THE AXIE INFINITY COMMUNITY GOES FOR THE SLAM DUNK WITH BIG3 CHAMPIONS TRILOGY

The quarterly report and monetary statements have been revealed on OTC Markets and could also be discovered at http://www.otcmarkets.com/inventory/TAPM/disclosure . The outcomes offered under exchange, of their entirety, any steering or projections beforehand issued by the Firm.

For the three months ended June 30, 2022 , Tapinator achieved income of roughly $1.4 million , bookings* of roughly $1.3 million , internet lack of roughly $77,000 and adjusted EBITDA ^* of roughly $292,000 .  The Firm’s income, bookings ^* and adjusted EBITDA ^* symbolize year-over-year declines of two%, 12% and 22%, respectively.  For the quarter, the Firm additionally introduced fundamental and totally diluted internet loss per share of $0.03 per share.

For the six months ended June 30, 2022 , Tapinator achieved income of roughly $3.1 million , bookings* of roughly $3.0 million , internet earnings of roughly $733,000 and adjusted EBITDA ^* of roughly $786,000 .  The Firm’s annual income, bookings ^* , internet earnings and adjusted EBITDA ^* symbolize year-over-year enchancment of 17%, 9%, 62% and 37%, respectively.  For the six-month interval, the Firm additionally introduced fundamental and totally diluted internet earnings per share of $0.26 per share.

^* A desk has been included on this press launch with non-GAAP changes to the Firm’s income leading to bookings (a non-GAAP measure) and non-GAAP changes to the Firm’s internet loss, leading to adjusted EBITDA (a non-GAAP measure) for the related intervals.

Ilya Nikolayev , CEO of Tapinator commented, “Our outcomes this quarter, in each our cell gaming and NFT assortment and publishing companies had been negatively impacted by macroeconomic headwinds and business vast slowdowns as in comparison with the numerous progress skilled in the course of the pandemic period.  On the cell gaming facet, we proceed to have multi-year conviction concerning our key franchise video games, together with Video Poker Basic, Crypto Trillionaire, Keno Vegas and Fortunate Lotto, and are actively persevering with to develop these titles.  Throughout this previous quarter, we additionally embarked upon a longer-term technique of accelerating our funding in recreation advertising and marketing, a technique we imagine to be essential for resuming general progress in future quarters.

With respect to our NFT enterprise, we’re targeted on two instructions:

1) NFT 500 is our NFT advantageous artwork assortment platform and corresponding cell utility. So far, we’ve acquired roughly 450 advantageous artwork NFTs from greater than 250 distinguished NFT artists corresponding to Tyler Hobbs , Matt Kane , Larva Labs, Bored Ape Yacht Membership, Vera Molnar , XCOPY, Helena Sarin , Pindar Van Arman, Monica Rizzolli, Refik Anadol , Manolo Gamboa Naon , Kevin Abosch , Zach Lieberman , Anne Spalter , Snofro, Hackatao, Bruce Gilden , Man Bourdin , Justin Aversano , Claire Silver , Sofia Crespo , Zancan, Matt Deslauriers , Nick Kuder and Damien Hirst .  We proceed to refine, diversify, and increase our assortment and we view these digital belongings as enticing long-term investments inside the rising NFT artwork asset class.  Whereas we stay extremely enthused about our assortment and the belongings that we’ve acquired to this point, we imagine the short-term volatility of the NFT and general crypto markets necessitate a extra cautious go-forward strategy within the close to time period as we focus our sources on driving out the troublesome macro surroundings dealing with our core cell gaming enterprise.

2) Our NFT Publishing enterprise focuses on partnering with artists who’ve current our bodies of labor and serving to them enter the NFT house. There are a large number of proficient artists, together with digital creatives and photographers, who could be a terrific match for NFTs, but lack the technical, advertising and marketing and curatorial experience to succeed. The numerous expertise that we’ve acquired as collectors and operators inside this space has put us able the place we’re capable of help.  We entered the NFT Publishing enterprise in Q3 of final yr and, to this point, have efficiently bought out a number of assortment releases representing over 200 artworks from a number of artists. Whereas we plan to proceed these publishing efforts opportunistically, we don’t plan to focus closely on this space within the close to time period given the volatility of the NFT market.  Nevertheless, we nonetheless imagine that we’ve solely scratched the floor of NFTs and Web3 extra broadly, and we’ll proceed to guage particular alternatives that may drive long run progress.”

Andrew Merkatz , President of Tapinator, additionally commented on the Firm’s outcomes, “General market circumstances inside each the cell gaming and crypto markets deteriorated considerably in Q2 2022.  In keeping with analysis agency Sensor Tower, cell spending declined at a price of 12% year-over-year in the course of the second quarter of 2022.  The 12% lower in our Bookings in the course of the quarter would point out that our top-line efficiency was in keeping with the market general. Given previous and present macro circumstances, we might count on to see not less than three extra quarters of year-over-year contraction.  We imagine that our historic deal with sustaining a lean price construction has positioned us effectively to face up to such contraction. We count on that our continued investments in our franchise video games, mixed with our newer investments in recreation advertising and marketing will start to yield significant outcomes for the Firm as we glance out to 2023 and past.”

Present Outlook
Whereas we proceed to have conviction concerning our cell video games enterprise, and particularly our Class Main Video games, as indicated within the earlier quarter, we face macroeconomic headwinds and witnessing an business vast slowdown as in comparison with the numerous progress skilled in the course of the pandemic period.  We imagine we’re comparatively effectively positioned to climate such slowdown given our deal with evergreen recreation sorts inside the social on line casino style and our historic deal with price management.  Our investments inside the NFT house are extra speculative and risky, and we’ve not too long ago begun tempering these investments, given market circumstances.  Nevertheless, we proceed to imagine there might be substantial long-term alternatives for the Firm inside the nascent Web3 markets representing the intersection of NFTs, digital artwork, gaming and the rising metaverse and we’ll proceed to discover these alternatives. Presently, we aren’t offering monetary steering.

Non-GAAP Monetary Measures*
We’ve offered on this launch the non-GAAP monetary measures of Bookings and adjusted EBITDA as a complement to the measures of Income and Working that are ready in accordance with United States typically accepted accounting rules (“GAAP”). Administration makes use of Bookings and adjusted EBITDA internally in analyzing our monetary outcomes to evaluate operational efficiency and liquidity. The presentation of Bookings and adjusted EBITDA isn’t meant to be thought-about in isolation or as an alternative to the monetary data ready in accordance with GAAP. We imagine that each administration and buyers profit from referring to Bookings and adjusted EBITDA in assessing our efficiency and when planning, forecasting and analyzing future intervals. We imagine Bookings and adjusted EBITDA are helpful to buyers as a result of it permits for larger transparency with respect to key monetary metrics we use in making working selections and since our buyers and analysts use them to assist assess the well being of our enterprise. Beneath, we’ve offered reconciliations between our historic Bookings and adjusted EBITDA to probably the most instantly comparable GAAP monetary measures under.  Some limitations of Bookings and adjusted EBITDA are as follows:

• Bookings don’t mirror that we defer and acknowledge on-line recreation income over the estimated lifetime of sturdy digital items;
• Adjusted EBITDA doesn’t embody the affect of stock-based expense, impairment of beforehand capitalized software program or intangible belongings beforehand acquired, acquisition-related transaction bills, one-time financing bills, contingent consideration truthful worth changes, share settlement expense, and restructuring expense;
• Adjusted EBITDA doesn’t mirror earnings tax expense;
• Adjusted EBITDA doesn’t embody different earnings or expense, which incorporates international alternate positive aspects and losses, curiosity earnings or expense, and achieve on extinguishment of debt;
• Adjusted EBITDA excludes depreciation and amortization of intangible belongings and impairment of capitalized software program. Though depreciation and amortization and impairment of capitalized software program are non-cash fees, the belongings being depreciated and amortized or impaired might have to get replaced sooner or later; and
• Different firms, together with firms in our business, might calculate adjusted EBITDA otherwise or under no circumstances, which is able to cut back their usefulness as a comparative measure.

Due to these limitations, you must take into account Bookings and adjusted EBITDA together with different monetary efficiency measures, together with Income, Internet Revenue (Loss), Primary and Diluted Internet Revenue (Loss) Per Share, Money Move from Operations, Working Revenue (Loss), and our different monetary outcomes introduced in accordance with GAAP.

About Tapinator
Tapinator Inc. (OTC: TAPM) develops and publishes class main video games for cell platforms. Tapinator’s library consists of greater than 300 titles that, collectively, have achieved over 500 million cell downloads, together with notable properties corresponding to Video Poker Basic and Crypto Trillionaire .  By means of our wholly-owned subsidiary, Revolution Blockchain and the NFT 500 platform, we’ve amassed a major assortment of what we imagine are “blue-chip” advantageous artwork NFT’s, and we’ve developed and launched a cell utility that extends the utility of those digital asset investments.  We generate revenues from our cell video games through shopper transactions, together with in-app purchases and subscriptions, and thru the sale of branded ads. We additionally generate income from publishing and promoting NFTs in partnership with choose artists. Based in 2013, we’re headquartered in New York , with product groups situated in North America and Europe .

Ahead Trying Statements
To the extent that statements contained on this press launch are usually not descriptions of historic information concerning Tapinator, they’re forward-looking statements reflecting the present beliefs and expectations of administration made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Phrases corresponding to “imagine,” “aim,” “search,” “plan,” “really feel,” “opinion,” “might,” “will,” “count on,” “anticipate,” “estimate,” “intend,” “goal,” and related expressions (in addition to different phrases or expressions referencing future occasions, circumstances or circumstances) are meant to establish forward-looking statements. These forward-looking statements embody, amongst different issues, our view that our NFT artwork digital belongings are long-term investments inside the rising NFT artwork asset class, our perception that our longer-term technique of accelerating our funding in recreation advertising and marketing will lead to resuming general progress in future quarters,  our perception that we’ve solely scratched the floor of NFTs and Web3 extra broadly, our expectation that we’ll see three extra quarters of year-over-year contraction, our perception that our historic deal with sustaining a lean price construction has positioned us effectively to face up to such contraction,  our expectation that our continued investments in our franchise video games mixed with our newer investments in recreation advertising and marketing will start to yield significant outcomes for us as we glance out to 2023, our perception that we’re comparatively effectively positioned to climate the present macroeconomic headwinds and business vast slowdown given our deal with evergreen recreation sorts inside the social on line casino style and our historic deal with price management and our continued perception there are substantial long-term alternatives for us inside the nascent Web3 markets representing the intersection of NFTs, digital artwork, gaming and the rising metaverse.  Ahead-looking statements are topic to dangers and uncertainties that would trigger our future outcomes, efficiency or achievements to vary considerably from these expressed or implied by the forward-looking statements. Besides as required by regulation, Tapinator undertakes no obligation to replace or revise any forward-looking statements. The quoting and buying and selling of the Firm’s frequent inventory on the OTC Market is commonly skinny and characterised by vast fluctuations in buying and selling costs, attributable to many elements that will have little to do with the Firm’s operations or enterprise prospects. Because of this, there could also be volatility out there value of the shares of the Firm’s frequent inventory for causes unrelated to working efficiency. Furthermore, the OTC Market isn’t a inventory alternate, and buying and selling of securities on it’s typically extra sporadic than buying and selling of securities listed on a nationwide securities alternate. Accordingly, stockholders might have issue reselling any of their shares. For an extra description of the dangers and uncertainties that would trigger precise outcomes to vary from these expressed in these forward-looking statements, in addition to dangers referring to the enterprise of the Firm, please see the Firm’s Supplemental Info Report as filed with the OTC Markets on October 20, 2021 and as up to date occasionally.

CONTACT :
Tapinator Investor Relations
investor.relations@tapinator.com
914.930.6232

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SOURCE Tapinator, Inc.