High Roller Technologies, Inc.(US:ROLR)2025-05-15 20:04Revenue and User Metrics - Revenue increased by $264 thousand or 4% to $6.8 million for the three months ended March 31, 2025, compared to $6.5 million for the same period in 2024[133] - Net gaming revenue decreased by $1.1 million or 18% to $5.2 million for the three months ended March 31, 2025, compared to $6.3 million for the same period in 2024[134] - Active users grew by approximately 34% to 29,946 for the three months ended March 31, 2025, compared to approximately 22,370 for the same period in 2024[126] - Unique depositors increased by approximately 31% to 27,289 for the three months ended March 31, 2025, compared to approximately 20,800 for the same period in 2024[126] - The average revenue per user decreased to $190 for the three months ended March 31, 2025, compared to approximately $304 for the same period in 2024[126] Financial Performance - The company's net loss was $3.276 million for the three months ended March 31, 2025, compared to a net loss of $1.849 million for the same period in 2024[132] - Loss from operations increased to $3.2 million for the three months ended March 31, 2025, compared to a loss of $1.8 million for the same period in 2024, primarily due to increased marketing spending[147] - The company experienced a net loss of $3.3 million for the three months ended March 31, 2025, compared to a net loss of $1.8 million for the same period in 2024[151] - Net cash used in operations was $3.6 million for the three months ended March 31, 2025, an increase of $3.3 million compared to net cash provided by operations of $0.26 million for the same period in 2024[160] Operating Costs - Direct operating costs (related party) decreased by $305 thousand or 41% to $447 thousand for the three months ended March 31, 2025, compared to $752 thousand for the same period in 2024[136] - Direct operating costs (other) decreased by $344 thousand or 13% to $2.2 million for the three months ended March 31, 2025, compared to $2.6 million for the same period in 2024[137] - Total general and administrative expenses increased by $0.1 million or 4% to $2.8 million for the three months ended March 31, 2025, compared to $2.7 million for the same period in 2024[140] - Total advertising and promotion expenses rose by $2.1 million or 105% to $4.1 million for the three months ended March 31, 2025, compared to $2.0 million for the same period in 2024[142] Cash and Capital - As of March 31, 2025, the company had $3.5 million in cash and cash equivalents, with an accumulated deficit of $30.4 million and negative working capital of $3.9 million[156] - The company plans to raise equity capital through private placements or public offerings to meet its capital requirements and sustain operations[158] Going Concern and Compliance - The company evaluates its ability to continue as a going concern within one year after the issuance of the Consolidated Financial Statements[174] - Significant estimates related to going concern analysis include revenue growth and profitability, which are based on reasonable assumptions but are inherently uncertain[175] - The company complies with ASC 740 for income taxes, which requires an asset and liability approach for financial accounting and reporting[177] - Deferred income tax assets and liabilities are computed based on enacted tax laws and rates applicable to future taxable income[177] - The company is classified as an "emerging growth company" under the JOBS Act and has elected to take advantage of the extended transition period for compliance with new accounting standards[180] - This election may complicate comparisons with other public companies due to potential differences in accounting standards used[180] - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[181] Betting and Revenue Sources - The amount of real money bets was approximately $153 million for the three months ended March 31, 2025, down from $187 million for the same period in 2024[134] - Revenue generated through intra-group services increased by $1.4 million or 783% to $1.6 million for the three months ended March 31, 2025, compared to $179 thousand for the same period in 2024[135] Interest and Foreign Currency - Interest expense, net, increased to $46 thousand for the three months ended March 31, 2025, compared to $26 thousand for the same period in 2024[148] - Foreign currency transaction losses decreased to $178 thousand for the three months ended March 31, 2025, compared to $464 thousand for the same period in 2024[141] Development Expenses - Product and software development expenses increased by $193 thousand or 114% to $363 thousand for the three months ended March 31, 2025, compared to $170 thousand for the same period in 2024[146]