Neo Group Ltd

CIK:0001821349|SEC Filings

CONSOLIDATED STATEMENTS OF COMPERHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Profit or loss [abstract]
Revenues	$ 191,538	$ 165,698	$ 50,463
Distribution expenses	96,497	97,579	9,889
Development expenses	14,896	10,278	9,428
Selling and marketing expenses	10,859	5,364	1,549
General and administrative expenses	33,544	23,306	12,300
Business combination related expenses	6,477	17,984	3,841
Depreciation and amortization	55,940	35,611	14,613
Total operating expenses	218,213	190,122	51,620
Loss from operations	(26,675)	(24,424)	(1,157)
Interest expenses with respect to funding from related parties	0	2,867	4,811
Finance expenses	24,778	12,238	1,501
The Company’ share in profit of Joint Venture and associated companies	37,334	22,110	12,446
Profit (loss) before income taxes expenses	(14,119)	(17,419)	4,977
Income taxes expenses	(4,158)	(1,546)	(325)
Net (loss) income	(18,277)	(18,965)	4,652
Other comprehensive income (loss):
Item that will not be reclassified to profit or loss - loss on fair value valuation of a financial asset through other comprehensive loss	0	(1,992)	0
Item that will or may be reclassified to profit or loss - foreign operations financial statements translation adjustments	3,589	2,474	0
Other comprehensive income	3,589	482	0
Total comprehensive income (loss)	$ (14,688)	$ (18,483)	$ 4,652
Net income (loss) per common share outstanding, basic ($)	$ (0.54)	$ (0.64)	$ 0.18
Net income (loss) per common share outstanding, diluted ($)	$ (0.54)	$ (0.64)	$ 0.17
Weighted average number of common shares outstanding, basic	33,633,838	29,716,281	25,302,350
Weighted average number of common shares outstanding, diluted	33,633,838	29,716,281	26,640,120

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income (loss) for the period	$ (18,277)	$ (18,965)	$ 4,652
Adjustments for:
Amortization and depreciation	55,940	35,611	14,613
Income taxes expenses	4,158	1,546	325
Income taxes received (paid), net	(3,006)	6,419	(2,230)
Interest expenses with respect to funding including from related parties	21,435	11,170	4,811
Other finance expenses, net	3,343	3,935	1,501
Payments with respect to IP Option	0	373	613
Share based compensation	2,910	2,994	3,448
The Company’s share in profit of Joint Venture and associated companies, net	(37,334)	(22,110)	(12,446)
Proceeds from the Joint Venture and associated companies	36,216	21,141	12,251
Decrease (increase) in trade receivables	(3,286)	(2,093)	487
Business combinations related expenses	6,477	17,984	3,667
Business combinations related expenses paid	(4,777)	(21,234)	0
Decrease (increase) in prepaid expenses and other receivables	(884)	1,344	(1,048)
Increase (decrease) in gaming tax payable	(2,922)	1,617	0
Increase in royalties payable	2,042	189	0
Decrease (increase) in Aspire Group	0	1,948	(1,427)
Increase in amounts due from the Michigan Joint Operation and NPI	(2,126)	(208)	(368)
Decrease in trade and other payables	(886)	(3,385)	(1,394)
Increase (decrease) in employees' related payables and accruals	2,465	(845)	640
Increase (decrease) in client liabilities	(1,369)	666	0
Capital loss on disposal of property and equipment	0	113	0
Accrued severance pay, net	(54)	139	(98)
Total adjustments	78,342	57,314	23,345
Net cash generated from operating activities	60,065	38,349	27,997
Cash flows from investing activities:
Purchase of property and equipment	(791)	(1,365)	(1,462)
Capitalized development costs	(37,672)	(26,536)	(17,010)
Restricted deposits - Joint Venture and other	(5,683)	(178)	(75)
Net change in deposits	144	(163)	13
Investment in Associate	0	(28)	0
Net cash used in Aspire business combination	(964)	(197,674)	0
Net cash used in investing activities	(44,966)	(225,944)	(18,534)
Cash flows from financing activities:
Repayments of loans from Caesars	0	(11,000)	(1,500)
Repayments of capital notes to Aspire	0	(21,837)	0
Loans from a financial institution, net	0	204,200	0
Interest paid	(20,528)	(8,521)	(835)
Repayments for lease liabilities (principal and interest)	(1,568)	(1,075)	(1,686)
Exercise of employee options	213	390	873
Payments to acquire or redeem entity's shares	(6,192)	0	0
Net cash generated from (used in) financing activities	(28,075)	162,157	(3,148)
Currency exchange differences on cash and cash equivalents	816	535	0
Net (decrease) increase in cash and cash equivalents	(12,976)	(25,438)	6,315
Cash and cash equivalents at the beginning of the year	41,179	66,082	59,767
Cash and cash equivalents at the end of the year	$ 29,019	$ 41,179	$ 66,082

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 29,019	$ 41,179
Restricted deposits	476	489
Prepaid expenses and other receivables	6,813	5,789
Due from the Michigan Joint Operation and NPI	5,894	3,768
Trade receivables	43,414	38,537
Income tax receivable	283	536
Total current assets	85,899	90,298
NON-CURRENT ASSETS
Restricted deposits - Joint Venture and other	9,954	4,247
Property and equipment	3,443	3,992
Intangible assets	342,752	347,213
Right-of-use assets	8,742	7,973
Investment in Associates	5,965	4,770
Deferred taxes	1,039	2,451
Total non-current assets	371,895	370,646
TOTAL ASSETS	457,794	460,944
CURRENT LIABILITIES
Trade and other payables	20,443	16,042
Royalty payables	13,328	10,838
Client liabilities	5,783	6,927
Income tax payables	6,701	5,151
Gaming tax payables	7,520	10,133
Lease liabilities	1,864	1,150
Contingent consideration on business combination and other	10,729	17,256
Employees' related payables and accruals	9,866	7,262
Total current liabilities	76,234	74,759
NON-CURRENT LIABILITIES
Liability with respect to Caesars’ IP option	3,450	3,450
Loans from a financial institution, net	217,969	209,287
Company share of Joint Venture net liabilities, net	416	539
Lease liabilities	6,970	6,823
Accrued severance pay, net	1,002	1,033
Deferred taxes	17,979	19,714
Total non-current liabilities	247,786	240,846
EQUITY
Share capital	60	59
Reserve with respect to transaction under common control	(8,467)	(8,467)
Reserve with respect to funding transaction with related parties	20,072	20,072
Accumulated other comprehensive income	4,071	482
Share premium	176,927	173,908
Share based payments reserve	7,044	6,941
Accumulated losses	(65,933)	(47,656)
Total equity (deficit)	133,774	145,339
TOTAL LIABILITIES AND EQUITY	$ 457,794	$ 460,944