SharpLink Gaming Equity Adjusted Post-Merger

TL;DR

SharpLink Gaming's equity structure adjusted for merger with Mer Telemanagement Solutions Ltd. using 1.3352 exchange ratio.

AI Summary

SharpLink Gaming, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details adjustments to its equity structure due to a Go-Public Merger Agreement with Mer Telemanagement Solutions Ltd., using an exchange ratio of 1.3352. This adjustment reflects the shares of SharpLink, Inc. issued in the reverse acquisition. The company reported total assets of $3,507,808 and total liabilities of $2,863,734 as of June 30, 2024.

Why It Matters

This filing clarifies SharpLink Gaming's financial structure following a significant merger, impacting how investors understand the company's share count and valuation.

Risk Assessment

Risk Level: medium — The filing indicates a reverse acquisition and equity structure adjustments, which can introduce complexity and potential valuation risks for investors.

Key Numbers

• $3,507,808 — Total Assets (As of June 30, 2024, reflecting the company's financial position post-merger adjustments.)
• $2,863,734 — Total Liabilities (As of June 30, 2024, indicating the company's debt obligations.)
• 1.3352 — Exchange Ratio (Used to adjust equity structure following the Go-Public Merger Agreement.)

Key Players & Entities

• SharpLink Gaming, Inc. (company) — Filer of the 10-Q
• Mer Telemanagement Solutions Ltd. (company) — Party to the Go-Public Merger Agreement
• 1.3352 (dollar_amount) — Exchange ratio used for equity adjustment
• $3,507,808 (dollar_amount) — Total assets as of June 30, 2024
• $2,863,734 (dollar_amount) — Total liabilities as of June 30, 2024

FAQ

Key Financial Figures

• $0.20 — ares Par value for ordinary shares at $0.20 as reported at February 13, 2024 $ 572
• $0.0001 — 572,770 Par value for common stock at $0.0001 at February 13, 2024 294 Net change

Filing Documents

• sbet20240630_10q.htm (10-Q) — 1579KB
• ex_687555.htm (EX-31.1) — 8KB
• ex_687572.htm (EX-31.2) — 8KB
• ex_687573.htm (EX-32.1) — 4KB
• ex_687574.htm (EX-32.2) — 4KB
• 0001437749-24-026906.txt ( ) — 8466KB
• sbet-20240630.xsd (EX-101.SCH) — 69KB
• sbet-20240630_cal.xml (EX-101.CAL) — 63KB
• sbet-20240630_def.xml (EX-101.DEF) — 509KB
• sbet-20240630_lab.xml (EX-101.LAB) — 427KB
• sbet-20240630_pre.xml (EX-101.PRE) — 549KB
• sbet20240630_10q_htm.xml (XML) — 1498KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS: 3 Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Changes in Stockholders ' Equity (Deficit) for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7 ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 29 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 29 PART II. OTHER INFORMATION 30 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 30 ITEM 1A.

RISK FACTORS

RISK FACTORS 30 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 30 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 30 ITEM 4. MINE SAFETY DISCLOSURES 30 ITEM 5. OTHER INFORMATION 30 ITEM 6. EXHIBITS 30

SIGNATURES

SIGNATURES 31 2 Table of Contents PART I. FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS SHARPLINK GAMING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 (unaudited) December 31, 2023 Assets Current Assets Cash $ 2,435,600 $ 2,487,481 Accounts receivable, net of allowance for credit losses of $ 0 329,896 415,119 Other Receivables 368,743 - Unbilled receivables - 12,000 Prepaid expenses and other current assets 329,784 383,295 Due from Rsports Interactive, Inc. 6,811 - Current assets from discontinued operations 269,964 67,805,379 Total current assets 3,740,798 71,103,274 Equipment, net 6,168 8,792 Intangible assets, net 15,651 168,112 Total assets $ 3,762,617 $ 71,280,178 Liabilities and Stockholders ' Equity Current Liabilities Accounts payable and accrued expenses $ 711,436 $ 1,463,699 Line of credit - 6,345,978 Current portion of long-term debt - 645,571 Current portion of convertible debenture, net of discount of $ 0 and $ 283,335 , respectively, warrant discount of $ 0 and $ 831,746 , respectively, accrued interest of $ 0 and $ 299,648 , respectively - 4,395,753 Current liabilities from discontinued operations 290,266 66,396,883 Total current liabilities 1,001,702 79,247,884 Long-Term Liabilities Deferred tax liability - 7,155 Debt, less current portion - 1,424,908 Total liabilities 1,001,702 80,679,947 Commitments and Contingencies Stockholders' Equity Series A-1 preferred stock, $ 0.0001 par value; authorized shares: 260,000 ; issued and outstanding shares: 7,202 ; liquidation preference: $ 116,997 1 1,440 Series B preferred stock, $ 0.0001 par value; authorized shares: 370,000 ; issued and outstanding shares: 12,481 ; liquidation preference: $ 529,122 1 2,496 Common stock, $ 0.0001 par value; authorized shares 100,000,000; issued and outstanding shares: 3,507,808 and 2,863,734 , respectively 343 572,770 Treasury stock, 90 common shares at cost ( 29,000 ) ( 29,000 ) Additional paid-in capital 78,810,751 77,909,981 Accu

View Full Filing

View this 10-Q filing on SEC EDGAR