10-Q - GAN Ltd (0001799332) (Filer)

Fri, Nov 8, 9:48 PM (65 days ago)

GAN Limited (GAN), a B2B and B2C gaming technology supplier, reported significant quarterly changes in its financial performance for Q3 2024. Revenue reached $37.1 million, a 24.4% increase from $29.8 million in Q3 2023, largely driven by B2B growth in the U.S. and migration service revenue. The net income for the quarter was $2.1 million, contrasting sharply with a net loss of $8.2 million a year prior. However, the nine-month results showed a net loss of $3.8 million, improved from a $25.1 million loss in 2023. Operating costs decreased by 5.5% year-over-year, primarily due to reduced depreciation and cost-saving measures. Despite a 10.8% rise in general and administrative expenses, overall operating expenses fell, enhancing operational efficiency. GAN's cash flow was tight, with $138,000 generated from operations, while investing activities consumed $2.2 million. The company amended its credit facility, increasing the principal from $30 million to $42 million, with a minimum liquidity requirement of $10 million. Future operations remain uncertain due to macroeconomic factors and potential covenant breaches, necessitating careful cash management and potential financing strategies.