iGaming Corporation

iGaming Corporation

April 02, 2007 11:48 ET

iGaming Corporation Announces Financial Results for Year-Ended November 30, 2006 and Amendment to NSS Asset Purchase Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 2, 2007) - iGaming Corporation ("iGaming" or the "Company") (TSX VENTURE:IGA)announces today its financial results for the year-ended November 30, 2006.

The Company achieved total operating revenue of $2,456,035, with all sales having occurred in the 4th quarter. Direct costs and selling expenses were $2,647,008, and general and administrative expenses were $1,551,077. Inclusive of certain non-cash expenses and a gain on the disposition of an inactive subsidiary, the Company produced a net loss of $1,843,446. The Company had been inactive in 2005, making comparative analysis non-informative.

The financial results for the year-ended November 30, 2006 reflect the following pertinent information:

- More than 95% of revenue was achieved in the last 2 months of the fiscal year, following the acquisition by the Company of certain assets of National Sports Service, Inc. ("NSS"). which had an effective closing date of October 1, 2006).

- All selling expenditures, such as commissions to handicappers and salespersons as well as the cost of producing and airing the proprietary Proline television program are expensed as incurred, whereas much of the related revenue is deferred to subsequent accounting periods. As of the year-end, iGaming had deferred revenue of more than $2.8M with the substantial bulk of such amount scheduled to be recognized in fiscal 2007. In addition to the deferred revenue that was assumed by the Company upon consummating its acquisitions during the fourth quarter of 2006, it generated an additional $600,000 of deferred revenue as a result of cash collections during such quarter. Accordingly, the Company's cash flow from operating activities reflects significantly more favourable results than the statement of operations and deficit.

- The expenses for the year include the costs of reactivating the Company and the contemporaneous trading of the Company's common shares on the TSX Venture Exchange which became effective September 14, 2006. The aggregate cost of the reactivation was approximately $450,000, which comprises about 24% of the Company's net loss for the year ended November 30, 2006.

- The total non-cash amortization and stock option compensation expense for the year was approximately $530,000, which represents about 29% of the overall loss for the year.

Furthermore, the Company is reporting that on March 26, 2007 it entered into an Amending Agreement to the Asset Purchase Agreement related to the Company's purchase of certain assets of NSS (which closed on November 6, 2007 with an effective date of October 1, 2006). The amendment increased the maximum potential purchase price owing to National Sports Services, Inc. by approximately $970,000 and was as a result of the increase in deferred revenue assumed by the Company.

All of the additional deferred revenue will be recognized as revenue by the Company in its fiscal 2007 and 2008 years. Further amendments to the original Asset Purchase Agreement were made to clarify the determination of how certain relevant revenue thresholds will be calculated. Pursuant to the Amending Agreement, the cash method will be used to calculate the revenues which the purchased assets will generate (which affects the quantum of purchase price payable) as opposed to using an accrual method which defers recognition of such revenue for accounting purposes over longer periods of time. The related commissions owing to James Feist (or his holding company) pursuant to the Consulting Agreement related to the asset purchase are calculated in a similar manner.

"I am very pleased to report our positive results at this young stage in iGaming's history. The results reported reflect the hard work our team has invested towards building a valuable business", stated Christopher Kape, President and CEO. "Due to the conservative accounting policies that we have adopted, we are effectively recognizing all expenses up-front while deferring recognition of related revenues. These conservative accounting policies have created a temporary mismatch for accounting purposes that skews our results, especially considering these annual financial results effectively only reflect three months of operations. We expect that the effects of this mismatch will be reversed in the first two fiscal quarters of 2007 and our reporting can be expected to be normalized once we are able to report our first complete twelve-month business cycle in our annual financial statements for the year ending November 30, 2007."

The Company has ample working capital to meet all of its foreseeable obligations based on its plans for the next twelve months.

The Company's annual consolidated financial statements and management discussion and analysis (MD&A) for the year-ended November 30, 2006 are available at www.sedar.com.

The Company trades on the TSX Venture Exchange under the symbol IGA.

About iGaming Corporation

iGaming owns and operates assets that provide fact-based and opinion-oriented information relevant to the sports industry. These assets include websites, client-server software, publications and call centers.

The Company generates revenues in a number of ways, including various direct to consumer services and direct to business sales through its portfolio of websites which includes www.JimFeist.com, www.PicksOnline.com, www.Vegasonlinesports.com, www.OffshoreConnection.com, www.FurturesandProps.com and www.ScoresLinesPicks.com. In addition, iGaming operates Linetracker, a state of the art, real-time sports information system for the more serious bettors and handicappers. The company also operates various fantasy sports contests catering to the sports enthusiast through its fantasy sports website which can be found at www.rotoplay.com.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of iGaming, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from iGaming's expectations are various risks detailed from time to time in the filings made by iGaming with securities regulations.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy and accuracy of this release.

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