The gaming firm, Luckbox, reported a net deficit of C$2.4 million (£1.4 million/$1.9 million) during the initial three months of 2021. The company’s chief executive, Thomas Rosander, commended the “strong base” they established in the period.

The firm did not generate any income during the quarter but recorded $87,817 in the cost of goods sold. Of this amount, $71,557 was for third-party platform charges and the remainder for complimentary wagers.

In terms of costs and expenditures, stock-based compensation reached $551,531, an increase of over $551,271 from the first quarter of 2020. Salaries and director fees rose by 7.0% annually to $486,492. Advertising, marketing, and investor relations totaled $382,906, a surge of 184.9%, while consulting fees were $315,889, up 69.8%. Legal and professional fees were $286,376, up 219.3% year-over-year.

Administrative expenses were $135,619 in the quarter, coming in sixth, but down 28.1% compared to the first quarter of 2020. Transfer agent and filing fees totaled $44,620, while insurance expenses were $37,917. No similar data was available for these two amounts.

Foreign exchange gains and travel expenses, at $28,946 and $24,798 respectively, expanded the loss.

The price of wear and tear rose by nineteen thousand sixty-three dollars, while the bad debt recovery expense resulted in a deficit of one hundred twenty-nine dollars. This brought the total expenditure expense to two point three million dollars in losses, a one hundred sixteen point four percent rise from the previous year.

The total pre-tax deficit was two point four million dollars. However, a tax benefit of one thousand five hundred sixty dollars brought the total net loss to two point three million dollars, a one hundred twelve point four percent increase from the first quarter of twenty twenty.

A currency translation adjustment of seven hundred sixty-four dollars further increased costs to two point four million dollars.

“We have established a solid foundation in the first quarter of twenty twenty-one, from which Luckbox can expand,” said Thomas Rosander, Chief Executive Officer of Luckbox.

“We are concentrating on improving our product platform and customer acquisition channels to increase return on investment, and then expanding our marketing spending.”

Luckbox’s income increased nearly eighteen times in twenty twenty after costs dropped significantly in the year.

Earlier this year, Luckbox started offering traditional sports through an agreement with EveryMatrix.

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