Management to Host Corporate Update Via Audio Webcast This Afternoon

MINNEAPOLIS, MN / ACCESSWIRE / April 5, 2023 / SharpLink Gaming Ltd. (NASDAQ:SBET) ("SharpLink" or the "Company"), a pioneer of targeted conversion solutions for the U.S. sports betting and iGaming industries, today announced its financial results for the year ended December 31, 2022.

Financial Highlights for the Full Years Ended December 31, 2022 and 2021

• Revenues increased 177%, rising to $7.29 million from $2.64 million due primarily to new revenue contribution from the Company's merger and acquisition activities, namely 6t4 Company, a Minnesota corporation and FourCubed Management, LLC, a Delaware limited liability company (collectively "FourCubed") (closed on December 31, 2021) and SportsHub Games Network Inc. ("SportsHub") (closed on December 22, 2022).
• Operating expenses declined 50% to $16.61 million from $33.20 million after factoring non-cash goodwill and intangible asset impairment expenses of $4.73 million in 2022 and accounting for a non-cash charge of $23.30 million for commitment fee expense booked in 2021.
• Inclusive of net income of $70,024 from discontinued operations in 2022, the net loss for the year ended December 31, 2022 totaled $15.23 million, or $0.62 loss per share - decreased from a net loss of $55.64 million, or $3.94 loss per share, which included a net loss from discontinued operations of $22.17 million in 2021.
• Cash and restricted cash totaled $50.46 million, increasing from $6.07 million; and total stockholders' equity declined to $2.99 million from $14.19 million.

Rob Phythian, SharpLink Co-Founder and CEO, stated, "SharpLink has come a long way in a relatively short period of time, evolving and enhancing our inherent value proposition to our marquis customers, business partners and shareholders; but we believe we have yet to hit our stride. With the integration of our acquisition of FourCubed and recent merger with SportsHub, we have substantially increased our revenue, strengthened our cash position and grown the number of customers we can target with our C4 conversion technology. We believe our efforts to date are resulting in positive momentum with ongoing development and industry adoption of C4, penetration of the U.S. sports betting and iGaming markets through our state licensing activities, and the continued roll-out of our phased direct-to-player (‘D2P') performance marketing initiatives. It appears that our growth strategies are working, thanks in large measure to strong execution by our management team and continued investments in our expanding commercial capabilities."

2022 Operational Highlights and Recent Operational Developments

• In 2022, SharpLink's Sports Gaming Client Services business unit supported more than two million players and delivered over 40 bespoke free-to-play games to more than a dozen clients, including NASCAR, PGA TOUR, NHL, Tipico, Turner Sports, NBA and BetMGM.
• In May 2022, the Company announced that its Affiliate Marketing Services - International business unit was selected by WPT Global to manage the new WPT Global affiliate program as its Master Affiliate, entitling the Company to receive a second tier commission from the results that its network of referred affiliated marketers generate. WPT Global is an online gaming operator that licensed the World Poker Tour brand to market and promote its gaming platform.
• In December 2022, SharpLink completed its merger with SportsHub, providing the Company with a fantasy sports platform that reaches more than two million fantasy sports fans who spent approximately $40 million on SportsHub's portfolio of digital gaming experiences and contests in 2022.
• In December, the Company closed on the sale of its legacy Mer Telemanagement Solutions business ("MTS") to Israel-based Entrypoint South Ltd. for an earn-out payment equal to three times MTS' Earnings Before Interest, Taxes and Depreciation for the year ending December 31, 2023, up to a maximum earnout of $1 million (adjusted to reflect net working capital as of the closing date on December 31, 2022).
• As part of SharpLink's strategy to deliver unique fan activation solutions to its sportsbook and casino partners, in November 2022, the Company executed the first phase of a planned multi-phase roll-out of its U.S.-focused D2P business with the launch of affiliate marketing websites that are specific to 17 U.S. states in which SharpLink has been licensed or authorized to operate. Overall, SharpLink is now licensed or authorized to operate in 24 U.S. states, the District of Columbia and Ontario, Canada.
• During 2022, SharpLink expanded its leadership team with appointments of several accomplished business executives, including Robert DeLucia as Chief Financial Officer, Dave Abbott as new Chief Technology Officer, Tom Masterman as Vice President of Revenue and Tori Roberts as Vice President, Affiliate Marketing.
• In February 2023, SharpLink closed on a $4.4 million convertible debenture through a non-brokered private placement with an existing institutional shareholder of the Company and signed a two-year, $7.0 million revolving loan agreement with its current commercial lender, Platinum Bank.

In closing, Mr. Phythian said, "Over the coming year - beginning with this afternoon's live webcast, SharpLink looks forward to sharing details on several of our focused growth objectives that we are confident will help to anchor our position as an industry-recognized pioneer and leading technology partner to the fast growing legal sports betting and iGaming markets."

Webcast Details

The Company's management team will host a webcast today, April 5, 2023, beginning at 4:30 p.m. ET/1:30 p.m. PT. Investors, analysts, employees and the general public can access the live audio webcast at https://www.webcaster4.com/Webcast/Page/2761/47860. A replay of the webcast will be available on-demand shortly after the completion of the live broadcast at the link above, and will also be posted to SharpLink's investor relations website, found at https://www.sharplink.com/investors/#presentations, within 24 hours after completion of the webcast.

About SharpLink Gaming Ltd.

Founded in 2019, SharpLink is a leading online technology company that connects sports fans, leagues and sports websites to relevant and timely sports betting and iGaming content. SharpLink uses proprietary, intelligent, online conversion technology to convert sports fans into sports bettors for licensed, online sportsbook operators. In addition, SharpLink specializes in helping sports media companies, leagues, teams and sportsbooks develop strategies, products and innovative solutions to drive deep fan activation and engagement with highly interactive free-to-play games and mobile applications. Further, SharpLink owns and operates a variety of real-money fantasy sports and sports simulation games and mobile apps on its platform; and is licensed or authorized to operate in every state in the United States where fantasy sports and online sports betting has been legalized. SharpLink's proprietary fantasy sports platform reaches more than two million fantasy sports fans who spend almost $40 million annually on its portfolio of digital gaming experiences and contests. For more information, please visit the SharpLink website at www.sharplink.com.

Forward-Looking Statements

This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the expected growth in the online betting and iGaming industries, the Company's ability to grow its business, the potential benefits of the Company's products, services and technologies and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, government regulation of online betting, customer acceptance of new products and services, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries in which the Company operates on the Company's operations, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of the Company and its competitors, general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission. The Company does not undertake any responsibility to update the forward-looking statements in this release.

CONTACT INFORMATION:

SHARPLINK MEDIA & INVESTOR RELATIONS:
SharpLink Gaming Ltd.
Dodi Handy, Director of Communications
Phone: 407-960-4636
Email: ir@sharplink.com

SOURCE: SharpLink Gaming Ltd.