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NextPlay Technologies, Inc. (NASDAQ: NXTP), a digital business ecosystem for consumers, digital advertisers, video gamers and travelers, released its results for the second quarter of fiscal 2022 ended August 31, 2021.

Financial Highlights

● Revenues totaled a record $ 2.6 million compared to none in the same quarter a year earlier, which was attributed to acquisitions made towards the middle of the quarter, contributing only about 60% of their total income. The contribution will increase to 100% during the current third fiscal quarter.

● Gross margin totaled $ 1.4 million, with a consolidated gross margin of 51.9%.

● Assets totaling $ 103.8 million

● Cash and cash equivalents and restricted cash totaled $ 8.9 million.

Operational highlights

● Completed the merger with the in-game advertising technology provider, HotPlay Enterprise, and changed the company name to NextPlay Technologies.

● Acquisition of a majority stake in Zappware, an award-winning smart TV service provider that delivers a personalized entertainment experience on tens of millions of set-top boxes, smart TVs, smartphones, tablets and PCs.

● Acquired International financial corporate bank (IFEB). Under the new name of NextBank International, the bank will offer a full range of global fintech products and solutions, both directly to consumers and businesses, as well as through other NextPlay divisions.

● Reorganized the company’s operations and technologies under three new divisions: Interactive Digital Media (NextMedia); FinTech products and solutions (NextFin); and Travel (NextTravel) for travel technology and services.

● In partnership with Media keys, an international media and advertising agency, to accelerate the global expansion of NextPlay’s gaming advertising platform.

● Strengthening of the NextPlay management team with the appointments of a leader in the gaming technology industry and the former CEO of HotPlay, Nithinan (Jessie) Boonyawattanapisut, as co-CEO; award-winning digital media executive, Andrew Greaves, as chief operating officer; and industry leader in video game development, Marc Vange, as CTO. After the quarter, leader of the fintech industry, Jorge E. Miró Hernández, has been appointed President and Chief Operating Officer of NextBank International.

● Signature of a definitive agreement for the acquisition of two complementary technology companies: Token IQ, a leading innovator in digital asset management that provides cryptocurrency owners with a solution to replace lost or inaccessible assets; and Play games™, the AI-powered video game development platform from Fighter Base Publishing.

Management commentary

“Our second quarter of fiscal 2022 was a major inflection point for NextPlay, as we transformed our business through several highly synergistic acquisitions and laid the groundwork for future growth and expansion,” said commented NextPlay Co-CEO Bill Kerby. “This has translated into record revenues of $ 2.6 million, which we expect to more than double in the current quarter, as all of these acquisitions contribute fully. We also anticipate gross margin growth above the record 51.9% in the second quarter, as we develop synergies between our divisions.

“This merger and acquisition activity included the creation of a new interactive digital media division with the acquisitions of the HotPlay games advertising platform at the start of the quarter, and then of Zappware’s connected TV platform to the middle of the quarter.

“Zappware’s award-winning multimedia entertainment platform reaches tens of millions of devices across Europe, with expansion into Latin America, Asia and other parts of the world. HotPlay plugs directly into consumer games on set-top boxes, connected TVs, smartphones, tablets and PCs. It seamlessly integrates digital ads into video games without disrupting the game, allowing video game publishers to monetize their IP without compromising the integrity of the game.

“We are working on the integration of Zappware with HotPlay, which would allow digital advertisers and brands using HotPlay to reach a large global pay TV consumer base like never before. We expect the addition of Make It Games will further enhance the HotPlay platform with AI-powered video game development technology and thus provide additional competitive advantage.

“We also acquired in the middle of the quarter IFEB bank, which we now call NextBank International, which allows us to offer banking and asset management services, mobile payments and insurance, as well as to provide consumers and businesses access to cryptocurrency exchanges and digital wallets. NextBank International will further support and enhance our other divisions with integrated fintech services and capabilities. “

NextPlay’s FinTech division is also working on several initial coin offerings through the Longroot ICO portal. This includes the previously announced Magnolia “Forestias”Offering real estate coins and symbolic funds for investments related to medical establishments, such as establishments serving medical tourism.

These ICOs progress to IPO subscriptions by Longroot, Longroot Limited, majority owned by NextPlay, which controls the Thai coin initial offering portal authorized by the SEC Longroot (Thailand) Company Limited. Longroot is licensed and regulated under the world’s leading Thai Digital Asset Commercial Law and licensed by the Thai Securities and Exchange Commission.

At the same time, NextPlay’s Fintech division is building relationships with crypto trading exchanges and selling groups that it believes are necessary for the success of initial coin offerings. To this end, NextPlay’s Fintech team has entered into advanced discussions with several well-established digital asset listing and trading exchanges in Asia and North America to be in sync and in place with the proposed ICOs.

“We see the addition of Token IQ technology becoming the core of all our products and services, from our Longroot asset-based cryptocurrencies and in-game HotPlay tokens, to future NextBank fintech services and medical tourism offerings. NextTrip, ”continued Kerby. “Token IQ also brings valuable talent in technology and software development to support technological integration between our platforms and partners, as well as to continue our IP development.

“Overall, we believe that integrating these acquisitions will allow us to seamlessly engage consumers in the physical and digital worlds like no other company in the market today. They have played a key role in our vision to create a vibrant digital ecosystem that reaches consumers, gamers and travelers around the world for the benefit of advertisers and digital brands.

“As we enter the second half of fiscal 2022, we are now exceptionally well positioned for growth in our three divisions of interactive digital media, fintech and travel. In addition to the planned Zappware / HotPlay integration, we are seeing near-term revenue growth and margin expansion thanks to anticipated HotPlay deployments and Longroot cryptocurrency offerings, which is accelerating us towards cash flow. and solid profitability.

Nithinan ‘Jessie’ Boonyawattanapisut, Co-CEO of NextPlay, added, “Each of our new divisions is led by a highly accomplished and knowledgeable leadership who is expert in their field and has assembled equally capable teams. They lead growth plans for each of these divisions, which includes numerous opportunities to cross-exploit and cross-pollinate their respective technologies, customer bases and market channels to generate solid returns and increase value. long-term shareholder. “

Financial summary for the second quarter of fiscal 2022

Due to the reverse merger with HotPlay, last year’s results for the second quarter of fiscal 2021 and as of February 28, 2021 only include financial data from HotPlay.

Revenue for the second quarter of fiscal 2022 totaled $ 2.6 million, compared to no revenue for the same quarter last fiscal year. The improvement is mainly the result of the acquisitions of HotPlay, Zappware (via the acquisition of Reinhart TV) and IFEB Bank (now NextBank International).

Digital interactive media revenue is primarily due to the contribution of Zappware product deployments, services and service license agreements. The fintech income has been attributed to interest income and loan fees, as generated by NextBank. The increase in travel revenues is due to travel bookings made by Next trip units.

Consolidated gross margin totaled $ 1.4 million or 51.9% of sales, compared to nil for the prior year period.

Total operating expenses totaled $ 6.2 million, compared to $ 422,000 for the same period last year. The majority increase is mainly due to one-off expenses related to acquisitions and the consolidation of expenses related to the HotPlay, Reinhart / Zappware and IFEB business combinations.

The net loss was $ 9.7 million or ($ 0.11) per basic and fully diluted share, compared to a net loss of $ 411,000 or ($ 5.06) per basic and fully diluted share during the same period last year.

Cash and cash equivalents as at August 31, 2021 were $ 8.9 million, compared to $ 445,000 as at February 28, 2021.

The company’s second quarter 2022 financial report and other reports the company files with the SEC, including reports on Forms 10-Q, 10-K, and 8-K, can be viewed at sec.gov and on the NextPlay website in the Infrared section.

About NextPlay technologies

NextPlay Technologies, Inc. (Nasdaq: NXTP) is a technology solutions company providing gaming, in-game advertising, crypto-banking, smart TV, and travel reservation services to consumers and businesses within a growing global digital ecosystem. NextPlay’s compelling products and services use innovative AdTech, Artificial Intelligence and Fintech solutions to leverage the strengths and channels of its existing and acquired technologies. To learn more about NextPlay, visit NextPlayTechnologies.com, and follow us on Twitter @NextPlayTech and LinkedIn.