Okay, let's get started. Hello, everyone. Welcome to FansUnite's Q2 Fiscal 2023 earnings call. For those that are unfamiliar with FansUnite, FansUnite is a global sports, entertainment, and gaming company focused on the regulated and lawful sports betting affiliate market, which includes customer acquisition, retention, support, and reactivation. FansUnite trades on the TSX under the ticker FANS, F-A-N-S, and on the OTCQB under the ticker FUNFF. That's F-U-N-F-F. My name is Prit Singh. I will be the moderator for today's call. Before we begin, I would like to go over legal disclaimers. I will pause here momentarily so our viewers can read. On today's call, we will be covering FansUnite's Q2 Fiscal 2023 financial and operational highlights, as well as its growth outlook for the remainder of 2023.
At the end of the call, we will host a Q&A session for our viewers. If you have any questions during the webinar, feel free to send them in using the Zoom Q&A function at the bottom of your screen. If you are calling in to listen to the webinar today, please email your questions directly to ir@fansunite.com. Again, that's ir@fansunite.com. We will address these questions at the end of the presentation during the Q&A session. Our presenters today will be the CEO of FansUnite Entertainment, Scott Burton, and CFO of FansUnite Entertainment, Graeme Moore. I will now turn the conference over to Graeme Moore, CFO of FansUnite Entertainment, to discuss the company's Q2 fiscal 2023 financial results.
Thanks, Prit. Just so everyone knows how this will be structured, similar to prior quarters, I'm first gonna speak to the statement of profit and loss for the three months ended June 30th, 2023. I might also refer to that as Q2 2023, and then we will move to the six months ended June 30th. Sometimes I'll call that just year-to-date. After that, I will then move to the balance sheet, which does look a little bit different this quarter, given some of the things that happened in Q2, but we'll get there when we get there. For the three months ended, June 30th, 2023, revenue increased by approximately 14% to CAD 5.3 million, when compared to CAD 4.7 million over the same period in the prior year.
AmAff affiliate revenue makes up most of the revenue activity during the quarter at CAD 5.1 million, as compared to CAD 4.7 million over the same period in the prior year. The increase is largely as a result of new state openings, increased revenue from our digital affiliates, and optimization of the affiliate business by our Betting Hero management team. During the three months ended June 30, 2023, the company had a cost of revenue of CAD 2.0 million, which compares to CAD 2.8 million, the same period in prior year. This led to an increase in gross margin up to 62%, as compared to 41% over the same period in prior year.
The move away from non-performing assets such as RNG games, Wagers, and BetPrep led to improved margins as the focus of the company has shifted really intensely into the live activation and research segments. I just want to take a minute here and make sure we aren't glossing over those improvements in gross margin. When we talk about the steps we have taken recently to focus on improved profitability and the company being in the best position we have ever been in, this is what we're talking about. An improvement in gross margins from 41% to 62% is a huge improvement. For this to happen during Q2, which is one of our slower quarters due to the lack of sporting events in the US sports calendar, it's evidence that the steps we have taken to focus the company in the last 12-18 months are working.
Our net loss for the three months ended June 30th was CAD 474,000, which compares to CAD 15.9 million over the same period in the prior year. The improvements here are a direct result of the margin improvements of notice, as noted above, as well as CAD 7.4 million in gains from the sale in May of the Chameleon source code and McBookie. Efficiencies were also seen in Selling, General and Administrative expenses, which were down to CAD 10.9 million, as compared to CAD 15.1 million in 2022, a decrease of CAD 4.2 million. Finally, improvements were achieved in other expenses as a direct result of the earnout restructure in Q3 fiscal 2022.
To go into a couple of those a little more detail, General and Administrative expenses decreased to CAD 973,000 for the three-month period, compared to CAD 1.1 million in the prior year. The primary cause of our decrease here is due to the pause of RNG games, which did lead to significant cost savings. Professional fees decreased to CAD 863,000 for the three months ended, as compared to CAD 1.03 million over the same period in prior year. This mainly relates to the halting of development of the RNG portfolio, consequently leading to the cancellation of services from certain RNG contractors, but was offset by legal expenses incurred in the sale of Chameleon source code and McBookie.
Salaries and wages decreased to CAD 3.2 million in the three months ended June 30th, as compared to CAD 3.5 million in the same period of the prior year. Our average headcount decreased from 107 to 92, a direct result of developers leaving to Betr Holdings as part of the Chameleon sale. The transaction did occur partway through the quarter. Just to remind everyone, that transaction closed on May 8th of this quarter, so that mitigated the full benefits of these cost savings when the company-- which the company does expect to realize in future quarters. Sales and marketing decreased to CAD 153,000 in Q2, compared to CAD 455,000, the same period in 2022.
During 2022, there was a marketing spend related to the full launch of the iGaming platform and the accompanying RNG games, whereas in 2023, there was the elimination of marketing expenses related to the iGaming product, and obviously, the RNG games were on pause. In summary of the three-month results, we saw a decrease in the cost of sales, a decrease in G&A, a decrease in professional fees, a decrease in salary and wages, a decrease in sales and marketing, but an increase in revenue. We are finally starting to see the benefits of all of our efforts to focus this company on profitability. When we take a look at the six-month period ended June thirtieth, revenue stayed relatively consistent at CAD 13 million, when compared to CAD 13.2 million in the prior year.
Affiliate revenue was CAD 12.4 million for the six months ended June 30, 2023, compared to CAD 13.1 million in the prior year comparable period. This change was primarily as a result of unusually high activity in Q1 of 2022, as New York legalized sports betting. As we've mentioned in past quarters, a large influx of sports books using affiliates in an attempt to capture an early market share lead, led to increased revenue from our affiliate revenue segment. As previously mentioned, affiliate revenue was up in the three months ended June 30, which has helped bolster our year-to-date revenues. Management's confident in the strategic direction of the company, post those May transactions that we've mentioned a few times, and are looking forward to a strong end of the year as we enter football season in the U.S.
For the six months ended June 30, 2023, FansUnite had a cost of revenue of CAD 4.8 million, which was down from CAD 5.9 million in the prior year. Our gross margin for six months was 63%, which compared to 55% over the same period in prior year. The improved overall gross margin percentage primarily rates to continue gain in efficiencies related to AmAff, as the company has increased its focus on the Betting Hero business lines, specifically live activation and research. Overall, margins are expected to trend upwards in the future as affiliate revenue becomes the dominant segment for FansUnite. Our affiliate margin, if you look at that as just a standalone business, was 65% for the six months ended June 30, which compared to 55% over the same period in prior year.
When we pivot to net loss, our net loss for this period was CAD 6.6 million, which compared to CAD 25.1 million in the prior year. This is due to a decrease in foreign exchange, share-based payments, non-cash expenses, and was aided by the aforementioned gains from asset and subsidiary sales, the Chameleon and McBookie, specifically. The sale of Chameleon and McBookie resulted in a gain of CAD 7.4 million for the six months ended June 30, 2023. There was a decrease in share-based payments to CAD 1.2 million, which compared to CAD 3.1 million over the same period in the prior year. This is really an accounting exercise. If you look at the difference there, just without getting into too much accounting speak, how we account for our share-based payments has changed. We haven't fundamentally changed anything there.
Our non-cash expenses totaled CAD 12.4 million, as compared to CAD 19.7 million over the same period in the prior year. For the six months, our professional fees stayed relatively consistent at CAD 1.5 million, compared to CAD 1.6 million over the same period in 2022. During our current period, there were legal services rendered in relation to the sale of the BetPrep asset, the McBookie, and the Chameleon platform source code sales, as well as our Q1 equity raise. This increase in legal fees was offset by the elimination of RNG professional fees, specifically one significant vendor whose contract was ended at the end of Q2 2022. Salaries and wages increased marginally to CAD 6.8 million for the six months ended June 30, 2023, and compared to CAD 6.7 million over the same period in the prior year.
Although the company did reduce employee counts as part of the Chameleon sale, our average headcount of 94 was the same number in prior year. As previously mentioned, we do expect to realize salary savings in Q3, with a much more significant savings coming in Q4. Again, we are looking at the 6 months ended June here, so for 5 of those, 4.5 of those 6 months, we had all of those employees from the Betr sale. As we finish the year, we'll really start to see those savings hit our financial statements. Our sales and marketing expenses decreased to CAD 309,000 for the 6 months ended June 30th, compared to CAD 726,000 over the same period in prior year.
I mentioned in the three-month section, sales of Wagers and BetPrep contributed significantly to this reduction. During the prior year, we were really pushing the iGaming platform, and then once we sold that and had the RNG games on pause, we were able to significantly reduce our marketing spend. The company focuses on the affiliate business, we do not anticipate a significant marketing spend going forward, as that is, business is, really working well. Our total assets decreased to CAD 65.8 million on June 30th, compared to CAD 77.5 million as of year-end. During Q2 2023, McBookie was sold, which resulted in the elimination of CAD 1.2 million of total assets. Similarly, our Chameleon iGaming platform was sold, resulting in the removal of CAD 3.9 million in intangible assets from the balance sheet.
Intangible assets were reduced further by amortization of CAD 10.1 million year-to-date. This was offset by increases in investments of $2 million related to the share purchase warrants in Betr, and an increase of $2 million in receivables related to the milestone payment, both as a result of the sale of Chameleon. Our total liabilities decreased to CAD 26.1 million as of June 30th, compared to CAD 34.5 million at year-end. The primary driver of the decrease in liabilities was the result of a repayment of CAD 5.5 million of our long-term debt balance. Our deferred and contingent consideration decreased to CAD 19.3 million when compared to CAD 20.8 million at year-end. This is due to the scheduled deferred payments associated with the acquisition of American Affiliate.
As of June 30, 2023, our company's cash position had increased by CAD 549,000 to CAD 3.5 million when compared to year-end. The increase in cash for the period is largely due to the receipt of a non-brokered private placement of CAD 3 million net of issuance costs, a cash receipt of CAD 3 million for the sale of Chameleon, and cash of CAD 5.2 million for the sale of McBookie. This was offset by CAD 5.5 million repayment of long-term debt and CAD 588,000 of routine and early repayment interest paid, as well as CAD 1.9 million in earn-out consideration paid during the six-month period.
As at June 30th, the company had net working capital of CAD 6.1 million, which compares very favorably to -CAD 4.2 million that we had at year-end. The one new point on our balance sheet that I wanna highlight this quarter is contingent assets. As at quarter end, CAD 2 million is included in our receivables relating to milestone payments that we have determined the timing and collection is virtually certain over 12 months. The remaining CAD 3 million that we have owing from Betr is not recorded on our balance sheet, as we cannot conclude on the exact timing or amount of collection, and as such, it's considered a contingent asset. We are continuing to assess the conditions surrounding these milestone payments, and we will recognize a receivable when certainty exists.
We have a really great relationship with the team at Betr, and while we, as a management team, see no reason to doubt the complete execution of their stated goals, our accounting standards have laid out rules for when we can record assets, and we unfortunately can't do that at this moment. We do anticipate collection of the full $5 million from Betr, and we will provide update to our shareholders as we progress towards that. That's all for the financial update. I'll now turn over the call to Scott Burton, our CEO.
Thank you, Graeme. Yeah, I'll, I'll talk about the operational highlights and, and then at the end, we'll, we'll jump into the Q&A. So I think Prit mentioned, if, if you have any to please email IR at FansUnite while we're talking. So as, as mentioned, we went through quite a large strategic review, last year, with the market conditions on, on where we needed the business to go. The decision was made that we had to move towards, you know, the higher revenue, higher margin business units and, and divest some of those business units that were, were not core anymore and, and really not part of the affiliate strategy. In May 2023, we sold McBookie for CAD 5.5 million cash.
that was a price that equated to 7 times their 2022 EBITDA, which, in this environment is a, is a very solid multiple. that resulted in the gain on the sale of CAD 4.4 million. They finished 2022 with the highest revenue in history, and that was partly because it was a World Cup year and, and soccer, English football, being their, their biggest market. The timing was, was really good to go out and get a good multiple on that business. We'd acquired them in March 2020 for CAD 2.2 million total consideration. CAD 1 million of that was being cash. As we looked ahead, you know, this was a cash flowing business, but the regulatory environment in the UK is, is changing quite rapidly.
It's going to be tougher to be an operator in that market with some of the new marketing rules, the player protection rules coming into place. All of those things are going to, I think, squeeze the margins for the businesses going forward, and it made sense to take that out of our portfolio at this time, and we got a great deal on that, that site. It was also in May, so we were very busy getting up to this month, May, when we sold the source code related to the Chameleon iGaming platform to Betr Holdings. That was for $10 million in cash warrants and deferred compensation. That also resulted in a gain of $3.1 million on the sale.
Part of the motivation there was that part of the business was the one that was the, the highest cost center for the company. Had good future potential, but it was gonna take time to still get there. Additional cash required, most likely. We were also aware that Betr's plans were to build or acquire their own player account management system. You know, as we were providing the PAM in the first few states that they were gonna be in, it made sense for us to explore selling the Chameleon code at this time while we were in contract with them and knew what they were intending to do by the end of the contract. Both those divestitures have moved us closer to being cash flow positive, with a much stronger balance sheet, and eliminates the need for additional financings.
To talk to the Betr purchase specifically, you know, the McBookie one was straightforward. It was a straight cash sale. The purchase price of the Chameleon code was comprised of $5 million at closing. That was broken down into $3 million in cash and $2 million in warrants to purchase. The Series A-2 Preferred Shares of Betr at a price of $0.01 USD per preferred share. Then on top of that, we have the $5 million in milestone payments, which would be up to $3 million in cash and another $2 million in warrants. The milestone payments are payable over 12 months following the closing of the transaction, and Graeme talked about why maybe not everything is currently shown on the balance sheet on the asset line.
To cap off, a very busy quarter, we wanna highlight that we continue to receive recognition for the, the, the products we had and, and the operational excellence, especially of the, the Betting Hero team. The company was nominated for 6 awards at, at the EGR Awards, recognizing the leading online gaming companies in North America. Betting Hero received 3 awards in 2023, that included the Employer of the Year, Acquisition and Retention Partner of the Year, and Customer Onboarding Partner of the Year.
I would like to highlight, if, if people don't follow those awards, they are the premier awards in our space, and when Betting Hero wins those awards, they were competing with the biggest names, very large companies, in the space, and they continue to outperform and win awards against groups like Genius Sports, Sportradar, Scientific Games, Better Collective, and PointsBet. Congratulations to that team, we look forward to watching them continue to execute as we go into the busy part of this year with NFL about to kick off. In terms of their operations at Betting Hero, they continue to expand their US footprint by participating in the launch of the regulated wagering in Ohio and Massachusetts. Strong operational results have led to them cementing their status as the premier live activation affiliate brand in North America.
As Graeme talked about, the affiliate business contributed significant revenue of CAD 5.1 million and CAD 12.4 million for the 3 and 6 months ended June 30th, respectively. They continue to prove its ability to be an efficient market participant by providing 67% and 66% gross margins for the 3 and 6 months ended June. Really, the results and continued execution from the Betting Hero team confirmed that the strategic moves we made at the end of 2022 and throughout the first half of 2023 will result in the cash flow positive business this year that we were, you know, aiming for, and we've talked about the last few earnings calls.
We have a clear path there now as we, as we look to the, the efficiencies and the cost savings we have, and there's still more to come. Additionally, to Betting Hero, we have put some focus into the digital side of the business, which, which didn't get a lot of attention previously and while we were working through some of the restructuring. We have a marquee digital domain, Props.com, and they've generated significant traction during this quarter. A couple of key stats is a 5 times increase in traffic in the quarter to 2023 versus Q2 2022, and a 9 times increase in revenue in Q2 2023 as compared to Q2 2022. One highlight, too, this is during the slow part.
With NFL season approaching, we're looking forward to Props.com being a cash contributor as we go forward, and as we've figured out how to really monetize that site. Another thing we haven't talked much about with the props product is it sits on our own proprietary affiliate platform, which also supports bettinghero.com. This platform can support an unlimited number of affiliate sites. You know, we have over 15 additional domains right now that we believe offer high value, and we can be deploying in the next 6, 12 months. Really what our strategy was to focus on props, kinda get that dialed in on the platform, get it monetizing, and then we can begin to launch additional sites at a pretty low marginal cost.
These sites scale well, have good margins, and as I said, the cost of launching them now is quite minimal. Going along the line of diversifying revenue streams, with what we have, so leveraging the Betting Hero business, the Betting Hero team, we're in a very unique position to offer extra services to our existing partners. This will help to smooth out the seasonality that we have with North American sports. Continue to grow the lines of business outside of live activations. The research segment has grown in the fiscal year, including the contract signed with major US sports books. The continued diversification will contribute to mitigating seasonal effects on Betting Hero's revenues, and then we also expect to see some contribution from the digital side of the business. There's more...
sorry, as sports betting and iGaming gets legalized in more North American states, we'll continue our aggressive expansion into new markets, in partnerships with our existing affiliate customers, but we're also continue to bring on new partners in states as they open up. Consistent with our plan to profitability, we continue to conduct, you know, strategic reviews on certain business segments to continue to operate or identify opportunities for operational and financial efficiency. It's obviously led to the, the sales of, our Malta business gaming license, the B2B license we had in Malta, the betting analytics brand, BetPrep, McBookie, and Chameleon.
We will continue to look at assets that we consider either non-core or we don't see them contributing in a positive way and keep pushing towards higher margins, higher revenue, and profitability as we go through the busiest parts of the year, which is Q4 and then leading into Q1. That's the end of the formal speak. I will now turn the call to Prit, who's going to moderate the Q&A for us.
Thanks. Thanks, Scott. Thanks, Graeme. As mentioned at the top of the call, if you do have any questions, can you please submit them to the Q&A function at the bottom of your Zoom screen? Alternatively, if you're calling in today, you can email us at ir@fansunite.com. Again, that's ir@fansunite.com. First question here, when will FansUnite become profitable?
Yeah, I can take that one. I think Scott alluded to it, and I certainly did as well, that has been our focus for a long time now. I think with our recent cost-cutting, streamlining of assets, renewed focus on live activation and research, we anticipate being cash flow positive in Q4. I, I think that's the exact same messaging we gave last quarter, it's absolutely true. I'm even more confident than when we sat here last quarter, as we have realized all of our promised savings in Q2. Everything we said we were gonna achieve, we have achieved since our last call in the middle of May. We did all of those cost savings while increasing revenue.
Q4 is the only quarter of the year with three full months of college and NFL football, and our Betting Hero team has really been putting in some incredible work in what we call the off-season here, the past five months, to really capitalize on football season, which is the beating heart of that business.
Okay, thank you. Can you give us an update on Betting Hero's additional revenue segments and expand on what you mean by live action and research?
Sure, yeah. Live activation is the core of the Betting Hero business, that is where we get people to sign up for sportsbooks. Betting Hero's tagline is, you know, we help people enjoy betting on sports. What we do there is we are boots on the ground, we are helping people. When somebody on a digital site has the intent to sign up for a sportsbook, they have about a 50% success rate. When we meet with somebody in person, whether that's on a casino floor, through our bar network or at a venue, we have an over 90% success rate of getting that person to successfully register, deposit, and place a bet.
That's really a huge differentiator for us and a huge value proposition for the operators, is it's one thing to get someone to want to bet on your site, it's the other thing to get them to be able to bet. For us to be able to add that, that's our real, the secret sauce from the live activation side, and that's where you see a lot of our revenue. A large part of our revenue is live activation, and that's what we do really well. What we are branching into and what is a really, interesting, and growing, and high-margin segment of the business is the research segment. That has really started to gain. We offer a monthly subscription product that people are able to get...
You know, we publish research reports monthly on different states, and the number of subscribers for that has gone up. We are also working more closely with some of our major partners on some recurring research engagements. What I mean by that is three-plus month engagements to look at all parts of their offering, improve performance, customer experience, everything like that. In Q3, we've actually already signed up one major operator and are looking to bring more on board in the fall.
Okay, as a follow-up to that, how do you get compensated by sports books and how for the affiliate marketing division?
Sure, yeah. The live activation, I think, is kind of what, what you mean by that side, more than the research. We get paid every time somebody successfully registers deposits and bets. So without going into the, you know, the T's and I's of a contract, essentially, when we engage with somebody, let's call it on a casino floor, and we say, "Hey, would you like to place a bet on, on Monday Night Football today?" As soon as that person has signed up for the account through our unique link, they've deposited some money in their account, and they've placed a bet. Usually, it's, you know, a little more than a CAD 1 bet, but let's call it a CAD 10 bet at least. That's when we get paid a flat fee by the operator for successfully signing someone up to their app.
Okay, thank you. Can you remind our viewers again about the rationale behind selling McBookie and Chameleon iGaming platform?
Yeah, yeah, I can... I can take that one. But, you know, we, we really wanted to focus on streamlining the business, making the business simpler, and having to focus on the higher revenue, higher margin, higher growth pieces of the business. Part of our strategy was to look at divesting those. It's obviously a challenging time, this market, to, to do things and get good prices or good, good deals, but we did. On the McBookie side, one, we, we decided we, we weren't gonna be a B2C operator going forward. There's a lot of challenges on that on the regulatory front, and, and it's always changing, and especially in the UK, they're coming out with some really tough-...
you know, player protection rules, limits, all sorts, which and some marketing rules. We think it's gonna get a bit harder there, going forward. The, the timing was right to, to divest that off the back of a, a very strong year. We found a great buyer and someone who we think can, can operate that brand with, with Paul and Damian well. That was the, the reason we wanted to exit both B2C, but especially the, the UK market at the time. On the Chameleon, when we looked last year and just, you know, determined that the best path for the company right now is to get to a cash flow positive position, as quickly as possible, how are we gonna do that?
You know, we had to look at the part of the business that was costing the most to run. We still think it had a lot of, you know, upside potential, but that was not near enough term. You know, this environment, not wanting to raise money, trying to avoid that at all costs right now. We, we put ourselves in a position where we, we don't need to go raise money, but we had to decide what we were gonna do with that part of the business. You know, even just shuttering it was one option. We went out to, to look for a sale of it, and, and a code sale, so retaining the right to, to the code, which we have. We still have the ability to use and resell the code.
Betr made the most sense. I think, again, in tough times and when it's a tough economic market for selling assets, finding a strategic is one of the best chances of getting a good, good number. Betr made a lot of sense. They'd been working with us for months. We knew that by the end of our initial contract, their goal was to either have built their own platform by that time or, or had one acquired. You know, we had a limited shelf life with them, and it made sense. We wanted also a good place for the team members. They're a great group to work with. The 28 people who went over were, were quite excited to do so and are happy there.
So that's why we did that. That's why we're in the position we're in now, where we're keeping our revenue or growing revenue, but cutting costs significantly, increasing margin significantly, and we now have a clear line of sight to when we will be cash flow positive and profitable.
Okay, thank you. Just a follow-up to that. How has FansUnite used the proceeds from the sale of McBookie and Chameleon? I know you touched on this a bit, Graeme.
Yeah, for sure. When we got the debt in September 2022, we had an agreement with our lender, where if we did do a significant asset sale, we would use the proceeds to pay down our debt early, which is great for us because it saved us on recurring interest expense, and it's great for them 'cause they get a good return on their capital. The net proceeds were used to pay down our debt, and you see that as it went from CAD 8.2 million to CAD 2.7 million. Any additional funds outside of that CAD 5.5 million that went to debt, went to either early interest repayments or closing, accounting, legal fees.
Really, those sales, operationally allowed us to reduce our burn and improve, our future liabilities, but also our current liabilities in significantly reducing the amount of debt we had on our balance sheet.
Good, thank you. Next question: Does the company intend to sell any additional business assets?
Right now, Prit, we, you know, we got through the major ones that we identified. That included, you know, parking the, the games, the RNG games, moving on BetPrep, Wagers, you know, Chameleon and McBookie. The real big ones we have now taken care of. The focus now is just on growing the affiliate businesses that we have. You know, we'll continue to look at what we have in our, our portfolio and what we have sitting as assets that don't directly contribute to the goal of being profitable, contributing in the near term. We may identify some that we, we wanna move, but we have, I think, done the heavy lifting, now the pure focus, especially going into this football season, is just focusing on the revenue-generating assets right now.
That's really all we're looking at.
Okay, thank you. Question on Betr: When do you anticipate Betr going public, and when do you expect to capitalize on your share ownership?
No idea, to be honest. You know, on, on their public plans, you know, I think they know probably that there's, there's two potential paths to, to liquidity, which would be going public or, or, or an acquisition. Obviously, we would recognize the, the benefit of that if, if either of those happen. I think they're very much in, in execution and growth mode right now. You know, there's, there's always secondary markets for private company stock, especially if they're an exciting and growing business. Yeah, right now, No comments on, on what their plans are around being public.
Okay, great. For our viewers, if you have any questions, you can submit them in your Q&A function at the bottom of your screen. If you are calling in today and you don't have access to Zoom, you can email us at ir@fansunite.com. That's ir@fansunite.com. Next question: Can you provide an update on FansUnite's current NCIB program?
I can take that one, Scott. Yeah, we renewed our plan, the NCIB, normal course issuer bid, plan with TSX in June of this year. Year to date, we have purchased 398,000 shares at an average price of CAD 0.06. That's it. I mean, if you're just looking for a straight what's happened so far, that would be the update. If we're looking forward for it, you know, once we achieve our goal of cash flow positivity in Q4, that is a huge milestone for us. We don't want to spend cash until we are certain of it coming in, once we achieve that in Q4, we will look to really accelerate this program, if we still haven't seen any movement in our share price.
Okay. Thank you. Next question, for Scott and Graeme. What are some catalysts invest- investors can expect in the next six to twelve months?
Yeah. 6-12 months, big catalyst for us is, is coming right around the corner for the business, which is the, the start of the football season, NFL college. You know, we will, as we have in the past, put out some, you know, some indications and numbers on how that's going, but that is the biggest time of the year for our business. And, and a major catalyst, and, and we'll show that we can hit that cash flow positive in, in the Q4. We want to also highlight what Betting Hero is doing outside of the live activation. We talked a lot about the, the research and, and their hotline businesses. Seeing growth in those and being able to report some of those achievements, I think will be catalyst.
Those are new lines of business, takes out some seasonality, and they're also high margin. Growing on the digital side, so seeing the results of Props now that it's fully on the platform that we've developed, is starting to get traction. Getting it into an NFL season, and then seeing how that scales up, and then the ability to add additional digital domains onto that platform. Watching how, how we can grow the digital side. The major one that we talked about is, is when we, we show profitability. As, as we've said, we've got a clear line of sight to that. We've never been in a better position to say that we, we will be a profitable business in the near term.
That will happen, you know, at the end of this year. Some people will wait to see it. We now know where the cost base is now and where it's going, looking forward. I think that's going to be the biggest catalyst, is when we show and report profitability.
Okay. Anything to add to that, Graeme?
No, I, I think as far as catalysts, that is kind of the best way to put it. If we're looking for a time of putting some numbers to it, like we've already realized... I think one of the things that we hear a lot is, you know, it's one thing to promise cash flow positivity, but show me, right? And I understand these are quarterly financial statements, so it's hard to look at too much minutiae, and, and that's okay. I, I understand when we- people say that, but just to give a little bit of context of savings we've already realized to date. With, with the sale of the Chameleon source code to Betr, we have already realized savings of over CAD 250,000 per month related to our Canadian salaries. That is something that has hit us.
Obviously, when you look at these financials, that was only really June as far as kind of the one out of three months or one out of six months. It's hard to look through these statements and see that direct impact. Going forward, Q3, you'll see that. Q4, once we have some even more savings, you know, as we shut down, we look to shut down our Curacao entity, we look to, you know, further headcount reductions, fewer overseas operations, some, you know, shared services and overhead savings that we're going to have. You'll see that more in Q3, and then really accelerated in Q4. So we, on the management side, have already seen a lot of these savings per month already hit. Excuse me, hit our bottom line.
I want to kind of hammer that home, that this isn't a, we hope in Q4. We are already seeing significant progress towards that milestone. That's why I think Scott and I can sit here today with even more confidence than when we sat here three months ago, that we will hit that.
Okay, excellent. For our viewers, if there are any additional questions, please do submit them at this moment to your Q&A function at the bottom of your screen. Again, alternatively, if you're calling in today, please email us at ir@fansunite.com. Again, that's ir@fansunite.com. Just wait one moment. Just one parting question: When do you expect to see analyst coverage, or are you currently working with any analysts?
Yes, we, we are in discussions with analysts. You know, I was hopeful that we will see some in the summer. You know, we've been talking to them lots for, for many, many months, and, I think what, what we were told is, you know, execute on this strategy that we laid out and, and get the business to the point where, we have this affiliate focus. It's a simpler business, easier to understand, easier to compare, so we have a clear set of comps. We've done that, and then show a quarter to, that, that what we said would happen, is happening. I think we're, we're really approaching that now, where we can put numbers down in front of the analysts. We've been telling them what we're gonna do.
We can now show them what we've done and, expect that we'll start to get some coverage off the back of that.
Okay, excellent. With that out of the way, we can end the Q&A session. If you do have any additional questions, please email us at ir@fansunite.com. That's ir@fansunite.com. Scott and Graeme, thank you. As a reminder to everyone, thank you for joining us today. FansUnite, if you're unfamiliar with the company, trades on the TSX under the ticker FANS, F-A-N-S, and on the OTCQB under the ticker Funff, F-U-N-F-F. Scott and Graeme, thank you again.
Thanks.
Thanks, guys.