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EBET (EBET)

Cover

Cover - shares6 Months Ended
Mar. 31, 2022May 03, 2022
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 31,
2022
Document Fiscal Period FocusQ2
Document Fiscal Year Focus2022
Current Fiscal Year End Date--09-30
Entity File Number001-40334
Entity Registrant NameEBET,
Inc.
Entity Central Index Key0001829966
Entity Tax Identification Number85-3201309
Entity Incorporation, State or Country CodeNV
Entity Address, Address Line One197 E. California Ave. Ste. 302
Entity Address, City or TownLas Vegas
Entity Address, State or ProvinceNV
Entity Address, Postal Zip Code89104
City Area Code(888)
Local Phone Number411-2726
Title of 12(b) SecurityCommon Stock
Trading SymbolEBET
Security Exchange NameNASDAQ
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companytrue
Elected Not To Use the Extended Transition Periodfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding14,666,830

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)Mar. 31, 2022Sep. 30, 2021
Current assets:
Cash $ 7,051,815 $ 9,064,859
Accounts receivable, net1,732,097 21,636
Prepaid expenses and other current assets1,504,086 690,637
Right of use asset, operating lease, current portion171,819 170,512
Total current assets10,459,817 9,947,644
Long term assets:
Fixed assets, net924,692 85,334
Right of use asset, operating lease76,971 172,915
Intangible assets - license agreement, net1,308,846 1,616,088
Intangible assets - domain names, net2,249,033 2,240,510
Goodwill34,912,645 0
Acquired intangibles, net34,889,210 0
Total assets84,821,214 14,062,491
Current liabilities:
Accounts payable and accrued liabilities8,114,433 1,721,103
Current lease liabilities171,818 170,511
Derivative liabilities66,457 0
Borrowings1,906,894 1,396,133
Liabilities to users1,019,482 58,789
Total current liabilities11,279,084 3,346,536
Long-Term Liabilities
Borrowings32,686,431 463,925
Total liabilities43,965,515 3,810,461
COMMITMENTS AND CONTINGENCIES
Stockholders' equity:
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 39,551 and 0 issued and outstanding as of March 31, 2022 and September 30, 2021, respectively40 0
Common stock; $0.001 par value, 100,000,000 shares authorized,14,416,830 and 13,315,414 shares issued and outstanding as of March 31, 2022 and September 30, 2021, respectively14,416 13,315
Additional paid-in capital80,979,465 26,834,354
Accumulated other comprehensive (deficit) income(915,486)53,911
Accumulated deficit(39,222,736)(16,649,550)
Total stockholders’ equity40,855,699 10,252,030
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 84,821,214 $ 14,062,491

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / sharesMar. 31, 2022Sep. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized10,000,000 10,000,000
Preferred stock, shares issued39,551 0
Preferred stock, shares outstanding39,551 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized100,000,000 100,000,000
Common stock, shares issued14,416,830 13,315,414
Common stock, shares outstanding14,416,830 13,315,414

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2022Mar. 31, 2021Mar. 31, 2022Mar. 31, 2021
Income Statement [Abstract]
Revenue $ 19,002,588 $ 33,834 $ 26,142,515 $ 44,628
Cost of revenue(12,009,596)(12,465)(16,618,683)(24,724)
Gross profit6,992,992 21,369 9,523,832 19,904
Operating expenses:
Sales and marketing expenses9,474,087 234,691 13,448,872 273,944
Product and technology expenses1,139,914 603,445 2,155,162 1,109,380
Acquisition costs1,190 0 2,240,147 0
General and administrative expenses5,446,776 1,189,410 8,591,195 2,783,121
Total operating expenses16,061,967 2,027,546 26,435,376 4,166,445
Income (loss) from operations(9,068,975)(2,006,177)(16,911,544)(4,146,541)
Other expenses:
Interest expense(2,764,819)(367,214)(3,741,237)(967,620)
Foreign currency loss(7,277)(2,269)(69,328)(12,230)
Total other expense(2,772,096)(369,483)(3,810,565)(979,850)
Loss before provision for income taxes(11,841,071)(2,375,660)(20,722,109)(5,126,391)
Provision for income taxes0 0 0 0
Net loss(11,841,071)(2,375,660)(20,722,109)(5,126,391)
Preferred stock dividends(1,367,260)0 (1,851,077)0
Net loss attributable to common shareholders $ (13,208,331) $ (2,375,660) $ (22,573,186) $ (5,126,391)
Net loss per common share – basic and diluted $ (0.93) $ (0.22) $ (1.61) $ (0.52)
Weighted average common shares outstanding – basic and diluted14,236,755 10,587,654 13,980,720 9,878,185

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (Unaudited) - USD ($)Common Stock [Member]Preferred Stock [Member]Additional Paid-in Capital [Member]AOCI Attributable to Parent [Member]Retained Earnings [Member]Total
Beginning balance, value at Sep. 30, 2020 $ 7,340 $ 3,053,660 $ (1,449,526) $ 1,611,474
Beginning balance, shares at Sep. 30, 20207,340,421
Shares issued for cash, net $ 2,000 3,646,071 3,648,071
Shares issued for cash net, shares2,000,000
Stock-based compensation $ 683 1,321,343 1,322,026
Stock-based compensation, shares683,334
Shares issued due to conversion of notes payable $ 375 187,125 187,500
Shares issued due to conversion of notes payable, shares375,000
Stock warrants issued for asset acquisition 57,252 57,252
Net loss (2,750,731)(2,750,731)
Ending balance, value at Dec. 31, 2020 $ 10,398 8,265,451 (4,200,257)4,075,592
Ending balance, shares at Dec. 31, 202010,398,755
Beginning balance, value at Sep. 30, 2020 $ 7,340 3,053,660 (1,449,526)1,611,474
Beginning balance, shares at Sep. 30, 20207,340,421
Net loss(5,126,391)
Ending balance, value at Mar. 31, 2021 $ 10,649 9,684,886 (6,575,917)3,119,618
Ending balance, shares at Mar. 31, 202110,648,769
Beginning balance, value at Dec. 31, 2020 $ 10,398 8,265,451 (4,200,257)4,075,592
Beginning balance, shares at Dec. 31, 202010,398,755
Shares issued for cash, net $ 251 719,435 719,686
Shares issued for cash net, shares250,014
Stock-based compensation 700,000 700,000
Net loss (2,375,660)(2,375,660)
Ending balance, value at Mar. 31, 2021 $ 10,649 9,684,886 (6,575,917)3,119,618
Ending balance, shares at Mar. 31, 202110,648,769
Beginning balance, value at Sep. 30, 2021 $ 13,315 26,834,354 53,911 (16,649,550)10,252,030
Beginning balance, shares at Sep. 30, 202113,315,414
Shares & warrants issued for cash, net $ 38 37,699,962 37,700,000
Shares and warrants issued for cash, net, shares37,700
Shares issued to Aspire Global plc $ 187 13,326,565 13,326,752
Shares issued to Aspire Global plc, shares186,838
Cashless exercise of warrants $ 244 (244)
Cashless exercise of warrants, shares244,346
Shares issued for conversion of debt $ 423 112,077 112,500
Shares issued for conversion of debt, shares423,141
Exercise of stock options for cash $ 2 5,998 6,000
Exercise of stock options for cash, shares2,000
Stock-based compensation $ 20 1,435,296 1,435,316
Stock-based compensation, shares20,000
Preferred share dividends483,817 (483,817)
Preferred Stock Dividends, Shares484
Issuance costs (2,100,000) (2,100,000)
Net loss (8,881,038)(8,881,038)
Comprehensive income 187,428 187,428
Ending balance, value at Dec. 31, 2021 $ 14,191 $ 38 77,797,825 241,339 (26,014,405)52,038,988
Ending balance, shares at Dec. 31, 202114,191,739 38,184
Beginning balance, value at Sep. 30, 2021 $ 13,315 26,834,354 53,911 (16,649,550)10,252,030
Beginning balance, shares at Sep. 30, 202113,315,414
Net loss(20,722,109)
Ending balance, value at Mar. 31, 2022 $ 14,416 $ 40 80,979,465 (915,486)(39,222,736)40,855,699
Ending balance, shares at Mar. 31, 202214,416,830 39,551
Beginning balance, value at Dec. 31, 2021 $ 14,191 $ 38 77,797,825 241,339 (26,014,405)52,038,988
Beginning balance, shares at Dec. 31, 202114,191,739 38,184
Cashless exercise of warrants and RSU $ 225 (225)
Cashless exercise of warrants and RSU, shares225,091
Stock-based compensation 1,814,607 1,814,607
Preferred share dividends $ 2 1,367,258 (1,367,260)
Preferred Stock Dividends, Shares1,367
Net loss (11,841,071)(11,841,071)
Comprehensive income (1,156,825) (1,156,825)
Ending balance, value at Mar. 31, 2022 $ 14,416 $ 40 $ 80,979,465 $ (915,486) $ (39,222,736) $ 40,855,699
Ending balance, shares at Mar. 31, 202214,416,830 39,551

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)6 Months Ended
Mar. 31, 2022Mar. 31, 2021
Cash flow from operating activities:
Net loss $ (20,722,109) $ (5,126,391)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount, issuance costs1,368,188 867,593
Depreciation and amortization expense2,795,880 12,346
Stock-based compensation3,249,923 2,022,026
Gain on cryptocurrency settlement0 (35,140)
Derivative (gain)/loss73,083 0
Foreign exchange (gain)/loss(216,678)50,932
Changes in operating assets and liabilities:
Accounts receivable(1,711,122)(35,251)
Prepaid expenses and other(717,505)(91,220)
Accounts payable and accrued liabilities7,301,761 426,368
Accounts payable - related parties 2,340
Liabilities to users960,693 32,924
Net cash used in operating activities(7,617,886)(1,873,473)
Cash flow from investing activities:
Purchase of fixed assets(902,469)(90,899)
Cash paid for business combinations(56,229,526)0
Purchase of other long term assets0 (133,770)
Net cash used by investing activities(57,131,995)(224,669)
Cash flow from financing activities:
Proceeds from debt issuance, net of issuance costs27,130,837 0
Proceeds from equity issuance, net of issuance costs35,606,000 4,367,757
Net cash provided by financing activities62,736,837 4,367,757
NET CHANGE IN CASH(2,013,044)2,269,615
CASH AT BEGINNING OF PERIOD9,064,859 0
CASH AT END OF PERIOD7,051,815 2,269,615
Supplemental disclosure of cash flow information:
Cash paid for interest1,427,915 0
Non-cash transactions
Preferred shares issued for dividends1,851,077 0
Stock warrants issued in connection with Senior Notes7,661,382 0
Stock issued for conversion of notes payable $ 112,500 $ 0

ORGANIZATION, NATURE OF OPERATI

ORGANIZATION, NATURE OF OPERATIONS AND GOING CONCERN6 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, NATURE OF OPERATIONS AND GOING CONCERNNOTE 1 – ORGANIZATION, NATURE OF OPERATIONS
AND GOING CONCERN Organization EBET, Inc. (“EBET” or “the Company”)
was formed on September 24, 2020 as a Nevada corporation. EBET is a technology company creating and operating platforms focused on esports
and competitive gaming. The Company operates under a Curacao gaming sublicense and can provide online betting services to various countries
around the world. On May 5, 2022, the Company changed its name to EBET, Inc. from Esports Technologies, Inc. On September 24, 2020, ESEG Limited (“ESEG”)
was acquired by Global E-Sports Entertainment Group, LLC (“Global E-Sports”) in exchange for 50% of the membership interest
in Global E-Sports held by the former owners of ESEG. The remaining 50% interest of Global E-Sports is held by EBET. Prior to this transaction
both ESEG and Global E-Sports shared common ownership. This transaction was accounted for as a combination of entities under common control
and as such both operations have been combined from their inception. In addition, on September 24, 2020, EBET executed a Share Exchange
Agreement (“Share Exchange”) resulting in the acquisition of 100 7,340,421 Pursuant to the Share Exchange, the merger between
Global E-Sports and the Company was accounted for as a reverse merger. Under this method of accounting, EBET was treated as the “acquired”
company for financial reporting purposes. The net assets of Global E-Sports are stated at historical cost, with no goodwill or other intangible
assets recorded. Acquisition of the B2C business of Aspire Global
plc On October 1, 2021, the Company, and Esports Product
Technologies Malta Ltd. (“Esports Malta”) entered into a Share Purchase Agreement (the “Acquisition Agreement”)
with Aspire Global plc, (“Aspire”) and various Aspire group companies to acquire all of the issued and outstanding shares
of Karamba Limited. The total acquisition price was € 65,000,000 50,000,000 10,000,000 5,000,000 Going Concern The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. The Company has recurring losses and generated negative
cash flows from operations since inception. In April 2021, the Company completed its Initial Public Offering (“IPO”) and issued
2,400,000 14,400,000 13,514,200 Impact of COVID-19 The outbreak of the 2019 novel coronavirus disease
(“COVID-19”), which was declared a global pandemic by the World Health Organization on March 11, 2020, and the related responses
by public health and governmental authorities to contain and combat its outbreak and spread, has severely impacted the U.S. and world
economies. Economic recessions, including those brought on by the COVID-19 outbreak may have a negative effect on the demand for the Company’s
products and the Company’s operating results. The range of possible impacts on the Company’s business from the coronavirus
pandemic could include: (i) changing demand for the Company’s online betting products; and (ii) increasing contraction in the capital
markets.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES6 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES The significant accounting policies followed in
the preparation of the consolidated financial statements are as follows: Basis of Presentation The accompanying unaudited financial statements
of the Company, include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in accordance with generally
accepted accounting principles accepted in the United States (“U.S. GAAP”) for interim unaudited financial information. Accordingly,
they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
The unaudited financial statements include all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management,
necessary in order to make the condensed financial statements not misleading. Operating results for the three months ended March 31, 2022,
are not necessarily indicative of the final results that may be expected for the year ended September 30, 2022. For more complete financial
information, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for
the year ended September 30, 2021 included in our Form 10-K filed with the SEC. Notes to the consolidated financial statements which would
substantially duplicate the disclosures contained in the audited consolidated financial statements for the most recent fiscal period,
as reported in the Form 10-K, have been omitted. All intercompany accounts, transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to prior
period amounts to conform to the current year presentation. Business combinations The Company accounts for business combinations under the acquisition
method of accounting, in accordance with ASC 805, which requires assets acquired and liabilities assumed to be recognized at their fair
values as of the acquisition date. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities
assumed is recorded as goodwill. The fair values of the assets acquired, and liabilities assumed are determined based upon the valuation
of the acquired business and involve management making significant estimates and assumptions. Accounts Receivable Accounts receivables are recorded at amortized
cost, less any allowance for doubtful accounts. Accounts receivable consists primarily of amounts due from our platform provider. Intangible Assets Other Intangible Assets The Company’s other intangible assets consist
of customer relationships, trademarks and internet domain names. Certain intangible assets have a defined useful life and others
are classified as indefinite-lived intangible assets. Other intangible assets with a defined useful life are amortized over their estimated
useful economic lives on a straight-line basis. An intangible asset with an indefinite useful life is not amortized but assessed for impairment
annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived
asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option
to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined
that it is more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise,
it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new
cost basis of the asset. Subsequent reversal of impairment losses is not permitted. See Note 3 for intangible assets acquired in a
business acquisition transaction. Liabilities to Users The Company records liabilities for user account
balances at a given reporting period based on deposits made by players either to the Company or the sales affiliate, less any losses on
wagers and payout made to players. Liabilities to users amounts are not required to be backed by cash reserves of the Company. Impairment of Long-Lived Assets Long-lived assets consist of software and equipment,
finite-lived acquired intangible assets, such as license agreements, and indefinite-lived assets such as internet domain names. Long-lived
assets are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the asset
may not be fully recoverable. Impairment expense is recognized to the extent an asset’s expected undiscounted future cash flows
are less than the asset’s carrying amount. Leases The Company accounts for leases under ASC 842.
The Company assesses whether a contract contains a lease on its execution date. If the contract contains a lease, lease classification
is assessed upon its commencement date under ASC 842. For leases that are determined to qualify for treatment as operating leases,
rent expense is recognized on a straight-line basis over the lease term. Leases that are determined to qualify for treatment as finance
leases recognize interest expense as determined using the effective interest method with corresponding amortization of the right-of-use
assets. For leases with terms of 12 months and greater, an asset and liability are initially recorded at an amount equal to the present
value of the unpaid lease payments over the lease term. In determining the lease term for each lease, the Company includes options
to extend the lease when it is reasonably certain that the option will be exercised. The Company uses the interest rate implicit
in the lease, when known, or its estimated incremental borrowing rate, which is derived from information available at the lease commencement
date including prevailing financial market conditions, in determining the present value of the unpaid lease payments. Revenue Recognition The Company recognizes revenue in accordance with
ASC Topic 606, Revenue From Contracts With Customers
· Identification of the contract with a customer
· Identification of the performance obligations in the contract
· Determination of the transaction price
· Allocation of the transaction price to the performance obligations in the contract
· Recognition of revenue when, or as, the Company satisfies a performance obligation No single customer exceeded more than 10% of revenue
during the three months ended March 31, 2022 and 2020. In addition, no disaggregation of revenue is required because all current revenue
is generated from gaming revenue. Performance Obligations The Company operates an online betting platform
allowing users to place wagers on a variety of live sporting events and esports events. Each wager placed by users create a single performance
obligation for the Company to administer each event wagered. Gross gaming revenue is the aggregate of gaming wins and losses based on
results of each event that customers wager bets on. Variable commission fees are paid to sales affiliates based on a percentage of revenue
generated from the affiliate. The commissions rebated to affiliates are recorded as a reduction to gross gaming revenue. Cost of Revenue Cost of revenue consists of third-party costs
associated with the betting software platform and gaming taxes. Sales and Marketing Expenses Sales and marketing expenses consist primarily
of expenses associated with customer related acquisition costs, advertising and related software, strategic league and team partnerships
and costs related to free to play contests, and the compensation of sales and marketing personnel, including stock-based compensation
expenses. Advertising costs are expensed as incurred. Advertising costs incurred was $ 434,465
0 Product and Technology Expenses Product and technology expenses consist primarily
of expenses which are not subject to capitalization or otherwise classified within Cost of Revenue. Product and Technology expenses include
software licenses, depreciation of hardware and software and costs related to the compensation of product and technology personnel, including
stock-based compensation. General and Administrative Expenses General and administrative expenses include costs
related to the compensation of the Company’s administrative functions, insurance costs, professional fees and consulting expense. Income Taxes Deferred taxes are determined utilizing the "asset
and liability" method, whereby deferred tax asset and liability account balances are determined based on differences between financial
reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when
the differences are expected to reverse. The Company provides a valuation allowance, when it's more likely than not that deferred tax
assets will not be realized in the foreseeable future. Deferred tax liabilities and assets are classified as current or non-current based
on the underlying asset or liability or if not directly related to and asset or liability based on the expected reversal dates of the
specific temporary differences. Fair value of financial instruments The Company discloses fair value measurements
for financial and non-financial assets and liabilities measured at fair value. Fair value is based on the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value
hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described
below: Level 1: Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to
Level 1 inputs. Level 2: Observable prices that are based on inputs
not quoted on active markets but are corroborated by market data. Level 3: Unobservable inputs are used when little
or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Foreign Currency The Company’s reporting currency is the
U.S. Dollar. Certain subsidiaries of the Company have a functional currency other than the U.S. Dollar, and are translated to the Company’s
reporting currency at each reporting date. Non-monetary items are translated at historical rates. Monetary assets and liabilities are
translated from British pounds and Euro into U.S. Dollars, at the period-end exchange rate, while foreign currency expenses are translated
at the exchange rate in effect on the date of the transaction. The net effect of translation is reflected as other comprehensive income.
The gains or losses on transactions denominated in currencies other than an entity’s functional currency are included in the consolidated
statement of operations. Goodwill Goodwill represents the excess of the purchase
price over the fair value of assets acquired and liabilities assumed. Goodwill is reviewed for impairment at least annually or whenever
events or changes in circumstances indicate that the carrying amount may be impaired. When assessing goodwill for impairment, the Company
uses qualitative and if necessary, quantitative methods in accordance with FASB ASC Topic 350, Goodwill Circumstances that could indicate impairment and
require the Company to perform a quantitative impairment test include a significant decline in the Company’s financial results,
a significant decline in the Company’s enterprise value relative to its book value, an unanticipated change in competition of the
Company’s market share and a significant change in the Company’s strategic plans. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies that the Company adopts as
of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective
will have a material impact on the Company’s financial position or results of operations upon adoption.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS6 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONSNOTE 3 - BUSINESS COMBINATIONS Acquisition of the B2C business of Aspire Global
plc On October 1, 2021, in order to accelerate the
growth and expand market access for our esports product offerings, the Company and Esports Malta entered into the “Acquisition Agreement”
with Aspire, Aspire Global International Limited, AG Communications Limited, Aspire Global 7 Limited (collectively the “Aspire Related
Companies”), and Karamba Limited (“Karamba”) whereby Esports Malta acquired all of the issued and outstanding shares
of Karamba. The total acquisition price, paid at the closing of the acquisition of the Karamba shares, was € 65,000,000 50,000,000 10,000,000 5,000,000 The Note provides for an interest rate of 10%
per annum. The maturity date of the Note is the earlier of that date which is four years from the issuance date or a liquidity event.
The Note requires repayment of the principal amount plus any accrued interest in three equal installments, payable annually starting on
the second anniversary after issuance. No interest payment shall be due until that date which is the last day of the end of the second
anniversary of issuance should the Note remain unpaid at such time. Should the Note remain unpaid at the second anniversary, the total
accrued interest due at that time shall be paid at the second-year anniversary for accrued interest for the period from the issuance date
through the second-year anniversary date. Thereafter, and on each anniversary date thereafter, the interest due for the prior annual period
shall be paid. Notwithstanding the foregoing, if the Company owes greater than $15.0 million under the credit agreement with CP BF Lending,
LLC entered into in connection with the acquisition (See Note 4 – Borrowings – Senior Notes, then then the parties agree that
the Company shall repay any principal amount plus any accrued interest due through the issuance of Company common stock in lieu of any
cash payment and the amount of said common stock shares to be issued by the Company shall be determined by using the Conversion Price
as defined below. Should an event of default occur on the Note, then at the election of Aspire, either (i) the Operator Services Agreement
will be amended such that the fees payable shall increase by 5% during the continuation of the event of default, or (ii) Aspire may elect
to convert the entire outstanding principal amount plus any accrued interest into fully-paid and non-assessable shares of common stock
of the Company at a price per share based on the weighted-average per-share price for the ten days prior to the date of the occurrence
of the event of default (“Conversion Price”). In no event shall the Conversion Price be lower than $18.00 per share (as adjusted
for stock splits, stock dividends, or similar events occurring after the date hereof) and the total maximum number of common stock shares
that may be issued to Aspire upon any such conversion in the aggregate shall be 650,000 shares (as adjusted for stock splits, stock dividends,
or similar events occurring after the date hereof). The acquired assets were recorded at their estimated
fair values. The purchase price allocation is preliminary, and as additional information becomes available, the Company may further revise
the preliminary purchase price allocation, including the fair value of identified intangible assets, during the remainder of the measurement
period, which will not exceed 12 months from the closing of the acquisition. Measurement period adjustments will be recognized in the
reporting period in which the adjustment amounts are determined. Any such adjustments may be material. The purchase price of this acquisition was allocated on a preliminary
basis as follows:
Schedule of allocation of purchase price
Fair Value
Trademarks $ 21,836,528
Customer relationships 16,162,202
Goodwill 35,620,270
Total $ 73,619,000 Useful life is the period over which an asset
is expected to add to the future cash flows of an entity. Useful life for identifiable assets is generally estimated using a modified
straight-line method or a usage period. The Company has determined that the useful life of the trademarks vary from 5 years to an indefinite
life and determined that the useful life of the Customer Relationships was three years. Goodwill represents the excess of the gross considerations
transferred over the fair value of the underlying net assets acquired and liabilities assumed. Goodwill recognized is not deductible for
local tax purposes. Upon completing the acquisition of Aspire, the
company incurred the following costs:
Schedule of acquisition costs
Debt issuance costs 2,869,163
Equity issuance costs 2,100,000
Transaction expenses 2,615,098
Total acquisition expenses $ 7,584,261 Debt issuance costs relate to costs associated
with acquiring the loan from the CP BF Lending LLC. These have been recorded as reduction of the face value of the debt and are amortized
over the life of the loan. Equity issuance costs relate to the costs associated with the private placement. These have been recorded as
reduction of the equity proceeds. Transactions costs relate to all direct and indirect costs associated with the acquisition, and expensed
as incurred.

BORROWINGS

BORROWINGS6 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]
BORROWINGSNOTE 4 – BORROWINGS The following is a summary of borrowings outstanding
as at March 31, 2022 and September 30, 2021:
Schedule of borrowings outstanding
March 31, 2022 September 30, 2021
Contractual Interest Principal outstanding balance Principal outstanding balance Unamortized debt discount Issuance costs Carrying amount Principal outstanding balance Unamortized debt discount Issuance costs Carrying amount
rate Cur Local USD USD USD USD USD USD USD USD
Senior notes 15% USD 30,000,000 30,000,000 (7,150,623 ) (1,750,134 ) 21,099,243 – – – –
Note due to Aspire 10 EUR 10,000,000 11,101,000 – – 11,101,000 – – – –
Convertible notes 10 USD 1,906,894 1,906,894 – – 1,906,894 1,912,500 (516,366 ) – 1,396,134
Other 0 USD 675,000 675,000 (188,812 ) – 486,188 675,000 (211,076 ) – 463,924
Total borrowings 43,682,894 (7,339,435 ) (1,750,134 ) 34,593,325 2,587,500 (727,442 ) – 1,860,058
Current 1,906,894 1,396,133
Long-term 32,686,431 463,925
Total borrowings 34,593,325 1,860,058 Senior Notes On November 29, 2021, the Company entered into
a credit agreement (the “Credit Agreement”) with CP BF Lending, LLC (“Lender”), pursuant to which the Lender agreed
to make a single loan to the Company of $ 30,000,000 750,000 The Loan matures in 36 months, provided that the
Company may receive two 12-month extensions of the maturity date by paying to the Lender (1) an extension fee equal to 1.0% of the unpaid
principal balance of the Loan as of the date of such extension, and (2) all reasonable and documented out-of-pocket fees and expenses
paid or incurred by Lender, in each case in connection with the extension request, including but not limited to fees and expenses for
appraisals, collateral exams and audits, and legal counsel. The foregoing extension right is subject to, among other items, (i) the Loan
not being in default, (ii) the representations and warranties contained in Credit Agreement being true and correct; and (iii) the Lender
granting its written approval thereof in its sole discretion. The Loan may be prepaid by the Company at any
time. In addition, the Credit Agreement provides that in the event there shall be excess cash flow from the Aspire Business (as such concept
is defined in the Credit Agreement) for any calendar month, commencing with the month ended December 31, 2022, the Company shall apply
such excess cash flow amount to prepay the outstanding principal balance of the Loan; provided that no such prepayment shall be required
once the unpaid principal balance of the Loan has been reduced to $15,000,000. The Credit Agreement requires the Company to meet
certain financial covenants commencing March 31, 2022. The Loan is secured by all of the assets of the Company and its subsidiaries. The
Loan may be accelerated by the Lender upon an event of default, which in addition to customary events of default include: (i) if (1) any
of the Company or its subsidiaries shall fail to maintain in full force and effect any gaming approval (as defined in the Credit Agreement)
required for the operation of its business or (2) any gaming regulator shall impose any condition or limitation on any of the foregoing
entities that could be reasonably expected to have a material adverse effect; or (ii) the suspension from trading or failure of the Company’s
common stock to be trading or listed on the Nasdaq exchange for a period of three consecutive trading days. As of March 31, 2022, the Company had not maintained
compliance with the covenants of the Senior Notes and obtained a waiver from its lender which waiver is contingent on the completion of
an equity raise of $3.5 million prior to May 31, 2022. In consideration for obtaining a waiver from the compliance with certain covenants,
the Company has agreed to amend the Senior Notes such that $5 million of principle loan balance becomes convertible at the effective average
share price (giving effect to any warrants or other economic consideration) from which the Company raises the first $10,000,000 of common
equity through one or more qualified equity offerings immediately following the receipt of the foregoing $3.5 million. In connection with the Loan, the Company issued
the Lender a warrant (the “Lender Warrant”) to purchase 1,567,840 Note due to Aspire The Note provides for an interest rate of 10%
per annum. The maturity date of the Note will be the earlier of that date which is four years from the issuance date or a liquidity event.
The Note will require repayment of the principal amount plus any accrued interest in three equal installments, payable annually starting
on the second anniversary after issuance. No interest payment shall be due until that date which is the last day of the end of the second-year
anniversary of issuance should the Note remain unpaid at such time. Should the Note remain unpaid at the second-year anniversary, the
total accrued interest due at that time shall be paid at the second year anniversary for accrued interest for the period from the issuance
date through the second year anniversary date. Thereafter, and on each annual anniversary date thereafter, the interest due for the prior
annual period shall be paid. Notwithstanding the foregoing, if the Company owes greater than $15,000,000 under the Credit Agreement, then
the parties agree that the Company shall repay any principal amount plus any accrued interest due through the issuance of Company common
stock in lieu of any cash payment and the amount of said common stock shares to be issued by the Company shall be determined by using
the Conversion Price as defined below. Should an event of default occur on the Note, then at the election of Aspire, either (i) the Operator
Services Agreement will be amended such that the fees payable shall increase by 5% during the continuation of the event of default, or
(ii) Aspire may elect to convert the entire outstanding principal amount plus any accrued interest into shares of common stock of the
Company at a price per share based on the weighted-average per-share price for the ten trading days prior to the date of the occurrence
of the event of default (“Conversion Price”). In no event shall the Conversion Price be lower than $18.00 per share (as adjusted
for stock splits, stock dividends, or similar events occurring after the date hereof) and the total maximum number of shares of common
stock that may be issued to Aspire upon any such conversion in the aggregate shall be 650,000 shares (as adjusted for stock splits, stock
dividends, or similar events occurring after the date hereof). Convertible Notes and other On September 1, 2020, ESEG entered into
three promissory notes, with a combined principal amount of $ 2,100,000 10 March
1, 2022 675,000 2,015,000 265,779 The Company evaluated the conversion option and
concluded a beneficial conversion feature was present at issuance. The Company recognized the beneficial conversion feature and relative
fair value of the warrants as a debt discount and additional paid in capital. The fair value of the warrants at the grant date was estimated
using a Black-Scholes model and the following assumptions: 1) volatility of approximately 85 0 0.26 five
2,100,000
187,500
375,000
826,189 1,086,311 116,774 1,187,913

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY6 Months Ended
Mar. 31, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITYNOTE 5 – STOCKHOLDERS’ EQUITY The Company is currently authorized to issue up
to 100,000,000 0.001 10,000,000 0.001 Acquisition of the B2C segment of Aspire Global
plc On October 1, 2021, in connection with the Acquisition,
the Company entered into subscription agreements (the “Subscription Agreements”) with certain investors (the “Investors”).
Pursuant to the Subscription Agreements, the Investors agreed to subscribe for and purchase, and the Company agreed to issue and sell
to such Investors, simultaneous with the closing of the Acquisition Agreement, an aggregate of 37,700 1,000.00 37,700,000 Pursuant to the Subscription Agreement, the Company
has obtained shareholder approval of the conversion of the Preferred Stock and Warrants into Company common stock in compliance with the
rules and regulations of the Nasdaq Stock Market (“Shareholder Approval”). The Preferred Stockholders are entitled to receive
dividends, at a rate of 14.0% per annum, which shall be payable quarterly in arrears on January 1, April 1, July 1 and October 1, beginning
on the first such date after the issuance date. With limited exceptions, the Preferred Stockholders will have no voting rights. The dividends
can be paid in either cash or in the issuance of additional preferred shares. Upon any liquidation, dissolution or winding-up of the Company,
the holders of the Preferred Stock shall be entitled to receive out of the assets, whether capital or surplus, of the Company available
to shareholders, an amount equal to the greater of: (i) the purchase price for each share of Preferred Stock then held, or (ii) the amount
the holders would have received had the holders fully converted the Preferred Stock to Company common stock, in each case, before any
distribution or payment shall be made to the holders of the Company’s common stock. The Preferred Stock is convertible into Company
common stock at an initial conversion price of $28.00 per share (“Conversion Price”); provided that the Conversion Price is
subject to anti-dilution protection upon any subsequent transaction at a price lower than the Conversion Price then in effect. In addition,
nine months from the issuance date (the “Adjustment Date”), the Conversion Price shall be adjusted to the lesser of: (i) the
Conversion Price in effect on the Adjustment Date, or (ii) 85% of the average closing price of the Company’s common stock for the
fifteen trading days prior to the Adjustment Date. If the Company’s EBITDA is equal to or greater than $2.0 million for the quarter
ending March 31, 2022, then no adjustment pursuant to the foregoing sentence will cause the Conversion Price to be less than $20.00. The Warrants are exercisable and expire on the
fifth anniversary thereafter. The Warrants will initially be exercisable at an exercise price of $30.00 per share, provided that the exercise
price is subject to anti-dilution protection upon any subsequent transaction at a price lower than the exercise price then in effect.
The Warrants can be exercised on a cashless basis if there is no effective registration statement registering, or no current prospectus
available for, the resale of the ordinary shares underlying the Warrants. The holders of the Preferred Stock and Warrants
will not have the right to convert or exercise any portion of the Preferred Stock and Warrants to the extent that, after giving effect
to such conversion, such holder (together with certain related parties) would beneficially own in excess of 4.99% of the Company’s
common stock outstanding immediately after giving effect to such conversion or exercise. Shares issued in the prior year During the three months ended December 31, 2020,
the Company received gross cash proceeds of $ 4,000,000 2,000,000 351,929 173,625 2.00 228,500 In January 2021, the Company sold 250,014 750,042 30,314 8,750 3 5 228,500 In April 2021, the Company completed its IPO
and issued 2,400,000 14,400,000 13,514,200 885,800 168,000 five 7.20 5,474,076 2020 Stock Plan In December 2020, the Company adopted the 2020
Stock Plan, or the 2020 Plan. The 2020 Plan is a stock-based compensation plan that provides for discretionary grants of stock options,
stock awards, stock unit awards and stock appreciation rights to key employees, non-employee directors and consultants. Under the 2020 Plan, the aggregate value of all
compensation granted or paid to any individual for service as a non-employee director with respect to any calendar year, including awards
granted under the 2020 Plan and cash fees paid to such non-employee director, will not exceed $300,000 in total value. For purposes of
this limitation, the value of awards is calculated based on the grant date fair value of such awards for financial reporting purposes. The number of shares of the common stock that
may be issued under the 2020 Plan is 4,000,000 3,868,098 131,902 Common Stock Awards During the six months ended March 31, 2022, the
Company agreed to award a total of 381,100 During the six months ended March 31, 2022, the
Company recognized a total of $ 2,281,520 9,981,520 Warrants As discussed above, the Company has issued common
stock warrants in connection with its fundraising activities to preference shareholders, its lender and convertible notes issued during
the six months ended March 31, 2022. The following table summarizes warrant activity during the six months ended March 31, 2022:
Schedule of warrant activity
Common Stock Warrants
Shares Weighted Weighted
Outstanding at September 30, 2021 2,199,541 $ 0.93 4.04
Granted 3,697,225 27.82 4.67
Cancelled – – –
Expired – – –
Exercised (711,375 ) (2.21 ) ( 3.73 )
Outstanding at March 31, 2022 5,185,391 $ 19.92 4.49
Exercisable at March 31, 2022 5,185,391 $ 19.92 4.49 At March 31, 2022, the outstanding and exercisable
common stock warrants had an estimated intrinsic value of $ 9,579,541 2 28.95 0 0.18 1.18 2.5 5 0.25 28 42.14 Options The following table summarizes option activity during the three months
ended March 31, 2022:
Schedule of option activity
Common Stock Options
Shares Weighted Weighted
Outstanding at September 30, 2021 2,344,348 $ 2.57 8.39
Granted 154,000 11.78 9.20
Cancelled (23,000 ) (5.57 ) 9.76
Expired – – –
Exercised – – –
Outstanding at March 31, 2022 2,475,348 $ 3.12 8.34
Exercisable at March 31, 2022 1,143,348 $ 0.93 8.45 During the six months ended March 31, 2022, the
Company recognized stock-based compensation expense of $ 968,401 6,645,579 4,996,713 The Company estimated the fair value of the stock
options awarded using a Black-Scholes option pricing model and the following assumptions: 1) stock price of $ 3 31.33 0 0.85 1.20 3.5 6.25 0.25 31.33 42.14

LONG-LIVED ASSETS

LONG-LIVED ASSETS6 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]
LONG-LIVED ASSETSNOTE 6 – LONG-LIVED ASSETS Fixed Assets The Company’s fixed assets consisted of
the following as of March 31, 2022 and September 30, 2021:
Schedule of fixed assets
March 31, 2022 September 30, 2021
Software $ 677,287 $ 214,996
Furniture and fixtures 418,976 –
Total fixed assets 1,096,263 214,996
Accumulated depreciation (171,571 ) (129,662 )
Fixed assets, net $ 924,692 $ 85,334 On November 5, 2020, the Company entered
into an asset purchase agreement with a third party to acquire certain proprietary technology data. The Company made a cash payment
of $ 61,425 32,000 0.25 five 57,252 118,677 110,000 100,000 The software costs above relate to acquired components
of the Company’s new platform which is being depreciated over an expected useful life. Intangible Assets On September 1, 2020, the Company’s wholly-owned
subsidiary, ESEG, entered into domain purchase agreements to acquire the rights to certain domain names from third parties. The cost to
acquire the domain names was $ 2,239,606 2,100,000 March 1, 2022 10 675,000 September 1, 2025 535,394 License Agreement On October 1, 2020, the Company entered into an
option agreement which gave the Company rights to acquire a license for proprietary technology related to online betting. The Company
paid $ 133,770 286,328 65,000 1,456,650 1,876,748 156,396

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES6 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIESNOTE 7 – COMMITMENTS AND CONTINGENCIES On September 2, 2020, the Company entered into
a financial advisor agreement with Boustead Securities LLC, the representative of the underwriters in the Company’s initial public
offering, to provide services related to fundraising on the Company’s planned public listing. The Company agreed to pay the financial
advisor a success fee of 4% of any gross proceeds from any debt financing, and a 7% success fee related to any equity or convertible debt
financing, subject to customary approval by the regulatory authorities. In April 2021, the Company completed its IPO and issued 2,400,000 14,400,000 885,800 168,000 7.20 5 On September 26, 2020, the Company entered into
a consulting agreement with a registered foreign broker dealer for fundraising services and paid 10% of any gross proceeds through capital
raises from non-US investors introduced by the consultant, up to a maximum payment to the consultant of $ 200,000 2.00 62,386 Financial Advisor’s Claims Subsequent to quarter end, the Company’s
previous financial advisors (together, “Advisor”) have alleged a breach by the Company over the termination of the engagement
and timing of the payment and amount of the fees. The fees the Company expects to pay are accrued in the accompanying balance sheet.
The Company disputes the allegations of the Advisor. The Company and the Advisor are currently seeking a resolution to this dispute,
but there is no certainty that the parties will amicably resolve this matter.

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE6 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]
LOSS PER COMMON SHARENOTE 8 – LOSS PER COMMON SHARE The basic net loss per common share is calculated
by dividing the Company's net loss available to common shareholders by the weighted average number of common shares during the year.
The diluted net loss per common share is calculated by dividing the Company's net loss available to common shareholders by the diluted
weighted average number of common shares outstanding during the year. The diluted weighted average number of common shares outstanding
is the basic weighted number of common shares adjusted for any potentially dilutive debt or equity. Common shares issuable under convertible
debt, stock options and common stock warrants were excluded from the calculation of diluted net loss per share due to their antidilutive
effect.
Schedule of earnings per share
Three Months Ended Six Months Ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Numerator
Net income (loss) $ (11,841,071 ) $ (2,375,660 ) $ (20,722,109 ) $ (5,126,391 )
Preferred stock dividends (1,367,260 ) – (1,851,077 ) –
Net income (loss) attributable to common stockholders $ (13,208,331 ) $ (2,375,660 ) $ (22,573,186 ) $ (5,126,391 )
Denominator
Basic and diluted weighted average common shares 14,236,755 10,587,654 13,980,720 9,878,185
Basic and diluted net income (loss) per common share $ (0.93 ) $ (0.22 ) $ (1.61 ) $ (0.52 )

SUBSEQUENT EVENT

SUBSEQUENT EVENT6 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTNOTE 9 – SUBSEQUENT
EVENT As disclosed in Note 4, the Company had not maintained
compliance with the covenants of the Senior Notes and obtained a waiver from its lender which waiver is contingent on the completion an
equity raise of $3.5 million prior to May 31, 2022. In consideration for obtaining a waiver from the compliance with certain covenants,
the Company has agreed to amend the Senior Notes such that $5 million of principle loan balance becomes convertible at the effective average
share price (giving effect to any warrants or other economic consideration) from which the Company raises the first $10,000,000 of common
equity through one or more qualified equity offerings immediately following the receipt of the foregoing $3.5 million.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)6 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]
Basis of PresentationBasis of Presentation The accompanying unaudited financial statements
of the Company, include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in accordance with generally
accepted accounting principles accepted in the United States (“U.S. GAAP”) for interim unaudited financial information. Accordingly,
they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
The unaudited financial statements include all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management,
necessary in order to make the condensed financial statements not misleading. Operating results for the three months ended March 31, 2022,
are not necessarily indicative of the final results that may be expected for the year ended September 30, 2022. For more complete financial
information, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for
the year ended September 30, 2021 included in our Form 10-K filed with the SEC. Notes to the consolidated financial statements which would
substantially duplicate the disclosures contained in the audited consolidated financial statements for the most recent fiscal period,
as reported in the Form 10-K, have been omitted. All intercompany accounts, transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to prior
period amounts to conform to the current year presentation.
Business combinationsBusiness combinations The Company accounts for business combinations under the acquisition
method of accounting, in accordance with ASC 805, which requires assets acquired and liabilities assumed to be recognized at their fair
values as of the acquisition date. Any fair value of purchase consideration in excess of the fair value of the assets acquired less liabilities
assumed is recorded as goodwill. The fair values of the assets acquired, and liabilities assumed are determined based upon the valuation
of the acquired business and involve management making significant estimates and assumptions.
Accounts ReceivableAccounts Receivable Accounts receivables are recorded at amortized
cost, less any allowance for doubtful accounts. Accounts receivable consists primarily of amounts due from our platform provider.
Intangible AssetsIntangible Assets Other Intangible Assets The Company’s other intangible assets consist
of customer relationships, trademarks and internet domain names. Certain intangible assets have a defined useful life and others
are classified as indefinite-lived intangible assets. Other intangible assets with a defined useful life are amortized over their estimated
useful economic lives on a straight-line basis. An intangible asset with an indefinite useful life is not amortized but assessed for impairment
annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived
asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option
to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined
that it is more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise,
it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new
cost basis of the asset. Subsequent reversal of impairment losses is not permitted. See Note 3 for intangible assets acquired in a
business acquisition transaction.
Liabilities to UsersLiabilities to Users The Company records liabilities for user account
balances at a given reporting period based on deposits made by players either to the Company or the sales affiliate, less any losses on
wagers and payout made to players. Liabilities to users amounts are not required to be backed by cash reserves of the Company.
Impairment of Long-Lived AssetsImpairment of Long-Lived Assets Long-lived assets consist of software and equipment,
finite-lived acquired intangible assets, such as license agreements, and indefinite-lived assets such as internet domain names. Long-lived
assets are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the asset
may not be fully recoverable. Impairment expense is recognized to the extent an asset’s expected undiscounted future cash flows
are less than the asset’s carrying amount.
LeasesLeases The Company accounts for leases under ASC 842.
The Company assesses whether a contract contains a lease on its execution date. If the contract contains a lease, lease classification
is assessed upon its commencement date under ASC 842. For leases that are determined to qualify for treatment as operating leases,
rent expense is recognized on a straight-line basis over the lease term. Leases that are determined to qualify for treatment as finance
leases recognize interest expense as determined using the effective interest method with corresponding amortization of the right-of-use
assets. For leases with terms of 12 months and greater, an asset and liability are initially recorded at an amount equal to the present
value of the unpaid lease payments over the lease term. In determining the lease term for each lease, the Company includes options
to extend the lease when it is reasonably certain that the option will be exercised. The Company uses the interest rate implicit
in the lease, when known, or its estimated incremental borrowing rate, which is derived from information available at the lease commencement
date including prevailing financial market conditions, in determining the present value of the unpaid lease payments.
Revenue RecognitionRevenue Recognition The Company recognizes revenue in accordance with
ASC Topic 606, Revenue From Contracts With Customers
· Identification of the contract with a customer
· Identification of the performance obligations in the contract
· Determination of the transaction price
· Allocation of the transaction price to the performance obligations in the contract
· Recognition of revenue when, or as, the Company satisfies a performance obligation No single customer exceeded more than 10% of revenue
during the three months ended March 31, 2022 and 2020. In addition, no disaggregation of revenue is required because all current revenue
is generated from gaming revenue.
Performance ObligationsPerformance Obligations The Company operates an online betting platform
allowing users to place wagers on a variety of live sporting events and esports events. Each wager placed by users create a single performance
obligation for the Company to administer each event wagered. Gross gaming revenue is the aggregate of gaming wins and losses based on
results of each event that customers wager bets on. Variable commission fees are paid to sales affiliates based on a percentage of revenue
generated from the affiliate. The commissions rebated to affiliates are recorded as a reduction to gross gaming revenue.
Cost of RevenueCost of Revenue Cost of revenue consists of third-party costs
associated with the betting software platform and gaming taxes.
Sales and Marketing ExpensesSales and Marketing Expenses Sales and marketing expenses consist primarily
of expenses associated with customer related acquisition costs, advertising and related software, strategic league and team partnerships
and costs related to free to play contests, and the compensation of sales and marketing personnel, including stock-based compensation
expenses. Advertising costs are expensed as incurred. Advertising costs incurred was $ 434,465
0
Product and Technology ExpensesProduct and Technology Expenses Product and technology expenses consist primarily
of expenses which are not subject to capitalization or otherwise classified within Cost of Revenue. Product and Technology expenses include
software licenses, depreciation of hardware and software and costs related to the compensation of product and technology personnel, including
stock-based compensation.
General and Administrative ExpensesGeneral and Administrative Expenses General and administrative expenses include costs
related to the compensation of the Company’s administrative functions, insurance costs, professional fees and consulting expense.
Income TaxesIncome Taxes Deferred taxes are determined utilizing the "asset
and liability" method, whereby deferred tax asset and liability account balances are determined based on differences between financial
reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when
the differences are expected to reverse. The Company provides a valuation allowance, when it's more likely than not that deferred tax
assets will not be realized in the foreseeable future. Deferred tax liabilities and assets are classified as current or non-current based
on the underlying asset or liability or if not directly related to and asset or liability based on the expected reversal dates of the
specific temporary differences.
Fair value of financial instrumentsFair value of financial instruments The Company discloses fair value measurements
for financial and non-financial assets and liabilities measured at fair value. Fair value is based on the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standard establishes a fair value
hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described
below: Level 1: Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to
Level 1 inputs. Level 2: Observable prices that are based on inputs
not quoted on active markets but are corroborated by market data. Level 3: Unobservable inputs are used when little
or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
Foreign CurrencyForeign Currency The Company’s reporting currency is the
U.S. Dollar. Certain subsidiaries of the Company have a functional currency other than the U.S. Dollar, and are translated to the Company’s
reporting currency at each reporting date. Non-monetary items are translated at historical rates. Monetary assets and liabilities are
translated from British pounds and Euro into U.S. Dollars, at the period-end exchange rate, while foreign currency expenses are translated
at the exchange rate in effect on the date of the transaction. The net effect of translation is reflected as other comprehensive income.
The gains or losses on transactions denominated in currencies other than an entity’s functional currency are included in the consolidated
statement of operations.
GoodwillGoodwill Goodwill represents the excess of the purchase
price over the fair value of assets acquired and liabilities assumed. Goodwill is reviewed for impairment at least annually or whenever
events or changes in circumstances indicate that the carrying amount may be impaired. When assessing goodwill for impairment, the Company
uses qualitative and if necessary, quantitative methods in accordance with FASB ASC Topic 350, Goodwill Circumstances that could indicate impairment and
require the Company to perform a quantitative impairment test include a significant decline in the Company’s financial results,
a significant decline in the Company’s enterprise value relative to its book value, an unanticipated change in competition of the
Company’s market share and a significant change in the Company’s strategic plans.
Recently Issued Accounting PronouncementsRecently Issued Accounting Pronouncements From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies that the Company adopts as
of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective
will have a material impact on the Company’s financial position or results of operations upon adoption.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)6 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of allocation of purchase priceSchedule of allocation of purchase price
Fair Value
Trademarks $ 21,836,528
Customer relationships 16,162,202
Goodwill 35,620,270
Total $ 73,619,000
Schedule of acquisition costsSchedule of acquisition costs
Debt issuance costs 2,869,163
Equity issuance costs 2,100,000
Transaction expenses 2,615,098
Total acquisition expenses $ 7,584,261

BORROWINGS (Tables)

BORROWINGS (Tables)6 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of borrowings outstandingSchedule of borrowings outstanding
March 31, 2022 September 30, 2021
Contractual Interest Principal outstanding balance Principal outstanding balance Unamortized debt discount Issuance costs Carrying amount Principal outstanding balance Unamortized debt discount Issuance costs Carrying amount
rate Cur Local USD USD USD USD USD USD USD USD
Senior notes 15% USD 30,000,000 30,000,000 (7,150,623 ) (1,750,134 ) 21,099,243 – – – –
Note due to Aspire 10 EUR 10,000,000 11,101,000 – – 11,101,000 – – – –
Convertible notes 10 USD 1,906,894 1,906,894 – – 1,906,894 1,912,500 (516,366 ) – 1,396,134
Other 0 USD 675,000 675,000 (188,812 ) – 486,188 675,000 (211,076 ) – 463,924
Total borrowings 43,682,894 (7,339,435 ) (1,750,134 ) 34,593,325 2,587,500 (727,442 ) – 1,860,058
Current 1,906,894 1,396,133
Long-term 32,686,431 463,925
Total borrowings 34,593,325 1,860,058

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)6 Months Ended
Mar. 31, 2022
Equity [Abstract]
Schedule of warrant activitySchedule of warrant activity
Common Stock Warrants
Shares Weighted Weighted
Outstanding at September 30, 2021 2,199,541 $ 0.93 4.04
Granted 3,697,225 27.82 4.67
Cancelled – – –
Expired – – –
Exercised (711,375 ) (2.21 ) ( 3.73 )
Outstanding at March 31, 2022 5,185,391 $ 19.92 4.49
Exercisable at March 31, 2022 5,185,391 $ 19.92 4.49
Schedule of option activitySchedule of option activity
Common Stock Options
Shares Weighted Weighted
Outstanding at September 30, 2021 2,344,348 $ 2.57 8.39
Granted 154,000 11.78 9.20
Cancelled (23,000 ) (5.57 ) 9.76
Expired – – –
Exercised – – –
Outstanding at March 31, 2022 2,475,348 $ 3.12 8.34
Exercisable at March 31, 2022 1,143,348 $ 0.93 8.45

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)6 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of fixed assetsSchedule of fixed assets
March 31, 2022 September 30, 2021
Software $ 677,287 $ 214,996
Furniture and fixtures 418,976 –
Total fixed assets 1,096,263 214,996
Accumulated depreciation (171,571 ) (129,662 )
Fixed assets, net $ 924,692 $ 85,334

LOSS PER COMMON SHARE (Tables)

LOSS PER COMMON SHARE (Tables)6 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of earnings per shareSchedule of earnings per share
Three Months Ended Six Months Ended
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Numerator
Net income (loss) $ (11,841,071 ) $ (2,375,660 ) $ (20,722,109 ) $ (5,126,391 )
Preferred stock dividends (1,367,260 ) – (1,851,077 ) –
Net income (loss) attributable to common stockholders $ (13,208,331 ) $ (2,375,660 ) $ (22,573,186 ) $ (5,126,391 )
Denominator
Basic and diluted weighted average common shares 14,236,755 10,587,654 13,980,720 9,878,185
Basic and diluted net income (loss) per common share $ (0.93 ) $ (0.22 ) $ (1.61 ) $ (0.52 )

ORGANIZATION, NATURE OF OPERA_2

ORGANIZATION, NATURE OF OPERATIONS AND GOING CONCERN (Details Narrative)Oct. 02, 2021GBP (£)Sep. 24, 2020sharesApr. 30, 2021USD ($)sharesMar. 31, 2022USD ($)Mar. 31, 2021USD ($)
OrganizationInformationLineItems [Line Items]
Payments to Acquire Businesses, Gross | $ $ 56,229,526 $ 0
IPO [Member]
OrganizationInformationLineItems [Line Items]
Stock issued new, shares | shares2,400,000
Gross Proceeds from Issuance Initial Public Offering | $ $ 14,400,000
Proceeds from Issuance of Common Stock | $ $ 13,514,200
Global E Sports Entertainment [Member]
OrganizationInformationLineItems [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired100.00%
Stock issued new, shares | shares7,340,421
Aspire Related Companies [Member]
OrganizationInformationLineItems [Line Items]
Business Combination, Consideration Transferred £ 65,000,000
Payments to Acquire Businesses, Gross50,000,000
Notes Issued10,000,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable £ 5,000,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)6 Months Ended
Mar. 31, 2022Mar. 31, 2021
Accounting Policies [Abstract]
Advertising Expense $ 434,465 $ 0

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($)Mar. 31, 2022Oct. 02, 2021Sep. 30, 2021
Business Acquisition [Line Items]
Goodwill $ 34,912,645 $ 0
Aspire Related Companies [Member]
Business Acquisition [Line Items]
Trademarks $ 21,836,528
Customer relationships16,162,202
Goodwill35,620,270
Total $ 73,619,000

BUSINESS COMBINATIONS - Schedul

BUSINESS COMBINATIONS - Schedule of acquisition costs (Details) - Aspire Related Companies [Member]Oct. 02, 2021USD ($)
Business Acquisition [Line Items]
Debt issuance costs $ 2,869,163
Equity issuance costs2,100,000
Transaction expenses2,615,098
 Total acquisition expenses $ 7,584,261

BUSINESS COMBINATIONS (Details

BUSINESS COMBINATIONS (Details Narrative)Oct. 02, 2021GBP (£)Mar. 31, 2022USD ($)Mar. 31, 2021USD ($)
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross | $ $ 56,229,526 $ 0
Aspire Related Companies [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred £ 65,000,000
Payments to Acquire Businesses, Gross50,000,000
Notes Issued10,000,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable £ 5,000,000

BORROWINGS (Details)

BORROWINGS (Details)Mar. 31, 2022USD ($)Mar. 31, 2022EUR (€)Sep. 30, 2021USD ($)
Debt Instrument [Line Items]
Current $ 1,906,894 $ 1,396,133
Long-term32,686,431 463,925
Total borrowings $ 34,593,325 1,860,058
Senior Notes [Member]
Debt Instrument [Line Items]
Contractual interest rate15.00%15.00%
Principal outstanding balance $ 30,000,000
Unamortized debt discount(7,150,623)0
Issuance costs(1,750,134)0
Carrying amount21,099,243 0
Issuance costs $ 1,750,134 0
Senior Notes [Member] | USD [Member]
Debt Instrument [Line Items]
Principal outstanding balance0
Note Due To Aspire [Member]
Debt Instrument [Line Items]
Contractual interest rate10.00%10.00%
Principal outstanding balance $ 11,101,000 € 10,000,000 0
Unamortized debt discount0 0
Issuance costs0 0
Carrying amount11,101,000 0
Issuance costs $ 0 0
Convertible Notes [Member]
Debt Instrument [Line Items]
Contractual interest rate10.00%10.00%
Principal outstanding balance $ 1,906,894 1,912,500
Unamortized debt discount0 (516,366)
Issuance costs0 0
Carrying amount1,906,894 1,396,134
Issuance costs $ 0 0
Other Borrowings [Member]
Debt Instrument [Line Items]
Contractual interest rate0.00%0.00%
Principal outstanding balance $ 675,000 675,000
Unamortized debt discount(188,812)(211,076)
Issuance costs0 0
Carrying amount486,188 463,924
Issuance costs0 0
Total Borrowings [Member]
Debt Instrument [Line Items]
Principal outstanding balance43,682,894 2,587,500
Unamortized debt discount(7,339,435)(727,442)
Issuance costs0
Carrying amount34,593,325 1,860,058
Issuance costs $ 0
Issuance costs $ (1,750,134)

BORROWINGS (Details Narrative)

BORROWINGS (Details Narrative) - USD ($)Nov. 29, 2021Sep. 02, 2020Mar. 31, 2022Dec. 31, 2021Dec. 31, 2020Mar. 31, 2022Mar. 31, 2021Sep. 30, 2020Sep. 01, 2025Sep. 30, 2021
Debt Instrument [Line Items]
Debt Conversion, Converted Instrument, Amount $ 112,500
Amortization of Debt Discount (Premium) $ 1,368,188 $ 867,593
ESEG Warrants [Member]
Debt Instrument [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate85.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate0.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate0.26%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term5 years
Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount $ 30,000,000
Payments of Debt Issuance Costs $ 750,000
Debt Instrument, Interest Rate, Stated Percentage15.00%15.00%
Debt Instrument, Unamortized Discount $ 7,150,623 $ 7,150,623 $ 0
Senior Notes [Member] | Lender Warrant [Member]
Debt Instrument [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right1,567,840
ESEG Promissory Notes [Member]
Debt Instrument [Line Items]
Notes Payable $ 2,100,000 1,086,311
Debt Instrument, Interest Rate, Stated Percentage10.00%
Debt Instrument, Maturity DateMar. 1,
2022
Gain (Loss) on Extinguishment of Debt $ 265,779
Debt Instrument, Unamortized Discount $ 2,100,000 826,189
Debt Conversion, Converted Instrument, Amount $ 187,500
Debt Conversion, Converted Instrument, Shares Issued375,000
Interest Payable $ 116,774
Amortization of Debt Discount (Premium) $ 1,187,913
ESEG Promissory Notes [Member] | Two Lenders [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid $ 675,000
ESEG Promissory Notes [Member] | Warrants [Member]
Debt Instrument [Line Items]
[custom:WarrantsIssuedShares-0]2,015,000

STOCKHOLDERS' EQUITY (Details -

STOCKHOLDERS' EQUITY (Details - Warrant activity) - Warrants [Member] - $ / shares3 Months Ended6 Months Ended
Sep. 30, 2021Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Warrants Outstanding, Beginning2,199,541
Weighted Average Exercise Price Outstanding, Beginning $ 0.93
Weighted Average Remaining Life, Ending4 years 14 days4 years 5 months 26 days
Number of Warrants Granted3,697,225
Weighted Average Exercise Price Granted $ 27.82
Weighted Average Remaining Life, granted4 years 8 months 1 day
Number of Warrants Cancelled0
Weighted Average Exercise Price Cancelled $ 0
Number of Warrants Expired0
Weighted Average Exercise Price Expired $ 0
Number of Warrants Exercised(711,375)
Weighted Average Exercise Price Exercised $ (2.21)
Weighted Average Remaining Life, exercised3 years 8 months 23 days
Number of Warrants Outstanding, Ending2,199,541 5,185,391
Weighted Average Exercise Price Outstanding, Ending $ 0.93 $ 19.92
Number of Warrants Exercisable, Ending5,185,391
Weighted Average Exercise Price Exercisable $ 19.92
Weighted Average Remaining Life, exercisable4 years 5 months 26 days

STOCKHOLDERS' EQUITY (Details_2

STOCKHOLDERS' EQUITY (Details - Option Activity) - ESEG Warrants [Member] - $ / shares3 Months Ended6 Months Ended
Sep. 30, 2021Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Options Outstanding, Beginning2,344,348
Weighted Average Exercise Price Outstanding, Beginning $ 2.57
Weighted Average Remaining Contractual Term Outstanding8 years 4 months 20 days8 years 4 months 2 days
Number of Options Granted154,000
Weighted Average Exercise Price Granted $ 11.78
Weighted Average Remaining Contractual Term Granted9 years 2 months 12 days
Number of Options Cancelled(23,000)
Weighted Average Exercise Price Cancelled $ (5.57)
Weighted Average Remaining Contractual Term Cancelled9 years 9 months 3 days
Number of Options Expired0
Weighted Average Exercise Price Expired $ 0
Number of Options Exercised0
Weighted Average Exercise Price Exercised $ 0
Number of Options Outstanding, Ending2,344,348 2,475,348
Weighted Average Exercise Price Outstanding, Ending $ 2.57 $ 3.12
Number of Options Exercisable, Ending1,143,348
Weighted Average Exercise Price Exercisable, Ending $ 0.93
Weighted Average Remaining Contractual Term Exercisable8 years 5 months 12 days

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)Oct. 02, 2021Apr. 30, 2021Jan. 31, 2021Dec. 31, 2021Dec. 31, 2020Jan. 31, 2021Mar. 31, 2022Mar. 31, 2021Sep. 30, 2021Sep. 26, 2020
Class of Stock [Line Items]
Common stock, shares authorized100,000,000 100,000,000
Common stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized10,000,000 10,000,000
Preferred stock, no par value $ 0.001 $ 0.001
Warrant exercise price $ 2
Share-based Payment Arrangement, Noncash Expense $ 3,249,923 $ 2,022,026
Common Stock Awards [Member]
Class of Stock [Line Items]
Share-based Payment Arrangement, Noncash Expense2,281,520
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount9,981,520
Common Stock Warrants [Member]
Class of Stock [Line Items]
Intrinsic value of option outstanding $ 9,579,541
Warrants [Member]
Class of Stock [Line Items]
Warrant exercise price $ 19.92 $ 0.93
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period3,697,225
Dividend yield0.00%
Risk-free rate minimum0.18%
Risk-free rate maximum1.18%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate42.14%
Warrants [Member] | Minimum [Member]
Class of Stock [Line Items]
Stock price $ 2
Expected term2 years 6 months
Exercise price $ 0.25
Warrants [Member] | Maximum [Member]
Class of Stock [Line Items]
Stock price $ 28.95
Expected term5 years
Exercise price $ 28
Common Stock Options [Member]
Class of Stock [Line Items]
Share-based Payment Arrangement, Noncash Expense $ 968,401
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount $ 4,996,713
ESEG Warrants [Member]
Class of Stock [Line Items]
Stock granted under plan154,000
Dividend yield0.00%
Risk-free rate minimum0.85%
Risk-free rate maximum1.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate42.14%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value $ 6,645,579
ESEG Warrants [Member] | Minimum [Member]
Class of Stock [Line Items]
Stock price $ 3
Expected term3 years 6 months
Exercise price $ 0.25
ESEG Warrants [Member] | Maximum [Member]
Class of Stock [Line Items]
Stock price $ 31.33
Expected term6 years 3 months
Exercise price $ 31.33
Plan 2020 [Member]
Class of Stock [Line Items]
Stock authorized under plan4,000,000
Stock granted under plan3,868,098
Shares remaining under plan131,902
Various Employees Consultants And Officers [Member] | Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period381,100
IPO [Member]
Class of Stock [Line Items]
Proceeds from Issuance of Common Stock $ 13,514,200
Stock issued new, shares2,400,000
Payment of stock issuance costs $ 885,800
Proceeds from Issuance Initial Public Offering $ 14,400,000
IPO [Member] | Underwriter [Member]
Class of Stock [Line Items]
Warrants issued168,000
Warrant exercise price $ 7.20
Warrant term5 years
Warrant fair value $ 5,474,076
Series A Convertible Preferred Stock [Member] | Aspire Global [Member]
Class of Stock [Line Items]
Stock issued for acquisition, shares37,700
Stock price $ 1,000
Proceeds from Issuance of Private Placement $ 37,700,000
Common Stock [Member] | Stock Issued 2020 [Member]
Class of Stock [Line Items]
Proceeds from Issuance of Common Stock $ 4,000,000
Stock issued new, shares2,000,000
Payment of stock issuance costs $ 351,929
Common Stock [Member] | Stock Issued January 2021 [Member]
Class of Stock [Line Items]
Proceeds from Issuance of Common Stock $ 750,042
Stock issued new, shares250,014
Payment of stock issuance costs $ 30,314
Warrants [Member] | Stock Issued 2020 [Member]
Class of Stock [Line Items]
Warrants issued173,625
Warrant exercise price $ 2
Fair value of warrants granted $ 228,500
Warrants [Member] | Stock Issued January 2021 [Member]
Class of Stock [Line Items]
Warrants issued8,750
Warrant exercise price $ 3 $ 3
Fair value of warrants granted $ 228,500
Warrant term5 years5 years

LONG-LIVED ASSETS (Details - Fi

LONG-LIVED ASSETS (Details - Fixed Assets) - USD ($)Mar. 31, 2022Sep. 30, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross $ 1,096,263 $ 214,996
Accumulated depreciation(171,571)(129,662)
Property and equipment, net924,692 85,334
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross677,287 214,996
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross $ 418,976 $ 0

LONG-LIVED ASSETS (Details Narr

LONG-LIVED ASSETS (Details Narrative) - USD ($)Nov. 05, 2020Oct. 02, 2020Sep. 02, 2020Mar. 31, 2022Mar. 31, 2021Jul. 31, 2021Sep. 30, 2021Sep. 26, 2020
Asset Acquisition [Line Items]
Payments to Acquire Software $ 902,469 $ 90,899
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 2
Online Betting Technology [Member]
Asset Acquisition [Line Items]
Stock Issued During Period, Shares, Purchase of Assets65,000
Stock Issued During Period, Value, Purchase of Assets $ 1,456,650
Intangible assets license agreements1,876,748
Amortization of Intangible Assets $ 156,396
Online Betting Technology [Member] | Upon Execution Of Agreement [Member]
Asset Acquisition [Line Items]
Payment for option $ 133,770
Online Betting Technology [Member] | Upon Exercise Of Option [Member]
Asset Acquisition [Line Items]
Payment for option $ 286,328
Internet Domain Names [Member] | ESEG Limited [Member]
Asset Acquisition [Line Items]
Investment Owned, at Cost $ 2,239,606
Debt Instrument, Face Amount $ 2,100,000
Debt maturity dateMar. 1,
2022
Debt interest rate10.00%
Debt balloon payment $ 675,000
Debt balloon payment dateSep. 1,
2025
Unamortized discount $ 535,394
Warrants [Member]
Asset Acquisition [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 19.92 $ 0.93
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period3,697,225
Technology Data [Member]
Asset Acquisition [Line Items]
Payments to Acquire Software $ 61,425
Payments to Acquire Productive Assets118,677
Contractual Obligation $ 110,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period100,000
Technology Data [Member] | Warrants [Member]
Asset Acquisition [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights32,000
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 0.25
Warrants and Rights Outstanding, Term5 years
[custom:FairValueOfWarrantsGranted] $ 57,252

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)Sep. 02, 2020Apr. 30, 2021Sep. 26, 2020Apr. 30, 2021
Other Commitments [Line Items]
Common stock an exercise price $ 2
Consultant fee $ 200,000
Consulting Agreement [Member]
Other Commitments [Line Items]
Warrants converted, shares issued62,386
IPO [Member]
Other Commitments [Line Items]
Shares issued2,400,000
Gross cash proceeds $ 14,400,000
Payment of stock issuance costs $ 885,800
IPO [Member] | Underwriters [Member]
Other Commitments [Line Items]
Payment of stock issuance costs $ 885,800
Warrants issued168,000
Common stock an exercise price $ 7.20 $ 7.20
Warrant term5 years5 years

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2022Mar. 31, 2021Mar. 31, 2022Mar. 31, 2021
Numerator
Net income (loss) $ (11,841,071) $ (2,375,660) $ (20,722,109) $ (5,126,391)
Preferred stock dividends(1,367,260)0 (1,851,077)0
Net income (loss) attributable to common stockholders $ (13,208,331) $ (2,375,660) $ (22,573,186) $ (5,126,391)
Denominator
Basic and diluted weighted average common shares14,236,755 10,587,654 13,980,720 9,878,185
Basic and diluted net income (loss) per common share $ (0.93) $ (0.22) $ (1.61) $ (0.52)