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High Roller Technologies Announces Financial Results for the Three Months Ended September 30, 2024

-Company Delivers 30% Quarter-Over-Quarter Revenue Growth 

-Filing Follows High Roller’s Recent IPO on NYSE in October 2024 Raising Gross Proceeds of $10 Million

Las Vegas, Nevada, Dec. 04, 2024 (GLOBE NEWSWIRE) — High Roller Technologies, Inc. (“High Roller” and the “Company”) (NYSE American: ROLR), operator of www.HighRoller.com and www.Fruta.com, each a premium brand in online gaming and a destination for high rollers, announced today that it has filed its financial results for the three months ended September 30, 2024.

Third Quarter 2024 Summary

Third Quarter 2024 Financial Summary

The Company reported revenue from operations of $7.5 million for the third quarter ending September 30, 2024, reflecting a 30% increase over the previous quarter’s revenue of $5.8 million.

Revenue from operations for the three months ended September 30, 2024 was $7.5 million, compared to $7.6 million for the three months ended September 30, 2023, representing a slight decrease of less than 1%. Growth in primary gaming markets offset the impact of High Roller’s exit from a jurisdiction due to regulatory changes in late 2023.

Operating expenses for the three months periods ended June 30, 2024 and September 30, 2024 were $7.3 million and $8.0 million respectively and were $7.8 million for the three months ended September 30, 2023 driven by increased investment into advertising and promotional costs in key markets to increase player acquisition.

For the three months ended September 30, 2024, the Company recorded a GAAP net loss of $(0.5 million) as compared to a GAAP net loss of $(0.2 million) for the three months ended September 30, 2023. Sequentially, the Company reported a GAAP net loss of $(1.5 million) in the three months ended June 30, 2024. During the three months ended September 30, 2024, the Company achieved Adjusted EBITDA of $40 thousand, marking an improvement from ($1.0 million) in Adjusted EBITDA deficit reported in three months ended June 30, 2024. Additionally, as compared to the three months ended June 30, 2023, the Company reported Adjusted EBITDA of $0.2 million in the three months ended June 30, 2024. This improvement over consecutive quarters was driven by cost optimization efforts and disciplined operational execution.

The Company reported a net loss per share of ($0.07) in three months ended September 30, 2024, compared to a net loss per share of ($0.03) in the three months ended September 30, 2023.

At the close of September 30, 2024, the Company reported $2.9 million in cash and cash equivalents, including restricted cash. This amount does not give effect to proceeds received by the Company from its IPO that closed in October 2024 and that raised gross proceeds of $10 million to support strategic growth initiatives.

Ben Clemes, Chief Executive Officer at High Roller Technologies, commented, “We’re extremely proud to have completed our recent IPO on the NYSE, a milestone that reflects the confidence and trust of our shareholders. We sincerely thank our investors for their support as we move into this exciting new chapter. We believe that our quarter-over-quarter most accurately reflects the direction of our Company as we focused on optimizing costs and creating more efficient and effective marketing efforts to grow our user base. Looking ahead, we remain committed to executing our growth strategy, delivering value to our stakeholders, and driving innovation in the gaming industry.'”

Financial Results

Additional information with respect to the Company’s business, operations and financial condition as of and for the three months and nine months ended September 30, 2023 is contained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, which has been filed with the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov.

About High Roller Technologies, Inc.

High Roller Technologies, Inc. operates as a global online gaming operator. The Company offers a compelling real money online casino platform with enhanced search engine optimization, direct API integrations, faster load times, and better scalability. High Roller Technologies has a global customer base.

Forward Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company’s filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, High Roller Technologies uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that “Adjusted EBITDA,” a “non-GAAP financial measure,” as such term is defined under the rules of the U.S. Securities and Exchange Commission (the “SEC”), is useful in evaluating our operating performance. Adjusted EBITDA is used to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

We reconcile our non-GAAP financial measure of Adjusted EBITDA to our net income (loss), adjusted to exclude interest expense, provision for (benefit from) income taxes, share-based compensation, foreign exchange loss (gain), depreciation and amortization, impairment, and certain charges or gains resulting from non-recurring or irregular events, if any. For the periods presented we did not have any such non-recurring events.

Contact:
ir@highroller.com
800-460-1039

HIGH ROLLER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
(in thousands, except shares and per share data)   2024     2023     2024     2023  
                         
Revenues   $ 7,516     $ 7,569     $ 19,826     $ 22,484  
                                 
Operating expenses                                
Direct operating costs:                                
Related party     598       1,992       2,020       3,242  
Other     2,671       1,242       7,740       6,887  
General and administrative:                                
Related party     2       59       167       309  
Other     1,877       2,436       7,169       7,212  
Advertising and promotions:                                
Related party     194       1,222       408       1,570  
Other     2,289       629       5,367       3,786  
Product and software development:                                
Related party     46       58       193       157  
Other     313       116       541       278  
Total operating expenses     7,990       7,754       23,605       23,441  
Loss from operations     (474 )     (185 )     (3,779 )     (957 )
                                 
Other expenses                                
Interest expense, net     (27 )     (29 )     (77 )     (91 )
Other income (expenses)           15       2       (39 )
Total other expenses     (27 )     (14 )     (75 )     (130 )
                                 
Loss before income taxes     (501 )     (199 )     (3,854 )     (1,087 )
Income tax expense           9             9  
Net loss   $ (501 )   $ (208 )   $ (3,854 )   $ (1,096 )
                                 
Other comprehensive income                                
Foreign currency translation adjustment     145       (123 )     17       (121 )
Comprehensive loss   $ (356 )   $ (331 )   $ (3,837 )   $ (1,217 )
                                 
Net loss per common share:                                
Net loss per common share – basic and diluted   $ (0.07 )   $ (0.03 )   $ (0.55 )   $ (0.17 )
Weighted average common shares outstanding – basic and diluted     7,013,302       6,951,385       7,005,541       6,533,276  

HIGH ROLLER TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

    As of     As of  
    September 30,     December 31,  
(in thousands, except shares and per share data)   2024     2023  
      (Unaudited)          
Assets                
Current assets                
Cash and cash equivalents   $ 1,329     $ 2,087  
Restricted cash     1,592       1,958  
Prepaid expenses and other current assets     977       836  
Total current assets     3,898       4,881  
Due from affiliates     1,227       702  
Deferred offering costs     1,058       580  
Property and equipment, net     399       250  
Operating lease right-of-use asset, net     1,029        
Intangible assets, net     5,235       5,117  
Other assets     45       255  
Total assets   $ 12,891     $ 11,785  
                 
Liabilities and stockholders’(deficit) equity                
Current liabilities                
Accounts payable   $ 1,658     $ 686  
Accrued expenses     4,522       4,300  
Player liabilities     791       499  
Due to affiliates     5,090       3,972  
Short-term unsecured notes payable to stockholders     500        
Operating leases obligation, current     113        
Total current liabilities     12,674       9,457  
Other liabilities     23       23  
Operating lease obligation, noncurrent     973        
Total liabilities     13,670       9,480  
Stockholders’ (deficit) equity                
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued and outstanding as of September 30, 2024 and December 31, 2023            
Common stock, $0.001 par value; 60,000,000 shares authorized; 7,015,017 shares and 6,967,278 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively     7       7  
Additional paid-in capital     22,805       22,052  
Accumulated deficit     (25,074 )     (21,220 )
Accumulated other comprehensive income     1,483       1,466  
Total stockholders’ (deficit) equity     (779 )     2,305  
Total liabilities and stockholders’ (deficit) equity   $ 12,891     $ 11,785  

HIGH ROLLER TECHNOLOGIES, INC. AND SUBSIDIARIES
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited) 

    For the Three Months Ended September 30,  
(in thousands)   2024     2023  
             
Revenues   $ 7,516     $ 7,569  
Net loss     (501       (208 )
                 
Add back items:                
Stock-based compensation expense     80       60  
Depreciation and amortization     65       2  
Interest expense, net     27       29  
Other income (expense), net           15  
Foreign exchange transaction loss     369       327  
Income tax provision (benefit)           9  
Adjusted EBITDA   $ 40     $ 234  
Adjusted EBITDA margin     1 %     3 %


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