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  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    MGT Earnings Release

    Upfront disclaimer: It is not my intention to start another “crap on MGT” thread. Their problems are well documented and I feel need no further discussion. Rather, I’d like to point out a couple of nuggets from their Q1 report: http://www.sec.gov/Archives/edgar/data/1001601/000114420414031204/v378139_10q.htm

    1) condia/1ucror agreement (quoted directly from the 10-Q):

    DFS agreement

    On April 24, 2014, the Company, through its subsidiaries FanTD and MGT Sports, entered into a six month Amended and Restated Consulting Agreement with DFS Consultants LLC (the “Consultants”), giving effect as of March 5, 2014.

    In exchange for expert promotional and site design services, the Company agreed to provide the following compensation to the Consultant:

    On the date hereof (subject to receipt of the applicable deliveries by the Consultant): MGT Capital shall issue to the Consultant a warrant to purchase 100,000 shares of common stock.

    Each month, MGT Capital shall issue to the Consultant 5,000 shares of MGT Common Stock, payable monthly in arrears.

    As of March 31, 2014, neither issuance has been made because the Company has not received NYSE market approval for the issuances. As of March 31, 2014, the Company has accrued $9 for the services.

    Depending on the market price of the stock, that is in the neighborhood of $10k per month.

    2) DFS business performance

    As best I can tell, FTD had gross revenue of $42k in Q1 (note this was pre-DraftDay acquisition) and cost of that revenue of $49k. Overcoming the cost of stat feeds and datacenters is a tough burden for such a small operator. By the time they pay their people and whatnot, the DFS business lost $373k in the quarter.

    3) MGT financial position
    They burned through $1.4M of cash in the quarter. After completing the Draftday purchase ($600k in cash) at the onset of Q2, they are probably below $2M of cash today, give or take. At that pace, they will be out of cash by the start of football season.

    So, review and discuss.

  • Denbo32

    Isn’t MGT more then just DFS?

  • Denbo32

    At March 31, 2014, MGT’s cash, cash equivalents and restricted cash were $3,358, including $21 held in MGT Gaming and $185 held in FanTD.

    Management believes that the current level of working capital along with the At the Market Offering Agreement, will be sufficient to allow the Company to maintain its operations into April 2015, at which point the Company may need to seek additional sources of financing. There is no guarantee that additional sources of financing will be available or on terms acceptable to the Company, if at all

    To date we have primarily financed our operations through private placements of equity and debt securities. To the extent that additional capital is raised through the sale of equity or equity-related securities of the Company or its subsidiaries, the issuance of such securities could result in dilution to our stockholders.

    Sounds like they plan to dilute shares in the near future.

  • raygo

    They did say they expected MGT Sports to be cash flow positive by year end so no real surprises here. I am surprised FTD didn’t lose more money.

  • Tippy

  • cb35

    2013 FFFC Finalist, 2013 DFFC Finalist

    • 2013 FanDuel WFFC Finalist

    if condia & lucor are worth $10k/month my question would be what is Gary Payton’s uncle worth? $100K?

    file under: defunct DFS strategies

  • easternmh

    • x3

      Blogger of the Month

    @cb35 said…

    if condia & lucor are worth $10k/month my question would be what is Gary Payton’s uncle worth? $100K?

    file under: defunct DFS strategies

    Lol

  • YoungFischer

    Re: the condia/1ucror agreement, aren’t you forgetting to factor the increased growth and creation of business synergies from the Operation 1ucror article series?

  • windchimesrrude

    2013 PFBC Qualifer

    • 2013 StarStreet MLB Playboy Mansion Finalist

    http://fantasysportslive.com/operation-1ucror-on-vacation/

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @cb35 said…

    if condia & lucor are worth $10k/month my question would be what is Gary Payton’s uncle worth? $100K?

    file under: defunct DFS strategies

    Gary Payton’s uncle” aka Kenyon Rasheed. \/ \/ \/

  • db730

    RotoGrinders Media Director

    • 2016 DraftKings FFWC Finalist

    • 2016 DraftKings FBBWC Finalist

    Anything to do w/ Gary Payton & DFS is bound to bomb….we’ve learned that much.

  • payamt

    I requested a $5200 withdrawal from FTD on May 16th. Still haven’t received my money. I got paid out same day from Draftstreet, Fanduel, and Draftkings.

  • BobFTD

    FanThrowDown Rep

    Hi Payam.

    Your withdrawal has been processed. I apologize for the delay on that, we just wanted to make sure you had a chance to take part in the transfer offer we emailed you before we processed.

  • YoungFischer

    Hey nice article 1ucror. Thanks for sharing you vacation stories with us. Now that you’re back from vacation, here is an idea for your next article: When to use multi-match block. This could be an interesting topic since you opt to use it for baseball (your primary expertise) yet aggressively take all games on the board for other sports.

    :)

  • payamt

    There was no transfer offer. There was a re-deposit offer to draftday. At no point in the email was any transfer offer mentioned.

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