Segment Reporting and Geographic Information

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

24. Segment Reporting and Geographic Information

The Company operates its business along two operating segments, which are segregated based on the basis of revenue stream: Service Based Gaming and Virtual Sports (which includes Interactive). The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated.

The following tables present revenue, cost of sales, excluding depreciation and amortization, selling, general and administrative expenses, depreciation and amortization, stock-based compensation expense and acquisition related transaction expenses, operating profit/(loss), total assets and total capital expenditures for the periods ended December 31, 2018 and 2017, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions.

As a result of improved processes that have allowed us to more accurately allocate costs between reporting segments, we have reclassified the previously reported segment allocation of selling, general and administrative expenses and stock-based compensation expense for the three months ended December 31, 2017.

Segment Information

Three Months Ended December 31, 2018

	Server Based Gaming			Virtual Sports			Corporate Functions			Total
Revenue:
Service	$	21,816		$	8,230		$	—		$	30,046
Hardware		686			—			—			686
Total revenue		22,502			8,230			—			30,732
Cost of sales, excluding depreciation and amortization:
Cost of service		(4,900	)		(1,077	)		—			(5,977	)
Cost of hardware		(593	)		—			—			(593	)
Selling, general and administrative expenses		(6,913	)		(3,296	)		(5,058	)		(15,267	)
Stock-based compensation expense		(113	)		(83	)		(1,419	)		(1,615	)
Acquisition related transaction expenses		—			—			(74	)		(74	)
Depreciation and amortization		(7,784	)		(1,376	)		(429	)		(9,589	)
Segment operating income (loss)		2,199			2,398			(6,980	)		(2,383	)
Net operating loss										$	(2,383	)
Total assets at December 31, 2018	$	93,030		$	68,055		$	25,531		$	186,616
Total goodwill at December 31, 2018	$	—		$	44,862		$	—		$	44,862
Total capital expenditures for the three months ended December 31, 2018	$	2,105		$	1,241		$	50		$	3,396

Three Months Ended December 31, 2017

	Server Based Gaming			Virtual Sports			Corporate Functions			Total
Revenue:
Service	$	21,809		$	8,558		$	—		$	30,367
Hardware		1,020			—			—			1,020
Total revenue		22,829			8,558			—			31,387
Cost of sales, excluding depreciation and amortization:
Cost of service		(4,053	)		(1,143	)		—			(5,196	)
Cost of hardware		(906	)		—			—			(906	)
Selling, general and administrative expenses		(8,147	)		(2,721	)		(5,506	)		(16,374	)
Stock-based compensation expense		(65	)		(79	)		(3,054	)		(3,198	)
Acquisition related transaction expenses		—			—			(574	)		(574	)
Depreciation and amortization		(7,607	)		(1,600	)		(353	)		(9,560	)
Segment operating income (loss)		2,051			3,015			(9,487	)		(4,421	)
Net operating loss											(4,421	)
Total assets at September 30, 2018	$	103,378		$	69,545		$	34,989		$	207,912
Total goodwill at September 30, 2018	$	—		$	45,818		$	—		$	45,818
Total capital expenditures for the three months ended December 31, 2017	$	6,986		$	1,321		$	113		$	8,420

Geographic Information

Geographic information for revenue is set forth below:

	Three Months Ended December 31,
	2018		2017
Total revenue
UK	$	18,591	$	20,493
Italy		5,125		4,300
Greece		4,817		4,391
Rest of world		2,199		2,203
Total	$	30,732	$	31,387

Geographic information of our non-current assets excluding goodwill is set forth below:

	December 31, 2018		September 30, 2018
Total non-current assets excluding goodwill
UK	$	52,784	$	60,037
Greece		32,773		36,175
Italy		2,997		3,368
Rest of world		4,134		3,962
Total	$	92,688	$	103,542

Software development costs are included as attributable to the market in which they are utilized.