NextPlay Technologies Reports Fiscal Q1 2023 Results

SUNRISE, FL, July 15, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – NextPlay Technologies, Inc. (NASDAQ: NXTP), a digital native ecosystem for finance, digital advertisers, and video gamers, reported results for the first quarter of fiscal 2023 ended May 31, 2022. 

On June 28, 2022, NextPlay announced it entered into definitive agreements to sell its travel business, NextTrip Group, LLC (NextTrip), and its 51% ownership of Reinhart Digital TV (the owner of Zappware) to TGS Esports Inc., an esports tournament solutions provider. Closing of the transaction remains subject to various conditions, including (without limitation) regulatory approvals and approval of certain related matters by TGS' shareholders, and is expected to occur in the second half of this calendar year. The sale, if and when consummated, is expected to unlock shareholder value, improve cash flow and allow the company to focus resources on core businesses.

As a result, as of May 31, 2022, the NextTrip and Reinhart Digital TV businesses are no longer consolidated with, or presented as divisions of, NextPlay Technologies, and instead have been reclassified as assets held for sale by the company. Beginning with the company’s first quarter of fiscal 2023, the company will report the financial results of its two continuing business segments: NextFinTech, comprised of Longroot and NextBank; and NextMedia, comprised of HotPlay, representing the company’s in-game advertising (IGA) technology.

Fiscal Q1 2023 Financial Highlights

● Revenue totaled $467,000 vs. none in the corresponding year-ago quarter.

● Consolidated gross profit totaled $364,000 or 77.9% of total revenue.

● Assets totaled $106.5 million at May 31, 2022.

Fiscal Q1 2023 Operational Highlights

●        Acquired the assets, including patents and video game development technology, of Fighter Base Publishing and its Make It Games brand. The acquisition strengthened NextPlay’s IP portfolio and digital business ecosystem offerings to digital advertisers, consumers and video gamers. The proprietary Make It Games AI animation tools enable game or film characters to be more lifelike in appearance and behavior, saving producers time and money over traditional animation.