Better-than-expected Q3 results. Total company revenues of $5.4 million was 10% better than our $4.9 million estimate, which benefited from one month of Lucky Dino, a $2.3 million revenue contribution in the quarter. Gross profit margins were surprisingly strong at 57% versus our 44% estimate, which accounted for gross profit to be 45% above our estimate. Adjusted EBITDA was a loss of $2.1 million, which was roughly $1 million better than our $3.1 million loss estimate. Favorable operating momentum. The company reiterated its guidance for $18 million in fiscal 2021 revenue and $70 million for full fiscal year 2022. This implies $10 million in fiscal Q4 2021 revenue, in line with our estimates. Notably, the company anticipates that its new burn rate has decreased from $900,000 per month to $600,000 per month, better than our Q4 2021 expectation of $700,000. Helix/ggCircuit closing in view. Management expects to close on the Helix/ggCircuit acquisition by the end of the month and has taken off of the table using equity to finance the transaction given the weak stock price. We view the acquisition favorably and believe that it offers a compelling platform for future revenue and cash flow growth. Building out the platform. Management anticipates that it will shortly receive the New Jersey gambling license and that it will be up and running by the end of the summer. Discussions are underway with other states. In addition, management indicated that additional acquisitions are pending that will further establish it as an platform esports play. Compelling risk/reward. The GMBL shares dropped a hefty 47% since April 7th to near current levels, likely on concerns over the prospect of a dilutive financing for the Helix acquisition. We believe that those concerns are overblown given management's assurance that it will rather walk away from the deal than proceed with a dilutive deal. Near current levels, the GMBL shares trade at a modest 2.6 times Enterprise Value to our fiscal 2022 revenue estimate, or roughly 60% below average M&A transaction multiples. The shares are rated Outperform with a $20 price target. Read More >>