Tue, Sep 24, 10:02 AM (97 days ago)
VIP Play, Inc. reported significant financial challenges for the fiscal year ending June 30, 2024, reflecting a net loss of $30,385,693 compared to $11,337,876 in the previous year. This increase is attributed to the commencement of sports betting operations in June 2023, which led to negative gaming revenues of $(1,098,374) and rising operating expenses, particularly in salaries and marketing. Operating expenses totaled $12,495,625, driven by increased legal and administrative costs related to regulatory compliance and the ZenSports acquisition. The company's liquidity position is concerning, with total current assets of $1,245,426 against current liabilities of $22,028,320, resulting in a working capital deficit of $20,782,894. Cash used in operations increased to $11,301,366, highlighting cash flow challenges. The company relies heavily on related party financing, with a line of credit from Excel Family Partners, LLC, controlled by the CEO, Bruce Cassidy. The company is classified as an emerging growth company, which allows it to defer certain financial disclosures. A substantial doubt exists regarding its ability to continue as a going concern without additional capital. The company aims to expand its operations beyond Tennessee, pending successful licensing and regulatory approval in other jurisdictions.