ESPORTS ENTERTAINMENT GROUP, INC.

Near-cash-out iGaming/esports operator with going-concern doubt and roughly one quarter of runway.

Strengths

• Decent gross margin (61.7%, 60th pct)
• Streamlined to two core businesses after divesting loss-making units

Risks

• Going-concern doubt, cash runway ~0.4 quarters (6th pct), ROE -6.7 (4th pct)
• Nasdaq delisting risk, reverse splits, dilution; FY2023 data is stale

Notable findings

• No interest coverageInterest coverage -16.21 (cannot cover interest)
• Restatement● Our Amended and Restated Articles of Incorporation allow for our board of directors to create new series of preferred stock without further approval by our stockholders, which could have an anti 8-K ↗
• Going concernSummary of the Material Risks Associated with Our Business These risks include, but are not limited to, the following: ● Because there is substantial doubt about our ability to continue as a
• Net lossNet loss (net margin -140.6%)
• Cash burnNegative free cash flow (-15.7M)
• Weak liquidityCurrent ratio 0.46 (<1)
• Revenue declineRevenue -33.3% YoY