Luckbox Reports Losses in Q1 Amid Increased Expenses

Luckbox reported no revenue for the first quarter of 2021, but its costs of sales reached $87,817. Of that total, $71,557 was allocated to third-party platform fees, with the remaining funds spent on free bets. The company's expenses also saw significant increases, with share-based compensation hitting $551,531, which marked an increase of over $551,271 compared to the same quarter in 2020. Salaries and director fees rose by 7.0%, reaching $486,492 year on year. Advertising, marketing, and investor relations costs totaled $382,906, a jump of 184.9%. Consulting fees followed closely, amounting to $315,889, a rise of 69.8%, while legal and professional fees increased to $286,376, or 219.3% year on year. General and administrative expenses totaled $135,619, ranking as the sixth highest of the quarter, although this was a decrease of 28.1% from the previous year. Transfer agent and filing fees were $44,620, and insurance fees were $37,917, with no prior figures available for comparison. Additional costs included a foreign exchange gain of $28,946, travel and accommodation expenses of $24,798, depreciation costs of $19,063, and a loss of bad debt recovery costs of $129. Consequently, total expenses resulted in a loss of $2.3 million, a rise of 116.4% year over year. Before accounting for income taxes, the loss stood at $2.4 million, but after a tax benefit of $1,560, the overall net loss was reported at $2.3 million, marking an increase of 112.4% from the first quarter of 2020. A currency translation adjustment of $764 further raised expenses to $2.4 million. Luckbox CEO Thomas Rosander stated, 'We spent the first quarter of 2021 building a solid foundation from which Luckbox can grow.' He added, 'We are focused on optimizing our product platform and customer acquisition funnel to increase ROI ahead of scaling up our marketing spend.' The company had previously seen its revenue increase nearly 18-fold in 2020 as costs significantly decreased during that year. Earlier this year, Luckbox also began offering traditional sports betting following a partnership with EveryMatrix.