) attributable to Class A
common stockholders |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.69) | | | |
| | |
For the
Year ended December 31, 2019 |
| |
March 27,
2019 (inception) to December 31, 2019 |
| |
For the
Year ended December 31, 2019 |
| |
Accounting
Policies and Reclassification Adjustments (Note 2) |
| |
Pro Forma
Adjustments (Note 4 – PF) |
| | | | | | | |
Purchase
Accounting Adjustments (Note 4 – PPA) |
| | | | | | | |
For the
Year ended December 31, 2019 |
| |||||||||||||||||||||
| | |
DraftKings
(Historical) |
| |
DEAC
(Historical) |
| |
SBTech
(As Adjusted) (Note 3) |
| | | | | | | | | | | | | |
Pro Forma
Combined |
| ||||||||||||||||||||||||||||||
Revenue
|
| | | $ | 323,410 | | | | | $ | — | | | | | $ | 108,424 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 431,834 | | |
Cost of revenue
|
| | | | 103,889 | | | | | | — | | | | | | 60,649 | | | | | | — | | | | | | — | | | | | | | | | | | | 64,253 | | | | |
|
AA
|
| | | | | 228,791 | | |
Gross Profit
|
| | | | 219,521 | | | | | | — | | | | | | 47,775 | | | | | | — | | | | | | — | | | | | | | | | | | | (64,253) | | | | | | | | | | | | 203,043 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 185,269 | | | | | | — | | | | | | 7,592 | | | | | | — | | | | | | — | | | | | | | | | | | | 40 | | | | |
|
BB
|
| | | | | 192,901 | | |
General and administrative
|
| | | | 124,868 | | | | | | 1,857 | | | | | | 13,230 | | | | | | — | | | | | | (12,760) | | | | |
|
AA
|
| | | | | 1,188 | | | | |
|
BB
|
| | | | | 128,883 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 500 | | | | |
|
DD
|
| | | | | | | | | | | | | | | | | | | |
Product and technology
|
| | | | 55,929 | | | | | | — | | | | | | — | | | | | | 20,408 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 76,337 | | |
Research and development expenses
|
| | | | — | | | | | | — | | | | | | 20,408 | | | | | | (20,408) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Total Operating Expenses
|
| | | | 366,066 | | | | | | 1,857 | | | | | | 41,230 | | | | | | — | | | | | | (12,260) | | | | | | | | | | | | 1,228 | | | | | | | | | | | | 398,121 | | |
(Loss) / Income from
Operations |
| | | | (146,545) | | | | | | (1,857) | | | | | | 6,545 | | | | | | — | | | | | | 12,260 | | | | | | | | | | | | (65,481) | | | | | | | | | | | | (195,078) | | |
Interest income (expense)
|
| | | | 1,348 | | | | | | — | | | | | | — | | | | | | (164) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,184 | | |
Other income - interest on Trust Account
|
| | | | — | | | | | | 5,111 | | | | | | — | | | | | | — | | | | | | (5,111) | | | | |
|
BB
|
| | | | | — | | | | | | | | | | | | — | | |
Gain on initial equity method
investment |
| | | | 3,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 3,000 | | |
Financial Income
|
| | | | — | | | | | | — | | | | | | 26 | | | | | | (26) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Financial Expenses
|
| | | | — | | | | | | — | | | | | | (190) | | | | | | 190 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
(Loss)/Income before Income
Tax Expense |
| | | | (142,197) | | | | | | 3,254 | | | | | | 6,381 | | | | | | — | | | | | | 7,149 | | | | | | | | | | | | (65,481) | | | | | | | | | | | | (190,894) | | |
Income Tax Expense/(Benefit)
|
| | | | 58 | | | | | | 944 | | | | | | 796 | | | | | | — | | | | | | 1,973 | | | | |
|
CC
|
| | | | | (18,081) | | | | |
|
CC
|
| | | | | (14,310) | | |
Loss from equity method investment
|
| | | | 479 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 479 | | |
Net (Loss)/Income
|
| | | | (142,734) | | | | | | 2,310 | | | | | | 5,585 | | | | | | — | | | | | | 5,176 | | | | | | | | | | | | (47,400) | | | | | | | | | | | | (177,063) | | |
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Class A shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 351,964,934 | | |
Loss per share (Basic and Diluted) attributable to Class A common stockholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.50) | | |
| | |
$ / €
|
| |||
Average exchange rate for the period from January 1, 2020 through April 23, 2020
|
| | | | 1.10 | | |
Average exchange rate for twelve months ended December 31, 2019
|
| | | | 1.12 | | |
| | |
For the
period from January 1, 2020 to April 23, 2020 |
| | | | | | | | | | | | | |
For the
period from January 1, 2020 to April 23, 2020 |
| |
For the
period from January 1, 2020 to April 23, 2020 |
| |||||||||
| | |
IFRS
SBTech (in EUR) |
| |
Total
Adjustments (in EUR) |
| | | | | | | |
US GAAP
SBTech (in EUR) |
| |
US GAAP
SBTech (in USD) |
| ||||||||||||
Revenue
|
| | | € | 26,333 | | | | | € | — | | | | | | | | | | | € | 26,333 | | | | | $ | 28,970 | | |
Cost of revenue
|
| | | | 11,655 | | | | | | (188) | | | | |
|
A
|
| | | | | 11,467 | | | | | | 12,609 | | |
Gross Profit
|
| | | | 14,678 | | | | | | 188 | | | | | | | | | | | | 14,866 | | | | | | 16,361 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing
expenses |
| | | | 3,936 | | | | | | 16 | | | | |
|
A
|
| | | | | 3,952 | | | | | | 4,346 | | |
General and administrative expenses
|
| | | | 11,246 | | | | | | (19) | | | | |
|
A
|
| | | | | 11,227 | | | | | | 12,291 | | |
Research and development expenses
|
| | | | 16,068 | | | | | | 3 | | | | |
|
A
|
| | | | | 16,071 | | | | | | 17,635 | | |
Total operating costs and
expenses |
| | | | 31,250 | | | | | | — | | | | | | | | | | | | 31,250 | | | | | | 34,272 | | |
Operating (Loss)/income
|
| | | | (16,572) | | | | | | 188 | | | | | | | | | | | | (16,384) | | | | | | (17,911) | | |
Financial Income
|
| | | | 13 | | | | | | — | | | | | | | | | | | | 13 | | | | | | 14 | | |
Financial Expenses
|
| | | | 669 | | | | | | (238) | | | | |
|
A
|
| | | | | 431 | | | | | | 474 | | |
Profit before tax
|
| | | | (17,228) | | | | | | 426 | | | | | | | | | | | | (16,802) | | | | | | (18,371) | | |
Tax expenses
|
| | | | 110 | | | | | | — | | | | | | | | | | | | 110 | | | | | | 121 | | |
Net (Loss)/Profit
|
| | | | (17,338) | | | | | | 426 | | | | | | | | | | | | (16,912) | | | | | | (18,492) | | |
| | |
For the
Year ended December 31, 2019 |
| | | | | | | | | | | | | |
For the
Year ended December 31, 2019 |
| |
For the
Year ended December 31, 2019 |
| |||||||||
| | |
IFRS
SBTech (in EUR) |
| |
Total
Adjustments (in EUR) |
| | | | | | | |
US GAAP
SBTech (in EUR) |
| |
US GAAP
SBTech (in USD) |
| ||||||||||||
Revenue
|
| | | € | 96,857 | | | | | € | — | | | | | | | | | | | € | 96,857 | | | | | $ | 108,424 | | |
Cost of revenue
|
| | | | 54,173 | | | | | | 6 | | | | |
|
A
|
| | | | | 54,179 | | | | | | 60,649 | | |
Gross Profit
|
| | | | 42,684 | | | | | | (6) | | | | | | | | | | | | 42,678 | | | | | | 47,775 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 6,772 | | | | | | 10 | | | | |
|
A
|
| | | | | 6,782 | | | | | | 7,592 | | |
General and administrative
expenses |
| | | | 11,772 | | | | | | 47 | | | | |
|
A
|
| | | | | 11,819 | | | | | | 13,230 | | |
Research and development
expenses |
| | | | 18,103 | | | | | | 128 | | | | |
|
A
|
| | | | | 18,231 | | | | | | 20,408 | | |
|
| | |
For the
Year ended December 31, 2019 |
| | | | | | | | | | | | | |
For the
Year ended December 31, 2019 |
| |
For the
Year ended December 31, 2019 |
| |||||||||
| | |
IFRS
SBTech (in EUR) |
| |
Total
Adjustments (in EUR) |
| | | | | | | |
US GAAP
SBTech (in EUR) |
| |
US GAAP
SBTech (in USD) |
| ||||||||||||
Total operating costs and expenses
|
| | | | 36,647 | | | | | | 185 | | | | | | | | | | | | 36,832 | | | | | | 41,230 | | |
Operating income/(Loss)
|
| | | | 6,037 | | | | | | (191) | | | | | | | | | | | | 5,846 | | | | | | 6,545 | | |
Financial Income
|
| | | | 23 | | | | | | — | | | | | | | | | | | | 23 | | | | | | 26 | | |
Financial Expenses
|
| | | | 846 | | | | | | (676) | | | | |
|
A
|
| | | | | 170 | | | | | | 190 | | |
Profit before tax
|
| | | | 5,214 | | | | | | 485 | | | | | | | | | | | | 5,699 | | | | | | 6,381 | | |
Tax expenses
|
| | | | 638 | | | | | | 73 | | | | | | | | | | | | 711 | | | | | | 796 | | |
Net Profit
|
| | | | 4,576 | | | | | | 412 | | | | | | | | | | | | 4,988 | | | | | | 5,585 | | |
|
| | |
For the Six
Months ended June 30, 2020 |
| |
For the Year
ended December 31, 2019 |
| ||||||
| | |
(in thousands
except share and per share data) |
| |
(in thousands
except share and per share data) |
| ||||||
Pro forma net loss
|
| | | $ | (241,690) | | | | | $ | (177,063) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 351,964,934 | | | | | | 351,964,934 | | |
Net loss per share (Basic and Diluted) attributable to Class A common stockholders(1)
|
| | | $ | (0.69) | | | | | $ | (0.50) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | | | | | | | | | |
Shares outstanding at June 30, 2020
|
| | | | 354,250,890 | | | | | | 354,250,890 | | |
Less: Shares issued for exercise of stock options post Business Combination
|
| | | | (2,285,956) | | | | | | (2,285,956) | | |
Total shares
|
| | | | 351,964,934 | | | | | | 351,964,934 | | |
| | |
DraftKings
|
| |
SBTech
|
|
2007 | | | | | |
•
SBTech was founded and officially began its operations.
|
|
2012 | | |
•
DraftKings began its operations and offered its first DFS contest to the public for the Major League Baseball (“MLB”) season.
|
| |
•
SBTech’s operator base had grown to six.
|
|
2013 | | |
•
MLB became the first major sports organization to invest in, and establish a relationship, with DraftKings.
|
| |
•
SBTech’s operator base had grown to eight and just over 200 employees.
|
|
| | |
•
We launched the first mobile app in the DFS industry.
|
| | ||
2014 | | |
•
We acquired DraftStreet, a DFS operator, increasing our user base by more than 50%, and acquired Starstreet, another DFS operator.
|
| |
•
SBTech’s operator base had grown to 11 and just over 400 employees.
|
|
| | |
•
We signed a two-year deal to become the official DFS provider of the National Hockey League.
|
| | ||
2015 | | |
•
We were named the official DFS game of NASCAR, Ultimate Fighting Championship and Major League Soccer, and announced partnership deals with major sports teams including the New England Patriots, New York Knicks and Chicago Cubs.
|
| |
•
SBTech obtained a license from the United Kingdom Gambling Commission to provide facilities for real event betting and to manufacture gambling software.
|
|
| | |
•
21st Century Fox America, Inc. (“FOX”) became the first major media company to invest in us.
|
| | ||
| | |
•
We obtained a license from the United Kingdom Gambling Commission to provide facilities to offer daily fantasy sports contests and other forms of pool betting, and to manufacture gambling software.
|
| | | |
2016 | | |
•
We acquired a leading provider of DFS Mixed Martial Arts contests, Kountermove, to bolster our user base in the burgeoning space of combat sports.
|
| |
•
SBTech re-domiciled SBTech in the Isle of Man, and acquired a Maltese B2B license from the Malta Gaming Authority for hosting and management of remote gaming
|
|
| | |
DraftKings
|
| |
SBTech
|
| | ||
| | | | | |
operators.
|
| | ||
| | |
•
We explored a possible combination with a DFS competitor, but did not receive Federal Trade Commission approval.
|
| |
•
SBTech acquired two Romanian licenses from the National Gambling Office of Romania for the production of gambling software and the hosting of a gambling platform.
|
| | | |
| | | | | |
•
SBTech launched our Sportsbook into the newly regulated Romanian and Portuguese jurisdictions, opened an office in London and accepted our first retail sports bet in Mexico.
|
| | ||
2017 | | |
•
We were granted a skill gaming license in Malta, allowing for further expansion in the European Union.
|
| |
•
SBTech launched a sportsbook for the Czech Republic National Lottery, marking SBTech’s first major lottery partner.
|
| | ||
| | | | | |
•
SBTech’s sportsbook launched in the Spanish regulated market.
|
| | ||
2018 | | |
•
PASPA was struck down by the U.S. Supreme Court, opening the potential for state-by-state authorization of sports betting.
|
| |
•
SBTech entered the Danish sports betting and iGaming industry by partnering with the Danish National Lottery, Danske Spil, under the brand YOUBET
|
| | ||
| | |
•
We launched the first online sportsbook in New Jersey.
|
| |
•
SBTech was awarded a B2B remote gambling license in Gibraltar, where we opened an office.
|
| | ||
| | |
•
We opened our first retail sportsbooks in Atlantic City, New Jersey (Resorts Casino and Hotel) and D’Iberville, Mississippi (Scarlet Pearl Casino Resort).
|
| |
•
SBTech became one of the first sportsbook providers to be licensed in the state of Mississippi as a manufacturer and distributor by the Mississippi Gaming Commission, and we debuted our retail sportsbook at the Golden Nugget’s Biloxi Casino as well as two Churchill Downs properties.
|
| | ||
| | | | | |
•
SBTech was awarded a Casino Service Industry Enterprise transactional waiver by the New Jersey Gaming Board and debuted a retail sportsbook at the Golden Nugget Atlantic City.
|
| | ||
2019 | | |
•
We officially launched iGaming in New Jersey with blackjack, roulette, video poker and slots.
|
| |
•
SBTech launched our online sportsbook and iGaming offerings with Churchill Downs, and our online sportsbook with the Golden Nugget in New Jersey.
|
| | ||
| | |
•
We announced a landmark partnership with the National Football League (“NFL”) which made us the Official Daily Fantasy Partner of the NFL.
|
| |
•
SBTech obtained conditional manufacturer and operator licenses from the Pennsylvania Gaming Commission, a manufacturer and Distributer license from the Arkansas Racing Commission and a temporary supplier’s license from the Indiana Gaming Commission, allowing us to launch our retail sportsbook in Pennsylvania, Indiana and Arkansas with Churchill Downs properties.
|
| |
| | |
DraftKings
|
| |
SBTech
|
|
| | |
•
We were named the Official Daily Fantasy Game of the PGA Tour.
•
Our online sportsbook launched in Indiana, New Hampshire, Pennsylvania and West Virginia.
•
We launched retail sportsbooks in Iowa (Wild Rose) and New York (del Lago).
•
We were selected by the state of New Hampshire as its exclusive sportsbook partner.
•
DraftKings mobile/online Sportsbook launches in New Hampshire.
|
| |
•
SBT Malta Limited signed a five-year agreement with the Oregon State Lottery to provide online and retail sportsbook offering, and successfully launched the first online sportsbook offering in the State of Oregon in October 2019. The retail sportsbook offering is expected to be rolled out mid-2020.
•
SBTech launched an online sportsbook for the State Lottery and Monopoly of Azerbaijan, and signed agreements to provide its online and retail sportsbook solution with the Finnish state lottery, Veikkaus, and the Swedish state lottery, Svenska Spel, in 2020.
|
|
2020 | | |
•
DraftKings and the XFL announced a new partnership that makes DraftKings an Official Daily Fantasy Sports Partner and an Authorized Gaming Operator of the league.
|
| | ||
| | |
•
DraftKings launched mobile/online Sportsbook in Iowa and Colorado and iGaming in Pennsylvania.
|
| | ||
| | |
•
DraftKings completed its business combination with DEAC and SBTech and began trading on Nasdaq
|
| | ||
| | |
•
DraftKings added Michael Jordan as a special advisor to its board of directors.
|
| | ||
| | |
•
DraftKings agreed with ESPN to become ESPN’s co-exclusive sportsbook link-out provider and exclusive daily fantasy sports link-out provider.
|
| |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| |
Year ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Revenue(1) | | | | $ | 70,931 | | | | | $ | 57,390 | | | | | $ | 159,473 | | | | | $ | 125,482 | | | | | $ | 323,410 | | | | | $ | 226,227 | | | | | $ | 191,844 | | |
Net Loss(1)
|
| | | | (161,437) | | | | | | (28,113) | | | | | | (230,117) | | | | | | (57,667) | | | | | | (142,734) | | | | | | (76,220) | | | | | | (75,556) | | |
Adjusted EBITDA(2)
|
| | | $ | (57,495) | | | | | $ | (21,101) | | | | | $ | (106,956) | | | | | $ | (41,516) | | | | | $ | (98,640) | | | | | $ | (58,850) | | | | | $ | (48,884) | | |
|
|
| |
|
| |
|
|
|
|
| |
|
| |
|
|
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| |
Year ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Net loss
|
| | | $ | (161,437) | | | | | $ | (28,113) | | | | | $ | (230,117) | | | | | $ | (57,667) | | | | | $ | (142,734) | | | | | $ | (76,220) | | | | | $ | (75,556) | | |
Adjusted for: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and
amortization |
| | | | 18,668 | | | | | | 3,274 | | | | | | 23,372 | | | | | | 6,199 | | | | | | 13,636 | | | | | | 7,499 | | | | | | 6,301 | | |
Interest (income) expense, net
|
| | | | 588 | | | | | | (426) | | | | | | 2,939 | | | | | | (1,087) | | | | | | (1,348) | | | | | | (666) | | | | | | 1,541 | | |
Income tax expense
|
| | | | 323 | | | | | | 7 | | | | | | 332 | | | | | | 16 | | | | | | 58 | | | | | | 105 | | | | | | 210 | | |
Stock-based compensation(1)
|
| | | | 54,486 | | | | | | 1,844 | | | | | | 59,328 | | | | | | 6,675 | | | | | | 17,613 | | | | | | 7,210 | | | | | | 4,500 | | |
Transaction-related costs(2)
|
| | | | 25,255 | | | | | | 1,276 | | | | | | 30,907 | | | | | | 1,276 | | | | | | 10,472 | | | | | | — | | | | | | 10,697 | | |
Litigation, settlement and related costs(3)
|
| | | | 2,022 | | | | | | 814 | | | | | | 3,352 | | | | | | 1,701 | | | | | | 3,695 | | | | | | 3,222 | | | | | | 1,754 | | |
Other non-recurring and special
project costs(4) |
| | | | 2,517 | | | | | | 223 | | | | | | 2,646 | | | | | | 1,371 | | | | | | 2,489 | | | | | | — | | | | | | 1,062 | | |
Non-operating costs(5)
|
| | | | 83 | | | | | | — | | | | | | 285 | | | | | | — | | | | | | (2,521) | | | | | | — | | | | | | 607 | | |
Adjusted EBITDA
|
| | | $ | (57,495) | | | | | $ | (21,101) | | | | | $ | (106,956) | | | | | $ | (41,516) | | | | | $ | (98,640) | | | | | $ | (58,850) | | | | | $ | (48,884) | | |
|
| | |
Three months ended June 30,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||
Revenue
|
| | | $ | 70,931 | | | | | $ | 57,390 | | | | | $ | 13,541 | | | | | | 23.6% | | |
Cost of revenue
|
| | | | (47,330) | | | | | | (17,834) | | | | | | (29,496) | | | | | | 165.4% | | |
Sales and marketing
|
| | | | (46,188) | | | | | | (29,671) | | | | | | (16,517) | | | | | | 55.7% | | |
General and administrative
|
| | | | (107,308) | | | | | | (26,183) | | | | | | (81,125) | | | | | | 309.8% | | |
Product and technology
|
| | | | (30,549) | | | | | | (12,234) | | | | | | (18,315) | | | | | | 149.7% | | |
Loss from operations
|
| | | | (160,444) | | | | | | (28,532) | | | | | | (131,912) | | | | | | 462.3% | | |
Interest income (expense), net
|
| | | | (588) | | | | | | 426 | | | | | | (1,014) | | | | | | n.m. | | |
Loss before income tax expense
|
| | | | (161,032) | | | | | | (28,106) | | | | | | (132,926) | | | | | | 472.9% | | |
Income tax expense
|
| | | | (323) | | | | | | (7) | | | | | | (316) | | | | | | n.m. | | |
Loss from equity method investment
|
| | | | (82) | | | | | | — | | | | | | (82) | | | | | | n.m. | | |
Net Loss
|
| | | $ | (161,437) | | | | | $ | (28,113) | | | | | $ | (133,324) | | | | | | 474.2% | | |
| | |
Six months ended June 30,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||||||||
Revenue
|
| | | $ | 159,473 | | | | | $ | 125,482 | | | | | $ | 33,991 | | | | | | 27.1% | | |
Cost of revenue
|
| | | | (90,746) | | | | | | (39,386) | | | | | | (51,360) | | | | | | 130.4% | | |
Sales and marketing
|
| | | | (99,894) | | | | | | (66,516) | | | | | | (33,378) | | | | | | 50.2% | | |
General and administrative
|
| | | | (146,804) | | | | | | (52,996) | | | | | | (93,808) | | | | | | 177.0% | | |
Product and technology
|
| | | | (48,590) | | | | | | (25,322) | | | | | | (23,268) | | | | | | 91.9% | | |
Loss from operations
|
| | | | (226,561) | | | | | | (58,738) | | | | | | (167,823) | | | | | | 285.7% | | |
Interest income (expense), net
|
| | | | (2,939) | | | | | | 1,087 | | | | | | (4,026) | | | | | | n.m. | | |
Loss before income tax expense
|
| | | | (229,500) | | | | | | (57,651) | | | | | | (171,849) | | | | | | 298.1% | | |
Income tax expense
|
| | | | (332) | | | | | | (16) | | | | | | (316) | | | | | | n.m. | | |
Loss from equity method investment
|
| | | | (285) | | | | | | — | | | | | | (285) | | | | | | n.m. | | |
Net Loss
|
| | | $ | (230,117) | | | | | $ | (57,667) | | | | | $ | (172,450) | | | | | | 299.0% | | |
| | |
Year ended December 31,
|
| |
2018 to 2019%
Change |
| |
2017 to 2018%
Change |
| |||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| | | |||||||||||||||||||||||||
Revenue
|
| | | $ | 323,410 | | | | | $ | 226,277 | | | | | $ | 191,844 | | | | | | 42.9% | | | | | | 17.9% | | |
Cost of revenue
|
| | | | 103,889 | | | | | | 48,689 | | | | | | 31,750 | | | | | | 113.4% | | | | | | 53.4% | | |
Sales and marketing
|
| | | | 185,269 | | | | | | 145,580 | | | | | | 156,632 | | | | | | 27.3% | | | | | | -7.1% | | |
Product and technology
|
| | | | 55,929 | | | | | | 32,885 | | | | | | 20,212 | | | | | | 70.1% | | | | | | 62.7% | | |
General and administrative
|
| | | | 124,868 | | | | | | 75,904 | | | | | | 56,448 | | | | | | 64.5% | | | | | | 34.5% | | |
Loss from operations
|
| | | | (146,545) | | | | | | (76,781) | | | | | | (73,198) | | | | | | 90.9% | | | | | | 4.9% | | |
Interest income (expense), net
|
| | | | 1,348 | | | | | | 666 | | | | | | (1,541) | | | | | | 102.4% | | | | | | n.m. | | |
Gain on initial equity method investment
|
| | | | 3,000 | | | | | | — | | | | | | — | | | | | | n.m. | | | | | | n.m. | | |
Other income (expense), net
|
| | | | — | | | | | | — | | | | | | (607) | | | | | | n.m. | | | | | | n.m. | | |
Loss before income taxes expense
|
| | | | (142,197) | | | | | | (76,115) | | | | | | (75,346) | | | | | | 86.8% | | | | | | 1.0% | | |
Income tax expense
|
| | | | 58 | | | | | | 105 | | | | | | 210 | | | | | | -44.8% | | | | | | -50.0% | | |
Loss from equity method investment
|
| | | | 479 | | | | | | — | | | | | | — | | | | | | n.m. | | | | | | n.m. | | |
Net loss
|
| | | $ | (142,734) | | | | | $ | (76,220) | | | | | $ | (75,556) | | | | | | 87.3% | | | | | | 0.9% | | |
| | |
Six months ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash used in operating activities
|
| | | $ | (134,971) | | | | | $ | (39,813) | | |
Net cash used in investing activities
|
| | | | (198,652) | | | | | | (19,420) | | |
Net cash provided by financing activities
|
| | | | 1,501,100 | | | | | | 8,775 | | |
Effect of foreign exchange rates on cash and cash equivalents
|
| | | | 256 | | | | | | — | | |
Net increase (decrease) in cash
|
| | | | 1,167,733 | | | | | | (50,458) | | |
Cash at beginning of period
|
| | | | 76,533 | | | | | | 117,908 | | |
Cash at end of period
|
| | | $ | 1,244,266 | | | | | $ | 67,450 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Net cash used in operating activities
|
| | | $ | (78,880) | | | | | $ | (45,579) | | | | | $ | (88,437) | | |
Net cash used in investing activities
|
| | | | (42,271) | | | | | | (26,672) | | | | | | (7,715) | | |
Net cash provided by financing activities
|
| | | | 79,776 | | | | | | 140,892 | | | | | | 118,531 | | |
Net increase (decrease) in cash
|
| | | | (41,375) | | | | | | 68,641 | | | | | | 22,379 | | |
Cash at beginning of period
|
| | | | 117,908 | | | | | | 49,267 | | | | | | 26,888 | | |
Cash at end of period
|
| | | $ | 76,533 | | | | | $ | 117,908 | | | | | $ | 49,267 | | |
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Operating lease obligations(1)
|
| | | $ | 66,028 | | | | | $ | 10,067 | | | | | $ | 16,674 | | | | | $ | 15,602 | | | | | $ | 23,685 | | |
Vendors and licenses(2)
|
| | | | 185,739 | | | | | | 74,390 | | | | | | 88,610 | | | | | | 18,639 | | | | | | 4,100 | | |
Debt obligations(3)
|
| | | | 86,873 | | | | | | 6,750 | | | | | | 80,123 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 338,640 | | | | | $ | 91,207 | | | | | $ | 185,407 | | | | | $ | 34,241 | | | | | $ | 27,785 | | |
| | |
Three months ended March 31,
|
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(€ in thousands)
|
| |||||||||||||||||||||||||||
Revenue
|
| | | € | 22,594 | | | | | | 21,899 | | | | | € | 96,857 | | | | | € | 94,147 | | | | | € | 66,087 | | |
Gross profit
|
| | | | 6,993 | | | | | | 9,883 | | | | | | 42,684 | | | | | | 49,060 | | | | | | 34,243 | | |
Net profit after tax
|
| | | € | (6,985) | | | | | | 483 | | | | | € | 4,576 | | | | | € | 26,779 | | | | | € | 16,290 | | |
| | |
Three months ended March 31,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
€ Change
|
| |
% Change
|
| ||||||||||||
| | |
(€ in thousands)
|
| |||||||||||||||||||||
Revenue | | | | € | 22,594 | | | | | € | 21,899 | | | | | € | 695 | | | | | | 3.2% | | |
Cost of revenue
|
| | | | 15,601 | | | | | | 12,016 | | | | | | 3,585 | | | | | | 29.8% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | 5,865 | | | | | | 4,014 | | | | | | 1,851 | | | | | | 46.1% | | |
Selling and marketing expenses
|
| | | | 2,734 | | | | | | 2,730 | | | | | | 4 | | | | | | 0.1% | | |
General and administrative expenses
|
| | | | 4,756 | | | | | | 2,258 | | | | | | 2,498 | | | | | | 110.6% | | |
Profit (loss) from operations
|
| | | | (6,362) | | | | | | 881 | | | | | | (7,243) | | | | | | n.m. | | |
Financial income
|
| | | | 9 | | | | | | — | | | | | | 9 | | | | | | n.m. | | |
Financial expense
|
| | | | 511 | | | | | | 318 | | | | | | 193 | | | | | | 60.7% | | |
Profit (loss) before tax
|
| | | | (6,864) | | | | | | 563 | | | | | | (7,427) | | | | | | n.m. | | |
Tax expenses
|
| | | | 121 | | | | | | 80 | | | | | | 41 | | | | | | 51.3% | | |
Net profit loss)
|
| | | € | (6,985) | | | | | € | 483 | | | | | € | (7,468) | | | | | | n.m. | | |
| | |
Year ended December 31,
|
| |
2018 – 2019
% Change |
| |
2017 – 2018
% Change |
| |||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||
| | |
(€ in thousands)
|
| | | | | | | | | | | | | |||||||||||||||
Revenue | | | | € | 96,857 | | | | | € | 94,147 | | | | | € | 66,087 | | | | | | 2.9% | | | | | | 42.5% | | |
Cost of revenue
|
| | | | 54,173 | | | | | | 45,087 | | | | | | 31,844 | | | | | | 20.2% | | | | | | 41.6% | | |
Gross profit
|
| | | | 42,684 | | | | | | 49,060 | | | | | | 34,243 | | | | | | -13.0% | | | | | | 43.3% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | 18,103 | | | | | | 10,115 | | | | | | 8,693 | | | | | | 79.0% | | | | | | 16.4% | | |
Selling and marketing expenses
|
| | | | 6,772 | | | | | | 3,722 | | | | | | 2,964 | | | | | | 81.9% | | | | | | 25.6% | | |
General and administrative expenses
|
| | | | 11,772 | | | | | | 7,636 | | | | | | 5,892 | | | | | | 54.2% | | | | | | 29.6% | | |
Profit from operations
|
| | | | 6,037 | | | | | | 27,587 | | | | | | 16,694 | | | | | | -78.1% | | | | | | 65.3% | | |
Financial income
|
| | | | 23 | | | | | | 97 | | | | | | 37 | | | | | | -76.3% | | | | | | 162.2% | | |
Financial expense
|
| | | | 846 | | | | | | 340 | | | | | | 177 | | | | | | 148.8% | | | | | | 92.1% | | |
Profit before tax
|
| | | | 5,214 | | | | | | 27,344 | | | | | | 16,554 | | | | | | -80.9% | | | | | | 65.2% | | |
Tax expenses
|
| | | | 638 | | | | | | 565 | | | | | | 264 | | | | | | 12.9% | | | | | | 114.0% | | |
Net profit
|
| | | € | 4,576 | | | | | € | 26,779 | | | | | € | 16,290 | | | | | | -82.9% | | | | | | 64.4% | | |
| | |
Three months ended March 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(€ in thousands)
|
| |||||||||
Net cash provided by operating activities
|
| | | € | 5,626 | | | | | € | 3,371 | | |
Net cash used in investing activities
|
| | | | (3,658) | | | | | | (4,656) | | |
Net cash used by financing activities
|
| | | | (884) | | | | | | (5,051) | | |
Effects of exchange rate changes on cash
|
| | | | (85) | | | | | | (5) | | |
Net increase (decrease) in cash
|
| | | | 999 | | | | | | (6,341) | | |
Cash and cash equivalents at beginning of period
|
| | | | 8,144 | | | | | | 20,731 | | |
Cash and cash equivalents at end of period
|
| | | € | 9,143 | | | | | € | 14,390 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
| | |
(€ in thousands)
|
| |||||||||||||||
Net cash provided by operating activities
|
| | | € | 19,525 | | | | | € | 30,949 | | | | | € | 18,260 | | |
Net cash used in investing activities
|
| | | | (18,399) | | | | | | (17,384) | | | | | | (14,307) | | |
Net cash provided by (used in) financing activities
|
| | | | (13,537) | | | | | | (1,184) | | | | | | 190 | | |
Effects of exchange rate changes
|
| | | | (176) | | | | | | (104) | | | | | | (6) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | (12,587) | | | | | | 12,277 | | | | | | 4,137 | | |
Cash, cash equivalents at beginning of period
|
| | | | 20,731 | | | | | | 8,454 | | | | | | 4,317 | | |
Cash, cash equivalents at end of period
|
| | | € | 8,144 | | | | | € | 20,731 | | | | | € | 8,454 | | |
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
| | |
(€ in thousands)
|
| |||||||||||||||||||||||||||
Lease obligations(1)
|
| | | € | 26,265 | | | | | € | 3,516 | | | | | € | 7,103 | | | | | € | 5,813 | | | | | € | 9,833 | | |
Name
|
| |
Position
|
| |
Age
|
|
Jason D. Robins | | |
Chief Executive Officer and
Chairman of the Board |
| |
39
|
|
Harry Evans Sloan | | |
Vice Chairman of the Board
|
| |
70
|
|
Michael Gavin Isaacs | | |
Director
|
| |
56
|
|
Matthew Kalish | | |
President, DraftKings
North America, Director |
| |
38
|
|
Woodrow H. Levin | | |
Director
|
| |
41
|
|
Paul Liberman | | |
President, Global Technology
and Product, Director |
| |
37
|
|
Shalom Meckenzie | | |
Director
|
| |
44
|
|
Jocelyn Moore | | |
Director
|
| |
44
|
|
Ryan R. Moore | | |
Director
|
| |
46
|
|
Valerie Mosley | | |
Director
|
| |
60
|
|
Steven J. Murray | | |
Director
|
| |
52
|
|
Hany M. Nada | | |
Director
|
| |
51
|
|
Richard Rosenblatt | | |
Director
|
| |
51
|
|
John S. Salter | | |
Director
|
| |
43
|
|
Marni M. Walden | | |
Director
|
| |
53
|
|
Name
|
| |
Position
|
| |
Age
|
|
Jason D. Robins | | |
Chief Executive Officer and Chairman of the Board
|
| |
39
|
|
Matthew Kalish | | |
President, DraftKings North America, Director
|
| |
38
|
|
Paul Liberman | | |
President, Global Technology and Product, Director
|
| |
37
|
|
R. Stanton Dodge | | |
Chief Legal Officer and Secretary
|
| |
52
|
|
Jason K. Park | | |
Chief Financial Officer
|
| |
43
|
|
Name and Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Option
Awards ($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($)(3) |
| |
All Other
Compensation ($)(4) |
| |
Total
($) |
| |||||||||||||||||||||
Jason Robins
Chief Executive Officer |
| | | | 2019 | | | | | $ | 400,000 | | | | | $ | — | | | | | $ | 3,239,689 | | | | | $ | 800,000 | | | | | $ | — | | | | | $ | 4,439,689 | | |
| | | | | 2018 | | | | | $ | 400,000 | | | | | $ | — | | | | | $ | 12,847,259 | | | | | $ | 500,000 | | | | | $ | 9,250 | | | | | $ | 13,756,509 | | |
Jason Park
Chief Financial Officer |
| | | | 2019 | | | | | $ | 201,923 | | | | | $ | 250,000 | | | | | $ | 2,326,845 | | | | | $ | 325,260 | | | | | $ | 14,279 | | | | | $ | 3,118,307 | | |
Paul Liberman
President, Global Technology & Product |
| | | | 2019 | | | | | $ | 300,000 | | | | | $ | — | | | | | $ | 1,350,348 | | | | | $ | 480,000 | | | | | $ | 9,600 | | | | | $ | 2,139,948 | | |
| | | | | 2018 | | | | | $ | 300,000 | | | | | $ | — | | | | | $ | 2,817,791 | | | | | $ | 300,000 | | | | | $ | 10,588 | | | | | $ | 3,428,379 | | |
Name
|
| |
Time-Vested
Options ($) |
| |
PSP
Options ($) |
| |
LTIP
Performance Options ($) |
| |||||||||
Jason Robins
|
| | | $ | 2,242,186 | | | | | $ | 997,503 | | | | | $ | — | | |
Jason Park
|
| | | $ | 1,163,753 | | | | | $ | — | | | | | $ | 1,163,092 | | |
Paul Liberman
|
| | | $ | 601,848 | | | | | $ | 535,500 | | | | | $ | 213,000 | | |
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| ||||||||||||||||||
Jason Robins
|
| | | | 7/12/2013(1) | | | | | | 2,000,000 | | | | | | — | | | | | | — | | | | | $ | 0.09 | | | | | | 7/12/2023 | | |
| | | 9/22/2014(1) | | | | | | 400,000 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 9/22/2024 | | | ||
| | | 2/18/2015(1) | | | | | | 1,671,032 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 2/18/2025 | | | ||
| | | 8/27/2015(1) | | | | | | 835,358 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 8/27/2025 | | | ||
| | | 3/24/2016(1) | | | | | | 4,446,707 | | | | | | 296,448 | | | | | | — | | | | | $ | 0.22 | | | | | | 3/24/2026 | | | ||
| | | 5/3/2017(1) | | | | | | 1,734,554 | | | | | | 788,435 | | | | | | — | | | | | $ | 1.35 | | | | | | 5/3/2027 | | | ||
| | | 4/18/2018(2) | | | | | | 963,713 | | | | | | 1,606,189 | | | | | | — | | | | | $ | 1.16 | | | | | | 4/18/2028 | | | ||
| | | 4/18/2018(3) | | | | | | 1,307,645 | | | | | | — | | | | | | — | | | | | $ | 1.16 | | | | | | 4/18/2028 | | | ||
| | | 5/3/2018(4) | | | | | | — | | | | | | — | | | | | | 21,376,180 | | | | | $ | 1.16 | | | | | | 5/3/2028 | | | ||
| | | 6/4/2019(2) | | | | | | 395,834 | | | | | | 2,770,841 | | | | | | — | | | | | $ | 1.66 | | | | | | 6/4/2029 | | | ||
| | | 6/4/2019(3) | | | | | | — | | | | | | — | | | | | | 1,583,338 | | | | | $ | 1.66 | | | | | | 6/4/2029 | | |
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| ||||||||||||||||||
Jason Park
|
| | | | 6/4/2019(1) | | | | | | — | | | | | | 1,500,000 | | | | | | — | | | | | $ | 1.66 | | | | | | 6/4/2029 | | |
| | | 6/4/2019(4) | | | | | | — | | | | | | — | | | | | | 1,500,000 | | | | | $ | 1.66 | | | | | | 6/4/2029 | | | ||
| | | 8/15/2019(1) | | | | | | — | | | | | | 138,158 | | | | | | — | | | | | $ | 1.67 | | | | | | 8/15/2029 | | | ||
| | | 8/15/2019(4) | | | | | | — | | | | | | — | | | | | | 138,518 | | | | | $ | 1.67 | | | | | | 8/15/2029 | | | ||
Paul Liberman
|
| | | | 7/12/2013(1) | | | | | | 2,415,000 | | | | | | — | | | | | | — | | | | | $ | 0.09 | | | | | | 7/12/2023 | | |
| | | 9/22/2014(1) | | | | | | 302,160 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 9/22/2024 | | | ||
| | | 2/18/2015(1) | | | | | | 835,516 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 2/18/2025 | | | ||
| | | 8/27/2015(1) | | | | | | 578,077 | | | | | | — | | | | | | — | | | | | $ | 0.22 | | | | | | 8/27/2025 | | | ||
| | | 3/24/2016(1) | | | | | | 2,223,353 | | | | | | 148,224 | | | | | | — | | | | | $ | 0.22 | | | | | | 3/24/2026 | | | ||
| | | 5/3/2017(1) | | | | | | 722,730 | | | | | | 328,515 | | | | | | — | | | | | $ | 1.35 | | | | | | 5/3/2027 | | | ||
| | | 4/18/2018(2) | | | | | | 392,294 | | | | | | 653,822 | | | | | | — | | | | | $ | 1.16 | | | | | | 4/18/2028 | | | ||
| | | 4/18/2018(3) | | | | | | 256,298 | | | | | | — | | | | | | — | | | | | $ | 1.16 | | | | | | 4/18/2028 | | | ||
| | | 5/3/2018(4) | | | | | | | | | | | | | | | | | | 4,275,236 | | | | | $ | 1.16 | | | | | | 5/3/2028 | | | ||
| | | 6/4/2019(4) | | | | | | — | | | | | | — | | | | | | 300,000 | | | | | $ | 1.66 | | | | | | 6/4/2029 | | | ||
| | | 6/4/2019(3) | | | | | | — | | | | | | — | | | | | | 850,000 | | | | | $ | 1.66 | | | | | | 6/4/2029 | | | ||
| | | 6/4/2019(2) | | | | | | 106,250 | | | | | | 743,750 | | | | | | — | | | | | $ | 1.66 | | | | | | 6/4/2029 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock Awards
($) |
| |
Option Awards
($)(1) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||
Woodrow Levin
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 92,404 | | | | | $ | 0 | | | | | $ | 92,404 | | |
Ryan Moore(2)
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Steven Murray
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Hany Nada
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
Richard Rosenblatt
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 90,205 | | | | | $ | 0 | | | | | $ | 90,205 | | |
Marni Walden
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 80,589 | | | | | $ | 0 | | | | | $ | 80,589 | | |
John Salter(2)
|
| | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
| | |
Securities Beneficially Owned Before this Offering
|
| | | | | | | |
Securities
Beneficially Owned Upon Completion of this Offering (Assuming No Exercise of Overallotment) |
| |
Securities
Beneficially Owned Upon Completion of this Offering (Assuming Exercise of Overallotment) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of
Beneficial Owner |
| |
Number of
Shares of Class A Common Stock |
| |
%
|
| |
Number of
Shares of Class B Common Stock |
| |
%
|
| |
% of Total
Voting Power |
| |
Total Number
of Shares of Class A Common Stock to be Offered Pursuant to this Prospectus |
| |
Number of
Shares of Class A Common Stock |
| |
% of
Class A Common Stock |
| |
% of Total
Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
% of
Class A Common Stock |
| |
% of
Total Voting Power |
| ||||||||||||||||||||||||||||||||||||
Current Directors and Executive Officers
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jason Robins(1)(2)(3)
|
| | | | 16,843,055 | | | | | | 4.5% | | | | | | 393,013,951 | | | | | | 100% | | | | | | 91.7% | | | | | | — | | | | | | 16,843,055 | | | | | | 4.3% | | | | | | 91.4% | | | | | | 16,843,055 | | | | | | 4.3% | | | | | | 91.3% | | |
Matthew Kalish(1)(3)(4)
|
| | | | 6,554,891 | | | | | | 1.8% | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 6,554,891 | | | | | | 1.7% | | | | | | * | | | | | | 6,554,891 | | | | | | 1.7% | | | | | | * | | |
Paul Liberman(1)(3)(5)
|
| | | | 7,136,631 | | | | | | 2.0% | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 7,136,631 | | | | | | 1.9% | | | | | | * | | | | | | 7,136,631 | | | | | | 1.9% | | | | | | * | | |
M. Gavin Isaacs(6)(7)
|
| | | | 479,285 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 479,285 | | | | | | * | | | | | | * | | | | | | 479,285 | | | | | | * | | | | | | * | | |
Woodrow Levin(1)(3)(8)
|
| | | | 379,113 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 379,113 | | | | | | * | | | | | | * | | | | | | 379,113 | | | | | | * | | | | | | * | | |
Shalom Meckenzie(6)
|
| | | | 30,560,261 | | | | | | 8.6% | | | | | | — | | | | | | — | | | | | | * | | | | | | 6,949,088 | | | | | | 23,611,173 | | | | | | 6.3% | | | | | | * | | | | | | 23,611,173 | | | | | | 6.2% | | | | | | * | | |
Jocelyn Moore
|
| | | | 0 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 0 | | | | | | * | | | | | | * | | | | | | 0 | | | | | | * | | | | | | * | | |
Ryan R. Moore(1)(3)(9)
(affiliated with Atlas Venture Fund VIII, L.P.) |
| | | | 9,540,909 | | | | | | 2.7% | | | | | | — | | | | | | — | | | | | | * | | | | | | 1,000,000** | | | | | | 8,540,909 | | | | | | 2.3% | | | | | | * | | | | | | 8,540,909 | | | | | | 2.3% | | | | | | * | | |
Valerie Mosley
|
| | | | 0 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 0 | | | | | | * | | | | | | * | | | | | | 0 | | | | | | * | | | | | | * | | |
Steven J. Murray(1)(3)(10)
(affiliated with Revolution Growth III, LP) |
| | | | 6,798,565 | | | | | | 1.9% | | | | | | — | | | | | | — | | | | | | * | | | | | | 1,545,924** | | | | | | 5,252,641 | | | | | | 1.4% | | | | | | * | | | | | | 5,252,641 | | | | | | 1.4% | | | | | | * | | |
| | |
Securities Beneficially Owned Before this Offering
|
| | | | | | | |
Securities
Beneficially Owned Upon Completion of this Offering (Assuming No Exercise of Overallotment) |
| |
Securities
Beneficially Owned Upon Completion of this Offering (Assuming Exercise of Overallotment) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of
Beneficial Owner |
| |
Number of
Shares of Class A Common Stock |
| |
%
|
| |
Number of
Shares of Class B Common Stock |
| |
%
|
| |
% of Total
Voting Power |
| |
Total Number
of Shares of Class A Common Stock to be Offered Pursuant to this Prospectus |
| |
Number of
Shares of Class A Common Stock |
| |
% of
Class A Common Stock |
| |
% of Total
Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
% of
Class A Common Stock |
| |
% of
Total Voting Power |
| ||||||||||||||||||||||||||||||||||||
Hany M. Nada(1)(3)(11)
(affiliated with ACME SPV DK, LLC) |
| | | | 6,311,415 | | | | | | 1.8% | | | | | | — | | | | | | — | | | | | | * | | | | | | 946,712** | | | | | | 5,364,703 | | | | | | 1.4% | | | | | | * | | | | | | 5,364,703 | | | | | | 1.4% | | | | | | * | | |
Richard Rosenblatt(1)(12)
|
| | | | 213,776 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 213,776 | | | | | | — | | | | | | * | | | | | | 213,776 | | | | | | — | | | | | | * | | |
John S. Salter(1)(3)(13)
(affiliated with RPII DK LLC) |
| | | | 21,868,062 | | | | | | 6.1% | | | | | | — | | | | | | — | | | | | | * | | | | | | 4,972,572** | | | | | | 16,895,490 | | | | | | 4.5% | | | | | | * | | | | | | 16,895,490 | | | | | | 4.5% | | | | | | * | | |
Harry E. Sloan(14)
|
| | | | 3,660,011 | | | | | | 1.0% | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 3,660,011 | | | | | | 1.0% | | | | | | * | | | | | | 3,660,011 | | | | | | 1.0% | | | | | | * | | |
Marni M. Walden(1)(15)
|
| | | | 137,720 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 137,720 | | | | | | — | | | | | | * | | | | | | 137,720 | | | | | | — | | | | | | * | | |
R. Stanton Dodge(1)(16)
|
| | | | 3,539,276 | | | | | | 1.0% | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 3,539,276 | | | | | | * | | | | | | * | | | | | | 3,539,276 | | | | | | * | | | | | | * | | |
Jason Park(1)(17)
|
| | | | 1,004,965 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 1,004,965 | | | | | | * | | | | | | * | | | | | | 1,004,965 | | | | | | * | | | | | | * | | |
All Directors and Executive Officers as a Group (17 Individuals)
|
| | |
|
115,027,935
|
| | | |
|
32.2%
|
| | | |
|
393,013,951
|
| | | |
|
100%
|
| | | |
|
93.5%
|
| | | |
|
15,414,296
|
| | | |
|
99,613,639
|
| | | |
|
26.7%
|
| | | |
|
92.8%
|
| | | |
|
99,613,639
|
| | | |
|
26.3%
|
| | | |
|
92.7%
|
| |
Five Percent Holders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shalom Meckenzie(6)
|
| | | | 30,560,261 | | | | | | 8.6% | | | | | | — | | | | | | — | | | | | | * | | | | | | 6,949,088 | | | | | | 23,611,173 | | | | | | 6.3% | | | | | | * | | | | | | 23,611,173 | | | | | | 6.2% | | | | | | * | | |
RPII DK LLC(3)(18)
|
| | | | 21,868,062 | | | | | | 6.1% | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,972,572 | | | | | | 16,895,490 | | | | | | 4.5% | | | | | | * | | | | | | 16,895,490 | | | | | | 4.5% | | | | | | * | | |
TFCF Sports Enterprises, LLC(19)
|
| | | | 18,718,527 | | | | | | 5.2% | | | | | | — | | | | | | — | | | | | | * | | | | | | — | | | | | | 18,718,527 | | | | | | 5.0% | | | | | | * | | | | | | 18,718,527 | | | | | | 4.9% | | | | | | * | | |
Other Selling Stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACME SPV DK, LLC(20)
|
| | | | 6,311,415 | | | | | | 1.8% | | | | | | — | | | | | | — | | | | | | | | | | | | 946,712 | | | | | | 5,364,703 | | | | | | 1.4% | | | | | | * | | | | | | 5,364,703 | | | | | | 1.4% | | | | | | * | | |
Atlas Venture Fund VIII, L.P.(21)
|
| | | | 9,540,909 | | | | | | 2.7% | | | | | | — | | | | | | — | | | | | | * | | | | | | 1,000,000 | | | | | | 8,540,909 | | | | | | 2.3% | | | | | | * | | | | | | 8,540,909 | | | | | | 2.3% | | | | | | * | | |
J. Gleek Properties Ltd.(22)
|
| | | | 2,247,079 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 300,000 | | | | | | 1,947,079 | | | | | | * | | | | | | * | | | | | | 1,947,079 | | | | | | * | | | | | | * | | |
Certain funds and accounts of
Kraft(23) |
| | | | 2,699,226 | | | | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | 285,704 | | | | | | 2,413,522 | | | | | | * | | | | | | * | | | | | | 2,413,522 | | | | | | * | | | | | | * | | |
Revolution Growth III, LP(24)
|
| | | | 6,798,565 | | | | | | 1.9% | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,545,924 | | | | | | 5,252,641 | | | | | | 1.4% | | | | | | * | | | | | | 5,252,641 | | | | | | 1.4% | | | | | | * | | |
Name
|
| |
Number of
Shares |
| |
Purchase Price
($) |
| ||||||
Revolution Growth III, LP(1)
|
| | | | 2,269,718 | | | | | | 4,999,998.10 | | |
RPII DK LLC(2)
|
| | | | 1,361,830 | | | | | | 2,999,997.10 | | |
Entities affiliated with Accomplice, LLC(3)
|
| | | | 453,943 | | | | | | 999,998.30 | | |
Name
|
| |
Number of
Shares |
| |
Purchase Price
($) |
| ||||||
Revolution Growth III, LP(1)
|
| | | | 3,922,245 | | | | | | 9,999,998.97 | | |
Accomplice Fund II, L.P.(2)
|
| | | | 784,449 | | | | | | 1,999,999.80 | | |
Jason Robins Revocable Trust u/d/t January 8, 2014(3)
|
| | | | 39,222 | | | | | | 99,998.85 | | |
Name
|
| |
Common
Units |
| |
Incentive
Units(1) |
| |
Cash
Consideration ($) |
| |
In-Kind
Consideration ($)(2) |
| ||||||||||||
DraftKings
|
| | | | 4,500,000 | | | | | | — | | | | | | — | | | | | | 3,000,000 | | |
Accomplice Fund II, L.P.(3)
|
| | | | 1,500,000 | | | | | | — | | | | | | 1,000,000 | | | | | | — | | |
Hany Nada(4)
|
| | | | 375,000 | | | | | | — | | | | | | 250,000 | | | | | | — | | |
Jason Robins(5)
|
| | | | — | | | | | | 126,603 | | | | | | — | | | | | | — | | |
Jason Park(6)
|
| | | | — | | | | | | 63,301 | | | | | | — | | | | | | — | | |
Underwriters
|
| |
Number of Shares
|
| |||
Credit Suisse Securities (USA) LLC
|
| | | | 9,600,000 | | |
Goldman Sachs & Co. LLC
|
| | | | 6,400,000 | | |
BofA Securities, Inc.
|
| | | | 2,560,000 | | |
Morgan Stanley & Co. LLC
|
| | | | 2,560,000 | | |
UBS Securities LLC
|
| | | | 2,560,000 | | |
Canaccord Genuity LLC
|
| | | | 2,240,000 | | |
Evercore Group L.L.C.
|
| | | | 1,600,000 | | |
Oppenheimer & Co. Inc.
|
| | | | 1,600,000 | | |
Craig-Hallum Capital Group LLC
|
| | | | 320,000 | | |
Deutsche Bank Securities Inc.
|
| | | | 320,000 | | |
Macquarie Capital (USA) Inc.
|
| | | | 320,000 | | |
Needham & Company, LLC
|
| | | | 320,000 | | |
Northland Securities, Inc.
|
| | | | 320,000 | | |
Rosenblatt Securities Inc.
|
| | | | 320,000 | | |
The Benchmark Company, LLC
|
| | | | 320,000 | | |
Truist Securities, Inc.
|
| | | | 320,000 | | |
WR Securities, LLC
|
| | | | 320,000 | | |
Total
|
| | | | 32,000,000 | | |
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Per share
|
| | | $ | 1.17 | | | | | $ | 1.17 | | |
Total
|
| | | $ | 18,720,000 | | | | | $ | 24,336,000 | | |
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Per Share
|
| | | $ | 1.17 | | | | | $ | 1.17 | | |
Total
|
| | | $ | 18,720,000 | | | | | $ | 18,720,000 | | |
|
Unaudited Condensed Consolidated Financial Statements as of June 30, 2020 and December 31, 2019
|
| | | | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-7 | | | |
| | | | | F-9 | | | |
| | | | | F-10 | | | |
| Consolidated Financial Statements as of December 31, 2019 and 2018 | | | |||||
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| | | | | F-43 | | |
|
Unaudited Condensed Consolidated Financial Statements as of March 31, 2020 and December 31, 2019
|
| | | | | | |
| | | | | F-75 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | | |
| | | | | F-80 | | | |
| | | | | F-81 | | | |
| Consolidated Financial Statements as of December 31, 2019 and 2018 | | | |||||
| | | | | F-86 | | | |
| | | | | F-87 | | | |
| | | | | F-88 | | | |
| | | | | F-89 | | | |
| | | | | F-90 | | | |
| | | | | F-91 | | |
|
Unaudited Condensed Consolidated Financial Statements as of March 31, 2020 and December 31, 2019
|
| | | | | | |
| | | | | F-119 | | | |
| | | | | F-120 | | | |
| | | | | F-121 | | | |
| | | | | F-122 | | | |
| | | | | F-123 | | | |
| Consolidated Financial Statements as of December 31, 2019 | | | | | | | |
| | | | | F-133 | | | |
| | | | | F-134 | | | |
| | | | | F-135 | | | |
| | | | | F-136 | | | |
| | | | | F-137 | | | |
| | | | | F-138 | | |
| | |
June 30, 2020
(Unaudited) |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | |
$
|
1,244,266
|
| | | | $ | 76,533 | | |
Cash reserved for users
|
| | |
|
131,995
|
| | | | | 144,000 | | |
Receivables reserved for users
|
| | |
|
15,060
|
| | | | | 19,828 | | |
Accounts receivable
|
| | |
|
35,104
|
| | | | | 10,016 | | |
Prepaid expenses and other current assets
|
| | |
|
24,696
|
| | | | | 10,771 | | |
Total current assets
|
| | |
|
1,451,121
|
| | | |
|
261,148
|
| |
Property and equipment, net
|
| | |
|
37,002
|
| | | | | 25,945 | | |
Intangible assets, net
|
| | |
|
542,095
|
| | | | | 33,939 | | |
Goodwill
|
| | |
|
480,578
|
| | | | | 4,738 | | |
Equity method investment
|
| | |
|
2,236
|
| | | | | 2,521 | | |
Deposits and other non-current assets
|
| | |
|
3,105
|
| | | | | 2,434 | | |
Total assets
|
| | | $ | 2,516,137 | | | | | $ | 330,725 | | |
Liabilities and Stockholders’ equity (deficit) | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | |
$
|
122,946
|
| | | | $ | 85,295 | | |
Liabilities to users
|
| | |
|
147,031
|
| | | | | 163,035 | | |
Revolving credit line
|
| | |
|
—
|
| | | | | 6,750 | | |
Total current liabilities
|
| | |
|
269,977
|
| | | |
|
255,080
|
| |
Convertible promissory notes
|
| | |
|
—
|
| | | | | 68,363 | | |
Other long-term liabilities
|
| | |
|
54,872
|
| | | | | 56,862 | | |
Total liabilities
|
| | | | 324,849 | | | | | | 380,305 | | |
Commitments and contingent liabilities (Note 15) | | | | | | | | | | | | | |
Stockholder’s equity (deficit): | | | | | | | | | | | | | |
Class A common stock, $0.0001 par value; 900,000 and 735,000
shares authorized as of June 30, 2020 and December 31, 2019, respectively; 354,251 and 184,626 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively |
| | |
|
35
|
| | | | | 18 | | |
Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2020; 393,014 shares issued and outstanding at June 30, 2020
|
| | |
|
39
|
| | | | | — | | |
Additional paid-in capital
|
| | |
|
3,395,129
|
| | | | | 949,186 | | |
Accumulated deficit
|
| | |
|
(1,228,901)
|
| | | | | (998,784) | | |
Accumulated other comprehensive income
|
| | |
|
24,986
|
| | | | | — | | |
Total stockholders’ equity (deficit)
|
| | | | 2,191,288 | | | | | | (49,580) | | |
Total liabilities and stockholders’ equity (deficit)
|
| | |
$
|
2,516,137
|
| | | | $ | 330,725 | | |
| | |
Three months
ended June 30, |
| |
Six months
ended June 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenue
|
| | |
$
|
70,931
|
| | | | $ | 57,390 | | | | |
$
|
159,473
|
| | | | $ | 125,482 | | |
Cost of revenue
|
| | |
|
47,330
|
| | | | | 17,834 | | | | |
|
90,746
|
| | | | | 39,386 | | |
Sales and marketing
|
| | |
|
46,188
|
| | | | | 29,671 | | | | |
|
99,894
|
| | | | | 66,516 | | |
Product and technology
|
| | |
|
30,549
|
| | | | | 12,234 | | | | |
|
48,590
|
| | | | | 25,322 | | |
General and administrative
|
| | |
|
107,308
|
| | | | | 26,183 | | | | |
|
146,804
|
| | | | | 52,996 | | |
Loss from operations
|
| | |
|
(160,444)
|
| | | | | (28,532) | | | | |
|
(226,561)
|
| | | | | (58,738) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net
|
| | |
|
(588)
|
| | | | | 426 | | | | |
|
(2,939)
|
| | | | | 1,087 | | |
Loss before income tax provision and loss from equity method investment
|
| | |
|
(161,032)
|
| | | | | (28,106) | | | | |
|
(229,500)
|
| | | | | (57,651) | | |
Income tax provision
|
| | |
|
(323)
|
| | | | | (7) | | | | |
|
(332)
|
| | | | | (16) | | |
Loss from equity method investment
|
| | |
|
(82)
|
| | | | | — | | | | |
|
(285)
|
| | | | | — | | |
Net loss attributable to common stockholders
|
| | |
$
|
(161,437)
|
| | | | $ | (28,113) | | | | |
$
|
(230,117)
|
| | | | $ | (57,667) | | |
Loss per share attributable to common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | |
$
|
(0.55)
|
| | | | $ | (0.15) | | | | |
$
|
(0.97)
|
| | | | $ | (0.31) | | |
| | |
Three months
ended June 30, |
| |
Six months
ended June 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net loss
|
| | |
$
|
(161,437)
|
| | | | $ | (28,113) | | | | |
$
|
(230,117)
|
| | | | $ | (57,667) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments arising during period
|
| | |
|
24,986
|
| | | | | — | | | | |
|
24,986
|
| | | | | — | | |
Comprehensive income (loss)
|
| | |
$
|
(136,451)
|
| | | | $ | (28,113) | | | | |
$
|
(205,131)
|
| | | | $ | (57,667) | | |
| | |
Convertible Redeemable
Preferred Stock |
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Comprehensive Income (loss) |
| |
Total
Stockholder’s (Deficit)/Equity |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 (as previously reported)
|
| | | | 110,250 | | | | | $ | 258,371 | | | | | | 389,610 | | | | | $ | 390 | | | | | | — | | | | | $ | — | | | | | $ | 690,443 | | | | | $ | (998,784) | | | | | $ | | | | | $ | (307,951) | | | |
Conversion of shares due to merger recapitalization
|
| | | | (110,250) | | | | | | (258,371) | | | | | | (204,984) | | | | | | (372) | | | | |
|
—
|
| | | |
|
—
|
| | | | | 258,743 | | | | | | — | | | | | | — | | | | | | 258,371 | | |
Balances at December 31, 2019, effect of reverse acquisition
(refer to Note 2) |
| | | | — | | | | | | — | | | | | | 184,626 | | | | | | 18 | | | | | | — | | | | | | — | | | | | | 949,186 | | | | | $ | (998,784) | | | | | | | | | | | | (49,580) | | |
Issuance of Series F preferred stock
|
| | | | | | | | | | | | | | | | 1,526 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 11,000 | | | | | | — | | | | | | — | | | | | | 11,000 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | 456 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 467 | | | | | | — | | | | | | — | | | | | | 467 | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 4,842 | | | | | | — | | | | | | — | | | | | | 4,842 | | |
Net loss
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | (68,680) | | | | | | — | | | | | | (68,680) | | |
Balances at March 31, 2020
|
| | | | — | | | | | | | | | | | | 186,608 | | | | | $ | 18 | | | | | | | | | | | $ | — | | | | |
|
965,495
|
| | | | $ | (1,067,464) | | | | | $ | — | | | | | $ | (101,951) | | |
Merger recapitalization, net repurchase of $7,192 and issuance costs of $11,564
|
| | | | | | | | | | | | | | | | (278) | | | | | | | | | | | | — | | | | | | — | | | | | | (18,756) | | | | | | — | | | | | | — | | | | | | (18,756) | | |
Conversion of Convertible Notes to common shares
|
| | | | — | | | | | | — | | | | | | 11,254 | | | | | | 1 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 112,544 | | | | | | — | | | | | | — | | | | | | 112,545 | | |
DEAC shares recapitalized, net of redemptions and equity issuance costs of $10,631
|
| | | | — | | | | | | — | | | | | | 74,122 | | | | | | 7 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 665,478 | | | | | | — | | | | | | — | | | | | | 665,485 | | |
Equity consideration issued to acquire SBTech
|
| | | | — | | | | | | — | | | | | | 40,739 | | | | | | 4 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 789,060 | | | | | | — | | | | | | — | | | | | | 789,064 | | |
Shares issued for earn outs – SBTech
|
| | | | — | | | | | | — | | | | | | 720 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shares issued for earn outs – DEAC and DK
|
| | | | — | | | | | | — | | | | | | 5,280 | | | | | | 1 | | | | |
|
—
|
| | | |
|
—
|
| | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | |
Shares issued for exercise of warrants
|
| | | | — | | | | | | — | | | | | | 17,519 | | | | | | 2 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 200,465 | | | | | | — | | | | | | — | | | | | | 200,467 | | |
Shares issued in Offering, net of issuance costs of $19,200
|
| | | | — | | | | | | — | | | | | | 16,000 | | | | | | 2 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 620,798 | | | | | | — | | | | | | — | | | | | | 620,800 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | 2,287 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 5,599 | | | | | | — | | | | | | — | | | | | | 5,599 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | 393,014 | | | | | | 39 | | | | | | 54,447 | | | | | | — | | | | | | — | | | | | | 54,486 | | |
Foreign currency translation
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | — | | | | | | 24,986 | | | | | | 24,986 | | |
Net loss
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | (161,437) | | | | | | — | | | | | | (161,437) | | |
Balances at June 30, 2020
|
| | | | — | | | | | $ | — | | | | | | 354,251 | | | | | $ | 35 | | | | | | 393,014 | | | | | $ | 39 | | | | | $ | 3,395,129 | | | | | $ | (1,228,901) | | | | | $ | 24,986 | | | | | $ | 2,191,288 | | |
| | |
Convertible Redeemable
Preferred Stock |
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Comprehensive Income (loss) |
| |
Total
Stockholder’s (Deficit)/Equity |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 (as previously reported)
|
| | | | 111,969 | | | | | $ | 261,277 | | | | | | 384,009 | | | | | $ | 384 | | | | | | — | | | | | $ | — | | | | | $ | 670,439 | | | | | $ | (856,050) | | | | | $ | | | | | $ | (185,227) | | | |
Conversion of shares
|
| | | | (111,969) | | | | | | (261,277) | | | | | | (193,197) | | | | | | (365) | | | | |
|
—
|
| | | |
|
—
|
| | | | | 261,642 | | | | | | — | | | | | | — | | | | | | 261,277 | | |
Balances at December 31, 2018, effect of reverse acquisition (refer to Note 2)
|
| | | | — | | | | | | — | | | | | | 190,812 | | | | | | 19 | | | | | | — | | | | | | — | | | | | | 932,081 | | | | | $ | (856,050) | | | | | | | | | | | | 76,050 | | |
Issuance of Series F preferred stock
|
| | | | | | | | | | — | | | | | | 1,018 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 7,245 | | | | | | — | | | | | | — | | | | | | 7,245 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | 110 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 126 | | | | | | — | | | | | | — | | | | | | 126 | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 4,831 | | | | | | — | | | | | | — | | | | | | 4,831 | | |
Net loss
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | (29,554) | | | | | | — | | | | | | (29,554) | | |
Balances at March 31, 2019
|
| | | | — | | | | | | — | | | | | | 191,940 | | | | | $ | 19 | | | | | | | | | | | $ | — | | | | |
$
|
944,283
|
| | | | $ | (885,604) | | | | | $ | — | | | | | $ | 58,698 | | |
Issuance of Series F Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 559 | | | | | | — | | | | | | — | | | | | | 559 | | |
Issuance of Common Stock
|
| | | | — | | | | | | — | | | | | | 674 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | 438 | | | | | | — | | | | | | — | | | | | | 438 | | |
Issuance of Common Stock for In-kind Transfer
|
| | | | — | | | | | | — | | | | | | 124 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 535 | | | | | | — | | | | | | — | | | | | | 535 | | |
Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 537 | | | | | | — | | | | | | — | | | | | | 537 | | |
Exercise of Stock Options
|
| | | | | | | | | | | | | | |
|
527
|
| | | | | | | | | | | | | | | | | | | | | | | 407 | | | | | | | | | | | | | | | | | | 407 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 1,844 | | | | | | — | | | | | | — | | | | | | 1,844 | | |
Net loss
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | — | | | | | | (28,113) | | | | | | — | | | | | | (28,113) | | |
Balances at June 30, 2019
|
| | | | — | | | | | $ | — | | | | | | 193,265 | | | | | $ | 19 | | | | | | — | | | | | $ | — | | | | | $ | 948,603 | | | | | $ | (913,717) | | | | | $ | — | | | | | $ | 34,905 | | |
| | |
Six months
ended June 30, |
| |||||||||
| | |
2020
(Unaudited) |
| |
2019
(Unaudited) |
| ||||||
Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | |
$
|
(230,117)
|
| | | | $ | (57,667) | | |
Adjustments to reconcile net loss to net cash flows used in operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | |
|
23,372
|
| | | | | 6,199 | | |
Non-cash rent expense
|
| | |
|
81
|
| | | | | 103 | | |
Non-cash interest expense
|
| | |
|
3,111
|
| | | | | 85 | | |
Stock-based compensation expense, including value of Class B common shares
|
| | |
|
59,328
|
| | | | | 6,675 | | |
Loss from equity method investment
|
| | |
|
285
|
| | | |
|
—
|
| |
Deferred income taxes
|
| | |
|
(201)
|
| | | | | 12 | | |
Other non-cash expenses
|
| | |
|
—
|
| | | | | 2,181 | | |
Change in operating assets and liabilities, net of effect of Business Combination
|
| | | | | | | | | | | | |
Cash reserved for users
|
| | |
|
12,005
|
| | | | | 17,151 | | |
Receivables reserved for users
|
| | |
|
4,768
|
| | | | | 5,231 | | |
Accounts Receivable
|
| | |
|
(6,347)
|
| | | | | 4,052 | | |
Prepaid expenses and other current assets
|
| | |
|
(2,187)
|
| | | | | (1,075) | | |
Deposits and other non-current assets
|
| | |
|
346
|
| | | | | (16) | | |
Accounts payable and accrued expenses
|
| | |
|
11,686
|
| | | | | (14,687) | | |
Other long-term liabilities
|
| | |
|
4,903
|
| | | | | 14,763 | | |
Liabilities to users
|
| | |
|
(16,004)
|
| | | | | (22,820) | | |
Net cash flows used in operating activities
|
| | |
|
(134,971)
|
| | | | | (39,813) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | |
|
(3,336)
|
| | | | | (12,943) | | |
Capitalization of internal-use software costs
|
| | |
|
(11,019)
|
| | | | | (6,263) | | |
Acquisition of gaming licenses
|
| | |
|
(7,478)
|
| | | | | (214) | | |
Cash paid for Business Combination, net of cash acquired
|
| | |
|
(176,819)
|
| | | | | — | | |
Net cash flows used in investing activities
|
| | |
|
(198,652)
|
| | | | | (19,420) | | |
Financing Activities: | | | | | | | | | | | | | |
Cash buyout of unaccredited investors
|
| | |
|
(7,192)
|
| | | | | — | | |
Issuance costs related to merger recapitalization
|
| | |
|
(11,564)
|
| | | | | — | | |
Net proceeds from issuance of convertible promissory notes
|
| | |
|
41,077
|
| | | | | — | | |
Proceeds from recapitalization of DEAC shares, net of issuance costs
|
| | |
|
667,999
|
| | | | | — | | |
Proceeds from shares issued for warrants
|
| | |
|
190,664
|
| | | | | — | | |
Proceeds from issuance of Class A common stock, net of issuance costs
|
| | |
|
620,800
|
| | | | | 438 | | |
Proceeds from exercise of stock options
|
| | |
|
6,066
|
| | | | | 533 | | |
Net payment of revolving credit line
|
| | |
|
(6,750)
|
| | | | | — | | |
Net proceeds from issuance of redeemable convertible preferred stock
|
| | |
|
—
|
| | | | | 7,804 | | |
Net cash flows provided by financing activities
|
| | | | 1,501,100 | | | | | | 8,775 | | |
Effect of foreign exchange rates on cash and cash equivalents
|
| | |
|
256
|
| | | | | — | | |
Net increase (decrease) in cash, cash equivalents and restricted cash
|
| | |
|
1,167,733
|
| | | | | (50,458) | | |
Cash and cash equivalents at the beginning of period
|
| | |
|
76,533
|
| | | | | 117,908 | | |
Cash and cash equivalents, end of period
|
| | |
$
|
1,244,266
|
| | | | $ | 67,450 | | |
Supplemental Disclosure of Noncash Investing and Financing Activities: | | | | | | | | | | | | | |
Conversion of convertible notes and accrued interest to common shares
|
| | | $ | 112,545 | | | | | $ | — | | |
Increase in net liabilities acquired from DEAC
|
| | |
|
2,514
|
| | | |
|
—
|
| |
Equity consideration issued to acquire SBTech
|
| | |
|
789,064
|
| | | |
|
—
|
| |
Increase of other current assets from transfer agent related to warrants
|
| | |
|
9,803
|
| | | |
|
—
|
| |
Decrease of accounts payable and accrued expenses from gaming licenses
|
| | |
|
(1,000)
|
| | | |
|
—
|
| |
Supplemental Disclosure of Cash Activities: | | | | | | | | | | | | | |
Cash paid for interest
|
| | |
|
417
|
| | | | | 123 | | |
| Computer equipment and software | | | 3 years | |
| Furniture and fixtures | | | 7 years | |
| Leasehold improvements | | | Lesser of the lease terms or the estimated useful lives of the improvements, generally 1 – 10 years | |
| Purchase consideration | | | | | | | |
|
Cash consideration(1)
|
| | | $ | 182,862 | | |
|
Share consideration(2)
|
| | | | 789,065 | | |
|
Other cash consideration(3)
|
| | | | 3,614 | | |
|
Total SBTech consideration
|
| | | $ | 975,541 | | |
|
|
Cash and cash equivalents
|
| | | $ | 9,639 | | |
|
Trade receivables
|
| | | | 18,741 | | |
|
Other current assets
|
| | | | 1,848 | | |
|
Property and equipment
|
| | | | 10,677 | | |
|
Intangible assets
|
| | | | 490,513 | | |
|
Other non-current assets
|
| | | | 1,017 | | |
|
Total identifiable assets acquired
|
| | | | 532,435 | | |
| Liabilities assumed: | | | | | | | |
|
Accounts payable and accrued expenses
|
| | | | 23,613 | | |
|
Other long-term liabilities
|
| | | | 4,226 | | |
|
Total liabilities assumed
|
| | | | 27,839 | | |
|
Net assets acquired (a)
|
| | | | 504,596 | | |
|
Estimated purchase consideration (b)
|
| | | | 975,541 | | |
|
Estimated goodwill (b) – (a)
|
| | |
$
|
470,945
|
| |
| | |
Fair Value
|
| |
Weighted-Average
Useful Life (in years) |
| |||
| | |
(in thousands)
|
| | | | |||
Developed Technology
|
| | | $ | 392,028 | | | |
8
|
|
Customer relationships
|
| | | | 93,699 | | | |
5
|
|
Trademarks and trade names
|
| | | | 4,308 | | | |
3
|
|
Gaming License
|
| | | | 478 | | | |
2 – 3
|
|
Total
|
| | | $ | 490,513 | | | | | |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net Revenue
|
| | | $ | 74,998 | | | | | $ | 82,987 | | | | | $ | 188,443 | | | | | $ | 175,941 | | |
Net Loss
|
| | | $ | (149,581) | | | | | $ | (37,187) | | | | | $ | (231,579) | | | | | $ | (125,110) | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Computer equipment and software
|
| | |
$
|
19,676
|
| | | | $ | 9,685 | | |
Furniture and fixtures
|
| | | | 7,540 | | | | | | 5,891 | | |
Leasehold improvements
|
| | | | 20,558 | | | | | | 17,373 | | |
Property and Equipment
|
| | | | 47,774 | | | | | | 32,949 | | |
Accumulated depreciation
|
| | | | (10,772) | | | | | | (7,004) | | |
Property and Equipment, net
|
| | | $ | 37,002 | | | | |
$
|
25,945
|
| |
| | |
Weighted-
Average Remaining Amortization Period |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||
Developed Technology
|
| |
7.82 years
|
| | | $ | 407,680 | | | | | $ | (9,484) | | | | | $ | 398,196 | | |
Internally developed software
|
| |
2.37 years
|
| | | | 55,109 | | | | | | (26,419) | | | | | | 28,690 | | |
Gaming Licenses
|
| |
4.62 years
|
| | | | 19,138 | | | | | | (1,944) | | | | | | 17,194 | | |
Trademarks and tradenames
|
| |
2.82 years
|
| | | | 4,480 | | | | | | (278) | | | | | | 4,202 | | |
Customer relationships
|
| |
4.82 years
|
| | | | 97,440 | | | | | | (3,627) | | | | | | 93,813 | | |
Intangible Assets, net
|
| | | | | | $ | 583,847 | | | | | $ | (41,752) | | | | | $ | 542,095 | | |
| | |
Weighted-
Average Remaining Amortization Period |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||
Internally developed software
|
| |
2.35 years
|
| | | $ | 43,753 | | | | | $ | (21,188) | | | | | $ | 22,565 | | |
Gaming Licenses
|
| |
4.86 years
|
| | | | 12,003 | | | | | | (629) | | | | | | 11,374 | | |
Intangible Assets, net
|
| | | | | | $ | 55,756 | | | | | $ | (21,817) | | | | | $ | 33,939 | | |
| | |
B2C
|
| |
B2B
|
| |
Total
|
| |||||||||
Balance as of December 31, 2019
|
| | | $ | 4,738 | | | | | $ | — | | | | | $ | 4,738 | | |
Goodwill acquired in SBTech Acquisition*
|
| | | | 348,345 | | | | | | 122,600 | | | | | | 470,945 | | |
Currency Translation Adjustment
|
| | |
|
—
|
| | | | | 4,895 | | | | | | 4,895 | | |
Balance as of June 30, 2020
|
| | | $ | 353,083 | | | | | $ | 127,495 | | | | | $ | 480,578 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Accounts payable
|
| | | $ | 32,312 | | | | | $ | 16,618 | | |
Accrued compensation and related expenses
|
| | | | 18,432 | | | | | | 17,770 | | |
Accrued marketing
|
| | | | 22,681 | | | | | | 11,855 | | |
Accrued professional fees
|
| | | | 9,414 | | | | | | 10,344 | | |
Accrued other expenses
|
| | | | 40,107 | | | | | | 28,708 | | |
Total | | | | $ | 122,946 | | | | | $ | 85,295 | | |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Deferred revenue, beginning of the period
|
| | |
$
|
24,094
|
| | | | $ | 14,074 | | | | |
$
|
20,760
|
| | | | $ | 13,581 | | |
Deferred revenue, end of the period
|
| | |
|
24,759
|
| | | | | 13,280 | | | | |
|
24,759
|
| | | | | 13,280 | | |
Revenue recognized in the period from
amounts included in deferred revenue at the beginning of the period |
| | |
|
1,909
|
| | | | | 2,386 | | | | |
|
8,635
|
| | | | | 6,661 | | |
| | |
Three months ended June 30,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Online gaming
|
| | |
$
|
55,409
|
| | | | $ | 56,112 | | | | |
$
|
139,114
|
| | | | $ | 121,402 | | |
Gaming software
|
| | |
|
14,954
|
| | | |
|
—
|
| | | |
|
14,954
|
| | | |
|
—
|
| |
Other
|
| | |
|
568
|
| | | | | 1,278 | | | | |
|
5,405
|
| | | | | 4,080 | | |
Total Revenue
|
| | |
$
|
70,931
|
| | | | $ | 57,390 | | | | |
$
|
159,473
|
| | | | $ | 125,482 | | |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
United States
|
| | |
$
|
56,577
|
| | | | $ | 55,120 | | | | |
$
|
147,387
|
| | | | $ | 122,290 | | |
International
|
| | |
|
14,354
|
| | | | | 2,270 | | | | |
|
12,086
|
| | | | | 3,192 | | |
Total Revenue
|
| | |
$
|
70,931
|
| | | | $ | 57,390 | | | | |
$
|
159,473
|
| | | | $ | 125,482 | | |
| | |
Number of Options / RSU’s
|
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Term (in Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||||||||||||||||||||
| | |
Time Based
|
| |
PSP (3)
|
| |
LTIP (3)
|
| |
Total
|
| ||||||||||||||||||||||||||||||
Outstanding at December 31, 2018
|
| | | | 66,527 | | | | | | 5,161 | | | | | | 40,189 | | | | | | 111,877 | | | | | $ | 0.84 | | | | | | 8.15 | | | | | $ | 69,765 | | |
Recapitalization Impact
|
| | | | (43,003) | | | | | | (3,336) | | | | | | (25,978) | | | | | | (72,317) | | | | | | 1.54 | | | | |
|
—
|
| | | |
|
—
|
| |
Outstanding at December 31, 2018
|
| | | | 23,524 | | | | | | 1,825 | | | | | | 14,211 | | | | | | 39,560 | | | | | | 2.38 | | | | | | 8.15 | | | | | | 69,765 | | |
Granted
|
| | | | 14,861 | | | | | | 6,263 | | | | | | 5,490 | | | | | | 26,614 | | | | | | 4.70 | | | | | | | | | | | | | | |
Exercised
|
| | | | (1,285) | | | | | | (31) | | | | | | — | | | | | | (1,316) | | | | | | 0.96 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (636) | | | | | | (47) | | | | | | — | | | | | | (683) | | | | | | 3.32 | | | | | | | | | | | | | | |
Outstanding at June 30,
2019 |
| | |
|
36,464
|
| | | |
|
8,010
|
| | | |
|
19,701
|
| | | | | 64,175 | | | | | | 2.82 | | | | |
|
8.11
|
| | | |
|
90,252
|
| |
Outstanding at December 31, 2019
|
| | | | 78,772 | | | | | | 11,233 | | | | | | 45,817 | | | | | | 135,822 | | | | | $ | 1.01 | | | | | | 7.64 | | | | | $ | 203,431 | | |
Recapitalization Impact
|
| | | | (50,919) | | | | | | (7,261) | | | | | | (29,616) | | | | | | (87,796) | | | | | | 1.85 | | | | | | — | | | | | | — | | |
Outstanding at December 31, 2019
|
| | | | 27,853 | | | | | | 3,972 | | | | | | 16,201 | | | | | | 48,026 | | | | | | 2.86 | | | | | | 7.64 | | | | | | 203,431 | | |
Granted
|
| | | | 4,331 | | | | | | — | | | | | | 15,070 | | | | | | 19,401 | | | | | | 0.61 | | | | | | | | | | | | | | |
Exercised
|
| | | | (2,732) | | | | | | (520) | | | | | | (603) | | | | | | (3,855) | | | | | | 1.61 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (656) | | | | | | (4) | | | | | | — | | | | | | (660) | | | | | | 2.53 | | | | | | | | | | | | | | |
Outstanding at June 30,
2020 |
| | | | 28,796 | | | | | | 3,448 | | | | | | 30,668 | | | | | | 62,912 | | | | | $ | 2.26 | | | | | | 7.79 | | | | | $ | 1,968,051 | | |
Vested and Expected to Vest as of June 30, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Vested
|
| | |
|
21,147
|
| | | |
|
3,448
|
| | | |
|
15,599
|
| | | |
|
40,194
|
| | | |
$
|
2.72
|
| | | |
|
6.91
|
| | | |
$
|
1,225,735
|
| |
Estimate of Expected to Vest(1)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2020(4)
|
| | | | 1,966 | | | | | | — | | | | | | 5,100 | | | | | | 7,066 | | | | | | | | | | | | | | | | | | | | |
2021
|
| | | | 3,223 | | | | | | — | | | | | | — | | | | | | 3,223 | | | | | | | | | | | | | | | | | | | | |
2022+(2)
|
| | | | 2,110 | | | | | | — | | | | | | 9,280 | | | | | | 11,390 | | | | | | | | | | | | | | | | | | | | |
| | | | | 7,299 | | | | | | — | | | | | | 14,380 | | | | | | 21,679 | | | | | $ | 1.44 | | | | | | 9.33 | | | | | $ | 708,362 | | |
Effect of estimated forfeitures
|
| | | | 350 | | | | | | — | | | | | | 689 | | | | | | 1,039 | | | | | $ | 1.56 | | | | | | 9.53 | | | | | $ | 33,953 | | |
| | |
Three Months Ended June 30,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Time Based
|
| | |
$
|
1,712
|
| | | | $ | 1,844 | | | | | $ | 3,346 | | | | | $ | 3,611 | | |
PSP
|
| | | | — | | | | | | — | | | | | | 1,633 | | | | | | 3,064 | | |
LTIP(1) | | | | | 44,774 | | | | | | — | | | | | | 46,349 | | | | | | — | | |
B Shares(2)
|
| | | | 8,000 | | | | | | — | | | | | | 8,000 | | | | | | — | | |
Total | | | | $ | 54,486 | | | | | $ | 1,844 | | | | | $ | 59,328 | | | | | $ | 6,675 | | |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Provisions for income taxes
|
| | |
$
|
323
|
| | | | $ | 7 | | | | |
$
|
332
|
| | | | $ | 16 | | |
| | |
Three Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue: | | | | | | | | | | | | | |
B2C
|
| | | $ | 55,977 | | | | | $ | 57,390 | | |
B2B
|
| | | | 14,954 | | | | | | — | | |
Total revenue
|
| | | | 70,931 | | | | | | 57,390 | | |
Adjusted EBITDA: | | | | | | | | | | | | | |
B2C
|
| | | | (53,973) | | | | | | (21,101) | | |
B2B
|
| | | | (3,522) | | | | | | — | | |
Total adjusted EBITDA
|
| | | | (57,495) | | | | | | (21,101) | | |
Adjusted for: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 18,668 | | | | | | 3,274 | | |
Interest (income) expense, net
|
| | | | 588 | | | | | | (426) | | |
Income tax expense
|
| | | | 323 | | | | | | 7 | | |
Stock-based compensation
|
| | | | 54,486 | | | | | | 1,844 | | |
Transaction-related costs
|
| | | | 25,255 | | | | | | 1,276 | | |
Litigation, settlement and related costs
|
| | | | 2,022 | | | | | | 814 | | |
Other non-recurring costs and special project costs
|
| | | | 2,517 | | | | | | 223 | | |
Non-operating costs
|
| | | | 83 | | | | | | — | | |
Net Loss attributable to common stockholders
|
| | | $ | (161,437) | | | | | $ | (28,113) | | |
|
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue: | | | | | | | | | | | | | |
B2C
|
| | | $ | 144,519 | | | | | $ | 125,482 | | |
B2B
|
| | | | 14,954 | | | | | | — | | |
Total revenue
|
| | | | 159,473 | | | | | | 125,482 | | |
Adjusted EBITDA: | | | | | | | | | | | | | |
B2C
|
| | | | (103,434) | | | | | | (41,516) | | |
B2B
|
| | | | (3,522) | | | | | | — | | |
Total adjusted EBITDA
|
| | | | (106,956) | | | | | | (41,516) | | |
Adjusted for: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 23,372 | | | | | | 6,199 | | |
Interest (income) expense, net
|
| | | | 2,939 | | | | | | (1,087) | | |
Income tax expense
|
| | | | 332 | | | | | | 16 | | |
Stock-based compensation
|
| | | | 59,328 | | | | | | 6,675 | | |
Transaction-related costs
|
| | | | 30,907 | | | | | | 1,276 | | |
Litigation, settlement and related costs
|
| | | | 3,352 | | | | | | 1,701 | | |
Other non-recurring costs and special project costs
|
| | | | 2,646 | | | | | | 1,371 | | |
Non-operating costs
|
| | | | 285 | | | | | | — | | |
Net Loss attributable to common stockholders
|
| | | $ | (230,117) | | | | | $ | (57,667) | | |
| | |
Three months
ended June 30, |
| |
Six months
ended June 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net loss
|
| | |
$
|
(161,437)
|
| | | | $ | (28,113) | | | | |
$
|
(230,117)
|
| | | | $ | (57,667) | | |
Basic and diluted weighted-average common shares
outstanding |
| | |
|
291,992
|
| | | | | 184,723 | | | | |
|
238,104
|
| | | | | 184,234 | | |
|
Basic and diluted
|
| | |
$
|
(0.55)
|
| | | | $ | (0.15) | | | | |
$
|
(0.97)
|
| | | | $ | (0.31) | | |
| | |
June 30, 2020
|
| |
June 30, 2019
|
| ||||||
Warrants
|
| | |
|
2,327
|
| | | | | 3,783 | | |
Stock options
|
| | |
|
62,912
|
| | | | | 48,267 | | |
Total
|
| | |
|
65,239
|
| | | | | 52,050 | | |
| Years ending December 31, | | | | | | | |
|
From July 1, 2020 to December 31, 2020
|
| | | $ | 8,435 | | |
|
2021
|
| | | | 15,668 | | |
|
2022
|
| | | | 13,947 | | |
|
2023
|
| | | | 13,637 | | |
|
2024
|
| | | | 12,029 | | |
|
Thereafter
|
| | | | 35,766 | | |
| Total | | | | $ | 99,482 | | |
| Years ending December 31, | | | | | | | |
|
From July 1, 2020 to December 31, 2020
|
| | | $ | 24,439 | | |
|
2021
|
| | | | 51,487 | | |
|
2022
|
| | | | 28,959 | | |
|
2023
|
| | | | 17,463 | | |
|
2024
|
| | | | 8,150 | | |
|
Thereafter
|
| | | | 15,400 | | |
| Total | | | | $ | 145,898 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 76,533 | | | | | $ | 117,908 | | |
Cash reserved for users
|
| | | | 144,000 | | | | | | 111,698 | | |
Receivables reserved for users
|
| | | | 19,828 | | | | | | 21,334 | | |
Prepaid expenses and other current assets
|
| | | | 20,787 | | | | | | 11,233 | | |
Total current assets
|
| | | | 261,148 | | | | | | 262,173 | | |
Property and equipment, net
|
| | | | 25,945 | | | | | | 14,102 | | |
Intangible assets, net
|
| | | | 33,939 | | | | | | 16,876 | | |
Goodwill
|
| | | | 4,738 | | | | | | 4,738 | | |
Equity method investment
|
| | | | 2,521 | | | | | | — | | |
Deposits
|
| | | | 2,434 | | | | | | 1,504 | | |
Total assets
|
| | | $ | 330,725 | | | | | $ | 299,393 | | |
Liabilities, redeemable convertible preferred stock and stockholders’ deficit
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 85,295 | | | | | $ | 56,149 | | |
Liabilities to users
|
| | | | 163,035 | | | | | | 132,769 | | |
Term note
|
| | | | 6,750 | | | | | | 3,750 | | |
Settlement liability
|
| | | | — | | | | | | 3,272 | | |
Total current liabilities
|
| | | | 255,080 | | | | | | 195,940 | | |
Convertible promissory notes
|
| | | | 68,363 | | | | | | — | | |
Other long-term liabilities
|
| | | | 56,862 | | | | | | 27,403 | | |
Total liabilities
|
| | | $ | 380,305 | | | | | $ | 223,343 | | |
Commitments and contingencies (note 13) | | | | | | | | | | | | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Redeemable convertible preferred stock: | | | | | | | | | | | | | |
Series E-1 redeemable convertible preferred stock, $0.001 par value; 54,901 shares authorized, issued and outstanding at December 31, 2019 and 2018; liquidation preference of $120,943 as of December 31, 2019
|
| | | $ | 119,752 | | | | | $ | 119,427 | | |
Series F redeemable convertible preferred stock, $0.001 par value;
78,445 shares authorized, 55,349 and 57,068 shares issued and outstanding at December 31, 2019 and 2018, respectively; liquidation preference of $141,117 and $145,499 as of December 31, 2019 and 2018, respectively |
| | | | 138,619 | | | | | | 141,850 | | |
Total redeemable convertible preferred stock
|
| | | | 258,371 | | | | | | 261,277 | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Common stock, $0.001 par value; 735,000 shares authorized as at December 31, 2019 and 2018; 389,610 and 384,009 shares issued and outstanding at December 31, 2019 and 2018, respectively
|
| | | | 390 | | | | | | 384 | | |
Additional paid-in capital
|
| | | | 690,443 | | | | | | 670,439 | | |
Accumulated deficit
|
| | | | (998,784) | | | | | | (856,050) | | |
Total stockholders’ deficit
|
| | | | (307,951) | | | | | | (185,227) | | |
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit
|
| | | $ | 330,725 | | | | | $ | 299,393 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Revenue
|
| | | $ | 323,410 | | | | | $ | 226,277 | | | | | $ | 191,844 | | |
Cost of revenue
|
| | | | 103,889 | | | | | | 48,689 | | | | | | 31,750 | | |
Sales and marketing
|
| | | | 185,269 | | | | | | 145,580 | | | | | | 156,632 | | |
Product and technology
|
| | | | 55,929 | | | | | | 32,885 | | | | | | 20,212 | | |
General and administrative
|
| | | | 124,868 | | | | | | 75,904 | | | | | | 56,448 | | |
Loss from operations
|
| | | | (146,545) | | | | | | (76,781) | | | | | | (73,198) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net
|
| | | | 1,348 | | | | | | 666 | | | | | | (1,541) | | |
Gain on initial equity method investment
|
| | | | 3,000 | | | | | | — | | | | | | — | | |
Other expense, net
|
| | | | — | | | | | | — | | | | | | (607) | | |
Loss before income tax provision
|
| | | | (142,197) | | | | | | (76,115) | | | | | | (75,346) | | |
Income tax provision
|
| | | | 58 | | | | | | 105 | | | | | | 210 | | |
Loss from equity method investment
|
| | | | 479 | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (142,734) | | | | | $ | (76,220) | | | | | $ | (75,556) | | |
Loss per share attributable to common stockholders: | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.37) | | | | | $ | (0.20) | | | | | $ | (0.54) | | |
| | |
Redeemable Convertible
Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balances at December 31, 2016
|
| | | | 184,499 | | | | | $ | 490,971 | | | | | | 22,291 | | | | | $ | 22 | | | | | $ | 3,998 | | | | | $ | (704,274) | | | | | $ | (700,254) | | |
Conversion of Debt to Series E Preferred
Stock |
| | | | 103,077 | | | | | | 160,928 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of Series E-1 Redeemable Convertible Preferred Stock
|
| | | | 54,901 | | | | | | 118,623 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of Series D Redeemable
Convertible Preferred Stock for In-kind Transfer |
| | | | 714 | | | | | | 1,077 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Conversion of Preferred Stock to Common Stock
|
| | | | (288,290) | | | | | | (654,103) | | | | | | 353,850 | | | | | | 354 | | | | | | 653,749 | | | | | | — | | | | | | 654,103 | | |
Exercise of Stock Options
|
| | | | — | | | | | | — | | | | | | 1,233 | | | | | | 1 | | | | | | 179 | | | | | | — | | | | | | 180 | | |
Issuance of Common Stock for In-kind Transfer
|
| | | | — | | | | | | — | | | | | | 2,558 | | | | | | 3 | | | | | | 172 | | | | | | — | | | | | | 175 | | |
Accretion of Preferred Stock Issuance Cost
|
| | | | — | | | | | | 1,513 | | | | | | — | | | | | | — | | | | | | (1,513) | | | | | | — | | | | | | (1,513) | | |
Stock-Based Compensation Expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,500 | | | | | | — | | | | | | 4,500 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (75,556) | | | | | | (75,556) | | |
Balances at December 31, 2017
|
| | | | 54,901 | | | | | | 119,009 | | | | | | 379,932 | | | | | $ | 380 | | | | | | 661,085 | | | | | | (779,830) | | | | | | (118,365) | | |
Issuance of Series F Preferred Stock
|
| | | | 57,068 | | | | | | 141,590 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of Stock Options
|
| | | | — | | | | | | — | | | | | | 2,385 | | | | | | 2 | | | | | | 550 | | | | | | — | | | | | | 552 | | |
Common Stock Issued
|
| | | | — | | | | | | — | | | | | | 393 | | | | | | 1 | | | | | | 339 | | | | | | — | | | | | | 340 | | |
Issuance of Common Stock for In-kind Transfer
|
| | | | — | | | | | | — | | | | | | 1,299 | | | | | | 1 | | | | | | 1,933 | | | | | | — | | | | | | 1,934 | | |
Accretion of Preferred Stock Issuance Cost
|
| | | | — | | | | | | 678 | | | | | | — | | | | | | — | | | | | | (678) | | | | | | — | | | | | | (678) | | |
Stock-Based Compensation Expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,210 | | | | | | — | | | | | | 7,210 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (76,220) | | | | | | (76,220) | | |
Balances at December 31, 2018
|
| | | | 111,969 | | | | | $ | 261,277 | | | | | | 384,009 | | | | | $ | 384 | | | | | $ | 670,439 | | | | | $ | (856,050) | | | | | | (185,227) | | |
Issuance of Series F Preferred Stock
|
| | | | 2,879 | | | | | | 7,824 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of Stock Options
|
| | | | — | | | | | | — | | | | | | 2,873 | | | | | | 3 | | | | | | 1,145 | | | | | | — | | | | | | 1,148 | | |
Common Stock Issued
|
| | | | — | | | | | | — | | | | | | 1,906 | | | | | | 2 | | | | | | 437 | | | | | | — | | | | | | 439 | | |
Issuance of Common Stock for In-kind Transfer
|
| | | | — | | | | | | — | | | | | | 822 | | | | | | 1 | | | | | | 1,363 | | | | | | — | | | | | | 1,364 | | |
Repurchase of Preferred Stock and Issuance of Promissory Note
|
| | | | (4,598) | | | | | | (11,722) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accretion of Preferred Stock Issuance
Cost |
| | | | — | | | | | | 992 | | | | | | — | | | | | | — | | | | | | (992) | | | | | | — | | | | | | (992) | | |
Stock-Based Compensation Expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,613 | | | | | | — | | | | | | 17,613 | | |
Issuance of warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 438 | | | | | | — | | | | | | 438 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (142,734) | | | | | | (142,734) | | |
Balances at December 31, 2019
|
| | | | 110,250 | | | | | $ | 258,371 | | | | | | 389,610 | | | | | $ | 390 | | | | | $ | 690,443 | | | | | $ | (998,784) | | | | | $ | (307,951) | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (142,734) | | | | | | (76,220) | | | | | | (75,556) | | |
Adjustments to reconcile net loss to cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 13,636 | | | | | | 7,499 | | | | | | 6,301 | | |
Non-cash rent expense
|
| | | | 377 | | | | | | 37 | | | | | | (120) | | |
Non-cash interest expense
|
| | | | 424 | | | | | | 31 | | | | | | 1,487 | | |
Stock-based compensation expense
|
| | | | 17,613 | | | | | | 7,210 | | | | | | 4,500 | | |
Advertising expense paid through issuance of common stock and warrants
|
| | | | 1,802 | | | | | | 1,934 | | | | | | 1,252 | | |
Amortization of debt discount
|
| | | | — | | | | | | — | | | | | | 141 | | |
Gain on derivative fair value adjustment
|
| | | | — | | | | | | — | | | | | | (184) | | |
Loss on exit activities
|
| | | | 179 | | | | | | — | | | | | | 877 | | |
Loss on disposal of assets
|
| | | | 730 | | | | | | — | | | | | | 185 | | |
Loss on conversion of promissory notes
|
| | | | — | | | | | | — | | | | | | 650 | | |
Loss from equity method investment
|
| | | | 479 | | | | | | — | | | | | | — | | |
Gain on initial equity method investment
|
| | | | (3,000) | | | | | | — | | | | | | — | | |
Deferred income taxes
|
| | | | 54 | | | | | | 19 | | | | | | 145 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Cash reserved for users
|
| | | | (32,302) | | | | | | (22,633) | | | | | | (17,346) | | |
Receivables reserved for users
|
| | | | 1,506 | | | | | | (4,087) | | | | | | 5,680 | | |
Prepaid expenses and other current assets
|
| | | | (9,554) | | | | | | (2,214) | | | | | | (4,175) | | |
Deposits
|
| | | | (930) | | | | | | 728 | | | | | | (133) | | |
Accounts payable and accrued expenses
|
| | | | 27,946 | | | | | | 5,699 | | | | | | (29,793) | | |
Other long-term liabilities
|
| | | | 18,028 | | | | | | 12,068 | | | | | | 5,307 | | |
Settlement liability
|
| | | | (3,400) | | | | | | (2,212) | | | | | | 783 | | |
Liabilities to users
|
| | | | 30,266 | | | | | | 26,562 | | | | | | 11,562 | | |
Net cash used in Operating Activities
|
| | | | (78,880) | | | | | | (45,579) | | | | | | (88,437) | | |
Cash Flows from Investing Activities:
|
| | | | | | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (16,703) | | | | | | (13,683) | | | | | | (599) | | |
Capitalization of internal-use software costs
|
| | | | (14,816) | | | | | | (12,738) | | | | | | (7,116) | | |
Acquisition of state licenses
|
| | | | (10,752) | | | | | | (251) | | | | | | — | | |
Net cash used in Investing Activities
|
| | | | (42,271) | | | | | | (26,672) | | | | | | (7,715) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from term note
|
| | | | 3,000 | | | | | | — | | | | | | — | | |
Repayment of notes payable
|
| | | | — | | | | | | (1,250) | | | | | | — | | |
Net proceeds from issuance of common stock
|
| | | | 439 | | | | | | — | | | | | | — | | |
Net cost due to conversion of Series E Stock
|
| | | | — | | | | | | — | | | | | | (272) | | |
Net proceeds due to issuance of Series E-1 Redeemable Convertible Preferred Stock
|
| | | | — | | | | | | — | | | | | | 118,623 | | |
Net proceeds due to issuance of Series F Redeemable Convertible Preferred Stock
|
| | | | 7,824 | | | | | | 141,590 | | | | | | — | | |
Repurchase of Series F Redeemable Convertible Preferred Stock
|
| | | | (722) | | | | | | — | | | | | | — | | |
Net proceeds from issuance of convertible promissory notes
|
| | | | 68,087 | | | | | | — | | | | | | — | | |
Proceeds from exercise of stock options
|
| | | | 1,148 | | | | | | 552 | | | | | | 180 | | |
Net cash provided by Financing Activities
|
| | | | 79,776 | | | | | | 140,892 | | | | | | 118,531 | | |
Net (Decrease) Increase in Cash
|
| | | | (41,375) | | | | | | 68,641 | | | | | | 22,379 | | |
Cash at Beginning of Year
|
| | | | 117,908 | | | | | | 49,267 | | | | | | 26,888 | | |
Cash at End of Year
|
| | | | 76,533 | | | | | | 117,908 | | | | | | 49,267 | | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | |
Non-cash redemption of Series F redeemable convertible preferred to stock through issuance of promissory notes
|
| | | | 11,000 | | | | | | — | | | | | | — | | |
Accretion of Series E-1 and F Redeemable Convertible Preferred Stock
|
| | | | 992 | | | | | | 678 | | | | | | 1,513 | | |
Conversion of Series A through E of preferred stock to common stock
|
| | | | — | | | | | | — | | | | | | 654,103 | | |
Conversion of convertible notes into preferred stock
|
| | | | — | | | | | | — | | | | | | 160,928 | | |
Common stock issued
|
| | | | — | | | | | | 340 | | | | | | — | | |
Acquisition of state licenses included in accounts payable and accrued expenses
|
| | | | 1,000 | | | | | | — | | | | | | — | | |
Supplemental Disclosure of Cash Activities: | | | | | | | | | | | | | | | | | | | |
Cash paid for interest
|
| | | | 260 | | | | | | 261 | | | | | | 285 | | |
| Computer equipment and software | | | 3 years | |
| Furniture and fixtures | | | 7 years | |
| Leasehold improvements | | | Lesser of the lease terms or the estimated useful lives of the improvements, generally 1 — 10 years | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Computer equipment and software
|
| | | $ | 9,685 | | | | | $ | 5,537 | | |
Furniture and fixtures
|
| | | | 5,891 | | | | | | 4,018 | | |
Leasehold improvements
|
| | | | 17,373 | | | | | | 7,924 | | |
Property and Equipment
|
| | | | 32,949 | | | | | | 17,479 | | |
Accumulated depreciation
|
| | | | (7,004) | | | | | | (3,377) | | |
Property and Equipment, net
|
| | | $ | 25,945 | | | | | $ | 14,102 | | |
| | |
Weighted-
Average Amortization Period |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||
User relationships
|
| | | | — | | | | | $ | 3,328 | | | | | $ | (3,328) | | | | | $ | — | | |
Internally developed software
|
| | | | 2.35 years | | | | | | 43,753 | | | | | | (21,188) | | | | | | 22,565 | | |
State licenses
|
| | | | 4.86 years | | | | | | 12,003 | | | | | | (629) | | | | | | 11,374 | | |
Intangible Assets, net
|
| | | | | | | | | $ | 59,084 | | | | | $ | (25,145) | | | | | $ | 33,939 | | |
|
| | |
Weighted-
Average Amortization Period |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||
User relationships
|
| | | | 0.5 years | | | | | $ | 3,328 | | | | | $ | (3,013) | | | | | $ | 315 | | |
Internally developed software
|
| | | | 2.45 years | | | | | | 28,937 | | | | | | (12,572) | | | | | | 16,365 | | |
State licenses
|
| | | | 0.75 years | | | | | | 251 | | | | | | (55) | | | | | | 196 | | |
Intangible Assets, net
|
| | | | | | | | | $ | 32,516 | | | | | $ | (15,640) | | | | | $ | 16,876 | | |
Year ending December 31,
|
| | | | | | |
2020
|
| | | $ | 13,048 | | |
2021
|
| | | | 10,250 | | |
2022
|
| | | | 6,241 | | |
2023
|
| | | | 2,200 | | |
2024 and thereafter
|
| | | | 2,200 | | |
Total | | | | $ | 33,939 | | |
|
Balance as of December 31, 2017
|
| | | $ | 4,399 | | |
|
Goodwill acquired
|
| | | | 339 | | |
|
Balance as of December 31, 2018
|
| | | $ | 4,738 | | |
|
Goodwill acquired
|
| | | | — | | |
|
Balance as of December 31, 2019
|
| | | $ | 4,738 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Accounts payable
|
| | | $ | 16,618 | | | | | $ | 11,626 | | |
Accrued payroll and related expenses
|
| | | | 17,770 | | | | | | 9,857 | | |
Accrued litigation, lobbying and compliance
|
| | | | 6,153 | | | | | | 5,566 | | |
Accrued loyalty points
|
| | | | 4,131 | | | | | | 7,272 | | |
Accrued marketing fees
|
| | | | 11,855 | | | | | | 3,237 | | |
Accrued operating taxes
|
| | | | 5,745 | | | | | | 2,741 | | |
Accrued partnership fees
|
| | | | 7,868 | | | | | | 4,340 | | |
Accrued professional fees
|
| | | | 4,191 | | | | | | 1,978 | | |
Accrued software and licenses
|
| | | | 1,589 | | | | | | 2,263 | | |
Accrued other
|
| | | | 9,375 | | | | | | 7,269 | | |
Total | | | | $ | 85,295 | | | | | $ | 56,149 | | |
| | |
Preferred
Shares Authorized |
| |
Preferred
Shares Issued and Outstanding |
| |
Carrying Value
|
| |||||||||
Series E-1 redeemable convertible preferred stock
|
| | | | 54,901 | | | | | | 54,901 | | | | | $ | 119,752 | | |
Series F redeemable convertible preferred stock
|
| | | | 78,445 | | | | | | 55,349 | | | | | | 138,619 | | |
Total | | | | | 133,346 | | | | | | 110,250 | | | | | $ | 258,371 | | |
|
| | |
Preferred
Shares Authorized |
| |
Preferred
Shares Issued and Outstanding |
| |
Carrying Value
|
| |||||||||
Series E-1 redeemable convertible preferred stock
|
| | | | 54,901 | | | | | | 54,901 | | | | | $ | 119,427 | | |
Series F redeemable convertible preferred stock
|
| | | | 78,445 | | | | | | 57,068 | | | | | | 141,850 | | |
Total | | | | | 133,346 | | | | | | 111,969 | | | | | $ | 261,277 | | |
| | |
Preferred
Shares Authorized |
| |
Preferred
Shares Issued and Outstanding |
| |
Carrying Value
|
| | ||||||||||||||
Series E-1 redeemable convertible preferred
|
| | |
|
stock
|
| | | | | 54,901 | | | | | | 54,901 | | | | | $ | 119,009 | | |
| | |
2019
|
| |
2018
|
| ||||||
Risk free interest rate
|
| | | | 1.95% | | | | | | 2.80% | | |
Expected term (in years)
|
| | | | 6.02 | | | | | | 6.11 | | |
Expected volatility
|
| | | | 41.48% | | | | | | 41.98% | | |
Expected dividend yield
|
| | | | 0% | | | | | | 0% | | |
| | |
Number of Shares
|
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Term (years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||||||||||||||||||||
| | |
Time
Based |
| |
PSP
|
| |
LTIP
|
| |
Total
|
| ||||||||||||||||||||||||||||||
Outstanding at December 31,
2016 |
| | | $ | 44,530 | | | | | | — | | | | | | — | | | | | | 44,530 | | | | | $ | 0.22 | | | | | | 8.24 | | | | | $ | 30,680 | | |
Granted
|
| | | | 14,165 | | | | | | — | | | | | | 5,131 | | | | | | 19,296 | | | | | | 1.17 | | | | | | | | | | | | | | |
Exercised
|
| | | | (1,306) | | | | | | — | | | | | | — | | | | | | (1,306) | | | | | | 0.15 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (958) | | | | | | — | | | | | | — | | | | | | (958) | | | | | | 0.61 | | | | | | | | | | | | | | |
Outstanding at December 31,
2017 |
| | | $ | 56,431 | | | | | | — | | | | | | 5,131 | | | | | | 61,562 | | | | | $ | 0.51 | | | | | | 8.00 | | | | | $ | 32,401 | | |
Granted
|
| | | | 13,564 | | | | | | 5,320 | | | | | | 35,058 | | | | | | 53,942 | | | | | | 1.18 | | | | | | | | | | | | | | |
Exercised
|
| | | | (2,297) | | | | | | — | | | | | | — | | | | | | (2,297) | | | | | | 0.25 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (1,171) | | | | | | (159) | | | | | | — | | | | | | (1,330) | | | | | | 0.88 | | | | | | | | | | | | | | |
Outstanding at December 31,
2018 |
| | | $ | 66,527 | | | | | | 5,161 | | | | | | 40,189 | | | | | | 111,877 | | | | | $ | 0.84 | | | | | | 8.15 | | | | | $ | 69,765 | | |
Granted
|
| | | | 16,278 | | | | | | 6,263 | | | | | | 5,628 | | | | | | 28,169 | | | | | | 1.65 | | | | | | | | | | | | | | |
Exercised
|
| | | | (2,837) | | | | | | (112) | | | | | | — | | | | | | (2,949) | | | | | | 0.41 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (1,196) | | | | | | (79) | | | | | | — | | | | | | (1,275) | | | | | | 1.19 | | | | | | | | | | | | | | |
Outstanding at December 31,
2019 |
| | | $ | 78,772 | | | | | | 11,233 | | | | | | 45,817 | | | | | | 135,822 | | | | | $ | 1.01 | | | | | | 7.64 | | | | | $ | 203,431 | | |
Time Vesting*
|
| | | | | | | | | | | | | | | | | | | | | | 75,170 | | | | | $ | 0.84 | | | | | | 7.01 | | | | | $ | 125,849 | | |
PSP**
|
| | | | | | | | | | | | | | | | | | | | | | 10,719 | | | | | $ | 1.44 | | | | | | 8.92 | | | | | $ | 11,484 | | |
LTIP**
|
| | | | | | | | | | | | | | | | | | | | | | 8,568 | | | | | $ | 1.21 | | | | | | 8.42 | | | | | $ | 11,129 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
United States
|
| | | $ | (142,198) | | | | | $ | (76,122) | | | | | $ | (75,445) | | |
Foreign
|
| | | | 1 | | | | | | 7 | | | | | | 99 | | |
Loss before provision for (benefit from) income taxes
|
| | | $ | (142,197) | | | | | $ | (76,115) | | | | | $ | (75,346) | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Foreign
|
| | | | 4 | | | | | | 86 | | | | | | 65 | | |
Total current provision
|
| | | | 4 | | | | | | 86 | | | | | $ | 65 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | 9 | | | | | $ | 36 | | |
State
|
| | | | 54 | | | | | | 10 | | | | | | 109 | | |
Foreign
|
| | | | — | | | | | | — | | | | | | — | | |
Total deferred provision
|
| | | | 54 | | | | | | 19 | | | | | | 145 | | |
Total provision
|
| | | $ | 58 | | | | | $ | 105 | | | | | $ | 210 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Provision for income taxes at statutory rate
|
| | | $ | (29,863) | | | | | $ | (15,984) | | | | | $ | (25,400) | | |
Prior year provision true-ups
|
| | | | 3,164 | | | | | | (157) | | | | | | 982 | | |
State taxes, net of federal benefit
|
| | | | (7,522) | | | | | | (7,525) | | | | | | (2,769) | | |
Certain stock-based compensation expenses
|
| | | | 2,412 | | | | | | 430 | | | | | | 536 | | |
Non-deductible lobbying expenses
|
| | | | 1,885 | | | | | | 1,352 | | | | | | 2,505 | | |
Non-deductible acquisition expenses
|
| | | | 2,068 | | | | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 19,988 | | | | | | 21,584 | | | | | | (66,370) | | |
Impact of federal rate change on net deferred taxes
|
| | | | — | | | | | | — | | | | | | 90,889 | | |
Net operating loss write-off
|
| | | | 7,246 | | | | | | — | | | | | | — | | |
Other
|
| | | | 680 | | | | | | 405 | | | | | | (163) | | |
Provision for income taxes
|
| | | $ | 58 | | | | | $ | 105 | | | | | $ | 210 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Stock-based compensation
|
| | | $ | 4,552 | | | | | $ | 3,472 | | |
Intangible assets
|
| | | | 123 | | | | | | 187 | | |
Fixed assets
|
| | | | — | | | | | | 365 | | |
Accrual and other temporary differences
|
| | | | 20,907 | | | | | | 12,273 | | |
Credit carryforwards
|
| | | | 15 | | | | | | 15 | | |
Net operating loss carryforwards
|
| | | | 217,836 | | | | | | 203,180 | | |
Total deferred tax assets:
|
| | | $ | 243,433 | | | | | $ | 219,492 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Capitalized software costs
|
| | | | (6,335) | | | | | | (4,364) | | |
Fixed assets
|
| | | | (2,035) | | | | | | — | | |
Total Net Deferred Tax Assets
|
| | | | 235,063 | | | | | | 215,128 | | |
Valuation allowance
|
| | | | (235,280) | | | | | | (215,292) | | |
Net deferred tax liabilities
|
| | | $ | (217) | | | | | $ | (164) | | |
Years ending December 31,
|
| | | | | | |
2020
|
| | | $ | 10,067 | | |
2021
|
| | | | 8,300 | | |
2022
|
| | | | 8,374 | | |
2023
|
| | | | 8,292 | | |
2024
|
| | | | 7,310 | | |
Thereafter
|
| | | | 23,685 | | |
Total | | | | $ | 66,028 | | |
Years ending December 31,
|
| | | | | | |
2020(a) | | | | $ | 74,390 | | |
2021
|
| | | | 54,725 | | |
2022
|
| | | | 33,885 | | |
2023
|
| | | | 13,689 | | |
2024
|
| | | | 4,950 | | |
Thereafter
|
| | | | 4,100 | | |
Total | | | | $ | 185,739 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018(a)
|
| |
2017(a)
|
| |||||||||
Online Gaming(b)
|
| | | $ | 308,177 | | | | | $ | 219,131 | | | | | $ | 189,779 | | |
Other
|
| | | | 15,233 | | | | | | 7,146 | | | | | | 2,065 | | |
Total revenue
|
| | | $ | 323,410 | | | | | $ | 226,277 | | | | | $ | 191,844 | | |
| | |
Years ended December 31,
|
| |||||||||||||||
(in thousands except per share data):
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net loss
|
| | | $ | (142,734) | | | | | $ | (76,220) | | | | | $ | (75,556) | | |
Less: accretion of preferred share issuance costs
|
| | | | (992) | | | | | | (678) | | | | | | (1,513) | | |
Net loss attributable to common stockholders
|
| | | $ | (143,726) | | | | | $ | (76,898) | | | | | $ | (77,069) | | |
Basic and diluted weighted average common share outstanding
|
| | | | 386,793 | | | | | | 381,821 | | | | | | 142,451 | | |
Loss per share attributable to common shareholders: | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.37) | | | | | $ | (0.20) | | | | | $ | (0.54) | | |
| | |
Years ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Warrants
|
| | | | 515 | | | | | | 2,422 | | | | | | 2,080 | | |
Stock options
|
| | | | 135,823 | | | | | | 111,877 | | | | | | 61,562 | | |
Convertible Notes(a)
|
| | | | 20,952 | | | | | | — | | | | | | — | | |
Total | | | | | 157,290 | | | | | | 114,299 | | | | | | 63,642 | | |
| | |
Years ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
United States
|
| | | $ | 318,144 | | | | | $ | 219,415 | | | | | $ | 187,261 | | |
Other
|
| | | | 5,266 | | | | | | 6,862 | | | | | | 4,583 | | |
Total revenue
|
| | | $ | 323,410 | | | | | $ | 226,277 | | | | | $ | 191,844 | | |
| | |
Note
|
| |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | | | | |
Unaudited
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | 9,143 | | | | | | 8,144 | | |
Trade receivables, net
|
| | | | | | | 20,835 | | | | | | 24,745 | | |
Other current assets
|
| | | | | | | 3,212 | | | | | | 3,258 | | |
Total current assets
|
| | | | | | | 33,190 | | | | | | 36,147 | | |
NON-CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Intangible assets, net
|
| | | | | | | 26,197 | | | | | | 26,094 | | |
Right-of-use assets
|
| | | | | | | 25,497 | | | | | | 25,779 | | |
Property and equipment, net
|
| | | | | | | 9,821 | | | | | | 9,930 | | |
Deferred tax assets
|
| | | | | | | 623 | | | | | | 597 | | |
Other non-current assets
|
| | | | | | | 357 | | | | | | 306 | | |
Total non-current assets
|
| | | | | | | 62,495 | | | | | | 62,706 | | |
TOTAL ASSETS
|
| | | | | | | 95,685 | | | | | | 98,853 | | |
| | |
Note
|
| |
March 31,
2020 |
| |
December 31,
2019 |
| |||||||||
| | | | | | | | |
Unaudited
|
| | | | | | | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | | | | | | | 9,484 | | | | | | 8,127 | | |
Lease liabilities
|
| | | | | | | | | | 3,889 | | | | | | 3,516 | | |
Other accounts payable and accrued expenses
|
| | | | | | | | | | 16,620 | | | | | | 11,176 | | |
Total current liabilities
|
| | | | | | | | | | 29,993 | | | | | | 22,819 | | |
NON-CURRENT LIABILITIES: | | | | | | | | | | | | | | | | | | | |
Lease liabilities
|
| | | | | | | | | | 22,373 | | | | | | 22,749 | | |
Accrued severance pay, net
|
| | | | | | | | | | 505 | | | | | | 408 | | |
Total non-current liabilities
|
| | | | | | | | | | 22,878 | | | | | | 23,157 | | |
SHAREHOLDERS’ EQUITY:
|
| | | | 3 | | | | | | | | | | | | | | |
Share capital
|
| | | | | | | | | | 3 | | | | | | 3 | | |
Actuarial reserve
|
| | | | | | | | | | (178) | | | | | | (139) | | |
Retained earnings
|
| | | | | | | | | | 42,158 | | | | | | 51,956 | | |
Equity attributable to owners of the parent
|
| | | | | | | | | | 41,983 | | | | | | 51,820 | | |
Non-controlling interest
|
| | | | | | | | | | 831 | | | | | | 1,057 | | |
Total shareholders’ equity
|
| | | | | | | | | | 42,814 | | | | | | 52,877 | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | | | | 95,685 | | | | | | 98,853 | | |
|
|
/s/ Richard Carter
Richard Carter
Chief Executive Officer |
| |
/s/ Shay Berka
Shay Berka
Chief Financial Officer |
| |
May 15, 2020
Date of approval of financial statements
|
|
| | |
Three months ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
Unaudited
|
| |||||||||
Revenue
|
| | | | 22,594 | | | | | | 21,899 | | |
Cost of revenue
|
| | | | 15,601 | | | | | | 12,016 | | |
Gross profit
|
| | | | 6,993 | | | | | | 9,883 | | |
Operating expenses: | | | | | | | | | | | | | |
Research and development expenses
|
| | | | 5,865 | | | | | | 4,014 | | |
Selling and marketing expenses
|
| | | | 2,734 | | | | | | 2,730 | | |
General and administrative expenses
|
| | | | 4,756 | | | | | | 2,258 | | |
Profit (loss) from operations
|
| | | | (6,362) | | | | | | 881 | | |
Financial income
|
| | | | 9 | | | | | | — | | |
Financial expenses
|
| | | | 511 | | | | | | 318 | | |
Profit (loss) before tax
|
| | | | (6,864) | | | | | | 563 | | |
Tax expenses
|
| | | | 121 | | | | | | 80 | | |
Net profit (loss)
|
| | | | (6,985) | | | | | | 483 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Items not reclassified to profit or loss in subsequent periods | | | | | | | | | | | | | |
Re-measurements of accrued severance pay
|
| | | | (78) | | | | | | 7 | | |
Total comprehensive income (loss) for the period
|
| | | | (7,063) | | | | | | 490 | | |
Net profit (loss) for the period attributed to: | | | | | | | | | | | | | |
Owners of the parent
|
| | | | (6,798) | | | | | | 465 | | |
Non-controlling interest
|
| | | | (187) | | | | | | 18 | | |
| | | | | (6,985) | | | | | | 483 | | |
Total comprehensive income (loss) for the period attributed to: | | | | | | | | | | | | | |
Owners of the parent
|
| | | | (6,837) | | | | | | 469 | | |
Non-controlling interest
|
| | | | (226) | | | | | | 21 | | |
| | | | | (7,063) | | | | | | 490 | | |
For the three months ended
March 31, 2020 (Unaudited): |
| |
Equity attributable to owners of the parent
|
| |
Non-
controlling interest |
| |
Total
Shareholders’ equity |
| |||||||||||||||||||||||||||
| | |
Share
capital |
| |
Actuarial
reserve |
| |
Retained
earnings |
| |
Total
|
| ||||||||||||||||||||||||
Balance at January 1, 2020
|
| | | | 3 | | | | | | (139) | | | | | | 51,956 | | | | | | 51,820 | | | | | | 1,057 | | | | | | 52,877 | | |
Changes during the period: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (6,798) | | | | | | (6,798) | | | | | | (187) | | | | | | (6,985) | | |
Other comprehensive loss
|
| | | | — | | | | | | (39) | | | | | | — | | | | | | (39) | | | | | | (39) | | | | | | (78) | | |
Total comprehensive loss
|
| | | | — | | | | | | (39) | | | | | | (6,798) | | | | | | (6,837) | | | | | | (226) | | | | | | (7,063) | | |
Dividend declared*
|
| | | | — | | | | | | — | | | | | | (3,000) | | | | | | (3,000) | | | | | | — | | | | | | (3,000) | | |
Balance at March 31, 2020
|
| | | | 3 | | | | | | (178) | | | | | | 42,158 | | | | | | 41,983 | | | | | | 831 | | | | | | 42,814 | | |
For the three months ended
March 31, 2019 (Unaudited): |
| |
Equity attributable to owners of the parent
|
| |
Non-
controlling interest |
| |
Total
Shareholders’ equity |
| |||||||||||||||||||||||||||
| | |
Share
capital |
| |
Actuarial
reserve |
| |
Retained
earnings |
| |
Total
|
| ||||||||||||||||||||||||
Balance at January 1, 2019
|
| | | | 3 | | | | | | (65) | | | | | | 57,928 | | | | | | 57,866 | | | | | | 583 | | | | | | 58,449 | | |
Changes during the period: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net profit
|
| | | | — | | | | | | — | | | | | | 465 | | | | | | 465 | | | | | | 18 | | | | | | 483 | | |
Other comprehensive
income |
| | | | — | | | | | | 4 | | | | | | — | | | | | | 4 | | | | | | 3 | | | | | | 7 | | |
Total comprehensive
income |
| | | | — | | | | | | 4 | | | | | | 465 | | | | | | 469 | | | | | | 21 | | | | | | 490 | | |
Dividend declared
|
| | | | — | | | | | | — | | | | | | (750) | | | | | | (750) | | | | | | — | | | | | | (750) | | |
Dividend declared and paid
|
| | | | — | | | | | | — | | | | | | (4,250) | | | | | | (4,250) | | | | | | — | | | | | | (4,250) | | |
Balance at March 31, 2019
|
| | | | 3 | | | | | | (61) | | | | | | 53,393 | | | | | | 53,335 | | | | | | 604 | | | | | | 53,939 | | |
| | |
Three months ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
Unaudited
|
| |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net profit (loss) for the period
|
| | | | (6,985) | | | | | | 483 | | |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 4,673 | | | | | | 3,458 | | |
Decrease (increase) in trade receivables
|
| | | | 3,967 | | | | | | (259) | | |
Decrease in other current assets
|
| | | | 46 | | | | | | 1,571 | | |
Decrease in other non-current assets
|
| | | | 7 | | | | | | 24 | | |
Increase in deferred tax assets
|
| | | | (26) | | | | | | (62) | | |
Increase (decrease) in trade payables
|
| | | | 1,385 | | | | | | (2,156) | | |
Increase in other accounts payable and accrued expenses
|
| | | | 2,384 | | | | | | 287 | | |
Interest charged on lease liabilities
|
| | | | 96 | | | | | | 160 | | |
Increase in accrued severance pay, net
|
| | | | 19 | | | | | | 33 | | |
Income tax expenses
|
| | | | 147 | | | | | | 142 | | |
Cash generated from operations
|
| | | | 5,713 | | | | | | 3,681 | | |
Income tax paid
|
| | | | (87) | | | | | | (310) | | |
Net cash provided by operating activities
|
| | | | 5,626 | | | | | | 3,371 | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (659) | | | | | | (1,245) | | |
Increase in deposits
|
| | | | (58) | | | | | | — | | |
Purchase of software and licenses
|
| | | | (5) | | | | | | (128) | | |
Internally generated intangible assets
|
| | | | (2,936) | | | | | | (3,283) | | |
Net cash used in investing activities
|
| | | | (3,658) | | | | | | (4,656) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Dividend paid
|
| | | | — | | | | | | (4,250) | | |
Principal paid on lease liabilities
|
| | | | (884) | | | | | | (801) | | |
Net cash used in financing activities
|
| | | | (884) | | | | | | (5,051) | | |
Effects of exchange rate changes on cash and cash equivalents
|
| | | | (85) | | | | | | (5) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 999 | | | | | | (6,341) | | |
Cash and cash equivalents at the beginning of the period
|
| | | | 8,144 | | | | | | 20,731 | | |
Cash and cash equivalents at the end of the period
|
| | | | 9,143 | | | | | | 14,390 | | |
Non-cash activities | | | | | | | | | | | | | |
Dividend declared*
|
| | | | 3,000 | | | | | | 750 | | |
| | |
Authorized
|
| |
Issued and
outstanding |
| ||||||
| | |
Amount
|
| |||||||||
Ordinary shares of USD 0.1 per share
|
| | | | 72,000 | | | | | | 40,800 | | |
| | |
Authorized
|
| |
Issued and
outstanding |
| ||||||
| | |
Amount
|
| |||||||||
Ordinary shares of USD 0.1 per share
|
| | | | 72,000 | | | | | | 40,800 | | |
| | |
March 31, 2020
|
| |||||||||
| | |
Number
of options |
| |
Weighted average
exercise price (€) |
| ||||||
Outstanding at beginning of period
|
| | | | 5,893 | | | | | | 2,330 | | |
Granted
|
| | | | — | | | | | | — | | |
Outstanding at end of period
|
| | | | 5,893 | | | | | | 2,330 | | |
|
| | |
March 31, 2019
|
| |||||||||
| | |
Number
of options |
| |
Weighted average
exercise price (€) |
| ||||||
Outstanding at beginning of period
|
| | | | 5,217 | | | | | | 927 | | |
Granted
|
| | | | — | | | | | | — | | |
Outstanding at end of period
|
| | | | 5,217 | | | | | | 927 | | |
| | |
Three months ended March 31,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
€
|
| |
%
|
| |
€
|
| |
%
|
| ||||||||||||
Customer A
|
| | | | 13,127 | | | | | | 58% | | | | | | 9,720 | | | | | | 44% | | |
Customer B
|
| | | | 1,157 | | | | | | 5% | | | | | | 2,085 | | | | | | 10% | | |
Customer C
|
| | | | 718 | | | | | | 3% | | | | | | 1,740 | | | | | | 8% | | |
Customer D
|
| | | | 573 | | | | | | 3% | | | | | | 828 | | | | | | 4% | | |
Others
|
| | | | 7,019 | | | | | | 31% | | | | | | 7,526 | | | | | | 34% | | |
| | | | | 22,594 | | | | | | 100% | | | | | | 21,899 | | | | | | 100% | | |
|
Tel-Aviv, Israel
March 12, 2020, except for footnote 19 which is dated March 26, 2020 |
| |
/s/ Ziv haft
Certified Public Accountants (Isr.)
BDO Member Firm |
|
| | |
Note
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | 8,144 | | | | | | 20,731 | | |
Trade receivables, net
|
| |
2
|
| | | | 24,745 | | | | | | 17,220 | | |
Other current assets
|
| |
4
|
| | | | 3,258 | | | | | | 2,876 | | |
Total current assets
|
| | | | | | | 36,147 | | | | | | 40,827 | | |
NON-CURRENT ASSETS: | | | | | | | | | | | | | | | | |
Intangible assets, net
|
| |
6
|
| | | | 26,094 | | | | | | 21,980 | | |
Right-of-use assets
|
| |
15
|
| | | | 25,779 | | | | | | — | | |
Property and equipment, net
|
| |
5
|
| | | | 9,930 | | | | | | 7,926 | | |
Deferred tax assets
|
| |
13
|
| | | | 597 | | | | | | 235 | | |
Other non-current assets
|
| |
7
|
| | | | 306 | | | | | | 1,688 | | |
Total non-current assets
|
| | | | | | | 62,706 | | | | | | 31,829 | | |
TOTAL ASSETS
|
| | | | | | | 98,853 | | | | | | 72,656 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | | | | 8,127 | | | | | | 7,006 | | |
Lease liabilities
|
| |
15
|
| | | | 3,516 | | | | | | — | | |
Other accounts payable and accrued expenses
|
| |
8
|
| | | | 11,176 | | | | | | 6,923 | | |
Total current liabilities
|
| | | | | | | 22,819 | | | | | | 13,929 | | |
NON-CURRENT LIABILITIES: | | | | | | | | | | | | | | | | |
Lease liabilities
|
| |
15
|
| | | | 22,749 | | | | | | — | | |
Accrued severance pay, net
|
| | | | | | | 408 | | | | | | 278 | | |
Total non-current liabilities
|
| | | | | | | 23,157 | | | | | | 278 | | |
SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | |
Share capital
|
| |
9
|
| | | | 3 | | | | | | 3 | | |
Actuarial reserve
|
| | | | | | | (139) | | | | | | (65) | | |
Retained earnings
|
| | | | | | | 51,956 | | | | | | 57,928 | | |
Equity attributable to owners of the parent
|
| | | | | | | 51,820 | | | | | | 57,866 | | |
Non-controlling interest
|
| |
18
|
| | | | 1,057 | | | | | | 583 | | |
Total shareholders’ equity
|
| | | | | | | 52,877 | | | | | | 58,449 | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | 98,853 | | | | | | 72,656 | | |
|
|
/s/ Richard Carter
Richard Carter
Chief Executive Officer |
| |
/s/ Shay Berka
Shay Berka
Chief Financial Officer |
| |
March 26, 2020
Date of approval of the
Financial statements |
|
| | |
Note
|
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
Revenue
|
| |
10
|
| | | | 96,857 | | | | | | 94,147 | | | | | | 66,087 | | |
Cost of revenue
|
| |
11
|
| | | | 54,173 | | | | | | 45,087 | | | | | | 31,844 | | |
Gross profit
|
| | | | | | | 42,684 | | | | | | 49,060 | | | | | | 34,243 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
Research and development expenses
|
| | | | | | | 18,103 | | | | | | 10,115 | | | | | | 8,693 | | |
Selling and marketing expenses
|
| | | | | | | 6,772 | | | | | | 3,722 | | | | | | 2,964 | | |
General and administrative expenses
|
| | | | | | | 11,772 | | | | | | 7,636 | | | | | | 5,892 | | |
Total operating expenses
|
| | | | | | | 36,647 | | | | | | 21,473 | | | | | | 17,549 | | |
Profit from operations
|
| | | | | | | 6,037 | | | | | | 27,587 | | | | | | 16,694 | | |
Financial income
|
| | | | | | | 23 | | | | | | 97 | | | | | | 37 | | |
Financial expense
|
| | | | | | | 846 | | | | | | 340 | | | | | | 177 | | |
Profit before tax
|
| | | | | | | 5,214 | | | | | | 27,344 | | | | | | 16,554 | | |
Tax expenses
|
| |
13
|
| | | | 638 | | | | | | 565 | | | | | | 264 | | |
Net profit
|
| | | | | | | 4,576 | | | | | | 26,779 | | | | | | 16,290 | | |
Other comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | |
Items that will not be reclassified to profit
or loss: |
| | | | | | | | | | | | | | | | | | | | | |
Re-measurements of accrued severance
pay |
| | | | | | | 148 | | | | | | 40 | | | | | | 17 | | |
Total comprehensive income for the year
|
| | | | | | | 4,428 | | | | | | 26,739 | | | | | | 16,273 | | |
Profit for the year attributed to:
|
| | | | | | | | | | | | | | | | | | | | | |
Owners of the parent
|
| | | | | | | 4,028 | | | | | | 26,509 | | | | | | 16,110 | | |
Non-controlling interest
|
| | | | | | | 548 | | | | | | 270 | | | | | | 180 | | |
| | | | | | | | 4,576 | | | | | | 26,779 | | | | | | 16,290 | | |
Total comprehensive income for the year attributed to:
|
| | | | | | | | | | | | | | | | | | | | | |
Owners of the parent
|
| | | | | | | 3,954 | | | | | | 26,489 | | | | | | 16,102 | | |
Non-controlling interest
|
| | | | | | | 474 | | | | | | 250 | | | | | | 171 | | |
| | | | | | | | 4,428 | | | | | | 26,739 | | | | | | 16,273 | | |
| | |
Owners of the parent
|
| |
Non-
controlling interest |
| |
Total
Shareholders’ equity |
| |||||||||||||||||||||||||||
| | |
Share
capital |
| |
Actuarial
reserve |
| |
Retained
earnings |
| |
Total
|
| ||||||||||||||||||||||||
Balance at December 31, 2016
|
| | | | 3 | | | | | | (37) | | | | | | 17,489 | | | | | | 17,455 | | | | | | 162 | | | | | | 17,617 | | |
Changes during 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net profit
|
| | | | — | | | | | | — | | | | | | 16,110 | | | | | | 16,110 | | | | | | 180 | | | | | | 16,290 | | |
Other comprehensive loss
|
| | | | — | | | | | | (8) | | | | | | — | | | | | | (8) | | | | | | (9) | | | | | | (17) | | |
Total comprehensive income for the year
|
| | | | — | | | | | | (8) | | | | | | 16,110 | | | | | | 16,102 | | | | | | 171 | | | | | | 16,273 | | |
Dividend declared
|
| | | | — | | | | | | — | | | | | | (687) | | | | | | (687) | | | | | | — | | | | | | (687) | | |
Dividend declared and paid
|
| | | | — | | | | | | — | | | | | | (313) | | | | | | (313) | | | | | | — | | | | | | (313) | | |
Balance at December 31, 2017
|
| | | | 3 | | | | | | (45) | | | | | | 32,599 | | | | | | 32,557 | | | | | | 333 | | | | | | 32,890 | | |
Changes in accounting policy – IFRS 9 Financial Instruments
|
| | | | — | | | | | | — | | | | | | (1,180) | | | | | | (1,180) | | | | | | — | | | | | | (1,180) | | |
Balance at January 1, 2018 as restated
|
| | | | 3 | | | | | | (45) | | | | | | 31,419 | | | | | | 31,377 | | | | | | 333 | | | | | | 31,710 | | |
Changes during 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net profit
|
| | | | — | | | | | | — | | | | | | 26,509 | | | | | | 26,509 | | | | | | 270 | | | | | | 26,779 | | |
Other comprehensive loss
|
| | | | — | | | | | | (20) | | | | | | — | | | | | | (20) | | | | | | (20) | | | | | | (40) | | |
Total comprehensive income for the year
|
| | | | — | | | | | | (20) | | | | | | 26,509 | | | | | | 26,489 | | | | | | 250 | | | | | | 26,739 | | |
Balance at December 31, 2018
|
| | | | 3 | | | | | | (65) | | | | | | 57,928 | | | | | | 57,866 | | | | | | 583 | | | | | | 58,449 | | |
Changes during 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net profit
|
| | | | — | | | | | | — | | | | | | 4,028 | | | | | | 4,028 | | | | | | 548 | | | | | | 4,576 | | |
Other comprehensive loss
|
| | | | — | | | | | | (74) | | | | | | — | | | | | | (74) | | | | | | (74) | | | | | | (148) | | |
Total comprehensive income for the year
|
| | | | — | | | | | | (74) | | | | | | 4,028 | | | | | | 3,954 | | | | | | 474 | | | | | | 4,428 | | |
Dividend paid
|
| | | | — | | | | | | — | | | | | | (10,000) | | | | | | (10,000) | | | | | | — | | | | | | (10,000) | | |
Balance at December 31, 2019
|
| | | | 3 | | | | | | (139) | | | | | | 51,956 | | | | | | 51,820 | | | | | | 1,057 | | | | | | 52,877 | | |
| | |
Note
|
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Net profit for the year
|
| | | | | | | 4,576 | | | | | | 26,779 | | | | | | 16,290 | | |
Adjustments required to reflect the cash flows from operating activities:
|
| | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| |
5,6,15
|
| | | | 16,045 | | | | | | 8,325 | | | | | | 4,222 | | |
Interest charged on lease liabilities
|
| |
15
|
| | | | 677 | | | | | | — | | | | | | — | | |
Gain on sale of fixed assets
|
| |
5
|
| | | | — | | | | | | (14) | | | | | | — | | |
Increase in trade receivables
|
| | | | | | | (7,408) | | | | | | (6,706) | | | | | | (7,602) | | |
Decrease (increase) in other current assets
|
| |
4
|
| | | | 1,065 | | | | | | (1,833) | | | | | | (245) | | |
Increase in contract costs
|
| |
6
|
| | | | (443) | | | | | | — | | | | | | — | | |
Decrease (increase) in other non-current assets
|
| |
7
|
| | | | (40) | | | | | | 34 | | | | | | (46) | | |
Increase in deferred tax assets
|
| |
13
|
| | | | (362) | | | | | | (34) | | | | | | (56) | | |
Increase in trade payables
|
| | | | | | | 1,180 | | | | | | 2,402 | | | | | | 3,295 | | |
Increase (decrease) in accrued severance pay
|
| | | | | | | (18) | | | | | | (107) | | | | | | 13 | | |
Increase in other accounts payable and accrued expenses
|
| |
8
|
| | | | 4,050 | | | | | | 1,903 | | | | | | 2,255 | | |
Income tax expenses
|
| |
13
|
| | | | 1,000 | | | | | | 565 | | | | | | 264 | | |
Cash generated from operations
|
| | | | | | | 20,322 | | | | | | 31,314 | | | | | | 18,390 | | |
Income tax paid
|
| |
13
|
| | | | (797) | | | | | | (365) | | | | | | (130) | | |
Net cash provided by operating activities
|
| | | | | | | 19,525 | | | | | | 30,949 | | | | | | 18,260 | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Purchase of property, plant and equipment
|
| |
5
|
| | | | (4,934) | | | | | | (5,865) | | | | | | (3,225) | | |
Disposal of fixed assets
|
| |
5
|
| | | | — | | | | | | 35 | | | | | | — | | |
Purchase of software and licenses
|
| |
6
|
| | | | (392) | | | | | | (388) | | | | | | (215) | | |
Proceeds from sale of fixed assets
|
| |
5
|
| | | | — | | | | | | 55 | | | | | | — | | |
Decrease (increase) in restricted deposits
|
| | | | | | | (25) | | | | | | 250 | | | | | | 467 | | |
Increase in deposits
|
| |
7
|
| | | | — | | | | | | (60) | | | | | | (72) | | |
Loans granted to related party
|
| |
14
|
| | | | — | | | | | | — | | | | | | (50) | | |
Repayment of loan from related party
|
| |
14
|
| | | | — | | | | | | 1,200 | | | | | | — | | |
Internally generated intangible assets
|
| |
6
|
| | | | (13,048) | | | | | | (12,611) | | | | | | (11,212) | | |
Net cash used in investing activities
|
| | | | | | | (18,399) | | | | | | (17,384) | | | | | | (14,307) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Dividend paid
|
| |
9
|
| | | | (10,000) | | | | | | (687) | | | | | | (313) | | |
Principal paid on lease liabilities
|
| |
15
|
| | | | (3,537) | | | | | | — | | | | | | — | | |
Loans received from related party
|
| |
12
|
| | | | — | | | | | | 43 | | | | | | 503 | | |
Repayment of loan
|
| |
12
|
| | | | — | | | | | | (540) | | | | | | — | | |
Net cash provided by (used in) financing activities
|
| | | | | | | (13,537) | | | | | | (1,184) | | | | | | 190 | | |
Effects of exchange rate changes on cash and cash equivalents
|
| | | | | | | (176) | | | | | | (104) | | | | | | (6) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | | | | (12,587) | | | | | | 12,277 | | | | | | 4,137 | | |
Cash and cash equivalents at beginning of the year
|
| | | | | | | 20,731 | | | | | | 8,454 | | | | | | 4,317 | | |
Cash and cash equivalents at the end of the year
|
| | | | | | | 8,144 | | | | | | 20,731 | | | | | | 8,454 | | |
Non-cash activities | | | | | | | | | | | | | | | | | | | | | | |
Dividend declared
|
| | | | | | | — | | | | | | — | | | | | | 687 | | |
| | |
Under previous policy
|
| |
The change
|
| |
Under IFRS 16
|
| |||||||||
Non-current assets: | | | | | | | | | | | | | | | | | | | |
Right-of-use assets
|
| | | | — | | | | | | 20,769 | | | | | | 20,769 | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Lease liabilities
|
| | | | — | | | | | | 2,440 | | | | | | 2,440 | | |
Non-current liabilities: | | | | | | | | | | | | | | | | | | | |
Lease liabilities
|
| | | | — | | | | | | 18,329 | | | | | | 18,329 | | |
| | |
€
|
| |||
Operating lease commitments as of December 31, 2018
|
| | | | 11,309 | | |
Less: short-term leases not recognized under IFRS 16
|
| | | | (298) | | |
Less: effect of termination options reasonably certain to be exercised
|
| | | | (190) | | |
Plus: effect of extension options reasonably certain to be exercised
|
| | | | 12,797 | | |
Undiscounted lease payments
|
| | | | 23,618 | | |
Less: effect of discounting using the weighted average incremental borrowing rate of
2.98% as of January 1, 2019 |
| | | | (2,849) | | |
Lease liabilities as of January 1, 2019
|
| | | | 20,769 | | |
| Level 1 | | | — | | | Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
| Level 2 | | | — | | | Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly. | |
| Level 3 | | | — | | | Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data). | |
As of December 31, 2019
|
| |
Within
payment terms |
| |
0-90 days over
payment terms |
| |
90+ days over
payment terms |
| |
Total
|
| ||||||||||||
Payment option 1
|
| | | | 14,884 | | | | | | 4,574 | | | | | | 1,430 | | | | | | 20,888 | | |
Payment option 2
|
| | | | 544 | | | | | | 158 | | | | | | 3,323 | | | | | | 4,025 | | |
Total
|
| | | | 15,428 | | | | | | 4,732 | | | | | | 4,753 | | | | | | 24,913 | | |
|
As of December 31, 2018
|
| |
Within
payment terms |
| |
0-90 days over
payment terms |
| |
90+ days over
payment terms |
| |
Total
|
| ||||||||||||
Payment option 1
|
| | | | 8,890 | | | | | | 1,366 | | | | | | 3,226 | | | | | | 13,482 | | |
Payment option 2
|
| | | | 459 | | | | | | 275 | | | | | | 3,872 | | | | | | 4,606 | | |
Total
|
| | | | 9,349 | | | | | | 1,641 | | | | | | 7,098 | | | | | | 18,088 | | |
| | |
As of
December 31, 2019 |
| |
As of
December 31, 2018 |
| ||||||
Europe
|
| | | | 11,623 | | | | | | 9,018 | | |
Rest of the world
|
| | | | 13,290 | | | | | | 9,070 | | |
Total
|
| | | | 24,913 | | | | | | 18,088 | | |
| | |
As of
December 31, 2019 |
| |
As of
December 31, 2018 |
| ||||||
Payment option 1
|
| | | | 20,888 | | | | | | 13,482 | | |
Payment option 2
|
| | | | 4,025 | | | | | | 4,606 | | |
Total
|
| | | | 24,913 | | | | | | 18,088 | | |
| | |
Default rate
|
| |
As of
December 31, 2019 |
| |
ECL
|
| |||||||||
Payment option 1
|
| | | | 0.8% | | | | | | 20,888 | | | | | | 167 | | |
Payment option 2
|
| | | | 0.04% | | | | | | 4,025 | | | | | | 1 | | |
Total
|
| | | | | | | | | | 24,913 | | | | | | 168 | | |
|
| | |
Default rate
|
| |
As of
December 31, 2018 |
| |
ECL
|
| |||||||||
Payment option 1
|
| | | | 0.62% | | | | | | 13,482 | | | | | | 84 | | |
Payment option 2
|
| | | | 17.02% | | | | | | 4,606 | | | | | | 784 | | |
Total
|
| | | | | | | | | | 18,088 | | | | | | 868 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
At January 1 (under IAS 39)
|
| | | | — | | | | | | — | | | | | | — | | |
Restated through opening retained earnings
|
| | | | — | | | | | | 1,180 | | | | | | — | | |
At January 1 (under IFRS 9)
|
| | | | 868 | | | | | | 1,180 | | | | | | — | | |
Decrease during the year
|
| | | | (700) | | | | | | (312) | | | | | | — | | |
At December 31
|
| | | | 168 | | | | | | 868 | | | | | | — | | |
| | |
Annual depreciation rate (%)
|
| |
Main annual
depreciation rate (%) |
| |||
Motor vehicle
|
| |
15
|
| | | | 15 | | |
Computers
|
| |
15 – 50
|
| | | | 33 | | |
Furniture and office equipment
|
| |
7 – 15
|
| | | | 15 | | |
Leasehold improvements
|
| |
Over the shorter of the term
of the lease or useful life |
| | | | 10 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Related parties (see Note 7)
|
| | | | 1,503 | | | | | | 86 | | |
Prepaid expenses
|
| | | | 1,352 | | | | | | 1,286 | | |
Institutions
|
| | | | 207 | | | | | | 567 | | |
Other receivables
|
| | | | 196 | | | | | | 937 | | |
Total
|
| | | | 3,258 | | | | | | 2,876 | | |
| | |
Leasehold
Improvements |
| |
Computers
|
| |
Furniture and
Office Equipment |
| |
Total
|
| ||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2019
|
| | | | 2,374 | | | | | | 7,800 | | | | | | 710 | | | | | | 10,884 | | |
Additions
|
| | | | 547 | | | | | | 4,196 | | | | | | 191 | | | | | | 4,934 | | |
At December 31, 2019
|
| | | | 2,921 | | | | | | 11,996 | | | | | | 901 | | | | | | 15,818 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2019
|
| | | | (393) | | | | | | (2,352) | | | | | | (213) | | | | | | (2,958) | | |
Depreciation
|
| | | | (220) | | | | | | (2,616) | | | | | | (94) | | | | | | (2,930) | | |
At December 31, 2019
|
| | | | (613) | | | | | | (4,968) | | | | | | (307) | | | | | | (5,888) | | |
Net book value at December 31, 2019
|
| | | | 2,308 | | | | | | 7,028 | | | | | | 594 | | | | | | 9,930 | | |
|
| | |
Leasehold
Improvements |
| |
Motor
Vehicle |
| |
Computers
|
| |
Furniture and
Office Equipment |
| |
Total
|
| |||||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | 783 | | | | | | 121 | | | | | | 4,263 | | | | | | 375 | | | | | | 5,542 | | |
Additions
|
| | | | 1,601 | | | | | | — | | | | | | 3,848 | | | | | | 416 | | | | | | 5,865 | | |
Disposals
|
| | | | (10) | | | | | | (121) | | | | | | (311) | | | | | | (81) | | | | | | (523) | | |
At December 31, 2018
|
| | | | 2,374 | | | | | | — | | | | | | 7,800 | | | | | | 710 | | | | | | 10,884 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | (79) | | | | | | (33) | | | | | | (1,338) | | | | | | (170) | | | | | | (1,620) | | |
Depreciation
|
| | | | (319) | | | | | | (18) | | | | | | (1,324) | | | | | | (124) | | | | | | (1,785) | | |
Disposals
|
| | | | 5 | | | | | | 51 | | | | | | 310 | | | | | | 81 | | | | | | 447 | | |
At December 31, 2018
|
| | | | (393) | | | | | | — | | | | | | (2,352) | | | | | | (213) | | | | | | (2,958) | | |
Net book value at December 31, 2018
|
| | | | 1,981 | | | | | | — | | | | | | 5,448 | | | | | | 497 | | | | | | 7,926 | | |
|
| | |
Leasehold
Improvements |
| |
Motor
Vehicle |
| |
Computers
|
| |
Furniture and
Office Equipment |
| |
Total
|
| |||||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2017
|
| | | | 313 | | | | | | 121 | | | | | | 1,591 | | | | | | 310 | | | | | | 2,335 | | |
Additions
|
| | | | 470 | | | | | | — | | | | | | 2,690 | | | | | | 65 | | | | | | 3,225 | | |
Disposals
|
| | | | — | | | | | | — | | | | | | (18) | | | | | | — | | | | | | (18) | | |
At December 31, 2017
|
| | | | 783 | | | | | | 121 | | | | | | 4,263 | | | | | | 375 | | | | | | 5,542 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2017
|
| | | | (46) | | | | | | (14) | | | | | | (650) | | | | | | (135) | | | | | | (845) | | |
Depreciation
|
| | | | (33) | | | | | | (19) | | | | | | (706) | | | | | | (35) | | | | | | (793) | | |
Disposals
|
| | | | — | | | | | | — | | | | | | 18 | | | | | | — | | | | | | 18 | | |
At December 31, 2017
|
| | | | (79) | | | | | | (33) | | | | | | (1,338) | | | | | | (170) | | | | | | (1,620) | | |
Net book value at December 31, 2017
|
| | | | 704 | | | | | | 88 | | | | | | 2,925 | | | | | | 205 | | | | | | 3,922 | | |
| | |
Internally
generated intangible assets |
| |
Software
and licenses |
| |
Others
|
| |
Total
|
| ||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2019
|
| | | | 32,681 | | | | | | 603 | | | | | | — | | | | | | 33,284 | | |
Additions
|
| | | | 13,048 | | | | | | 392 | | | | | | 443 | | | | | | 13,883 | | |
At December 31, 2019
|
| | | | 45,729 | | | | | | 995 | | | | | | 443 | | | | | | 47,167 | | |
Accumulated Amortization | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2019
|
| | | | (11,110) | | | | | | (194) | | | | | | — | | | | | | (11,304) | | |
Amortization
|
| | | | (9,601) | | | | | | (161) | | | | | | (7) | | | | | | (9,769) | | |
At December 31, 2019
|
| | | | (20,711) | | | | | | (355) | | | | | | (7) | | | | | | (21,073) | | |
Net book value at December 31, 2019
|
| | | | 25,018 | | | | | | 640 | | | | | | 436 | | | | | | 26,094 | | |
|
| | |
Internally
generated intangible assets |
| |
Software
and licenses |
| |
Total
|
| |||||||||
Cost | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | 20,070 | | | | | | 215 | | | | | | 20,285 | | |
Additions
|
| | | | 12,611 | | | | | | 388 | | | | | | 12,999 | | |
At December 31, 2018
|
| | | | 32,681 | | | | | | 603 | | | | | | 33,284 | | |
Accumulated Amortization | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | (4,705) | | | | | | (59) | | | | | | (4,764) | | |
Amortization
|
| | | | (6,405) | | | | | | (135) | | | | | | (6,540) | | |
At December 31, 2018
|
| | | | (11,110) | | | | | | (194) | | | | | | (11,304) | | |
Net book value at December 31, 2018
|
| | | | 21,571 | | | | | | 409 | | | | | | 21,980 | | |
|
| | |
Internally
generated intangible assets |
| |
Software
and licenses |
| |
Total
|
| |||||||||
Cost | | | | | | | | | | | | | | | | | | | |
At January 1, 2017
|
| | | | 8,858 | | | | | | — | | | | | | 8,858 | | |
Additions
|
| | | | 11,212 | | | | | | 215 | | | | | | 11,427 | | |
At December 31, 2017
|
| | | | 20,070 | | | | | | 215 | | | | | | 20,285 | | |
Accumulated Amortization | | | | | | | | | | | | | | | | | | | |
At January 1, 2017
|
| | | | (1,335) | | | | | | — | | | | | | (1,335) | | |
Amortization
|
| | | | (3,370) | | | | | | (59) | | | | | | (3,429) | | |
At December 31, 2017
|
| | | | (4,705) | | | | | | (59) | | | | | | (4,764) | | |
Net book value at December 31, 2017
|
| | | | 15,365 | | | | | | 156 | | | | | | 15,521 | | |
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
Related parties (see also Note 14)*
|
| | | | — | | | | | | 1,407 | | |
Deposit
|
| | | | 306 | | | | | | 281 | | |
Total
|
| | | | 306 | | | | | | 1,688 | | |
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
Employees, salaries and related liabilities
|
| | | | 5,657 | | | | | | 3,684 | | |
VAT and income tax payable
|
| | | | 1,859 | | | | | | 373 | | |
Accrued expenses
|
| | | | 1,772 | | | | | | 123 | | |
Provision for vacation
|
| | | | 1,177 | | | | | | 976 | | |
Advances and deposits from customers
|
| | | | 711 | | | | | | 1,767 | | |
Total
|
| | | | 11,176 | | | | | | 6,923 | | |
| | |
Authorized
|
| |
Issued and
outstanding |
| ||||||
| | |
Amount
|
| |||||||||
Ordinary shares of USD 0.1 per share
|
| | | | 72,000 | | | | | | 40,800 | | |
| | |
Authorized
|
| |
Issued and
outstanding |
| ||||||
| | |
Amount
|
| |||||||||
Ordinary shares of USD 0.1 per share
|
| | | | 72,000 | | | | | | 40,800 | | |
| | |
Share Option Plan: 2019
|
| |
Share Option Plan: 2018
|
| ||||||||||||||||||
| | |
Number of
Options |
| |
Weighted
Average Exercise Price |
| |
Number of
Options |
| |
Weighted
Average Exercise Price |
| ||||||||||||
| | | | | | | | |
€
|
| |
€
|
| | | | | | | ||||||
Options outstanding at beginning of year
|
| | | | 5,217 | | | | | | 927 | | | | | | 3,120 | | | | | | 130 | | |
Changes during the year: | | | | | | | | | | | | | | | | | | | | | | | | | |
Granted
|
| | | | 676 | | | | | | 10,720 | | | | | | 2,337 | | | | | | 1,998 | | |
Cancelled
|
| | | | — | | | | | | — | | | | | | 240 | | | | | | 997 | | |
Options outstanding at end of year
|
| | | | 5,893 | | | | | | 2,330 | | | | | | 5,217 | | | | | | 927 | | |
| | |
For the year ended
December 31, |
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Europe
|
| | | | 37% | | | | | | 34% | | | | | | 48% | | |
Rest of the world
|
| | | | 63% | | | | | | 66% | | | | | | 52% | | |
| | | | | 100% | | | | | | 100% | | | | | | 100% | | |
| | |
Year ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||||||||
| | |
€
|
| |
%
|
| |
€
|
| |
%
|
| |
€
|
| |
%
|
| ||||||||||||||||||
Customer A
|
| | | | 44,445 | | | | | | 46% | | | | | | 35,510 | | | | | | 38% | | | | | | 26,840 | | | | | | 41% | | |
Customer B
|
| | | | 7,980 | | | | | | 8% | | | | | | 14,300 | | | | | | 15% | | | | | | 8,950 | | | | | | 14% | | |
Customer C
|
| | | | 6,265 | | | | | | 6% | | | | | | 6,870 | | | | | | 7% | | | | | | 8,765 | | | | | | 13% | | |
Customer D
|
| | | | 3,553 | | | | | | 4% | | | | | | 5,432 | | | | | | 6% | | | | | | 2,548 | | | | | | 4% | | |
Others
|
| | | | 34,614 | | | | | | 36% | | | | | | 32,035 | | | | | | 34% | | | | | | 18,984 | | | | | | 28% | | |
| | | | | 96,857 | | | | | | 100% | | | | | | 94,147 | | | | | | 100% | | | | | | 66,087 | | | | | | 100% | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
Payroll and related expenses
|
| | | | 21,448 | | | | | | 18,934 | | | | | | 15,683 | | |
Depreciation and amortization
|
| | | | 13,750 | | | | | | 7,962 | | | | | | 3,972 | | |
Games, data providers and related fees
|
| | | | 9,785 | | | | | | 10,936 | | | | | | 7,068 | | |
IT
|
| | | | 7,220 | | | | | | 3,917 | | | | | | 3,526 | | |
Others
|
| | | | 1,970 | | | | | | 3,338 | | | | | | 1,595 | | |
Total
|
| | | | 54,173 | | | | | | 45,087 | | | | | | 31,844 | | |
| | |
Loans from
related parties |
| |||
As of January 1, 2017
|
| | | | — | | |
Changes from financing cash flows: | | | | | | | |
Loan received from related party
|
| | | | (503) | | |
Exchange rate differences
|
| | | | 6 | | |
As of December 31, 2017
|
| | | | (497) | | |
Changes from financing cash flows: | | | | | | | |
Loan received from related party
|
| | | | (43) | | |
Exchange rate differences
|
| | | | (27) | | |
Interest
|
| | | | (28) | | |
Repayment of loan including interest
|
| | | | 595 | | |
As of December 31, 2018
|
| | | | — | | |
Changes from financing cash flows:
|
| | | | — | | |
As of December 31, 2019
|
| | | | — | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| ||||||
Other provisions and employee-related obligations
|
| | | | 300 | | | | | | 171 | | |
Property and equipment, net
|
| | | | 131 | | | | | | — | | |
Accrued severance pay, net
|
| | | | 93 | | | | | | 64 | | |
Other
|
| | | | 73 | | | | | | — | | |
Deferred tax assets
|
| | | | 597 | | | | | | 235 | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
At January 1
|
| | | | 235 | | | | | | 201 | | | | | | 145 | | |
Recognized in profit and loss – tax income
|
| | | | 362 | | | | | | 34 | | | | | | 56 | | |
At December 31
|
| | | | 597 | | | | | | 235 | | | | | | 201 | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
Current tax
|
| | | | 1,000 | | | | | | 599 | | | | | | 320 | | |
Change in deferred tax
|
| | | | (362) | | | | | | (34) | | | | | | (56) | | |
Total
|
| | | | 638 | | | | | | 565 | | | | | | 264 | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
Profit before taxation
|
| | | | 5,214 | | | | | | 27,344 | | | | | | 16,554 | | |
Theoretical tax credit at applicable
statutory 0% |
| | | | — | | | | | | — | | | | | | — | | |
Tax Rate difference between Isle
of Man and the Group’s subsidiaries |
| | | | 891 | | | | | | 463 | | | | | | 188 | | |
Non-allowable expenses
|
| | | | 58 | | | | | | 21 | | | | | | 14 | | |
Recognition of deferred tax assets
|
| | | | (362) | | | | | | (34) | | | | | | (56) | | |
Miscellaneous
|
| | | | 51 | | | | | | 115 | | | | | | 118 | | |
Tax on income
|
| | | | 638 | | | | | | 565 | | | | | | 264 | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |||||||||
Revenue received from related party
|
| | | | 6,265 | | | | | | 6,870 | | | | | | 8,765 | | |
Lease paid to related party
|
| | | | 627 | | | | | | 480 | | | | | | 127 | | |
Salary to related parties
|
| | | | 126 | | | | | | 395 | | | | | | 331 | | |
Proceeds from sale of vehicle
|
| | | | — | | | | | | 55 | | | | | | — | | |
Interest income (expense)
on loan to (from) related party |
| | | | 23 | | | | | | (40) | | | | | | 113 | | |
Name
|
| |
Nature of transaction
|
| |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
Related company
|
| |
Trade receivables, net
|
| | | | 4,025 | | | | | | 3,823 | | |
Related company
|
| | Loan granted* | | | | | 1,430 | | | | | | 1,407 | | |
Major shareholder
|
| | Ongoing transaction | | | | | 73 | | | | | | 86 | | |
Name
|
| |
Nature of transaction
|
| |
December 31, 2019
|
| |
December 31, 2018
|
| |||||||||
Related company
|
| | | | Ongoingtransaction | | | | | | 139 | | | | | | — | | |
| | |
December 31, 2019
|
| |
December 31, 2018
|
| |
December 31, 2017
|
| |||||||||
Salary, benefits and others
|
| | | | 1,907 | | | | | | 947 | | | | | | 814 | | |
| | |
Office
facilities |
| |
Motor
vehicles |
| |
Data
centers |
| |
Total
|
| ||||||||||||
As of January 1, 2019
|
| | | | 20,569 | | | | | | 200 | | | | | | — | | | | | | 20,769 | | |
Additions
|
| | | | 5,490 | | | | | | 16 | | | | | | 2,850 | | | | | | 8,356 | | |
Depreciation expense
|
| | | | (2,833) | | | | | | (98) | | | | | | (415) | | | | | | (3,346) | | |
As of December 31, 2019
|
| | | | 23,226 | | | | | | 118 | | | | | | 2,435 | | | | | | 25,779 | | |
| | |
2019
|
| |||
As of January 1, 2019
|
| | | | 20,769 | | |
Additions
|
| | | | 8,356 | | |
Accretion of interest
|
| | | | 677 | | |
Payments
|
| | | | (3,537) | | |
As of December 31, 2019
|
| | | | 26,265 | | |
Current
|
| | | | 3,516 | | |
Non-current
|
| | | | 22,749 | | |
| | |
2019
|
| |||
Depreciation expense of right-of-use assets
|
| | | | 3,346 | | |
Interest expense on lease liabilities
|
| | | | 677 | | |
Expense relating to short-term leases
|
| | | | 319 | | |
Total amount recognized in profit or loss
|
| | | | 4,342 | | |
| | |
Within five
years |
| |
More than
five years |
| |
Total
|
| |||||||||
Extension options expected not to be exercised
|
| | | | — | | | | | | — | | | | | | — | | |
Termination options expected to be exercised
|
| | | | 190 | | | | | | — | | | | | | 190 | | |
| | | | | 190 | | | | | | — | | | | | | 190 | | |
| | |
Fair value through
profit or loss |
| |
Amortized cost
|
| |
Fair value through other
comprehensive income |
| |||||||||||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||||||||
Cash and cash equivalents
|
| | | | — | | | | | | — | | | | | | 8,144 | | | | | | 20,731 | | | | | | — | | | | | | — | | |
Trade receivables
|
| | | | — | | | | | | — | | | | | | 24,745 | | | | | | 17,220 | | | | | | — | | | | | | — | | |
Other current and non-current
assets |
| | | | — | | | | | | — | | | | | | 1,685 | | | | | | 2,713 | | | | | | — | | | | | | — | | |
Total
|
| | | | — | | | | | | — | | | | | | 34,574 | | | | | | 40,664 | | | | | | — | | | | | | — | | |
| | |
Fair value through
profit or loss |
| |
Amortized cost
|
| ||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||
Trade payables
|
| | | | — | | | | | | — | | | | | | 8,127 | | | | | | 7,006 | | |
Other accounts payable and accrued expenses
|
| | | | — | | | | | | — | | | | | | 1,772 | | | | | | — | | |
Lease liabilities
|
| | | | — | | | | | | — | | | | | | 26,265 | | | | | | — | | |
Total
|
| | | | — | | | | | | — | | | | | | 36,164 | | | | | | 7,006 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Cash and cash equivalents
|
| | | | 8,144 | | | | | | 20,731 | | |
Trade receivables
|
| | | | 24,745 | | | | | | 17,220 | | |
Other current and non-current assets
|
| | | | 1,685 | | | | | | 2,713 | | |
Total
|
| | | | 34,574 | | | | | | 40,664 | | |
|
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||||||||||||||||||||||||||
| | |
Assets
|
| |
Liabilities
|
| |
Total
|
| |
Assets
|
| |
Liabilities
|
| |
Total
|
| ||||||||||||||||||
NIS
|
| | | | 99 | | | | | | (346) | | | | | | (247) | | | | | | 631 | | | | | | (523) | | | | | | 108 | | |
USD | | | | | 2,743 | | | | | | (4,593) | | | | | | (1,850) | | | | | | 868 | | | | | | (2,304) | | | | | | (1,436) | | |
GBP | | | | | 6,053 | | | | | | (747) | | | | | | 5,306 | | | | | | 1,796 | | | | | | (1,688) | | | | | | 108 | | |
UAH
|
| | | | 117 | | | | | | (37) | | | | | | 80 | | | | | | 14 | | | | | | (58) | | | | | | (44) | | |
| | | | | 9,012 | | | | | | (5,723) | | | | | | 3,289 | | | | | | 3,309 | | | | | | (4,573) | | | | | | (1,264) | | |
| | |
December 31, 2019
|
| |||||||||
| | |
Weaknesses
|
| |
Strengths
|
| ||||||
NIS
|
| | | | (25) | | | | | | 25 | | |
USD
|
| | | | (185) | | | | | | 185 | | |
GBP
|
| | | | 531 | | | | | | (531) | | |
UAH
|
| | | | 8 | | | | | | (8) | | |
Total
|
| | | | 329 | | | | | | (329) | | |
|
| | |
December 31, 2018
|
| |||||||||
| | |
Weaknesses
|
| |
Strengths
|
| ||||||
NIS
|
| | | | 11 | | | | | | (11) | | |
USD | | | | | (144) | | | | | | 144 | | |
GBP | | | | | 11 | | | | | | (11) | | |
UAH
|
| | | | (4) | | | | | | 4 | | |
Total
|
| | | | (126) | | | | | | 126 | | |
|
| | |
December 31, 2017
|
| |||||||||
| | |
Weaknesses
|
| |
Strengths
|
| ||||||
NIS
|
| | | | 21 | | | | | | (21) | | |
USD | | | | | (116) | | | | | | 116 | | |
GBP | | | | | (19) | | | | | | 19 | | |
UAH
|
| | | | (1) | | | | | | 1 | | |
Total
|
| | | | (115) | | | | | | 115 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Current assets
|
| | | | 36,147 | | | | | | 40,827 | | |
Current liabilities
|
| | | | 22,819 | | | | | | 13,929 | | |
Working capital
|
| | | | 13,328 | | | | | | 26,898 | | |
| | |
Up to
3 months |
| |
Between 3 and
12 months |
| |
Between 1 and
2 years |
| |
Between 2 and
5 years |
| |
Over
5 years |
| |||||||||||||||
At December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | 8,127 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other accounts payable and accrued expenses
|
| | | | 27 | | | | | | 1,745 | | | | | | — | | | | | | — | | | | | | — | | |
Lease liabilities
|
| | | | 838 | | | | | | 2,678 | | | | | | 3,625 | | | | | | 9,291 | | | | | | 9,833 | | |
Total
|
| | | | 8,992 | | | | | | 4,423 | | | | | | 3,625 | | | | | | 9,291 | | | | | | 9,833 | | |
|
| | |
Up to
3 months |
| |
Between 3 and
12 months |
| |
Between 1 and
2 years |
| |
Between 2 and
5 years |
| |
Over
5 years |
| |||||||||||||||
At December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 12,677 | | | | | | 839 | | | | | | 413 | | | | | | — | | | | | | — | | |
Total
|
| | | | 12,677 | | | | | | 839 | | | | | | 413 | | | | | | — | | | | | | — | | |
Name
|
| |
Country of
incorporation |
| |
Proportion of
voting rights and ordinary share capital held |
| |
Nature of business
|
| |
Held by
|
|
Gaming Tech Ltd* | | | Israel | | |
50%
|
| |
General and administration, marketing
support and research & development |
| | SBTech (Global) Limited | |
SBTech (Global) Limited – Subsidiary Bulgaria | | | Bulgaria | | |
100%
|
| |
Research, development and marketing
support |
| | SBTech (Global) Limited | |
SBTech Malta Limited | | | Malta | | |
100%
|
| | Holder of Maltase and U.S licenses | | | SBTech (Global) Limited | |
Software Co-Work Cyprus Limited
|
| | Cyprus | | |
100%
|
| | Holding company | | | SBTech (Global) Limited | |
Sky Star Eight Limited | | | UK | | |
100%
|
| |
Business analytics and commercial support
|
| | SBTech (Global) Limited | |
SBTech Gibraltar Limited | | | Gibraltar | | |
100%
|
| |
Commercial support and holder of
Gibraltar license |
| | SBTech (Global) Limited | |
LLC “Software Co-work” | | | Ukraine | | |
100%
|
| | Research and development | | |
Software Co-Work Cyprus Limited
|
|
SBTech US Inc. | | |
United States
|
| |
100%
|
| | IT and Business support | | | SBTech Malta Limited | |
Lucrative Green Leaf Limited | | | Ireland | | |
100%
|
| | IT & Hosting services | | | SBTech Malta Limited | |
| | |
Gaming Tech Ltd
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Current assets
|
| | | | 3,689 | | | | | | 1,891 | | |
Non – current assets
|
| | | | 1,723 | | | | | | 1,581 | | |
Current liabilities
|
| | | | (2,708) | | | | | | (1,981) | | |
Non – current liabilities
|
| | | | (589) | | | | | | (325) | | |
Total assets, net
|
| | | | 2,115 | | | | | | 1,166 | | |
NCI
|
| | | | 1,057 | | | | | | 583 | | |
| | |
March 31, 2020
(unaudited) |
| |
December 31, 2019
(audited) |
| ||||||
ASSETS: | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 157,758 | | | | | $ | 491,225 | | |
Prepaid expenses
|
| | | | 93,333 | | | | | | 319,239 | | |
Total current assets
|
| | | | 251,091 | | | | | | 810,464 | | |
Cash and investments held in Trust Account
|
| | | | 405,002,234 | | | | | | 403,961,209 | | |
Total Assets
|
| | |
$
|
405,253,325
|
| | | |
$
|
404,771,673
|
| |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 1,495,374 | | | | | $ | 1,493,133 | | |
Total current liabilities
|
| | | | 1,495,374 | | | | | | 1,493,133 | | |
Deferred underwriting compensation
|
| | | | 14,000,000 | | | | | | 14,000,000 | | |
Total Liabilities
|
| | | | 15,495,374 | | | | | | 15,493,133 | | |
Class A common stock subject to possible redemption;
38,475,795 and 38,427,853 shares at approximately $10.00 per share at March 31, 2020 and December 31, 2019, respectively |
| | | | 384,757,950 | | | | | | 384,278,530 | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 380,000,000
shares authorized; 1,524,205 and 1,572,147 shares issued and outstanding, (excluding 38,475,795 shares and 38,427,853 shares subject to possible redemption) at March 31, 2020 and December 31, 2019, respectively |
| | | | 152 | | | | | | 157 | | |
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,000,000 shares issued and outstanding at March 31, 2020 and December 31, 2019
|
| | | | 1,000 | | | | | | 1,000 | | |
Additional paid-in capital
|
| | | | 2,210,029 | | | | | | 2,689,444 | | |
Retained earnings
|
| | | | 2,788,820 | | | | | | 2,309,409 | | |
Total stockholders’ equity
|
| | | | 5,000,001 | | | | | | 5,000,010 | | |
Total Liabilities and Stockholders’ Equity
|
| | |
$
|
405,253,325
|
| | | |
$
|
404,771,673
|
| |
| | |
Three months
ended March 31, 2020 |
| |
For the period
from March 27, 2019 (inception) through March 31, 2019 |
| ||||||
Revenue
|
| | | $ | — | | | | | $ | — | | |
General and administrative expenses
|
| | | | 718,799 | | | | | | 675 | | |
Loss from operations
|
| | | | (718,799) | | | | | | (675) | | |
Other income – interest on Trust Account
|
| | | | 1,444,499 | | | | | | — | | |
Income before provision for income tax
|
| | | | 725,700 | | | | | | (675) | | |
Provision for income tax
|
| | | | (246,289) | | | | | | — | | |
Net income (loss)
|
| | | $ | 479,411 | | | | | $ | (675) | | |
Two Class Method: | | | | | | | | | | | | | |
Weighted average number of Class A common stock outstanding
|
| | | | 40,000,000 | | | | | | — | | |
Net income per common stock, Class A – basic
|
| | | $ | 0.02 | | | | | $ | — | | |
Weighted average number of Class A diluted stock outstanding
|
| | | | 43,805,838 | | | | | | — | | |
Net income per common stock, Class A – diluted
|
| | | $ | 0.02 | | | | | $ | — | | |
Weighted average number of Class B common stock outstanding
|
| | | | 10,000,000 | | | | | | 8,750,000(1) | | |
Net loss per common stock, Class B – basic and diluted
|
| | | $ | (0.04) | | | | | $ | — | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance, March 27, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to initial stockholder at approximately $0.002 per share
|
| | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 1,006 | | | | | | 23,994 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (675) | | | | | | (675) | | |
Balance, March 31, 2019
|
| | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | (675) | | | | | $ | 24,325 | | |
|
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance, January 1,
2020 |
| | | | 1,572,147 | | | | | $ | 157 | | | | | | 10,000,000 | | | | | $ | 1,000 | | | | | $ | 2,689,444 | | | | | $ | 2,309,409 | | | | | $ | 5,000,010 | | |
Adjustment to
ordinary common stock subject to redemption |
| | | | (47,942) | | | | | | (5) | | | | | | — | | | | | | — | | | | | | (479,415) | | | | | | — | | | | | | (479,420) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 479,411 | | | | | | 479,411 | | |
Balance, March 31,
2020 |
| | | | 1,524,205 | | | | | $ | 152 | | | | | | 10,000,000 | | | | | $ | 1,000 | | | | | $ | 2,210,029 | | | | | $ | 2,788,820 | | | | | $ | 5,000,001 | | |
| | |
Three months
ended March 31, 2020 |
| |
For the period
from March 27, 2019 (inception) through March 31, 2019 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 479,411 | | | | | $ | (675) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Trust income reinvested in Trust Account
|
| | | | (1,444,499) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 225,906 | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | 2,240 | | | | | | 2,408 | | |
Deferred offering costs
|
| | | | — | | | | | | (1,733) | | |
Net cash used in operating activities
|
| | | | (736,942) | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Cash withdrawn from Trust account to pay taxes
|
| | | | 403,475 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 403,475 | | | | | | — | | |
Net change in cash and equivalents during period
|
| | | | (333,467) | | | | | | — | | |
Cash and equivalents at beginning of period
|
| | | | 491,225 | | | | | | — | | |
Cash and equivalents at end of period
|
| | | $ | 157,758 | | | | | $ | — | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash financing activities: | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | $ | 479,420 | | | | | $ | — | | |
Offering costs paid by Sponsor in exchange for Founder Shares
|
| | | $ | — | | | | | $ | 25,000 | | |
Deferred offering costs included in accrued expenses
|
| | | $ | — | | | | | $ | 1,733 | | |
Description
|
| |
Level
|
| |
March 31, 2020
|
| ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund
|
| | | | 1 | | | | | $ | 405,002,234 | | |
| | |
Carrying Value at
December 31, 2019 |
| |
Gross unrealized
Holding Gain |
| |
Quoted prices in
Active Markets (Level 1) |
| |||||||||
Treasury Securities Held as of December 31, 2019(1)
|
| | | $ | 403,960,089 | | | | | $ | 31,347 | | | | | $ | 403,991,436 | | |
| ASSETS: | | | | | | | |
| Current assets: | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 491,225 | | |
|
Prepaid expenses
|
| | | | 319,239 | | |
|
Total current assets
|
| | | | 810,464 | | |
|
Cash and investments held in Trust Account
|
| | | | 403,961,209 | | |
|
Total Assets
|
| | |
$
|
404,771,673
|
| |
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | | | |||||
| Current liabilities: | | | |||||
|
Accounts payable
|
| | | $ | 1,493,133 | | |
|
Total current liabilities
|
| | | | 1,493,133 | | |
|
Deferred underwriting compensation
|
| | | | 14,000,000 | | |
|
Total Liabilities
|
| | | | 15,493,133 | | |
|
Class A common shares subject to possible redemptions; 38,427,853 shares at approximately $10.00 per share
|
| | | | 384,278,530 | | |
| Stockholders’ equity: | | | | | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 1,572,147
shares issued and outstanding, (excluding 38,427,853 shares subject to possible redemption) |
| | | | 157 | | |
|
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,000,000
shares issued and outstanding |
| | | | 1,000 | | |
|
Additional paid-in capital
|
| | | | 2,689,444 | | |
|
Retained earnings
|
| | | | 2,309,409 | | |
|
Total stockholders’ equity, net
|
| | | | 5,000,010 | | |
|
Total liabilities and stockholders’ equity
|
| | |
$
|
404,771,673
|
| |
| | |
For the period from
March 27, 2019 (inception) to December 31, 2019 |
| |||
Revenue
|
| | | $ | — | | |
General and administrative expenses
|
| | | | 1,857,305 | | |
Loss from operations
|
| | | | (1,857,305) | | |
Other income – interest on Trust Account
|
| | | | 5,111,208 | | |
Income before provision for income tax
|
| | | | 3,253,903 | | |
Provision for income tax
|
| | | | (944,494) | | |
Net income
|
| | | $ | 2,309,409 | | |
Two Class Method: | | | | | | | |
Weighted average number of Class A common stock outstanding
|
| | | | 40,000,000 | | |
Net income per common stock, Class A – basic and diluted
|
| | | $ | 0.09 | | |
Weighted average number of Class B common stock outstanding
|
| | | | 10,010,045 | | |
Net loss per common stock, Class B – basic and diluted
|
| | | $ | (0.15) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Issuance of common stock to initial shareholder at approximately $0.002 per
share |
| | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | — | | | | | $ | 25,000 | | |
Sale of Units to the public at $10.00 per unit
|
| | | | 40,000,000 | | | | | | 4,000 | | | | | | — | | | | | | — | | | | | | 399,996,000 | | | | | | — | | | | | | 400,000,000 | | |
Underwriters’ discount and offering expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (22,555,869) | | | | | | — | | | | | | (22,555,869) | | |
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,500,000 | | | | | | — | | | | | | 9,500,000 | | |
Forfeiture of Class B shares by initial shareholders
|
| | | | — | | | | | | — | | | | | | (62,500) | | | | | | (6) | | | | | | 6 | | | | | | — | | | | | | — | | |
Proceeds subject to possible redemption
|
| | | | (38,427,853) | | | | | | (3,843) | | | | | | — | | | | | | — | | | | | | (384,274,687) | | | | | | — | | | | | | (384,278,530) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,309,409 | | | | | | 2,309,409 | | |
Balance, December 31, 2019
|
| | | | 1,572,147 | | | | | $ | 157 | | | | | | 10,000,000 | | | | | $ | 1,000 | | | | | $ | 2,689,444 | | | | | $ | 2,309,409 | | | | | $ | 5,000,010 | | |
|
| | |
For the period from
March 27, 2019 (inception) to December 31, 2019 |
| |||
Cash flows from operating activities: | | | | | | | |
Net income
|
| | | $ | 2,309,409 | | |
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | |
Trust income reinvested in Trust Account
|
| | | | (5,111,208) | | |
Changes in operating assets and liabilities:
|
| | | | | | |
Prepaid expenses
|
| | | | (319,239) | | |
Accounts payable
|
| | | | 1,268,808 | | |
Net cash used in operating activities
|
| | | | (1,852,230) | | |
Cash flows from investing activities: | | | | | | | |
Principal deposited in Trust Account
|
| | | | (400,000,000) | | |
Cash withdrawn from Trust for income taxes
|
| | | | 1,149,999 | | |
Net cash used in investing activities
|
| | | | (398,850,001) | | |
Cash flows from financing activities: | | | | | | | |
Proceeds from promissory note – related party
|
| | | | 60,675 | | |
Repayment of promissory note – related party
|
| | | | (60,675) | | |
Proceeds from private placement of warrants
|
| | | | 9,500,000 | | |
Proceeds from sale of Class A ordinary shares
|
| | | | 400,000,000 | | |
Payment of underwriters’ discount
|
| | | | (8,000,000) | | |
Payment of offering costs
|
| | | | (306,544) | | |
Net cash provided by financing activities
|
| | | | 401,193,456 | | |
Increase in cash during period
|
| | | | 491,225 | | |
Cash and equivalents at beginning of period
|
| | | | — | | |
Cash and equivalents at end of period
|
| | | $ | 491,225 | | |
Supplemental disclosure of cash flow information: | | | | | | | |
Cash paid for taxes
|
| | | $ | 1,149,999 | | |
Supplemental disclosure of non-cash financing activities: | | | | | | | |
Deferred underwriting compensation
|
| | | $ | 14,000,000 | | |
Class A common stock subject to possible redemption
|
| | | $ | 384,278,530 | | |
Offering costs paid by sponsor in exchange for founder shares (Class B Common Stock)
|
| | | $ | 25,000 | | |
Deferred offering costs included in accounts payable
|
| | | $ | 224,325 | | |
| | |
Carrying Value at
December 31, 2019 |
| |
Gross unrealized
Holding Gain |
| |
Quoted prices in
Active Markets (Level 1) |
| |||||||||
Treasury Securities Held as of December 31, 2019(1)
|
| | | $ | 403,960,089 | | | | | $ | 31,347 | | | | | $ | 403,991,436 | | |
| | |
For the Period
Ended December 31, 2019 |
| |||
Federal | | | | | | | |
Current
|
| | | $ | 944,494 | | |
Deferred
|
| | | | (261,174) | | |
State | | | | | | | |
Current
|
| | | | — | | |
Deferred
|
| | | | — | | |
Change in valuation allowance
|
| | | | 261,174 | | |
Income tax provision
|
| | | $ | 944,494 | | |
| | |
For the Period
Ended December 31, 2019 |
| |||
Statutory federal income tax rate
|
| | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | |
Deferred tax rate change | | | | | | | |
Change in valuation allowance
|
| | | | 8.0% | | |
Income tax provision
|
| | | | 29.0% | | |
| Credit Suisse | | |
Goldman Sachs & Co. LLC
|
|
| BofA Securities | | |
Morgan Stanley
|
| |
UBS Investment Bank
|
|
| Canaccord Genuity | | |
Evercore ISI
|
| |
Oppenheimer & Co.
|
|
| Craig-Hallum Capital Group | | |
Deutsche Bank Securities
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Macquarie Capital
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| Needham & Company | | |
Northland Capital Markets
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Rosenblatt Securities
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| The Benchmark Company | | |
Truist Securities
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Wolfe Capital Markets and Advisory
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