Based on the provided financial report, the title of the article is likely: "SharpLink Gaming, Inc. Reports Financial Results for the Year Ended December 31, 2024" This title is inferred from the company name, the reporting period, and the fact that the document appears to be a financial report.

Press release · 04/07/2025 09:35

Based on the provided financial report, the title of the article is likely: "SharpLink Gaming, Inc. Reports Financial Results for the Year Ended December 31, 2024" This title is inferred from the company name, the reporting period, and the fact that the document appears to be a financial report.

SharpLink Gaming, Inc. (the “Company”) reported a net loss of $4.9 million for the year ended December 31, 2024, compared to a net loss of $2.9 million for the year ended December 31, 2023. The Company recognized 14,552 options acquired during the SportsHub Acquisition, which had an exercise price of $14.16 and expire on December 21, 2032. The Company also reported a significant increase in research and development expenses, primarily due to the development of new products and features. Additionally, the Company recognized $5.0 million in goodwill and intangible asset impairment charges. As of December 31, 2024, the Company had cash and cash equivalents of $283,335 and a working capital deficit of $299,648. The Company’s stockholders’ equity was $4.9 million as of December 31, 2024.

Overview

Headquartered in Minneapolis, Minnesota, SharpLink Gaming is an online performance-based marketing company that leverages unique fan activation solutions to generate and deliver high-quality leads to its U.S. sportsbook and global casino gaming partners.

Continuing Operations

As part of its strategy to expand its affiliate marketing services from Europe to the emerging American sports betting market, in November 2022, SharpLink began a systematic roll-out of its U.S.-focused performance-based marketing business with the launch of 15 state-specific, content-rich affiliate marketing websites. In the first quarter of 2023, the company unveiled SharpBetting.com, a U.S. sports betting education hub for experienced and novice sports fans.

Discontinued Operations

SharpLink’s business-building platform previously included the provision of free-to-play sports game and mobile app development services, as well as the ownership and operation of proprietary real-money fantasy sports and sports simulation games and mobile apps. In January 2024, SharpLink sold these business units to RSports for $22.5 million. The company also discontinued investments into and the operation of its C4 sports betting conversion technology in December 2023 due to lack of market acceptance.

Recent Developments

In December 2022, SharpLink completed a merger with SportsHub Games Network Inc. In December 2022, the company also closed the sale of its legacy MTS business to Entrypoint South Ltd. In February 2023, SharpLink issued a $4.4 million convertible debenture and warrant to Alpha.

Financial Performance

For the year ended December 31, 2024, SharpLink’s revenues decreased 26.1% to $3.66 million compared to $4.95 million in the prior year. Gross profit declined 40.9% to $906,273 from $1.53 million. Total operating expenses decreased 45.6% to $5.67 million from $10.43 million, driven by lower selling, general and administrative costs and reduced impairment charges. The net loss from continuing operations improved to $4.47 million from $11.25 million, while net income from discontinued operations was $14.57 million compared to a loss of $2.99 million.

Table: Financial Highlights

Metric	Dec 31, 2024	Dec 31, 2023	Change	% Change
Revenues	$3,662,349	$4,952,725	$(1,290,376)	-26.1%
Cost of Revenues	$2,756,076	$3,420,062	$(663,986)	-19.4%
Gross Profit	$906,273	$1,532,663	$(626,390)	-40.9%
Gross Profit %	24.7%	30.9%	-	-
Total Operating Expenses	$5,669,248	$10,425,865	$(4,756,617)	-45.6%
Operating Loss	$(4,762,975)	$(8,893,202)	$4,130,227	-46.4%
Net Income (Loss) from Continuing Ops	$(4,473,643)	$(11,248,598)	$6,774,955	-60.2%
Net Income (Loss) from Discontinued Ops	$14,573,262	$(2,994,584)	$17,567,846	-586.7%
Net Income (Loss)	$10,099,619	$(14,243,182)	$24,342,801	-170.9%

Outlook and Challenges

SharpLink faces several challenges, including softening market conditions, increased government regulation and oversight, and competition from “grey” and “black” gambling markets. The company is working to regain compliance with Nasdaq’s minimum bid price and stockholders’ equity requirements to maintain its listing. SharpLink may need to raise additional capital to fund its growth and operations, which could result in dilution for existing shareholders.

Overall, SharpLink has made progress in streamlining its operations and improving its financial performance, but faces ongoing regulatory and competitive pressures that could impact its future growth and profitability.