Sharplink, Inc. Q2 FY2023 earnings call

• Revenue growth was due to new revenue from SportsHub Gaming Network merger and higher sales from Affiliate Marketing Services. - Gross profit and margins improved due to higher-margin products from merger and Affiliate Marketing Services initiatives. - C4 BetSense uses AI to personalize fan experiences, expecting boosts in key metrics. - Business segments (SportsHub, Affiliate Marketing Services, Sports Gaming Client Services) work collaboratively. - Redomestication to Delaware corporation via S-4 registration in process. - Efforts to regain NASDAQ listing compliance.

For the three months ended June 30, 2023: Revenues nearly doubled to $3.26 million (86% increase from $1.75 million in Q2 2022). SportsHub Gaming Network contributed $1.13 million in Q2 2023 (vs $0 in Q2 2022). Affiliate Marketing Services U.S. group saw 182% increase to ~$306,000 (from ~$109,000). Affiliate Marketing Services International had 34% increase to $1.13 million (from ~$840,000). Sports Gaming Client Services declined 13% to ~$699,000 (from ~$803,000). For the first half of 2023: Total revenues rose 82% to $6.65 million. SportsHub contributed $2.17 million (vs $0 prior year). Affiliate Marketing Services U.S. revenues 244% increase to ~$585,000 (from $170,000). Affiliate Marketing Services International 21% increase to $2.13 million (from $1.76 million). Sports Gaming Client Services 3% increase to $1.76 million (from $1.71 million). Gross profit increased 972% to ~$965,000 for Q2 2023 and 222% to $2.31 million for H1 2023.

• C4 BetSense expected to have material impact on metrics like visit frequency, ARPU by late Q3/early Q4 2024. - Plan to regain NASDAQ listing compliance by evidencing compliance by end of November 2023.

• Risk of NASDAQ delisting if not evidencing compliance by year-end December 31, 2023. - Uncertainty in SEC review process for S-4 registration and Israeli authorities' approval for redomestication.

Q: Can you share how generative artificial intelligence is being used by SharpLink to drive future growth?

A: AI will improve KYC data, allowing personalized experiences for sports bettors, leading to higher ARPU, better ROI.

Q: What is the status of the S-4 registration for redomestication?

A: Currently in SEC review; once cleared, will file proxy notice, need shareholder and Israeli approval, expected to complete in late October/early November.

Q: What's the plan for regaining NASDAQ listing compliance?

A: Submitted plan, requested extension to November 20, 2023, have until end of November to evidence compliance.