The business did not report any revenue for the quarter, but did record costs of sales of $87,817, of which $71,557 was spent on third-party platform fees and the remainder on free bets.
In terms of costs and expenses, share-based compensation came to $551,531, an increase of over $551,271 compared to the first quarter of 2020. Salaries and director fees rose by 7.0% at $486,492 year on year. Advertising, marketing and investor relations totaled at $382,906, a rise of 184.9%, while consulting fees came to $315,889, another increase of 69.8%. Legal and professional fees amounted to $286,376, an increase of 219.3% year on year.
General and administrative costs at $135,619 were the sixth highest of the quarter but dropped 28.1% in comparison to Q1 2020. Transfer agent and filing fees totalled at $44,620, and insurance fees came to $37,917. There were no comparative figures for these two amounts.
Foreign exchange gain and travel and accommodation costs, at $28,946 and $24,798 respectively, added to the loss. The addition of depreciation costs of $19,063 and the loss of bad debt recovery costs at $129 brought the total expenses costs to a loss of $2.3m, a rise of 116.4% year on year.
Before income taxes, the loss totaled at $2.4m. However, a tax benefit of $1,560, totaled the overall net loss at $2.3m, an increase of 112.4% from Q1 2020’s loss.
Currency translation adjustment at $764 brought expenses up further to $2.4m.
“We spent the first quarter of 2021 building a solid foundation from which Luckbox can grow,” said Luckbox CEO Thomas Rosander.
“We are focused on optimizing our product platform and customer acquisition funnel to increase ROI ahead of scaling up our marketing spend.”
Luckbox saw revenue increase by almost 18 times over in 2020, after costs fell significantly during the year.
Earlier this year, Luckbox began to offer traditional sports through a deal with EveryMatrix.