ISWI reports record results
The system operated by Global Interactive Gaming Ltd. ("GIG"), the Company's wholly owned UK subsidiary, recorded over $2.3 million in turnover (i.e. the total amount wagered) in June. This total is the largest monthly turnover ever recorded by GIG, and represents a 15% increase over the turnover recorded in May. The Company is very encouraged by this growth trend, as the turnover for May, April and March also showed increases over the preceding months' volume. In addition, the system's "hold" (that is, the turnover less the money returned to the players as winnings) was over $137,000.
Bernard Albanese, the Company's CEO, stated, "We are extremely pleased with the continued growth of the system's wagering turnover. We are particularly happy with the increases in tennis wagering volume. Although the Company's revenues are temporarily no longer directly dependent upon the turnover volume or the hold, because of recent arrangements with our main partners, it is very gratifying to see the continued growth shown in the system's use over the last several months. This growth trend bodes well for the long-term future success of the product and services we provide."
The Company's revenue from its agreements under which it operates its software has historically been based upon several factors: the turnover, the hold and the contractual revenue (hold) split with its partners. However, on May 30, 2007 the Company announced that it had reached informal agreement with several of its larger partners to restructure its agreements with them in order for the Company to receive fixed or minimum monthly payments on a temporary basis. Based on these informal agreements, the Company expects to invoice approximately $60,000 for June, including license fees due from its agreement with Hipodromo de Agua Caliente S.A. de C.V.
Sales and Marketing:
The Company continues to market the SportXction(R) Sports Wagering System domestically and internationally in those jurisdictions where sports wagering is legal. The Company is in discussions with several companies in the gaming industry and it is hopeful that it will be able to add an additional software licensee and/or an additional bookmaking partner to the UK service it provides through GIG.
In addition, the Company has received a small purchase order by a foreign governmental gaming agency to conduct a study to evaluate the adaptation of the SportXction(R) System to accept legal sports wagers within its jurisdiction. The Company is hopeful that this study will lead to a software development contract, and eventually to a deployment/licensing agreement for the system in that jurisdiction.
ISWI continues to market its patent-pending racing system, which provides fixed-odds wagering opportunities to the racing customer. The Company believes that this unique system will satisfy existing pari-mutuel regulations, making it legal in much of the US. ISWI has been in long-term serious discussions with a nationally recognized organization in the racing industry. Management is optimistic that these discussions will eventually result in an agreement to develop and deploy the Company's racing product.
The Company is also exploring additional ways of generating revenue utilizing its technical capabilities through consulting or development agreements, and is in discussions with several entities in this regard. These discussions include, but are not limited to, previously announced discussions with Techmatics regarding the development of its propriety horseracing product for exotic wagers. This software development is contingent upon Techmatics raising the necessary capital and the parties negotiating and executing a mutually agreeable software development agreement. The Company has refunded to Techmatics a $25,000 deposit against future development work, until such time as definitive agreements are negotiated and executed.
Cash Resources:
The Company has previously announced that it anticipates that its existing resources will be adequate to fund its capital and operating requirements at least through September 2007. The Company is actively pursuing multiple initiatives to solve its long-term liquidity issues, including seeking additional equity investments or other strategic transactions, as well as the licensing agreements and other synergistic revenue producing opportunities discussed above.