EX-99.1 2 tm2531142d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

BRAGG GAMING GROUP INC.

 

INTERIM UNAUDITED CONDENSED 

CONSOLIDATED FINANCIAL STATEMENTS

 

Three and nine-month periods ended September 30, 2025 and September 30, 2024

 

Presented in Euros (Thousands)

 

 

 

TABLE OF CONTENTS

 

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS 1
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 2
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 3
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 4

 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS    
       
1 GENERAL INFORMATION   5
2 MATERIAL ACCOUNTING POLICIES   5
3 LOSS BEFORE INCOME TAXES CLASSIFIED BY NATURE   6
4 CONVERTIBLE DEBT   7
5 SHARE CAPITAL   8
6 WARRANTS   8
7 SHARE BASED COMPENSATION   9
8 GOODWILL   13
9 DEFERRED CONSIDERATION   13
10 RIGHT OF USE ASSETS   14
11 INTANGIBLE ASSETS   15
12 TRADE AND OTHER RECEIVABLES   16
13 TRADE PAYABLES AND OTHER LIABILITIES   16
14 LEASE LIABILITIES   17
15 LOANS PAYABLE ` 18
16 RELATED PARTY TRANSACTIONS   20
17 FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT   21
18 SUPPLEMENTARY CASHFLOW INFORMATION   25
19 SEGMENT INFORMATION   26
20 INCOME TAXES   27
21 CONTINGENT LIABILITIES   28
22 SUBSEQUENT EVENTS   28

 

1

 

BRAGG GAMING GROUP INC. 

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

       Three Months Ended September 30,   Nine Months Ended
September 30,		 
   Note   2025   2024   2025   2024 
Revenue  3, 19   26,804   26,169   78,388   74,841 
Cost of revenue  3   (12,154)  (12,167)  (35,711)  (36,558)
Gross Profit      14,650   14,002   42,677   38,283 
                     
Selling, general and administrative expenses  3   (15,852)  (14,829)  (47,750)  (40,918)
Gain (Loss) on remeasurement of derivative liability  4   —   46   —   (94)
Gain on settlement of convertible debt  4   —   104   —   169 
Gain (Loss) on remeasurement of deferred consideration  3, 9, 17   —   271   (157)  (329)
Operating Loss      (1,202)  (406)  (5,230)  (2,889)
                     
Net interest expense and other financing charges  3, 18   (217)  (848)  (577)  (2,370)
Loss Before Income Taxes      (1,419)  (1,254)  (5,807)  (5,259)
                     
Income taxes (expense) recovery  20   (886)  1,089   (967)  790 
Net Loss      (2,305)  (165)  (6,774)  (4,469)
                     
Items to be reclassified to net loss:                    
Cumulative translation adjustment      (730)  (1,002)  (4,833)  (998)
                     
Net Comprehensive Loss      (3,035)  (1,167)  (11,607)  (5,467)
                     
Basic Loss Per Share      (0.09)  (0.01)  (0.27)  (0.19)
Diluted Loss Per Share      (0.09)  (0.01)  (0.27)  (0.19)
                     
       Millions    Millions    Millions    Millions  
Weighted average number of shares - basic      25.4   25.0   25.2   24.0 
Weighted average number of shares - diluted      25.4   25.0   25.5   24.0 

 

See accompanying notes to the interim unaudited condensed consolidated financial statements.

 

2

 

BRAGG GAMING GROUP INC. 

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

       As at   As at 
       September 30,   December 31, 
   Note   2025   2024 
Cash and cash equivalents        3,024    10,467 
Trade and other receivables   12, 17    25,510    20,072 
Prepaid expenses and other assets        4,922    2,624 
Total Current Assets        33,456    33,163 
Property and equipment        1,251    1,341 
Right-of-use assets   10    4,310    3,510 
Intangible assets   11    29,363    35,859 
Goodwill   8    31,214    32,722 
Investments in associates        500    — 
Other assets        403    — 
Total Assets        100,497    106,595 
                
Trade payables and other liabilities   13, 17    26,312    19,946 
Income taxes payable   20    1,074    463 
Lease obligations on right-of-use assets   14    1,364    882 
Deferred consideration   9    —    1,244 
Share appreciation rights liability   7    480    — 
Loans payable   15    2,752    6,579 
Total Current Liabilities        31,982    29,114 
Deferred income tax liabilities   20    551    680 
Lease obligations on right-of-use assets   14    3,057    2,815 
Share appreciation rights liability   7    400    — 
Other non-current liabilities        486    487 
Total Liabilities        36,476    33,096 
                
Share capital   5    133,253    131,729 
Contributed surplus        18,285    17,680 
Accumulated deficit        (87,984)   (81,210)
Accumulated other comprehensive income        467    5,300 
Total Equity        64,021    73,499 
Total Liabilities and Equity        100,497    106,595 

 

See accompanying notes to the interim unaudited condensed consolidated financial statements.

 

Approved on behalf of the Board

 

Matevž Mazij Holly Gagnon
Chief Executive Officer Chair of the Board of Directors

 

3

 

BRAGG GAMING GROUP INC. 

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

                       Accumulated     
                       other     
       Share   Shares to   Contributed   Accumulated   comprehensive   Total 
   Note   capital   be issued   surplus   deficit   income (loss)   equity 
Balance as at January 1, 2024      120,015   3,491   19,887   (76,063)  2,917   70,247 
Shares issued upon exercise of convertible debt  4   2,704   —   —   —   —   2,704 
Shares issued as deferred consideration  9   5,630   (3,491)  —   —   —   2,139 
Exercise of restricted share units  7   1,799   —   (1,799)  —   —   — 
Exercise of deferred share units  7   1,041   —   (1,041)  —   —   — 
Exercise of stock options  7   517   —   (201)  —   —   316 
Share-based compensation  7   —   —   710   —   —   710 
Net loss for the period      —   —   —   (4,469)  —   (4,469)
Other comprehensive loss      —   —   —   —   (998)  (998)
Balance as at September 30, 2024      131,706   —   17,556   (80,532)  1,919   70,649 
                             
Balance as at January 1, 2025      131,729   —   17,680   (81,210)  5,300   73,499 
Shares issued as deferred consideration  9   1,380   —   —   —   —   1,380 
Exercise of stock options  7   144   —   (94)  —   —   50 
Share-based compensation  7   —   —   699   —   —   699 
Net loss for the period      —   —   —   (6,774)  —   (6,774)
Other comprehensive loss      —   —   —   —   (4,833)  (4,833)
Balance as at September 30, 2025      133,253   —   18,285   (87,984)  467   64,021 

 

See accompanying notes to the interim unaudited condensed consolidated financial statements.

 

4

 

BRAGG GAMING GROUP INC. 

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

       Nine Months Ended September 30, 
   Note   2025   2024 
Operating Activities               
Net loss        (6,774)   (4,469)
Add:               
Net interest expense and other financing charges   3, 18    577    2,370 
Depreciation and amortization   3    14,918    12,201 
Share based compensation   7    1,589    710 
Loss on remeasurement of derivative liability   4    —    94 
Gain on settlement of convertible debt   4    —    (169)
Loss on remeasurement of deferred consideration   3, 9, 17    157    329 
Unrealized foreign exchange (gain) loss        (124)   40 
Income taxes expense (recovery)   20    967    (790)
         11,310    10,316 
Change in working capital   18    (1,371)   (2,899)
Income taxes (paid) recovered   20    (440)   1,004 
Cash Flows From Operating Activities        9,499    8,421 
                
Investing Activities               
Purchases of property and equipment        (294)   (677)
Additions of intangible assets   11    (9,540)   (8,183)
Loan receivables        (400)   — 
Investment in associates        (500)   — 
Cash Flows Used In Investing Activities        (10,734)   (8,860)
                
Financing Activities               
Proceeds from exercise of stock options   7    50    316 
Repayment of convertible debt        —    (1,377)
Repayment of lease liability   14    (922)   (512)
Proceeds from loans payable   15    2,753    6,332 
Repayment of loans payable   15    (6,139)   — 
Interest and financing fees        (812)   (703)
Cash Flows (Used In) Generated From Financing Activities        (5,070)   4,056 
                
Effect of foreign currency exchange rate changes on cash and cash equivalents        (1,138)   (844)
Change In Cash And Cash Equivalents        (7,443)   2,773 
Cash and cash equivalents at beginning of period        10,467    8,796 
Cash And Cash Equivalents At End Of Period        3,024    11,569 

 

See accompanying notes to the interim unaudited condensed consolidated financial statements.

 

5

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

1   GENERAL INFORMATION

 

Nature of operations

 

Bragg Gaming Group Inc. and its subsidiaries (collectively, “Bragg” or the “Company”) are, primarily and collectively, a business-to-business (“B2B”) online gaming technology platform and casino content aggregator.

 

The registered and head office of the Company is located at 130 King Street West, Suite 1955, Toronto, Ontario, Canada M5X 1E3.

 

2   MATERIAL ACCOUNTING POLICIES

 

The interim unaudited condensed consolidated financial statements (“interim financial statements”) were prepared using the same basis of presentation, accounting policies and methods of computation, and using the same significant estimates and judgments in applying the accounting policies as those of the audited consolidated financial statements for the year ended December 31, 2024, which are available at www.sedarplus.ca.

 

Statement of compliance and basis of presentation

 

The accompanying interim financial statements have been prepared in accordance with International Accounting Standards (“IAS”) 34 Interim Financial Reporting and do not include all of the information required for annual consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024.

 

These interim financial statements are prepared on a historical cost basis except for financial instruments classified at fair value through profit or loss (“FVTPL”) or fair value through other comprehensive income (“FVOCI”) which are measured at fair value. The material accounting policies set out in note 2 of the audited consolidated financial statements for the year ended December 31, 2024 have been applied consistently in the preparation of the interim financial statements for all periods presented.

 

These interim financial statements were, at the recommendation of the audit committee, approved and authorized for filing by the board of directors of the Company (the “Board”) on November 13, 2025.

 

6

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

3 LOSS BEFORE INCOME TAXES CLASSIFIED BY NATURE

 

The loss before income taxes is classified as follows:

 

       Three Months Ended September 30,   Nine Months Ended September 30, 
   Note   2025   2024   2025   2024 
Revenue   19    26,804    26,169    78,388    74,841 
Cost of revenue        (12,154)   (12,167)   (35,711)   (36,558)
Gross Profit        14,650    14,002    42,677    38,283 
                          
Salaries and subcontractors        (6,759)   (5,230)   (19,071)   (15,470)
Share based compensation   7    (4)   (106)   (1,589)   (710)
Total employee costs        (6,763)   (5,336)   (20,660)   (16,180)
Depreciation and amortization        (5,229)   (4,330)   (14,918)   (12,201)
IT and hosting        (1,497)   (1,359)   (4,150)   (3,619)
Professional fees        (1,183)   (1,559)   (3,458)   (3,952)
Corporate costs        (303)   (135)   (557)   (411)
Sales and marketing        (212)   (708)   (799)   (1,800)
Bad debt recovery (expense)   12    436    (539)   (443)   (642)
Travel and entertainment        (274)   (238)   (1,038)   (670)
Debt origination costs        (412)   (72)   (412)   (72)
Other operational costs        (415)   (553)   (1,315)   (1,371)
Selling, General and Administrative Expenses        (15,852)   (14,829)   (47,750)   (40,918)
                          
Gain (Loss) on remeasurement of derivative liability   4    —    46    —    (94)
Gain on settlement of convertible debt   4    —    104    —    169 
Gain (Loss) on remeasurement of deferred consideration   9    —    271    (157)   (329)
Operating Loss        (1,202)   (406)   (5,230)   (2,889)
                          
Interest income        19    —    28    — 
Accretion on liabilities   9    —    (557)   (168)   (1,667)
Foreign exchange gain        19    51    337    7 
Interest and financing fees        (255)   (342)   (774)   (710)
Net Interest Expense and Other Financing Charges        (217)   (848)   (577)   (2,370)
Loss Before Income Taxes        (1,419)   (1,254)   (5,807)   (5,259)

 

7

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

4 CONVERTIBLE DEBT

 

On September 5, 2022, the Company entered into a Funding Agreement for an investment of EUR 8,770 (USD 8,700) with Lind in the form of a Convertible Debt with a face value of EUR 10,081 (USD 10,000), bearing interest at an inherent rate of 7.5% maturing 24 months after issuance. Net proceeds after deducting transaction fees were EUR 8,053. The face value of the Convertible Debt has a 24-month maturity date and can be paid in cash or be converted into common shares of the Company ("Shares") at a conversion price equal to 87.5% of the five-day volume weighted average price ("VWAP") immediately prior to each conversion. Shares issued upon conversion are subject to a 120-day lock-up period following deal close.

 

   Convertible debt   Derivative liability   Total 
Balance as at January 1, 2024  2,445   471   2,916 
Accretion expense  1,298   —   1,298 
Loss on remeasurement of derivative liability  —   94   94 
Gain on settlement of convertible debt  —   (169)  (169)
Shares issued upon exercise of convertible debt  (2,314)  (390)  (2,704)
Repayment of convertible debt  (1,377)  —   (1,377)
Effect of movement in exchange rates  (52)  (6)  (58)
Balance as at December 31, 2024  —   —   — 

 

On August 7, 2024, the convertible debt has been settled in full.

 

For the three and nine months ended September 30, 2024, an accretion expense of EUR 493 and EUR 1,298 was recognised in net interest expense and other financing charges in respect of the Host Debt component. For the three and nine months ended September 30, 2024, a gain of EUR 46 and loss of EUR 94 on remeasurement of derivative liability was recognised in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

During the three and nine months ended September 30, 2024 and until the debt was settled in full, immediately prior to any conversion, the embedded derivative liability is remeasured at fair value through profit and loss. Key valuation inputs and assumptions used are closing stock price on dates of conversion of between CAD 6.910 and 8.750, 5-day VWAP of between CAD 6.910 and 8.827, expected life of between 0.06 to 0.56 years, annual risk-free rate of between 5.17% and 5.54%

 

During the three and nine months ended September 30, 2024, nil and 504,215 shares, respectively, were issued upon exercise of convertible debt representing USD 2,500 of the total face value of USD 10,000. The Company also elected to settle USD 1,500 of the debt in cash upon delivery of a cash in-lieu of shares conversion notice for a total of USD 1,545.

 

Derivative and host debt balances representing the fair value of the converted debt are subsequently transferred to the share capital account in the interim unaudited condensed statements of changes in equity. Upon exercise, during the three and nine months ended September 30, 2024, EUR nil and EUR 2,314 was transferred from the host debt liability and EUR nil and EUR 390 from derivative liability, respectively, to share capital in the interim unaudited condensed consolidated statements of changes in equity for a total of EUR nil and EUR 2,127, respectively.

 

8

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

5 SHARE CAPITAL

 

Authorized - Unlimited Common Shares, fully paid

 

The following is a continuity of the Company’s share capital:

 

      Note   Number   Value 
January 1, 2024  Balance      23,003,552   120,015 
February 5, 2024 to June 5, 2024  Shares issued upon exercise of convertible debt  4   504,215   2,704 
June 1, 2024  Shares issued upon settlement of deferred consideration for Spin acquisition      369,516   2,139 
June 2, 2024  Shares issued upon settlement of deferred consideration for Wild Streak acquisition      393,111   3,491 
April 1, 2024 to September 9, 2024  Issuance of share capital upon exercise of FSOs  7   120,807   517 
May 1, 2024 to September 18, 2024  Issuance of share capital upon exercise of DSU  7   198,481   1,041 
May 1, 2024 to May 14,2024  Issuance of share capital upon exercise of RSU  7   418,000   1,799 
September 30, 2024  Balance      25,007,682   131,706 
                
January 1, 2025  Balance      25,042,982   131,729 
February 6, 2025  Exercise of FSO  7   25,000   123 
June 5, 2025  Shares issued upon settlement of deferred consideration for Spin acquisition      371,496   1,380 
June 30, 2025  Exercise of FSO  7   10,000   21 
September 30, 2025  Balance      25,449,478   133,253 

 

The Company’s common shares have no par value.

 

6 WARRANTS

 

The following are continuities of the Company’s warrants:

 

        Warrants 
        issued as part of 
Number of Warrants       convertible debt 
January 1, 2024    Balance   979,048 
September 30, 2024    Balance   979,048 
           
January 1, 2025    Balance   979,048 
September 30, 2025    Balance   979,048 

 

Each unit consists of the following characteristics:

 

    Warrants 
    issued as part of 
    convertible debt 
Number of shares     1 
Number of Warrants     — 
Exercise price of unit (CAD)     9.28 

 

9

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

6 WARRANTS (CONTINUED)

 

Warrants issued upon completion of Financing Arrangement

 

On September 5, 2022, the Company issued 979,048 warrants, each exercisable at CAD 9.28 for one common share and expiring five years from issuance. The warrants include acceleration clauses based on the Company’s share price performance, which may result in partial or full expiry if not exercised within a specified period.

 

As the combined fair value of the host debt liability and derivative liability exceeded the transaction price, no value was allocated to the warrants in equity.

 

7 SHARE BASED COMPENSATION

 

The Company maintains an Omnibus Incentive Equity Plan (“OEIP”) for certain employees and consultants. The plan was approved at an annual and special meeting of shareholders on November 27, 2020.

 

The following table summarizes information about the OEIP.

 

   DSU   RSU   SAR   FSO 
                   Weighted 
   Outstanding   Outstanding   Outstanding   Outstanding   Average 
   DSUs   RSUs   SARs   FSOs   Exercise 
   (Number of   (Number of   (Number of   (Number   Price / Share 
   of shares)   of shares)   of shares)   of shares)   CAD 
Balance as at January 1, 2024   225,154    498,000    —    1,777,438    8.43 
Granted   -    -    -    165,000    6.69 
Exercised   (198,481)   (418,000)   -    (120,807)   3.80 
Expired   —    —    —    (50,000)   5.00 
Forfeited / Cancelled   (7)   —    —    (125,363)   6.81 
Balance as at September 30, 2024   26,666    80,000    —    1,646,268    8.61 
                          
Balance as at January 1, 2025   26,666    280,000    1,329,082    1,602,346    8.81 
Granted   —    —    306,829    15,000    2.30 
Exercised   —    —    —    (35,000)   2.30 
Forfeited / Cancelled   —    —    —    (59,838)   8.28 
Balance as at September 30, 2025   26,666    280,000    1,635,911    1,522,508    8.92 

 

10

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

7 SHARE BASED COMPENSATION (CONTINUED)

 

The following table summarizes information about the outstanding share options as at September 30, 2025:

 

   Outstanding   Exercisable 
       Weighted   Weighted       Weighted 
       Average   Average       Average 
   FSOs   Remaining   Exercise   FSOs   Exercise 
Range of exercise  (Number   Contractual   Price / Share   (Number   Price / Share 
prices (CAD)  of shares)   Life (Years)   CAD   of shares)   CAD 
2.30 - 5.00   20,000    10    4.68    10,000    4.68 
5.01 - 8.62   1,101,071    2    7.75    1,016,087    7.77 
8.63 - 15.00   399,885    5    12.25    399,885    12.25 
15.01 - 33.30   1,552    1    33.30    1,552    33.30 
    1,522,508    3    8.92    1,427,524    9.03 

 

The following table summarizes information about the outstanding share options as at September 30, 2024:

 

   Outstanding   Exercisable 
       Weighted   Weighted       Weighted 
       Average   Average       Average 
   FSOs   Remaining   Exercise   FSOs   Exercise 
Range of exercise  (Number   Contractual   Price / Share   (Number   Price / Share 
prices (CAD)  of shares)   Life (Years)   CAD   of shares)   CAD 
2.30 - 5.00   83,700    1    2.30    83,700    2.30 
5.01 - 8.62   1,131,081    4    7.72    909,354    7.80 
8.63 - 15.00   429,935    6    12.17    423,981    12.19 
15.01 - 33.30   1,552    2    33.30    1,552    33.30 
    1,646,268    4    8.61    1,418,587    8.80 

 

Fixed Stock Options (“FSOs”)

 

During the three and nine months ended September 30, 2025, a share-based compensation charge of EUR 14 and EUR 198 (three and nine months ended September 30, 2024: EUR 108 and EUR 257) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

During the three and nine months ended September 30, 2025, nil and 35,000 common shares of the Company were issued upon exercise of FSOs (three and nine months ended September 30, 2024: 12,125 and 120,807). Upon exercise of FSOs, for the three and nine months ended September 30, 2025, EUR nil and EUR 94 (three and nine months ended September 30, 2024: EUR 2 and EUR 201) was transferred from contributed surplus to share capital in the interim unaudited condensed consolidated statements of changes in equity. Cash proceeds upon exercise of FSOs during the three and nine months ended September 30, 2025, totaled EUR nil and EUR 50 (three and nine months ended September 30, 2024: EUR 22 and EUR 316).

 

11

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

7 SHARE BASED COMPENSATION (CONTINUED)

 

Deferred Share Units (“DSUs”)

 

Exercises of grants may only be settled in shares, and only when the employee or consultant has left the Company. Under the OEIP, the Company may grant options of its shares at nil cost that vest immediately.

 

During the three and nine months ended September 30, 2025, a share-based compensation charge of EUR nil (three and nine months ended September 30, 2024: EUR 1 and EUR 6) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

During the three and nine months ended September 30, 2025, no common shares were issued upon exercise of DSUs (three and nine months ended September 30, 2024: 49,581 and 198,481). For the three and nine months ended September 30, 2025, upon exercise of DSUs, EUR nil (three and nine months ended September 30, 2024: 277 and EUR 1,041) was transferred from contributed surplus to share capital in the interim unaudited condensed consolidated statements of changes in equity.

 

Restricted Share Units (“RSUs”)

 

During the three and nine months ended September 30, 2025, a share-based compensation charge of EUR 167 and EUR 501 (three and nine months ended September 30, 2024: EUR nil and EUR 447) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

During the three and nine months ended September 30, 2025, no common shares were issued upon exercise of RSUs (three and nine months ended September 30, 2024: 418,000). For the three and nine months ended September 30, 2025, upon exercise of RSUs, EUR nil (three and nine months ended September 30, 2024: EUR 1,799) was transferred from contributed surplus to share capital in the interim unaudited condensed consolidated statements of changes in equity.

 

Share Appreciation Rights (“SARs”)

 

On December 29, 2024, the Company granted a Share Appreciation Rights plan for key members of management, which provided incentive compensation based on the appreciation in the value of the Company’s shares, thereby providing additional incentive for their efforts in promoting the continued growth and success of the business. The amount of the cash payment is determined based on the increase in the share price of the Company between the grant date and the time of the exercise.

 

The aggregate number of SAR units granted on December 29, 2024 totaled 1,329,082, with an issue price of CAD 5.00 per unit, based on the market price of the Company’s stock on the date of grant. During the nine months ended September 30, 2025, additional grants, also based on the market price on the date of grant, have been made as follows:

 

·144,529 units granted on June 26, 2025, at an issue price of CAD 6.06 per unit

 

·162,300 units granted on September 25, 2025, at an issue price of CAD 3.93 per unit

 

12

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

7 SHARE BASED COMPENSATION (CONTINUED)

 

These SAR units, which have a term of not exceeding five years, will vest as follows:

 

·1/3 on the first anniversary of the grant date

 

·1/3 on the second anniversary of the grant date

 

·1/3 on the third anniversary of the grant date

 

Details of the liabilities arising from the SARs were as follows:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Total carrying amount of liabilities for SARs   880    — 

 

The fair value of the SARs has been measured using Black-Scholes formula. Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value.

 

The inputs used in the measurement of the fair values at the measurement date of the SARs were as follows:

 

   As at 
   September 30, 
   2025 
Expected dividend yield (%)   — 
Expected share price volatility (%)   65.44 - 73.87 
Risk-free interest rate (%)   3.74 
Expected life of options (years)   5.0 
Share price (CAD)   4.20 
Forfeiture rate (%)   — 

 

Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price, particularly over the historical period commensurate with the expected term. The expected term of the instruments has been based on historical experience and general option holder behaviour.

 

During the three and nine months ended September 30, 2025, a share-based compensation charge (recovery) of EUR (177) and EUR 890 (three and nine months ended September 30, 2024: EUR nil) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

13

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

8   GOODWILL

 

The following is a continuity of the Company’s goodwill:

 

As at January 1, 2024   31,921 
Effect of Movement in exchange rates   801 
As at December 31, 2024   32,722 
      
Effect of movements in exchange rates   (1,508)
As at September 30, 2025   31,214 

 

The carrying amount of goodwill is attributed to the acquisitions of Oryx, Wild Streak and Spin. The Company completed its annual impairment tests for goodwill as at December 31, 2024 and concluded that there was no impairment.

 

9   DEFERRED CONSIDERATION

 

The following is a continuity of the Company’s deferred consideration:

 

Balance as at January 1, 2024   2,939 
Accretion expense   428 
Gain on remeasurement of deferred consideration   (132)
Shares issued as deferred consideration   (2,139)
Effect of movement in exchange rates   148 
Balance as at December 31, 2024   1,244 
      
Accretion expense   168 
Loss on remeasurement of deferred consideration   157 
Shares issued as deferred consideration   (1,380)
Effect of movement in exchange rates   (189)
Balance as at September 30, 2025   — 

 

On June 1, 2022, the Company acquired Spin Games LLC. The Company agreed deferred consideration payments in common shares of the Company over three years from the effective date recorded with a present value of EUR 4,003. The discount for lack of marketability (DLOM) on June 1, 2022, was determined by applying Finnerty’s average-strike put option model (2012) with a volatility of between 71.4% and 80.9%, an annual dividend rate of 0% and time to maturity of 1-3 years.

 

In the three and nine months ended September 30, 2025, an accretion expense of EUR nil and EUR 168 (three and nine months ended September 30, 2024: EUR 64 and EUR 369) was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

In the nine months ended September 30, 2025, a loss on remeasurement of deferred consideration of EUR 157 (three and nine months ended September 30, 2024: gain of EUR 271 and loss of EUR 329) was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

14

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

9   DEFERRED CONSIDERATION (CONTINUED)

 

As at September 30, 2025, the Company has EUR nil deferred consideration payable (December 31, 2024: EUR 1,244 in current liabilities), being fully settled on June 5, 2025, with the issuance of 371,496 shares.

 

The fair value of deferred consideration as at December 31, 2024 is measured by determining the period-end share price and the discount for lack of marketability (DLOM) applying Finnerty’s average-strike put option model (2012). The

 

assumptions include applying an annual dividend rate of 0.0% and volatility of 63.7% resulting in a DLOM of 9.3% for the third anniversary settlement of consideration.

 

10   RIGHT OF USE ASSETS

 

   Right of use 
   properties 
Cost     
Balance as at December 31, 2023   4,434 
Additions   161 
Modifications   836 
Disposal   (633)
Effect of movement in exchange rates   78 
Balance as at December 31, 2024   4,877 
Additions   1,682 
Modification   5 
Disposal   (125)
Effect of movement in exchange rates   (148)
Balance as at September 30, 2025   6,291 
      
Accumulated Depreciation     
Balance as at December 31, 2023   1,201 
Depreciation   806 
Disposal   (633)
Effect of movement in exchange rates   (7)
Balance as at December 31, 2024   1,367 
Depreciation   770 
Disposal   (63)
Effect of movement in exchange rates   (93)
Balance as at September 30, 2025   1,981 
      
Carrying Amount     
Balance as at December 31, 2024   3,510 
Balance as at September 30, 2025   4,310 

 

In the three and nine months ended September 30, 2025, depreciation expense of EUR 341 and EUR 770 was recognized within selling, general and administrative expenses (three and nine months ended September 30, 2024: EUR 229 and EUR 602).

 

15

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

11   INTANGIBLE ASSETS

 

       Deferred                 
   Intellectual   Development   Customer             
   Property   Costs   Relationships   Brands   Other   Total 
Cost                        
Balance as at December 31, 2023  18,096   21,595   24,758   2,148   299   66,896 
Additions  648   11,461   —   —   —   12,109 
Effect of movement in exchange rates  531   151   1,325   53   (1)  2,059 
Balance as at December 31, 2024  19,275   33,207   26,083   2,201   298   81,064 
Additions  702   8,817   —   —   21   9,540 
Effect of movement in exchange rates  (995)  (494)  (2,494)  (99)  (33)  (4,115)
Balance as at September 30, 2025  18,982   41,530   23,589   2,102   286   86,489 
                         
Accumulated Amortization                        
Balance as at December 31, 2023  8,445   11,270   7,452   1,430   166   28,763 
Amortization  2,755   8,962   3,246   663   88   15,714 
Effect of movement in exchange rates  186   42   451   42   7   728 
Balance as at December 31, 2024  11,386   20,274   11,149   2,135   261   45,205 
Amortization  2,171   9,140   2,377   64   38   13,790 
Effect of movement in exchange rates  (411)  (260)  (1,072)  (97)  (29)  (1,869)
Balance as at September 30, 2025  13,146   29,154   12,454   2,102   270   57,126 
                         
Carrying Amount                        
Balance as at December 31, 2024  7,889   12,933   14,934   66   37   35,859 
Balance as at September 30, 2025  5,836   12,376   11,135   —   16   29,363 

 

In the three and nine months ended September 30, 2025, amortization expense of EUR 4,766 and EUR 13,790 was recognized within selling, general and administrative expenses (three and nine months ended September 30, 2024: EUR 3,988 and EUR 11,343).

 

16

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

12TRADE AND OTHER RECEIVABLES

 

Trade and other receivables comprises:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Trade receivables   24,868    19,558 
Sales tax   642    514 
Trade and other receivables   25,510    20,072 

 

The following is an aging of the Company’s trade receivables:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Less than one month   23,899    18,984 
Between two and three months   979    660 
Greater than three months   2,707    2,411 
    27,585    22,055 
Provision for expected credit losses   (2,717)   (2,497)
Trade receivables   24,868    19,558 

 

The following is a continuity of the Company’s provision for expected credit losses related to trade receivables:

 

Balance as at December 31, 2023   2,059 
Net increase in provision for expected credit losses   438 
Balance as at December 31, 2024   2,497 
Net increase in provision for expected credit losses   220 
Balance as at September 30, 2025   2,717 

 

13   TRADE PAYABLES AND OTHER LIABILITIES

 

Trade payables and other liabilities comprises:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Trade payables   7,643    3,236 
Accrued liabilities   18,165    16,666 
Other payables   504    44 
Trade payables and other liabilities   26,312    19,946 

 

17

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

14 LEASE LIABILITIES

 

The Company leases various properties mainly for office buildings. Rental contracts are made for various periods ranging up to six (6) years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.

 

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option. Extension options are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the Company as a lessee.

 

Set out below are the carrying amounts of the lease liabilities and the movements for the period:

 

   September 30,   December 31, 
   2025   2024 
Balance as at beginning of the period   3,697    3,277 
Additions   1,682    161 
Disposals   (62)   — 
Modification   5    836 
Accretion of interests   83    123 
Payments   (922)   (790)
Effect of movement in exchange rates   (62)   90 
Balance as at end of period   4,421    3,697 

 

The maturity analysis of lease liabilities are disclosed below:

 

   September 30,  2025 
   Present value   Total 
   of the minimum   minimum 
   lease payments   lease payments 
Within 1 year   1,364    1,417 
After 1 year but within 2 years   1,345    1,436 
After 2 years but within 5 years   1,712    1,768 
    4,421    4,621 
Less: Total future interest expenses        (200)
         4,421 

 

18

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

14 LEASE LIABILITIES (CONTINUED)

 

The following are the amounts recognized in the interim unaudited condensed consolidated statement of loss and comprehensive loss:

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
Amortization expense on right of use assets   341    229    770    602 
Gain on lease modification   (206)   —    (105)   — 
Interest expense on lease liabilities   31    24    83    84 
Total amount recognized in the income statement   166    253    748    686 

 

15 LOANS PAYABLE

 

The following is a continuity of the Company’s loans payable:

 

   Promissory note   Revolving
credit facility		   Total 
Balance as at January 1, 2024   —    —    — 
Proceeds from loan issuance   6,532    —    6,532 
Interest expense   617    —    617 
Interest paid   (454)   —    (454)
Repayment of principal   —    —    — 
Effect of foreign currency exchange rate   (116)   —    (116)
Balance as at December 31, 2024   6,579    —    6,579 
                
Proceeds from loan issuance   —    2,753    2,753 
Interest expense   363    —    363 
Interest paid   (512)   —    (512)
Repayment of principal   (6,139)   —    (6,139)
Effect of foreign currency exchange rate   (291)   (1)   (292)
Balance as at September 30, 2025   —    2,752    2,752 

 

Promissory note

 

On April 24, 2024, the Company obtained a secured promissory note in the principal amount of USD 7.0m from a member of management. The secured promissory note matured on April 24, 2025, with an extension agreed to September 15, 2025. It bore an interest at an annual rate of 14%, payable quarterly.

 

During the nine months ended September 30, 2025, the Company fully repaid the USD 7.0m secured promissory note.

 

19

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

15 LOANS PAYABLE (CONTINUED)

 

In the three and nine months ended September 30, 2025, interest expense of EUR 35 and EUR 363 was recognized within net interest expense and other financing charges (three and nine months ended September 30, 2024: EUR 217 and EUR 387).

 

Revolving credit facility

 

On September 12, 2025, the Company entered into a financing agreement with a Tier One Canadian financial institution for certain revolving credit facilities in a maximum aggregate amount of up to USD 6.0m to support its ongoing working capital and general corporate requirements.

 

The credit facilities are secured by, amongst other things, a security interest over all of the assets of the Company and certain of its key operating subsidiaries, and are uncommitted and are repayable upon the earlier of (i) demand by lender, (ii) the occurrence of certain insolvency events, and (iii) on the one-year anniversary of the closing date, unless a one-year extension is granted at the lender’s discretion.

 

The agreement includes customary legal and financial covenants, including a requirement for the Company to maintain a Total Funded Debt to EBITDA ratio not exceeding 2.50:1.00, and a Fixed Charge Coverage Ratio of not less than 1.25:1.00. These financial covenants are to be tested on a consolidated basis at the end of each fiscal quarter.

 

Under the terms of the Company’s credit facility, interest and standby fees are payable based on the applicable benchmark rate plus a margin that varies according to the Company’s Total Funded Debt to EBITDA ratio, as set out below:

 

Interest rates

 

Interest on borrowings is calculated as follows:

 

·CDN$ Prime Rate loans: Prime Rate plus the Applicable Margin per annum

 

·US$ Base Rate loans: Base Rate plus the Applicable Margin per annum

 

·CDN$ Term CORRA loans: Term CORRA plus a credit spread adjustment (“CSA”) plus the Applicable Margin per annum

 

·Adjusted Term SOFR loans: Adjusted Term SOFR (being Term SOFR plus CSA) plus the Applicable Margin per annum, based on a 360-day year

 

Applicable margin schedule

 

Total Funded Debt /
EBITDA		  Term CORRA
Loans		   Adjusted Term SOFR
Loans		   CDN$ Prime Rate or US$ Base Rate
Loans		   Standby
Fees		 
< 2.00:1.00  3.00%  3.00%  2.00%  0.75%
≥ 2.00:1.00  4.00%  4.00%  3.00%  1.75%

 

20

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

15 LOANS PAYABLE (CONTINUED)

 

The Applicable Margin is determined at the end of each fiscal quarter based on the Company’s most recently reported Total Funded Debt to EBITDA ratio.

 

In the three months ended September 30, 2025, the Company drew a total of CAD 4.5m in Term CORRA loans.

 

16    RELATED PARTY TRANSACTIONS

 

The Company’s policy is to conduct all transactions and settle all balances with related parties on market terms and conditions for those in the normal course of business. Transactions between the Company and its consolidated entities have been eliminated on consolidation and are not disclosed in this note.

 

Key Management Personnel

 

The Company’s key management personnel are comprised of members of the Board and the executive team.

 

Transactions with Shareholders, Key Management Personnel and Members of the Board

 

Transactions recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss between the Company and its shareholders, key management personnel and members of the Board are set out in aggregate as follows:

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
EUR 000  2025   2024   2025   2024 
Salaries and subcontractors   (382)   (648)   (1,906)   (1,965)
Share based compensation   18    3    (1,033)   (583)
    (364)   (645)   (2,939)   (2,548)

 

Balances due to/from shareholders, key management personnel and members of the Board are set out in aggregate as follows:

 

Interim unaudited condensed consolidated statements of financial position  As at   As at 
   September 30,   December 31, 
   2025   2024 
Accrued liabilities   (319)   (1,321)
Net related party payable   (319)   (1,321)

 

21

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

16    RELATED PARTY TRANSACTIONS (CONTINUED)

 

Transactions recorded in the interim unaudited condensed consolidated statements of changes in equity between the Company and its shareholders, key management personnel and members of the Board are set out in aggregate as follows:

 

Interim unaudited condensed consolidated statements of changes in equity  Nine Months Ended September 30, 
   2025   2024 
Exercise of DSUs, RSUs and FSO's        
Contributed surplus   (87)   (195)
Share capital   124    465 
Net movement in equity   37    270 

 

Transactions recorded in the interim unaudited condensed consolidated statements of cash flows between the Company and its shareholders, key management personnel and members of the Board are set out in aggregate as follows:

 

Interim unaudited condensed consolidated statements of changes in cash flow  Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
Proceeds from exercise of options   —    —    37    270 
    —    —    37    270 

 

17   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

 

The financial instruments measured at amortized cost are summarized below:

 

Financial Assets

 

   Financial assets as subsequently 
   measured at amortized cost 
   September 30,   December 31, 
   2025   2024 
Trade receivables   24,868    19,558 

 

Financial Liabilities

 

   Financial liabilities as subsequently 
   measured at amortized cost 
   September 30,   December 31, 
   2025   2024 
Trade payables   7,643    3,236 
Accrued liabilities   18,165    16,666 
Other liabilities   504    44 
Loans payable   2,752    6,579 
    29,064    26,525 

 

The carrying values of the financial instruments approximate their fair values.

 

22

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

17   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)

 

Fair Value Hierarchy

 

The following table presents the fair values and fair value hierarchy of the Company’s financial instruments.

 

   September 30, 2025   December 31, 2024 
   Level 1   Level 2   Level 3   Total   Level 1   Level 2   Level 3   Total 
Financial assets                                
Fair value through profit and loss:                                
Cash and cash equivalents  3,024   —   —   3,024   10,467   —   —   10,467 
Other assets  —   —   403   403   —   —   —   — 
                                 
Financial liabilities                                
Fair value through profit and loss:                                
Deferred consideration  —   —   —   —   —   1,244   —   1,244 
Share appreciation rights liability  —   880   —   880   —   —   —   — 

 

There were no transfers between the levels of the fair value hierarchy during the periods.

 

During the nine months ended September 30, 2025, a loss of EUR 157 (three and nine months ended September 30, 2024: gain of EUR 271 and loss of EUR 329), was recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss on remeasurement of deferred consideration (Note 9) for financial instruments designated as FVTPL.

 

During the three and nine months ended September 30, 2025, a share-based compensation charge (recovery) of EUR (177) and EUR 890 (three and nine months ended September 30, 2024: EUR nil) relating to share appreciation rights liability has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

 

As a result of holding and issuing financial instruments, the Company is exposed to certain risks. The following is a description of those risks and how the exposures are managed.

 

Liquidity risk

 

Liquidity risk is the risk that the Company is unable to generate or obtain sufficient cash and cash equivalents in a cost-effective manner to fund its obligations as they come due. The Company will experience liquidity risks if it fails to maintain appropriate levels of cash and cash equivalents, is unable to access sources of funding or fails to appropriately diversify sources of funding. If any of these events were to occur, they could adversely affect the financial performance of the Company.

 

The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support its normal operating requirements. The Company coordinates this planning and budgeting process with its financing activities through its capital management process. The Company holds sufficient cash and cash equivalents and working capital, maintained through stringent cash flow management, to ensure sufficient liquidity is maintained. The Company is subject to externally imposed capital requirements in respect of its revolving credit facility (Note 15).

 

23

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

17   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)

 

The following are the undiscounted contractual maturities of significant financial liabilities and the total contractual obligations of the Company as at September 30, 2025:

 

   2025   2026   2027   2028   Thereafter   Total 
Trade payables and other liabilities   26,312   —   —   —   —   26,312 
Lease obligations on right-of-use assets   1,417   1,436   1,214   364   190   4,621 
Loans payable   2,753   —   —   -   —   2,753 
Share appreciation rights liability   1,355   1,664   1,664   309   —   4,992 
Other non-current liabilities   4   3   19   23   438   487 
    31,841   3,103   2,897   696   628   39,165 

 

FOREIGN CURRENCY EXCHANGE RISK

 

The Company is exposed to foreign currency risk, which includes risks related to its revenue and operating expenses denominated in currencies other than EUR, which is both the reporting currency and primary contracting currency of the Company’s customers. Accordingly, changes in exchange rates may in the future reduce the purchasing power of the Company’s customers thereby potentially negatively affecting the Company’s revenue and other operating results.

 

The Company has experienced and will continue to experience fluctuations in its net loss as a result of translation gains or losses related to revaluing certain current asset and current liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded.

 

Credit risk

 

The Company is exposed to credit risk resulting from the possibility that counterparties could default on their financial obligations to the Company including cash and cash equivalents, other assets and accounts receivable. Failure to manage credit risk could adversely affect the financial performance of the Company.

 

The Company mitigates the risk of credit loss relating to accounts receivable by evaluating the creditworthiness of new customers and establishes a provision for expected credit losses. The Company applies the simplified approach to provide for expected credit losses as prescribed by IFRS 9, Financial Instruments, which permits the use of the lifetime expected loss provision for all accounts receivable. The expected credit loss provision is based on the Company’s historical collections and loss experience and incorporates forward-looking factors, where appropriate.

 

24

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

17   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)

 

The provision matrix below shows the expected credit loss rate for each aging category of accounts receivable as at September 30, 2025:

 

       Aging (months)     
   Note   <1   1 - 3   >3   Total 
Gross trade receivable   12    23,899    979    2,707    27,585 
Expected credit loss rate        1.77%   7.83%   81.95%   9.85%
Expected credit loss provision   12    422    77    2,218    2,717 

 

The provision matrix below shows the expected credit loss rate for each aging category of accounts receivable as at December 31, 2024:

 

       Aging (months)     
   Note   <1   1 - 3   >3   Total 
Gross trade receivable   12    18,984    660    2,411    22,055 
Expected credit loss rate        2.88%   5.75%   79.32%   11.32%
Expected credit loss provision   12    547    38    1,913    2,497 

 

Gross accounts receivable includes the balance of accrued income within the aging category of less than one month.

 

Concentration risk

 

For the three and nine months ended September 30, 2025, one customer (three and nine months ended September 30, 2024: one customer) contributed more than 10% each to the Company’s revenues. Aggregate revenues from this customer totaled EUR 4,268 and EUR 12,943, respectively, for the three and nine months ended September 30, 2025 (three and nine months ended September 30, 2024: EUR 5,853 and EUR 17,723).

 

As at September 30, 2025, no customer (December 31, 2024: one customer) constituted more than 10% to the Company’s accounts receivable. The balance owed by this customer totaled EUR 4,247 as at December 31, 2024.

 

25

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

18SUPPLEMENTARY CASHFLOW INFORMATION

 

Cash flows arising from changes in non-cash working capital are summarized below:

 

   Nine Months Ended September 30, 
Cash flows arising from movement in:  2025   2024 
Trade and other receivables   (5,438)   195 
Prepaid expenses and other assets   (2,299)   (1,088)
Trade payables and other liabilities   6,366    (2,006)
Changes in working capital   (1,371)   (2,899)

 

Significant non-cash transactions from investing and financing activities are as follows:

 

   Nine Months Ended September 30, 
   2025   2024 
Investing Activity          
Settlement of deferred consideration for Spin through share issuance   (1,380)   (2,139)
           
Financing Activity          
Settlement of convertible debt through share issuance   —    (2,704)

 

During the nine months ended September 30, 2025 and 2024, the Company incurred both cash and non-cash interest expense and other financing charges. The following table shows the split as included in the interim unaudited condensed consolidated statement of loss and comprehensive loss:

 

   Nine Months Ended September 30, 2025   Nine Months Ended September 30, 2024 
   Cash   Non-cash   Total   Cash   Non-cash   Total 
Interest and financing fees  (812)  149   (663)  (626)  —   (626)
Foreign exchange gain (loss)  —   337   337   7   —   7 
Lease interest expense  —   (83)  (83)  (84)  —   (84)
Accretion expense on deferred consideration  —   (168)  (168)  —   (369)  (369)
Accretion expense on convertible debt  —   —   —   —   (1,298)  (1,298)
   (812)  235   (577)  (703)  (1,667)  (2,370)

 

26

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

19   SEGMENT INFORMATION

 

Operating

 

The Company has one reportable operating segment, B2B online gaming.

 

Geography – Revenue

 

Revenue from continuing operations was generated from contracted customers in the following jurisdictions:

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
Malta   5,371    5,682    15,959    16,328 
Netherlands   5,110    7,707    15,395    22,277 
Brazil   4,347    —    9,183    — 
United States   2,754    1,555    7,468    3,834 
Curaçao   1,368    4,333    5,774    14,949 
Marshall Islands   1,358    —    5,107    — 
Belgium   1,235    1,530    3,727    3,839 
Croatia   1,187    1,386    3,333    3,516 
Czech Republic   931    1,058    2,732    1,737 
Isle of Man   943    1,005    2,317    1,571 
Other   2,200    1,913    7,393    6,790 
Revenue   26,804    26,169    78,388    74,841 

 

This segmentation is not correlated to the geographical location of the Company’s worldwide end-user base.

 

Geography – Non-Current Assets

 

Non-current assets are held in the following jurisdictions:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
United States   60,914    69,201 
Other   6,127    4,231 
Non-current assets   67,041    73,432 

 

27

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

20   INCOME TAXES

 

The components of income taxes recognized in the interim unaudited condensed consolidated statements of financial position are as follows:

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Income taxes payable   (1,074)   (463)
Deferred income tax liabilities   (551)   (680)

 

The components of income taxes recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss are as follows:

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2025   2024   2025   2024 
Current income taxes expense (recovery)   929    (1,113)   1,096    (660)
Deferred income taxes expense (recovery)   (43)   24    (129)   (130)
Total income taxes expense (recovery)   886    (1,089)   967    (790)

 

There is no income taxes expense recognized in other comprehensive loss.

 

   As at   As at 
   September 30,   December 31, 
   2025   2024 
Deferred tax assets          
Lease obligations on right of use assets   1,020    777 
Non-capital losses carried forward   —    39 
           
Deferred tax liabilities          
Goodwill and intangible assets   (552)   (681)
Right-of-use assets   (986)   (776)
Property and equipment   (33)   (39)
Deferred income tax liabilities   (551)   (680)

 

28

 

BRAGG GAMING GROUP INC. 

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

20   INCOME TAXES (CONTINUED)

 

The effective income tax rates in the interim unaudited condensed consolidated statements of loss and comprehensive loss were reported at rates different than the combined Canadian federal and provincial statutory income tax rates for the following reasons:

 

   Nine Months Ended September 30, 
   2025   2024 
Consolidated loss before income taxes   (5,807)   (5,259)
Effective tax rate   26.5%   26.5%
Effective income taxes recovery   (1,539)   (1,394)
Effect of tax rate in foreign jurisdictions   848    667 
Non-deductible and non-taxable items   507    372 
Change in tax benefits not recognized   958    1,469 
Adjustment of prior year tax payable   193    (1,904)
Total income taxes expense   967    (790)

 

21CONTINGENT LIABILITIES

 

In the ordinary course of business, the Company is involved in and potentially subject to, legal actions and proceedings. In addition, the Company is subject to tax audits from various tax authorities on an ongoing basis. As a result, from time to time, tax authorities may disagree with the positions and conclusions taken by the Company in its tax filings or legislation could be amended or interpretations of current legislation could change, any of which events could lead to reassessments.

 

22 SUBSEQUENT EVENTS

 

No material events have taken place subsequent to the reporting date.