v3.26.1
DISCONTINUED OPERATIONS
6 Months Ended
Jun. 30, 2026
DISCONTINUED OPERATIONS  
DISCONTINUED OPERATIONS

NOTE 17 — DISCONTINUED OPERATIONS

On December 31, 2025, the Company agreed to assign and transfer to Happy Hour Entertainment Holdings Ltd. the domain name www. casinoroom.com and all variations and extensions of the “Casino Room Domain”.  In exchange for the Casino Room Domain, the Company received 100% of the issued and allotted share capital of Happy Hour Solutions Limited, which holds a valid remote gambling license issued by the Estonian Tax and Customs Board.

The sale of the Casino Room Domain represents a strategic shift for the Company. Revenue and net income from discontinued operations of $2.7 million, for a total net income of $1.0 million, was recorded in net income from discontinued operations in the unaudited condensed consolidated statement of operations for the six months ended June 30, 2025. There were no assets and liabilities related to the Casino Room Domain in the balance sheets as of June 30, 2026 and December 31, 2025.

The following table summarizes the Company’s income from discontinued operations for the three and six months ended June 30, 2025:

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

(in thousands)

 

2025

 

2025

 

Revenue

 

$

1,135

 

$

2,711

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Direct operating costs (related party)

 

 

568

 

 

1,683

 

General and administrative (related party)

 

 

2

 

 

14

 

Total operating expenses

 

 

570

 

 

1,697

 

Income from operations

 

 

565

 

 

1,014

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

565

 

 

1,014

 

Net income from discontinued operations

 

$

565

 

$

1,014

 

 

The unaudited condensed consolidated statements of cash flows includes continuing operations and discontinued operations. The following table summarizes the cash flows from operations of discontinued operations for the three and six months ended June 30, 2025:             

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

(in thousands)

 

2025

 

2025

 

Net cash provided by (used in) operating activities

 

$

164

 

$

(108)