Playgon Games (DEAL) AI Stock Analysis

• Market Cap: C$4.86M
• Dividend Yield: N/A
• Average Volume (3M): 75.84K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: -92.17%
• EPS Growth: 44.31%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 486,194,150
• 10 Day Avg. Volume: 176,826
• 30 Day Avg. Volume: 75,836
• PEG Ratio: 0.02
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 5.18
• P/FCF Ratio: -0.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.01 ▲(0.00% Upside)

The score is driven primarily by very weak financial performance (sharp revenue decline, deep losses, negative equity and high leverage, and ongoing cash burn). Technical indicators also lean bearish with the stock trading below key moving averages and a negative MACD. Valuation does not provide support because losses make the P/E uninformative and no dividend yield is available.

Positive Factors

Innovative Gaming Solutions

Playgon's focus on innovative gaming solutions positions it well in the growing iGaming industry, potentially enhancing long-term market competitiveness.

Revenue Model

The revenue-sharing model with established online casinos provides a scalable income stream, aligning Playgon's growth with the success of its partners.

Market Expansion

Strategic partnerships enhance Playgon's distribution and user base, supporting potential revenue growth and market penetration.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term financial stability.

Negative Profitability Margins

Negative profitability margins highlight operational inefficiencies, which may hinder sustainable growth and require strategic restructuring.

Precarious Balance Sheet

A precarious balance sheet with negative equity suggests high financial risk, limiting the company's ability to invest in growth opportunities.

Playgon Games Business Overview & Revenue Model

Company Description

Playgon Games Inc. engages in the development and licensing of digital content for the iGaming market. The company offers daily fantasy sports (DFS) software and network, which is licensed to customers to offer a customized and branded DFS product to their end users. It also provides a multi-tenant gateway that allows online operators to offer their customers iGaming software solutions. In addition, the company focuses on developing digital content for the iGaming market. It offers its solutions for online casinos, sportsbook operators, land-based operators, media groups, and big database companies. The company was formerly known as Global Daily Fantasy Sports Inc. and changed its name to Playgon Games Inc. in July 2020. Playgon Games Inc. was incorporated in 1985 and is based in Vancouver, Canada.

How the Company Makes Money

Playgon Games generates revenue primarily through the licensing of its proprietary gaming software to online casinos and gaming operators. The company earns money from a revenue-sharing model where it receives a percentage of the gaming operators' revenues generated from its games. Additionally, Playgon may charge upfront fees for the integration of its gaming platforms and services. Key partnerships with established online casinos and gaming platforms also bolster its earnings, as these collaborations expand its market reach and user base, allowing for increased game distribution and higher revenue potential.

Playgon Games Financial Statement Overview

Summary

Playgon Games is facing severe financial difficulties, characterized by declining revenues, negative profitability margins, and a precarious balance sheet. The company's cash flow situation is also strained, indicating the need for strategic changes to improve financial health and sustainability.

Income Statement

Playgon Games has experienced a significant decline in revenue, with a negative revenue growth rate of -32.56% in the most recent year. The company is struggling with negative margins across the board, including a gross profit margin of -8.70% and a net profit margin of -30.09%. These figures indicate substantial operational challenges and inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity and a debt-to-equity ratio of -0.82. The return on equity is positive at 56.09%, but this is due to the negative equity, which is not a sustainable situation. The equity ratio is also negative, indicating a high level of financial risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow to net income ratio at 1.00. However, the company is still facing significant cash flow challenges, as indicated by a negative free cash flow growth rate of -17.90%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.22K	604.58K	1.47M	957.75K	159.71K	0.00
Gross Profit	-2.21M	-5.26M	-1.53M	-8.21M	-6.64M	-1.60M
EBITDA	-6.76M	-10.25M	-12.21M	-13.23M	-11.56M	-4.66M
Net Income	-12.24M	-18.19M	-16.51M	-16.82M	-14.84M	-6.52M
Balance Sheet
Total Assets	1.03M	1.22M	5.51M	8.21M	17.08M	13.68M
Cash, Cash Equivalents and Short-Term Investments	200.99K	378.56K	208.45K	206.78K	5.93M	781.46K
Total Debt	30.47M	26.67M	16.00M	6.93M	1.34M	2.11M
Total Liabilities	38.85M	33.65M	20.87M	10.63M	3.29M	4.62M
Stockholders Equity	-37.82M	-32.44M	-15.36M	-2.42M	13.79M	9.06M
Cash Flow
Free Cash Flow	-4.98M	-9.08M	-11.48M	-11.22M	-11.69M	-5.04M
Operating Cash Flow	-4.98M	-9.07M	-11.36M	-11.19M	-11.21M	-3.82M
Investing Cash Flow	-27.00	-3.95K	-126.26K	-29.63K	-480.56K	-1.19M
Financing Cash Flow	5.09M	9.22M	11.50M	5.52M	16.86M	5.56M

Playgon Games Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DEAL, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DEAL.

Playgon Games Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ISFT	46 Neutral	C$4.48M	-12.90	―	―	10.05%	-93.75%
IAI	45 Neutral	C$4.88M	-5.15	―	―	0.22%	-1.49%
VSBY	41 Neutral	C$4.43M	-0.39	―	―	―	―
DEAL	40 Underperform	C$4.86M	-0.30	―	―	-92.17%	44.31%

Playgon Games Corporate Events

Playgon Games to Convert Debenture Interest Into Shares and Extend Maturities to 2026

Playgon Games plans to settle approximately $650,900 in accrued interest on its previously issued unsecured convertible debentures by issuing 65,090,000 common shares at a deemed price of $0.01 per share, a transaction that includes 41,865,000 shares to company insiders and is subject to TSX Venture Exchange approval and related-party transaction rules. The company has also secured the required debenture holder approval to extend the maturity dates of multiple debenture series to March 31, 2026, providing additional time for repayment while interest continues to accrue, a move that strengthens near-term balance sheet flexibility but increases its future interest obligations.

The most recent analyst rating on (TSE:DEAL) stock is a Sell with a C$0.01 price target. To see the full list of analyst forecasts on Playgon Games stock, see the TSE:DEAL Stock Forecast page.

Playgon Strikes Multi-Year Licensing Deal with Studioworks for Live Dealer Technology

Playgon Games has signed a multi-year software development and licensing agreement with Estonia-based Studioworks OÜ, under which Studioworks will license Playgon’s legacy Live Dealer Solution and have Playgon build custom components for its interactive gaming platform. Playgon will handle system setup, integration, maintenance, server management and ongoing technical support, while Studioworks will cover all operational costs for the live dealer studio and pay licensing fees, positioning the deal to generate scalable, recurring contractual revenue for Playgon as the platform ramps up following its return to active operations.

The most recent analyst rating on (TSE:DEAL) stock is a Sell with a C$0.01 price target. To see the full list of analyst forecasts on Playgon Games stock, see the TSE:DEAL Stock Forecast page.

Playgon Games Partners with Digital Nation Entertainment to Innovate AI Dealer Technology

Playgon Games has entered into a strategic partnership with Digital Nation Entertainment to develop AI Dealer technology, marking a significant shift from traditional human-hosted dealer studios to AI-driven digital hosts. This collaboration aims to revolutionize live gaming by offering scalable, multilingual, and immersive gameplay, potentially positioning Playgon as a leader in the industry with first-mover advantages and enhanced operational capabilities.

Playgon Games Seeks Extension and Upsizing of Financial Instruments

Playgon Games Inc. has announced its intention to seek approval for extending the maturity dates of its unsecured convertible debentures and upsizing its secured promissory note. The company aims to extend the maturity dates of the debentures from November 3, 2025, to March 31, 2026, and increase the promissory note amount from CAD$5 million to CAD$14 million. These financial maneuvers are intended to provide Playgon with greater financial flexibility and stability, potentially impacting its operational capacity and market positioning positively.

Playgon Games to Settle Debt with Share Issuance

Playgon Games Inc. has announced its intention to settle $124,275 of debt through the issuance of 12,427,500 common shares at a price of $0.01 per share. This transaction involves converting interest payments owed on previously issued convertible unsecured debentures into common shares, with 95% of these shares being issued to insiders of the company. The proposed transaction is subject to the approval of the TSX Venture Exchange and is classified as a ‘related party transaction’ under regulatory policies. Playgon intends to use an exemption from certain shareholder approval requirements due to the transaction’s limited impact on market capitalization.