LISTED gaming technology provider DFNN, Inc. is banking on its recently launched LottoMatik platform and other technology products such as electronic gates (e-gates) to support its rebound after reporting a wider negative equity as of end-March.
The company aims to scale its business verticals, including LottoMatik, which was launched in February, DFNN President and Chief Executive Officer Ricardo F. Banaag said in a regulatory filing on Wednesday.
“The company aims for LottoMatik to achieve deployment parity with existing land-based lotto outlets, expanding its footprint to match traditional distribution channels and serve a wider segment of the population,” Mr. Banaag said.
The LottoMatik is a portable point-of-sale device that streamlines the process of buying lotto tickets.
Mr. Banaag said this as the Philippine Stock Exchange sought the company’s recovery plan and future actions after a wider negative equity, which puts it at risk of involuntary delisting.
DFNN posted P403.15 million in negative equity as of end-March, wider than the P273.21 million in negative equity as of end-2024.
LottoMatik is a platform that aims to digitalize and modernize the lottery experience and reach underserved markets across the country.
In addition, Mr. Banaag said DFNN has allocated the capital raised from private placements worth P450 million to settle existing obligations, invest in cybersecurity and artificial intelligence (AI), and cover regulatory listing expenses.
He added that DFNN is planning to increase its authorized capital stock, which would convert debt into equity and reduce the company’s liabilities.
Mr. Banaag also said DFNN is set to receive a boost from the e-gates project of its information technology subsidiary, Intelligent Wave Philippines, Inc. (iWave), at the Ninoy Aquino International Airport (NAIA).
“The rollout of the e-gates system is strategically aligned with the scheduled rehabilitation of NAIA Terminals 1 and 3, where the system will be installed,” he said.
“This timeline reflects our coordination with airport authorities and infrastructure readiness, ensuring operational deployment within the year 2025,” he added.
Mr. Banaag said iWave continues to build on its strengths in biometric systems, AI, unified messaging, and the Internet of Things.
“We remain confident that the outlined strategies form a solid foundation for DFNN’s continued viability and growth in the years ahead,” he said.
DFNN shares dropped by 2.08% or four centavos to P1.88 per share on Wednesday. — Revin Mikhael D. Ochave
