$EGLXF

Enthusiast Gaming Holdings Inc. / Canada

CIK:0001854233|SEC Filings

Consolidated Statements of Loss and Comprehensive Loss - CAD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Profit or loss [abstract]
Revenue	$ 202,835,921	$ 167,364,286
Cost of sales	139,371,400	129,589,540
Gross margin	63,464,521	37,774,746
Operating expenses
Professional fees	2,691,148	3,073,330
Consulting fees	5,789,576	4,591,688
Advertising and promotion	2,682,684	3,047,149
Office and general	9,533,291	6,972,055
Annual general meeting legal and advisory costs	3,386,596
Salaries and wages	36,493,089	25,140,326
Technology support, web development and content	21,858,408	10,640,184
Esports player, team and game expenses	4,352,150	5,497,165
Foreign exchange gain	(446,625)	(2,079,774)
Share-based compensation	7,751,370	18,918,489
Amortization and depreciation	16,707,844	9,518,471
Total operating expenses	110,799,531	85,319,083
Goodwill impairment	31,281,286
Transaction costs	114,853	1,490,463
Share of net (income) loss from investment in associates and joint ventures	(1,241,684)	266,641
Interest and accretion	3,620,186	2,844,956
Loss on settlement of deferred payment liability	3,302,824
(Gain) loss on revaluation of deferred payment liability	(621,780)	181,707
Loss on derecognition of long-term debt	482,282
Gain on repayment of long-term debt		(39,502)
Gain on settlement of long-term debt		(11,991)
Gain on sale of intangible assets	(4,836,075)
Gain on player buyouts	(518,581)
Change in fair value of investment		444,764
Loss on settlement of vendor-take-back loan		316,241
Interest income	(36,252)	(51,529)
Net loss before income taxes	(78,882,069)	(52,986,087)
Income taxes
Current tax expense	250,955	194,222
Deferred tax recovery	(2,302,219)	(1,133,687)
Net loss for the year	(76,830,805)	(52,046,622)
Items that may be reclassified to profit or loss
Foreign currency translation adjustment	8,102,682	481,738
Net loss and comprehensive loss for the year	$ (68,728,123)	$ (51,564,884)
Net loss per share, basic and diluted	$ (0.54)	$ (0.43)
Weighted average number of common shares outstanding, basic and diluted	143,535,305	121,002,659

Consolidated Statements of Cash Flows - CAD ($)	12 Months Ended
Consolidated Statements of Cash Flows - CAD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net loss for the year	$ (76,830,805)	$ (52,046,622)
Items not affecting cash:
Goodwill impairment	31,281,286
Amortization and depreciation	16,707,844	9,518,471
Share-based compensation	7,751,370	18,918,489
Interest and accretion	2,334,783	1,294,774
Deferred tax recovery	(2,302,219)	(1,133,687)
Share of net (income) loss from investment in associates and joint ventures	(1,241,684)	266,641
Gain on sale of intangible assets	(4,876,659)
Loss on settlement of deferred payment liability	3,302,824
(Gain) loss on revaluation of deferred payment liability	(621,780)	181,707
Foreign exchange gain	(775,004)	(172,776)
Gain on player buyouts	(518,581)
Gain on settlement of accounts payable	(587,769)
Loss on derecognition of long-term debt	482,282
Gain on repayment of long-term debt		(39,502)
Gain on settlement of long-term debt		(11,991)
Loss on settlement of vendor-take-back loan		316,241
Shares for services	(179,374)	173,567
Provisions	479,007
Change in fair value of investment		444,764
Changes in working capital:
Changes in trade and other receivables	(3,328,743)	(8,322,247)
Changes in prepaid expenses	128,180	(1,599,739)
Changes in loans receivable	125,995	37,500
Changes in accounts payable and accrued liabilities	944,457	7,687,368
Changes in contract liabilities	1,142,087	1,284,406
Changes in income tax receivable and payable	98,932	(174,052)
Income tax paid	(156,784)	(301,975)
Net cash used in operating activities	(26,640,355)	(23,678,663)
Cash flows from investing activities
Cash paid for mergers and acquisitions	(2,937,520)	(36,222,278)
Cash acquired from mergers and acquisitions	1,748,602	2,406,356
Proceeds from sale of intangible assets	5,460,959
Proceeds from player buyouts, net of transaction costs	518,581
Repayment of deferred payment liability	(472,833)
Proceeds from redemption of investments	6,865
Investment in associates and joint venture		(125,000)
Acquisition of property and equipment	(11,278)	(3,398)
Net cash provided by (used in) investing activities	4,313,376	(33,944,320)
Cash flows from financing activities
Proceeds from the issuance of shares for Offerings, net of transaction costs		95,146,338
Proceeds from long-term debt, net of transaction costs	9,758,128	10,823,240
Repayment of long-term debt	(2,588,238)	(23,773,470)
Proceeds from exercise of options	289,034	784,431
Repayment of vendor-take-back loan		(6,158,329)
Repayment of other long-term debt	(12,871)	(5,561)
Lease payments	(948,040)	(802,013)
Net cash provided by financing activities	6,498,013	76,014,636
Foreign exchange effect on cash	590,220	(61,214)
Net change in cash	(15,238,746)	18,330,439
Cash, beginning of year	22,654,262	4,323,823
Cash, end of year	$ 7,415,516	$ 22,654,262

Consolidated Statements of Financial Position - CAD ($)	Dec. 31, 2022	Dec. 31, 2021
Current
Cash	$ 7,415,516	$ 22,654,262
Trade and other receivables	37,868,107	33,801,990
Investments	125,000	131,342
Loans receivable	50,935	176,931
Income tax receivable	367,092	356,366
Prepaid expenses	2,017,004	2,145,184
Total current assets	47,843,654	59,266,075
Non-current
Property and equipment	180,621	247,988
Right-of-use assets	2,099,996	2,885,662
Investment in associates and joint ventures	2,450,031	885,269
Long-term portion of prepaid expenses	279,814	261,922
Intangible assets	116,967,438	129,138,595
Goodwill	171,615,991	195,097,659
Total Assets	341,437,545	387,783,170
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and accrued liabilities	32,823,320	34,391,221
Contract liabilities	5,380,378	3,890,569
Income tax payable	129,485	114,094
Current portion of long-term debt	17,431,625	2,000,000
Current portion of deferred payment liability	2,391,863	27,244,146
Current portion of lease liabilities	872,429	796,835
Current portion of other long-term debt	10,891	11,121
Total current liabilities	59,039,991	68,447,986
Long-term debt		7,681,867
Long-term portion of deferred payment liability	1,451,939	20,794,275
Long-term portion of lease liabilities	1,478,438	2,213,512
Other long-term debt	144,844	136,324
Deferred tax liability	24,671,326	25,740,885
Total liabilities	86,786,538	125,014,849
Shareholders’ Equity
Share capital	442,781,376	387,087,948
Contributed surplus	30,402,742	25,485,361
Accumulated other comprehensive income	8,629,848	527,166
Deficit	(227,162,959)	(150,332,154)
Total shareholders’ equity	254,651,007	262,768,321
Total liabilities and shareholders’ equity	$ 341,437,545	$ 387,783,170