Exhibit 99.1

BRAGG GAMING GROUP INC.

INTERIM UNAUDITED CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS

Three-month period ended March 31, 2024 and March 31, 2023

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	ACQUISITION OF WILD STREAK LLC	7
5	ACQUISITION OF SPIN GAMES LLC	8
6	CONVERTIBLE DEBT	9
7	SHARE CAPITAL	13
8	WARRANTS	13
9	SHARE BASED COMPENSATION	15
10	GOODWILL	17
11	DEFERRED CONSIDERATION	18
12	RIGHT OF USE ASSETS	19
13	INTANGIBLE ASSETS	20
14	CASH AND CASH EQUIVALENTS	20
15	TRADE AND OTHER RECEIVABLES	21
16	PREPAID EXPENSES AND OTHER ASSETS	21
17	TRADE PAYABLES AND OTHER LIABILITIES	22
18	LEASE LIABILITIES	22
19	RELATED PARTY TRANSACTIONS	23
20	FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT	25
21	SUPPLEMENTARY CASHFLOW INFORMATION	28
22	SEGMENT INFORMATION	30
23	INCOME TAXES	31
24	CONTINGENT LIABILITIES	32
25	SUBSEQUENT EVENTS	32

1

BRAGG GAMING GROUP INC.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

		Three Months Ended March 31,
	Note	2024	2023
Revenue	3, 22	23,811	22,859
Cost of revenue	3	(11,934)	(10,639)
Gross Profit		11,877	12,220
Selling, general and administrative expenses	3	(12,387)	(11,906)
Loss on remeasurement of derivative liability	3, 6	(178)	(64)
Gain on settlement of convertible debt	3, 6	65	—
(Loss) gain on remeasurement of deferred consideration	3, 5, 11	(645)	270
Operating (Loss) Income		(1,268)	520
Net interest expense and other financing charges	3	(592)	(596)
Loss Before Income Taxes		(1,860)	(76)
Income taxes	23	(44)	(400)
Net Loss		(1,904)	(476)
Items to be reclassified to net (loss):
Cumulative translation adjustment		(383)	(558)
Net Comprehensive Loss		(2,287)	(1,034)
Basic Loss Per Share		(0.08)	(0.02)
Diluted Loss Per Share		(0.08)	(0.02)
		Millions	Millions
Weighted average number of shares - basic		23.5	22.1
Weighted average number of shares - diluted		23.5	22.1

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 PER SHARE AMOUNTS)

		As at	As at
		March 31,	December 31,
	Note	2024	2023
Cash and cash equivalents	14	7,747	8,796
Trade and other receivables	15, 20	18,211	18,641
Prepaid expenses and other assets	16	1,630	1,655
Total Current Assets		27,588	29,092
Property and equipment		675	640
Right-of-use assets	12	3,249	3,233
Intangible assets	13	37,693	38,133
Goodwill	10	32,186	31,921
Other assets		355	348
Total Assets		101,746	103,367
Trade payables and other liabilities	17, 20	21,484	21,846
Income taxes payable	23	1,100	917
Lease obligations on right of use assets	18	726	709
Deferred consideration	5, 11	1,970	1,513
Derivative liability	6	435	471
Convertible debt	6	1,445	2,445
Total Current Liabilities		27,160	27,901
Deferred income tax liabilities	23	563	852
Lease obligations on right of use assets	18	2,623	2,568
Deferred consideration	5, 11	1,815	1,426
Other non-current liabilities		373	373
Total Liabilities		32,534	33,120
Share capital	6	121,083	120,015
Shares to be issued		3,491	3,491
Contributed surplus		20,071	19,887
Accumulated deficit		(77,967)	(76,063)
Accumulated other comprehensive income		2,534	2,917
Total Equity		69,212	70,247
Total Liabilities and Equity		101,746	103,367

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

Approved on behalf of the Board

Matevž Mazij	Holly Gagnon
Chief Executive Officer	Independent Lead Director

3

BRAGG GAMING GROUP INC.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

												Accumulated
												other
		Share		Shares to		Broker		Contributed		Accumulated		comprehensive		Total
	Note	capital		be issued		warrants		surplus		Deficit		income (loss)		Equity
Balance as at January 1, 2023			109,902		6,982		38		20,745		(72,227)		4,094		69,534
Shares issued upon exercise of convertible debt	6		1,614		—		—		—		—		—		1,614
Exercise of stock options	9		1		—		—		—		—		—		1
Share-based compensation	9		—		—		—		758		—		—		758
Net loss for the year			—		—		—		—		(476)		—		(476)
Other comprehensive loss			—		—		—		—		—		(558)		(558)
Balance as at March 31, 2023			111,517		6,982		38		21,503		(72,703)		3,536		70,873
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	6		1,068		—		—		—		—		—		1,068
Share-based compensation	9		—		—		—		184		—		—		184
Net loss for the year			—		—		—		—		(1,904)		—		(1,904)
Other comprehensive loss			—		—		—		—		—		(383)		(383)
Balance as at March 31, 2024			121,083		3,491		—		20,071		(77,967)		2,534		69,212

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 PER SHARE AMOUNTS)

		Three Months Ended March 31,
	Note	2024	2023
Operating Activities
Net loss		(1,904)	(476)
Add:
Net interest expense and other financing charges	3	592	596
Depreciation and amortization	3	3,877	2,709
Share based compensation	3, 9	184	758
Loss on remeasurement of derivative liability	3, 6	178	64
Gain on settlement of convertible debt	3, 6	(65)	—
(Loss) gain on remeasurement of deferred consideration	3, 5, 11	645	(270)
Unrealized foreign exchange (gain) loss		8	27
Income tax expense	23	44	400
		3,559	3,808
Change in working capital	21	(659)	2,669
Income tax paid		(151)	(116)
Cash Flows generated from Operating Activities		2,749	6,361
Investing Activities
Purchases of property and equipment		(112)	(150)
Additions of intangible assets	13	(2,641)	(1,918)
Cash Flows Used In Investing Activities		(2,753)	(2,068)
Financing Activities
Proceeds from exercise of stock options	7	—	1
Repayment of convertible debt	6	(455)	—
Repayment of lease liability	18	(171)	(60)
Repayment of loans		—	(107)
Interest and financing fees	21	(61)	(90)
Cash Flows Used In Generated from Financing Activities		(687)	(256)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(358)	(202)
Change in Cash and Cash Equivalents		(1,049)	3,835
Cash and cash equivalents at beginning of year		8,796	11,287
Cash and Cash Equivalents at end of year		7,747	15,122

Certain comparative figures have been reclassified to conform with current period presentation.

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 MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT 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 Company acquired Oryx Gaming International LLC (“Oryx”) in 2018, Wild Streak LLC (“Wild Streak”) in 2021, and Spin Games LLC (“Spin”) in 2022.

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

2MATERIAL 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, 2023, 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, 2023.

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 below have been applied consistently in the preparation of the interim financial statements for all periods presented.

These interim financial statements have been prepared on the going concern basis, which assumes that the Company will be able to continue as a going concern and realize its assets and discharge its liabilities in the normal course of business.

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 May 9, 2024.

6

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

3   LOSS BEFORE INCOME TAXES CLASSIFIED BY NATURE

The loss before income taxes is classified as follows:

		Three Months Ended March 31,
	Note	2024	2023
Revenue	22	23,811	22,859
Cost of revenue		(11,934)	(10,639)
Gross Profit		11,877	12,220
Salaries and subcontractors		(4,907)	(5,503)
Share based compensation	9	(184)	(758)
Total employee costs		(5,091)	(6,261)
Depreciation and amortization		(3,877)	(2,709)
IT and hosting		(1,068)	(977)
Professional fees		(875)	(629)
Corporate costs		(175)	(144)
Sales and marketing		(559)	(413)
Bad debt recovery (expense)	15	18	(39)
Travel and entertainment		(215)	(189)
Transaction and acquisition costs		—	(37)
Other operational costs		(545)	(508)
Selling, General and Administrative Expenses		(12,387)	(11,906)
Loss on remeasurement of derivative liability	6	(178)	(64)
Gain on settlement of convertible debt	6	65	—
(Loss) gain on remeasurement of deferred consideration	5, 11	(645)	270
Operating (Loss) Income		(1,268)	520
Accretion on liabilities	6, 11	(531)	(506)
Foreign exchange gain (loss)		44	(19)
Interest and financing fees		(105)	(71)
Net Interest Expense and Other Financing Charges		(592)	(596)
Loss Before Income Taxes		(1,860)	(76)

7

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

4 ACQUISITION OF WILD STREAK LLC

On June 2, 2021, the Company announced that it had acquired Wild Streak LLC ("Wild Streak").

The Company signed a purchase agreement to acquire all of the outstanding membership interests of Wild Streak in a cash and stock transaction for an undiscounted purchase price of EUR 24,680 (USD 30,075). Pursuant to the transaction, the sellers of Wild Streak received EUR 8,268 (USD 10,075) in cash at closing and should receive EUR 16,412 (USD20,000) worth of common shares of the Company over the next three years, subject to acceleration in the event of a change of control. The fair value of the share consideration is determined using a put option pricing model with volatility of 57.5%, annual dividend rate of 0%, and time to maturity of 1-3 years.

The fair value allocations which follow are based on the purchase price allocations conducted by management.

	Balances
Purchase price:
Cash	8,206
Shares to be issued	13,746
Deferred consideration	62
Total purchase price	22,014
Fair value of assets acquired, and liabilities assumed:
Cash and cash equivalents	124
Accounts receivable	408
Trade payables and other liabilities	(87)
Net assets acquired and liabilities assumed	445
Fair value of intangible assets:
Brands	311
Customer relationships	10,857
Intellectual property	5,611
Goodwill	4,790

In the period ended March 31, 2024, the Company issued nil common shares of the Company as deferred consideration. Subsequently a transfer of EUR nil from shares to be issued to share capital was recorded in the consolidated statements of changes in equity.

In the year ended December 31, 2023, the Company issued 393,111 common shares of the Company as deferred consideration upon the second anniversary of the acquisition of Wild Streak. Subsequently a transfer of EUR 3,491 from shares to be issued to share capital was recorded in the consolidated statements of changes in equity.

8

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

5   ACQUISITION OF SPIN GAMES LLC

On June 1, 2022, the Company announced that it had acquired Spin Games LLC (“Spin”).

The Company signed a purchase agreement to acquire all of the outstanding membership interests of Spin in a cash and share transaction for an undiscounted purchase price of EUR 17,179 (USD 18,402). Pursuant to the transaction, the sellers of Spin received EUR 10,626 (USD 11,383) in cash, EUR 1,426 (USD 1,528) in common shares of the Company and is expected to receive EUR 4,003 (USD 4,288) worth of common shares of the Company over the next three years. The fair value of the deferred consideration was determined using a put option pricing model with volatility of between 71.4% and 80.9%, annual dividend rate of 0%, and time to maturity of 1-3 years.

Concurrently with the payment of consideration on June 1, 2022, EUR 661 of loans payable to the sellers of Spin were settled in cash.

The fair value allocations which follow are based on the preliminary purchase price allocations conducted by management.

	Balances
Purchase price:
Prepaid consideration	2,138
Cash paid upon business combination	8,488
Shares	1,426
Deferred consideration	4,003
Total purchase price	16,055
Fair value of assets acquired, and liabilities assumed:
Cash and cash equivalents	266
Trade and other receivables	405
Prepaid expenses and other assets	105
Property and equipment	107
Right-of-use assets	177
Trade payables and other liabilities	(923)
Deferred revenue	(364)
Lease obligations on right of use assets - current	(88)
Loans payable	(773)
Lease obligations on right of use assets - noncurrent	(89)
Net assets acquired and liabilities assumed	(1,177)
Fair value of intangible assets:
Intellectual property	1,471
Customer relationships	8,131
Gaming licenses	164
Brand	462
Trademarks	70
Goodwill	6,934

9

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

5 ACQUISITION OF SPIN GAMES LLC (CONTINUED)

In the three months ended March 31, 2024, an accretion expense of EUR 135 (three months ended March 31, 2023: EUR 137) relating to deferred consideration was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

In the three months ended March 31, 2024, a loss on remeasurement of deferred consideration of EUR 645 (three months ended March 31, 2023: gain of EUR 270) was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss gain.

As at March 31, 2024, the Company measured the present value of deferred consideration to be paid in common shares of EUR 1,970 recorded in current liability and EUR 1,815 in non-current liabilities (December 31, 2023: EUR 1,513 in current liabilities and EUR 1,426 in non-current liabilities, respectively).

The present value of deferred consideration 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) applying a annual dividend rate of 0.0% and volatility of between 53.5% and 58.5% resulting in a DLOM of 5.5% and 12.90% for the second and third anniversary settlement of consideration, respectively.

As at December 31, 2023, the fair value of deferred consideration as at December 31, 2023 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 between 55.3% and 64.5% resulting in a DLOM of 9.4% and 14.5% for the second and third anniversary settlement of consideration, respectively.

6   CONVERTIBLE DEBT

On September 5, 2022, the Company entered into a convertible security funding agreement (the “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 at a conversion price equal to 87.5% of the five-day volume weighted average price ("VWAP") immediately prior to each conversion. Common shares of the Company issued upon conversion are subject to a 120-day lock-up period following deal close.

The Funding Agreement contains restrictions on how much may be converted in any particular month, which is limited to 1/20^th of the outstanding balance or USD 1,000 if exchange volume is above a specified minimum, which conversions may be accelerated in certain circumstances. The Company also has the option at any time to buy back the entire remaining balance of the convertible debt, subject to a partial conversion right in favor of Lind to convert up to one-third of the outstanding amount into common shares of the Company in such circumstances. In connection with the convertible debt, Lind was issued warrants to purchase up to 979,048 common shares of the Company at a price of CAD 9.28 per share for a period of 60 months (Note 8).

10

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

6   CONVERTIBLE DEBT (CONTINUED)

The value of the convertible debt is equal to the value of the debt-like host instrument based on market participants’ current required yield for debt-like instruments with similar credit quality and terms (excluding the buy-back or conversion options), plus the value of the embedded derivatives.

The host debt component is fair valued by discounting the value of the expected future cash flows under the terms of the Funding Agreement using a market cost of debt of 7.5% for an equivalent non-convertible bond. The fair value of the convertible debt without the embedded derivatives (the “Host Debt”) has been estimated by reference to the income approach using a discounted cash flow (“DCF”) method. Using this approach, the present value of the Host Debt on September 5, 2022 was determined to be EUR 8,723 (USD 8,653).

On September 5, 2022, to value the embedded derivatives, representing the conversion options (“Conversion Options”), option pricing methodology by reference to a Monte Carlo Simulation model (“MCS”) has been applied as a series of 20 call options with a strike price of 87.5% of the 5-day future VWAP immediately prior to each conversion date. Key valuation inputs and assumptions used in the MCS are stock price of CAD 6.188, expected life of between 0.42 and 2.00 years, annualized volatility of between 65.32% and 75.54%, annual risk-free rate of between 3.6% and 3.7%, and annual dividend yield of 0.0%. Based on the average value from 10,000 simulated trials the aggregate fair value of the Conversion Options on September 5, 2022 was calculated as EUR 1,483 (CAD 1,935).

The aggregate fair value of the Host Debt and Conversion Options exceeds the transaction price of EUR 8,770. Therefore, under the provisions of IFRS 9, the embedded derivatives (being the Conversion Options) were fair valued first and the Host Debt was allocated the residual balance. The warrants component of the Convertible Debt was allocated the residual interest of EUR nil.

The Company incurred transaction costs of EUR 717 related to the issuance of the convertible debt and were allocated proportionally to the Host Debt and Conversion Options in the amount of EUR 596 and EUR 121, respectively. All costs allocated to the Conversion Options were expensed as transaction and acquisition costs under selling, general and administrative expenses in the consolidated statements of loss and comprehensive loss.

11

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

6 CONVERTIBLE DEBT (CONTINUED)

	Convertible debt	Derivative liability	Total
Balance as at December 31, 2022	6,648	1,320	7,968
Accretion expense	1,536	—	1,536
Loss on remeasurement of derivative liability	—	47	47
Gain on settlement of convertible debt	—	(595)	(595)
Shares issued upon exercise of convertible debt	(1,841)	(286)	(2,127)
Repayment of convertible debt	(3,693)	—	(3,693)
Effect of movement in exchange rates	(205)	(15)	(220)
Balance as at December 31, 2023	2,445	471	2,916
Accretion expense	396	—	396
Loss on remeasurement of derivative liability	—	178	178
Gain on settlement of convertible debt	—	(65)	(65)
Shares issued upon exercise of convertible debt	(921)	(147)	(1,068)
Repayment of convertible debt	(455)	—	(455)
Effect of movement in exchange rates	(20)	(2)	(22)
Balance as at March 31, 2024	1,445	435	1,880

On March 31, 2024, the aggregate fair value of the Conversion Options was calculated as EUR 435 (CAD 638). Key valuation inputs and assumptions used are closing stock price of CAD 8.290, 5-day VWAP of CAD 7.964, expected life of between 0.08 and 0.33 years, and annual risk-free rate of between 5.4% and 5.49%.

On December 31, 2023, the aggregate fair value of the Conversion Options was calculated as EUR 471 (CAD 689). Key valuation inputs and assumptions used are stock closing price of CAD 6.780, 5-day VWAP of CAD 6.845, expected life of between 0.08 and 0.58 years, annual risk-free rate of between 5.1% and 5.59%.

For the three months ended March 31, 2024, an accretion expense of EUR 396 was recognised in net interest expense and other financing charges (three months ended March 31, 2023: EUR 369) in respect of the Host Debt component. For the three months ended March 31, 2024, a loss of EUR 178 on remeasurement of derivative liability (three months ended March 31, 2023: Gain of EUR 64) was recognised in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

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 7.260, 5-day VWAP of between CAD 6.910 and 7.306, expected life of between 0.06 to 0.56 years, annual risk-free rate of between 5.17% and 5.54%.

12

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

6 CONVERTIBLE DEBT (CONTINUED)

During the three months ended March 31, 2024, 216,148 shares were issued upon exercise of Convertible Debt (three months ended March 31, 2023: EUR 444,577) (Note 7) representing USD 1,000 of the total face value of USD 10,000. The Company also elected to settle USD 500 of the debt in cash upon delivery of a cash in-lieu of shares conversion notice for a total of USD 515.

During the three months ended March 31, 2023, 444,577 shares were issued upon exercise of Convertible Debt representing USD 1,500 of the total face value of USD 10,000. 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 5.220 and 5.400, 5-day VWAP of between CAD 4.894 and 5.615, expected life of between nil and 1.58 years and annual risk-free rate of between 4.2% and 5.0%.  

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 months ended March 31, 2024, EUR 921 and EUR 147 was transferred from the host debt liability and derivative liability, respectively, to share capital in the interim unaudited condensed consolidated statements of changes in equity for a total of EUR 1,068 (three months ended March 31, 2023:  EUR 1,390 and EUR 224, respectively, for a total of EUR 1,614).  

13

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

7    SHARE CAPITAL

Authorized - Unlimited Common Shares, fully paid

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

		Note	Number	Value
January 1, 2023	Balance		21,107,968	109,902
January 10, 2023	Issuance of share capital upon exercise of FSOs	8	350	1
January 13, 2023 to March 21, 2023	Shares issued upon exercise of Convertible Debt	5	444,577	1,614
March 31, 2023	Balance		21,552,895	111,517
January 1, 2024	Balance		23,003,552	120,015
February 5, 2024 to March 5, 2024	Shares issued upon exercise of Convertible Debt	5	216,148	1,068
March 31, 2024	Balance		23,219,700	121,083

The Company’s common shares have no par value.

8 WARRANTS

The following are continuities of the Company’s warrants:

		Warrants
		issued as part of	Broker
Number of Warrants		convertible debt	warrants
January 1, 2023	Balance	979,048	16,886
March 31, 2023	Balance	979,048	16,886
January 1, 2024	Balance	979,048	—
March 31, 2024	Balance	979,048	—

Each unit consists of the following characteristics:

	Warrants
	issued as part of	Broker
	convertible debt	warrants
Number of shares	1	1
Number of Warrants	—	0.5
Exercise price of unit (CAD)	9.28	7.00

14

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

8 WARRANTS (CONTINUED)

Warrants issued upon completion of Financing Arrangement

Upon completion of the financing arrangement (Note 6) on September 5, 2022, 979,048 warrants were issued with an exercise price of CAD 9.28 per warrant, each convertible to one common share of the Company and expiring 5 years after the issuance date. Under the acceleration provisions of the warrants agreement, if the common shares of the Company trade at or above CAD 11.60 for 30 consecutive trading days, the Company has the right to issue an exercise notice to warrant holders to exercise their warrants before the end of 21 days, otherwise 50% of the warrants expire. Similarly, if the common shares of the Company trade at or above CAD 18.56 for 30 consecutive trading days, the Company has the right to issue an exercise notice to warrant holders to exercise all their warrants before the end of 21 days, otherwise all the warrants expire.

Upon allocating the transaction price of the financing arrangement between its components of host debt liability, derivative liability and warrants, the combined fair value of the host debt liability and derivative liability exceeded the transaction price. Therefore, no residual fair value was allocated to the warrant component of the instrument in the interim unaudited condensed consolidated statements of changes in equity.

Broker Warrants issued upon completion of Public Offering

Upon completion of the Public Offering on November 18, 2020, 177,434 broker warrants (“Broker Warrants”) were issued. Between January 21, 2021 and February 18, 2021, 160,548 Broker Warrants were exercised for 160,548 Common Shares and 80,274 public offering warrants leaving a balance of 16,886 at end March 31, 2023. The remaining broker warrants of 16,886 expired on November 18, 2023.

15

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

9 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. At the annual special meeting of shareholders of the Company held on April 28, 2021 the shareholders approved the increase in the common shares available for issuance as awards under the plan from 3,180,000 to 3,965,000

The following table summarizes information about the OEIP.

	DSU	RSU	FSO
				Weighted
	Outstanding	Outstanding	Outstanding	Average
	DSU Units	RSU Units	FSO Options	Exercise
	(Number of	(Number of	(Number	Price / Share
	of shares)	of shares)	of shares)	CAD
Balance as at January 1, 2023	274,900	738,000	2,118,395	8.23
Granted	—	187,500	—	n/a
Exercised	—	—	(350)	2.30
Forfeited / Cancelled	—	—	(30,029)	6.89
Balance as at March 31, 2023	274,900	925,500	2,088,016	8.25
Balance as at January 1, 2024	225,154	498,000	1,777,438	8.43
Expired	—	—	(50,000)	5.00
Forfeited / Cancelled	—	—	(162)	10.07
Balance as at March 31, 2024	225,154	498,000	1,727,276	8.52

The following table summarizes information about the outstanding share options as at March 31, 2024:

	Outstanding			Exercisable
		Weighted	Weighted		Weighted
		Average	Average		Average
	Options	Remaining	Exercise	Options	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	148,200	1	2.63	148,200	2.63
5.01 - 8.62	1,118,018	4	7.76	960,168	7.88
8.63 - 33.30	461,058	6	12.28	410,579	12.36
	1,727,276	4	8.52	1,518,947	8.58

16

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

9 SHARE BASED COMPENSATION (CONTINUED)

The following table summarizes information about the outstanding share options as at March 31, 2023:

	Outstanding			Exercisable
		Weighted	Weighted		Weighted
		Average	Average		Average
	Options	Remaining	Exercise	Options	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	246,100	2	3.05	239,484	3.05
5.01 - 5.60	200,000	1	5.60	200,000	5.60
5.61 - 8.62	1,089,903	5	7.79	830,562	7.91
8.63 - 33.30	552,013	7	12.45	310,709	12.59
	2,088,016	5	8.25	1,580,755	7.80

Fixed Stock Options (“FSOs”)

During the three months ended March 31, 2024, a share-based compensation charge of EUR 98 (three months ended March 31, 2023: EUR 259) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

During the three months ended March 31, 2024, nil common shares of the Company were issued upon exercise of fixed stock options (three months ended March 31, 2023: 350 common shares). Upon exercise of fixed stock options, for the three months ended March 31, 2024, EUR nil (three months ended March 31, 2023: EUR nil) was transferred from contributed surplus to share capital in the interim unaudited condensed consolidated statements of changes in equity. Cash proceeds upon exercise of fixed stock options during the three months ended March 31, 2024, totaled EUR nil (three months ended March 31, 2023: EUR 1).

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 months ended March 31, 2024, a share-based compensation charge of EUR 3 (three months ended March 31, 2023: EUR 65) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

17

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

9 SHARE BASED COMPENSATION (CONTINUED)

Restricted Share Units (“RSUs”)

During the three months ended March 31, 2024, nil were granted (three months ended March 31, 2023: 187,500 with a fair value of CAD 5.25 per unit determined as the share price at the date of grant).

During the three months ended March 31, 2024, a share-based compensation charge of EUR 83 (three months ended March 31, 2023: EUR 434) has been recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

During the three months ended March 31, 2024, nil common shares were issued upon exercise of RSUs (three months ended March 31, 2023: nil).

10   GOODWILL

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

As at January 1, 2023	31,662
Effect of Movement in exchange rates	259
As at December 31, 2023	31,921
Effect of movements in exchange rates	265
As at March 31, 2024	32,186

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, 2023 and concluded that there was no impairment.

18

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

11   DEFERRED CONSIDERATION

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

Balance as at January 1, 2023	3,297
Accretion expense	403
Shares issued as deferred consideration	(1,104)
Loss on remeasurement of deferred consideration	440
Effect of movement in exchange rates	(97)
Balance as at December 31, 2023	2,939
Accretion expense	135
Loss on remeasurement of deferred consideration	645
Effect of movement in exchange rates	66
Balance as at March 31, 2024	3,785

As at March 31, 2024 EUR 1,970 is recorded as the short-term portion of deferred consideration (December 31, 2023: EUR 1,513) and EUR 1,815 is recorded as the long-term portion (December 31, 2023: EUR 1,426).

Spin Games LLC

The Company completed the acquisition of Spin effective on June 1, 2022. 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 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 months ended March 31, 2024, an accretion expense of EUR 135 (three months ended March 31, 2023: EUR 137) was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

In the three months ended March 31, 2024, a loss on remeasurement of deferred consideration of EUR 645 (three months ended March 31, 2023: gain on remeasurement of deferred consideration of EUR 270) was recorded in the interim unaudited condensed consolidated statements of loss and comprehensive loss.

19

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

12   RIGHT OF USE ASSETS

	Right of use
	Properties
Cost
Balance as at December 31, 2022	1,311
Additions	3,389
Modifications	(256)
Disposal	(74)
Effect of movement in exchange rates	65
Balance as at December 31, 2023	4,434
Additions	161
Modification	64
Effect of movement in exchange rates	26
Balance as at March 31, 2024	4,685
Accumulated Depreciation
Balance as at December 31, 2022	735
Depreciation	579
Disposal	(74)
Effect of movement in exchange rates	(39)
Balance as at December 31, 2023	1,201
Depreciation	226
Effect of movement in exchange rates	9
Balance as at March 31, 2024	1,436
Carrying Amount
Balance as at December 31, 2023	3,233
Balance as at March 31, 2024	3,249

In the period ended March 31, 2024, depreciation expense of EUR 226 was recognized within selling, general and administrative expenses (period ended March 31, 2023: EUR 82).

20

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

13   INTANGIBLE ASSETS

		Deferred
	Intellectual	Development	Customer
	Property	Costs	Relationships	Brands	Other	Total
Cost
Balance as at December 31, 2022	17,722	12,881	25,473	2,177	309	58,562
Additions	649	8,742	—	—	—	9,391
Effect of movement in exchange rates	(275)	(28)	(715)	(29)	(10)	(1,057)
Balance as at December 31, 2023	18,096	21,595	24,758	2,148	299	66,896
Additions	142	2,499	—	—	—	2,641
Effect of movement in exchange rates	200	51	439	18	(24)	684
Balance as at March 31, 2024	18,438	24,145	25,197	2,166	275	70,221
Accumulated Amortization
Balance as at December 31, 2022	6,111	5,568	4,350	779	49	16,857
Amortization	2,484	5,667	3,238	663	95	12,147
Effect of movement in exchange rates	(150)	35	(136)	(12)	22	(241)
Balance as at December 31, 2023	8,445	11,270	7,452	1,430	166	28,763
Amortization	659	1,909	810	166	24	3,568
Effect of movement in exchange rates	74	—	111	9	3	197
Balance as at March 31, 2024	9,178	13,179	8,373	1,605	193	32,528
Carrying Amount
Balance as at December 31, 2023	9,651	10,325	17,306	718	133	38,133
Balance as at March 31, 2024	9,260	10,966	16,824	561	82	37,693

In the period ended March 31, 2024, amortization expense of EUR 3,568 was recognized within selling, general and administrative expenses (period ended March 31, 2023: EUR 2,551).

14   CASH AND CASH EQUIVALENTS

As at March 31, 2024 and December 31, 2023, cash and cash equivalents consisted of cash held in banks, marketable investments with an original maturity date of 90 days or less from the date of acquisition, and prepaid credit cards.

21

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

15 TRADE AND OTHER RECEIVABLES

Trade and other receivables comprises:

	As at	As at
	March 31,	December 31,
	2024	2023
Trade receivables	17,926	18,641
Sales tax	285	—
Trade and other receivables	18,211	18,641

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

	As at	As at
	March 31,	December 31,
	2024	2023
Less than one month	17,635	17,711
Between two and three months	501	1,275
Greater than three months	1,831	1,714
	19,967	20,700
Provision for expected credit losses	(2,041)	(2,059)
Trade receivables	17,926	18,641

The balance of accrued income is included in receivables aged less than one month as this balance will be converted to accounts receivable upon issuance of sales invoices.

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

Balance as at December 31, 2022	2,435
Net additional provision for doubtful debts	(376)
Balance as at December 31, 2023	2,059
Net additional provision for doubtful debts	(18)
Balance as at March 31, 2024	2,041

16   PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets comprises:

	As at	As at
	March 31,	December 31,
	2024	2023
Prepayments	1,083	1,200
Deposits	57	83
Other assets	490	372
Prepaid expenses and other assets	1,630	1,655

22

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

17 TRADE PAYABLES AND OTHER LIABILITIES

Trade payables and other liabilities comprises:

	As at	As at
	March 31,	December 31,
	2024	2023
Trade payables	6,563	7,504
Accrued liabilities	14,188	13,983
Sales tax payable	—	12
Other payables	733	347
Trade payables and other liabilities	21,484	21,846

18 LEASE LIABILITIES

The Company leases various properties mainly for office buildings. Rental contracts are made for various periods ranging up to seven (7) 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:

	March 31,	December 31,
	2024	2023
At beginning of the year	3,277	638
Additions	161	3,389
Modification	64	(279)
Accretion of interests	34	65
Payments	(171)	(595)
Effect of movement in exchange rates	(16)	59
At end of the year	3,349	3,277

23

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

18 LEASE LIABILITIES (CONTINUED)

The maturity analysis of lease liabilities are disclosed below:

	March 31, 2024
	Present value	Total
	of the minimum	minimum
	lease payments	lease payments
Within 1 year	726	758
After 1 year but within 2 years	713	773
Atfter 2 years but within 5 years	1,793	2,084
After 5 years	117	147
	3,349	3,762
Less: Total future interest expenses		(413)
		3,349

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

	Three Months Ended March 31,
	2024	2023
Amortization expense on right of use assets	226	82
Interest expense on lease liabilities	34	9
Total amount recognized in the income statement	260	91

19 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 which consists of the Chief Executive Officer, Chief Financial Officer, Chief Strategy Officer and Chief Technology Officer. Two key management employees are also shareholders in the Company.

24

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

19 RELATED PARTY TRANSACTIONS (CONTINUED)

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

Transactions recorded in the 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 March 31,
	2024	2023
Revenue	—	24
Salaries and subcontractors	(557)	(1,010)
Share based compensation	(136)	(630)
Professional fees	—	(10)
	(693)	(1,626)

Transactions with Wild Streak and Spin Vendors

Certain vendors in the sale of Wild Streak and Spin subsequently became employees of the Company. Transactions recorded in the consolidated statements of loss and comprehensive loss between the Company and these employees are set out in aggregate as follows:

	Three Months Ended March 31,
	2024	2023
Salaries and subcontractors	(475)	(530)
Share based compensation	(10)	(17)
(Loss) gain on remeasurement of deferred consideration	(645)	270
Interest and financing fees	(134)	(137)
	(1,264)	(414)

Balances due to/from key management personnel, members of the Board and Wild Streak and Spin vendors who subsequently became employees of the Company are set out in aggregate as follows:

	As at	As at
	March 31,	December 31,
	2024	2023
Consolidated statements of financial position
Trade and other receivables	—	40
Trade payables and other liabilities	(975)	(1,945)
Deferred consideration - current	(1,970)	(1,513)
Deferred consideration - non-current	(1,815)	(1,426)
Net related party payable	(4,760)	(4,844)

25

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

20   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
	March 31,	December 31,
	2024	2023
Trade receivables	17,926	18,641

Financial Liabilities

	Financial liabilities as subsequently
	measured at amortized cost
	March 31,	December 31,
	2024	2023
Trade payables	6,563	7,504
Accrued liabilities	14,188	13,983
Convertible debt	1,445	2,445
Lease obligations on right of use assets	3,349	3,277
Other liabilities	733	347
	26,278	27,556

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

Fair Value Hierarchy

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

	March 31, 2024				December 31, 2023
	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	7,747	—	—	7,747	8,796	—	—	8,796
Financial liabilities
Fair value through profit and loss:
Derivative liability	—	435	—	435	—	471	—	471
Deferred consideration	—	3,785	—	3,785	—	2,939	—	2,939
Other liabilities	—	—	269	269	—	—	269	269
Fair value through other comprehensive income:
Other liabilities	—	—	104	104	—	—	104	104

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

26

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

20   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)

During the period ended March 31, 2024, a loss of EUR 645 (period ended March 31, 2023: gain of EUR 270), was recognized in the interim unaudited condensed consolidated statements of loss and comprehensive loss on remeasurement of deferred consideration (Note 11) for financial instruments designated as FVTPL.

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 not subject to any externally imposed capital requirements.

The following are the undiscounted contractual maturities of significant financial liabilities and the total contractual obligations of the Company as at March 31, 2024:

	2024	2025	2026	2027	Thereafter	Total
Trade payables and other liabilities	21,484	—	—	—	—	21,484
Convertible debt	2,312	—	—	—	—	2,312
Lease obligations on right of use assets	758	773	760	760	621	3,672
Other non-current liabilities	1	3	3	7	778	792
	24,555	776	763	767	1,399	28,260

27

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

20   FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (CONTINUED)

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 income (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 risk related to cash and cash equivalents is reduced by policies and guidelines that require that the Company enters into transactions only with counterparties or issuers that have a minimum long term “BBB” credit rating from a recognized credit rating agency. 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.

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

		Aging (months)
	Note	<1	1 - 3	>3	Total
Gross trade receivable	14	17,635	501	1,831	19,967
Expected loss rate		2.22%	2.52%	89.41%	10.22%
Expected loss provision	14	391	13	1,637	2,041

28

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

20   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 December 31, 2023:

		Aging (months)
	Note	<1	1 - 3	>3	Total
Gross trade receivable	14	17,711	1,275	1,714	20,700
Expected loss rate		2.36%	4.82%	92.23%	9.95%
Expected loss provision	14	417	61	1,581	2,059

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

Concentration risk

For the three  months ended March 31, 2024, one customer (three months ended March 31, 2023: one customer) contributed more than 10% each to the Company’s revenues. Aggregate revenues from this customer totaled EUR 6,409 for the three months period ended March 31, 2024 (three months ended March 31, 2023: EUR 8,012).

As at March 31, 2024, one customer (December 31, 2023: one customer) constituted more than 10% to the Company’s accounts receivable. The balance owed by this customer totaled EUR 4,247 (December 31, 2023: EUR 4,550).

21 SUPPLEMENTARY CASHFLOW INFORMATION

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

	Three Months Ended March 31,
Cash flows arising from movement in:	2024	2023
Trade and other receivables	222	4,133
Prepaid expenses and other assets	25	(154)
Deferred revenue	—	(43)
Trade payables and other liabilities	(906)	(1,267)
Changes in working capital	(659)	2,669

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

		Three Months Ended March 31,
	Note	2024	2023
Financing activity
Settlement of convertible debt through share issuance	6, 7	(1,068)	(1,614)

29

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

21 SUPPLEMENTARY CASHFLOW INFORMATION (CONTINUED)

During the period ended March 31, 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:

	Three Months Ended March 31, 2024
	Cash	Non-cash	Total
Interest income	—	—	—
Interest and financing fees	(71)	—	(71)
Foreign exchange gain (loss)	44	—	44
Lease interest expense	(34)	—	(34)
Accretion expense on deferred consideration	—	(135)	(135)
Accretion expense on convertible debt	—	(396)	(396)
	(61)	(531)	(592)

During the period ended March 31, 2023, 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:

	Three Months Ended March 31, 2023
	Cash	Non-cash	Total
Interest income	0	—	0
Interest and financing fees	(62)	—	(62)
Foreign exchange gain (loss)	(19)	—	(19)
Lease interest expense	(9)	—	(9)
Accretion expense on deferred consideration	—	(137)	(137)
Accretion expense on convertible debt	—	(369)	(369)
	(90)	(506)	(596)

30

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

22   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 March 31,
	2024		2023
Netherlands		7,796		8,621
Curacao		5,243		4,802
Malta		4,593		4,311
United States		1,185		1,217
Belgium		1,150		535
Croatia		1,104		866
Germany		492		82
Others		2,248		2,425
Revenue		23,811		22,859

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
	March 31,		December 31,
	2024		2023
United States		70,915		71,132
Other		3,243		3,143
Non-current assets		74,158		74,275

31

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

23   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
	March 31,	December 31,
	2024	2023
Income taxes payable	1,100	917
Deferred income tax liabilities	563	852

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

	Three Months Ended March 31,
	2024	2023
Current period	333	400
Current income taxes	333	400
Deferred income tax recovery	(289)	—
Deferred income tax recovery	(289)	—
Income taxes	44	400

There is no income tax expense recognized in other comprehensive income (loss).

	As at	As at
	March 31,	December 31,
	2024	2023
Deferred tax assets
Non-capital losses carried forward	458	348
Deferred tax liabilities
Goodwill and intangible assets	563	852
Convertible debt	(458)	(348)
Deferred income tax liabilities	563	852

32

BRAGG GAMING GROUP INC.

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2024 AND MARCH 31, 2023

PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS)

23   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:

	Three Months Ended March 31,
	2024	2023
	%	%
Canadian statutory tax rate	26.5	26.5
Effect of tax rate in foreign jurisdictions	(0.6)	(14.0)
Impact of foreign currency translation	(0.2)	(528.7)
Non-deductible and non-taxable items	(10.1)	(178.7)
Change in tax benefits not recognized	(18.6)	181.7
Adjustments in respect of prior periods	—	(18.4)
Adjustment of prior year tax payable	—	0.2
Other	0.5	—
Effective Income Tax Rate Applicable to Loss Before Income Taxes	(2.5)	(531.4)

24 CONTINGENT 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.

25 SUBSEQUENT EVENTS

Between the reporting date and the date of these interim unaudited condensed consolidated financial statements, Lind delivered notices to convert debt to common shares with a face value totalling USD 500, for which the company issued 99,223 common shares.

On April 24 2024, the Company obtained a secured promissory note in the principal amount of US$7 million to certain entities controlled by the Company’s related party. The secured promissory note matures on April 24, 2025 and bears interest at an annual rate of 14%, payable quarterly.