Interim report
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Wrocław, 25 August 2025 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT FOR 01.01.2025 – 30.06.2025 This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. Ten Square Games S.A., its representatives and employees decline all responsibility in this regard.
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SELECTED FINANCIAL DATA CONSOLIDATED DATA STATEMENT OF FINANCIAL POSITION PLN EUR 30.06.2025 31.12.2024 30.06.2025 31.12.2024 Fixed assets 198,595,234 206,435,574 46,817,519 48,311,625 Current assets 137,161,428 210,414,131 32,334,904 49,242,717 Equity 190,872,795 243,263,256 44,997,005 56,930,320 Long-term liabilities 6,965,511 25,410,058 1,642,073 5,946,655 Short-term liabilities 137,918,356 148,176,391 32,513,345 34,677,367 STATEMENT OF COMPREHENSIVE INCOME PLN EUR for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Bookings 171,857,045 195,890,694 40,716,699 45,440,788 Revenues 181,088,144 198,117,155 42,903,749 45,957,261 Costs of services sold 29,808,823 35,253,141 7,062,363 8,177,675 Operating profit/loss 54,280,387 42,386,807 12,860,213 9,832,473 Gross profit/loss 52,706,934 43,986,789 12,487,428 10,203,621 Net profit/loss 47,442,931 39,963,187 11,240,270 9,270,265 EBITDA 60,566,905 51,321,122 14,349,627 11,904,967 Adjusted EBITDA 57,554,614 54,832,872 13,635,949 12,719,588 CASH FLOW STATEMENT PLN EUR for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Net cash flows from operating activity 56,314,893 59,273,727 13,342,232 13,749,734 Net cash flows from investment activity -16,541,605 -13,946,772 -3,919,069 -3,235,234 Net cash flows from financial activity -101,587,006 -115,093,618 -24,068,188 -26,698,281 2 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Specification 1Q 2025 2Q 2025 TOTAL 1-2Q 2025 Operating profit (EBIT) 30,618,819 23,661,566 54,280,385 Amortization and depreciation (excluding capitalized portion) 3,173,305 3,113,215 6,286,520 Write-downs for impairment 0 0 0 EBITDA 33,792,124 26,774,781 60,566,905 Non-cash impact of incentive scheme (excluding capitalized portion) 495,000 1,605,476 2,100,476 Deferred result (revenue minus commissions) – consumables -500,670 2,485,739 1,985,069 Deferred result (revenue minus commissions) – durable -3,267,444 -3,820,779 -7,088,223 Costs of potential and completed acquisitions (M&A) and review of strategic options -9,613 0 -9,613 Adjusted EBITDA 30,509,397 27,045,217 57,554,614 Specification 1Q 2024 2Q 2024 TOTAL 1-2Q 2024 3Q 2024 4Q 2024 TOTAL 1-4Q 2024 Operating profit (EBIT) 19,108,496 23,278,311 42,386,807 15,606,945 18,247,197 76,240,949 Amortization and depreciation (excluding capitalized portion) 4,505,560 4,428,755 8,934,315 3,953,275 3,873,425 16,761,015 Write-downs for impairment 0 0 0 0 1,194,285 1,194,285 EBITDA 23,614,056 27,707,066 51,321,122 19,560,220 23,314,907 94,196,249 Non-cash impact of incentive scheme (excluding capitalized portion) 2,854,621 311,924 3,166,545 441,425 369,466 3,977,436 Deferred result (revenue minus commissions) – consumables 2,150,783 1,100,237 3,251,020 1,594,588 1,212,215 6,057,823 Deferred result (revenue minus commissions) – durable -819,647 -1,775,914 -2,595,561 4,919,341 3,532,579 5,856,359 Costs of potential and completed acquisitions (M&A) and review of strategic options -310,254 0 -310,254 0 -43,264 -353,518 Adjusted EBITDA 27,489,559 27,343,313 54,832,872 26,515,574 28,385,903 109,734,349 In order to convert the balance-sheet data, the average exchange rate quoted by the National Bank of Poland at the balance sheet date was adopted. In order to convert the positions under the comprehensive income statement and the cash flow statement, the exchange rate which is the arithmetical average of the exchange rates quoted by the National Bank of Poland at the last day of each month of a given period was adopted. EUR/PLN exchange rate 2025 2024 for the balance-sheet data 4.2419 4.2730 for the data from the profit and loss statement and cash flow statement 4.2208 4.3109 3 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SELECTED FINANCIAL DATA 2 I. GENERAL INFORMATION 6 1. COMPANY’S DATA 7 2. CAPITAL GROUP 8 3. SHAREHOLDING STRUCTURE 9 4. COMPOSITION OF THE COMPANY’S BODIES AS AT 30.06.2025 12 5. FORM OF CONDENSED FINANCIAL STATEMENT 13 6. STATEMENT OF THE MANAGEMENT BOARD 15 II. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT 16 1. INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT 17 2. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL SITUATION 19 3. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 21 4. INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT 23 III. ACCOUNTING PRINCIPLES 25 1. COMPLIANCE WITH THE INTERNATIONAL ACCOUNTING STANDARDS 26 2. CHANGES IN THE ACCOUNTING POLICY 27 3. DESCRIPTION OF THE ADOPTED ACCOUNTING PRINCIPLES (POLICY) 28 3.1. Subsidiaries and associates 28 3.2. Earnings per share 29 3.3. Cash flows 29 3.4. Revenues and costs of operating activity 30 3.5. Revenues and costs of financial activity 32 3.6. Income tax 32 3.7. Tangible fixed assets 34 3.8. Intangible assets 35 3.9. Lease 37 3.10. Financial instruments 38 3.11. Transactions in foreign currencies 40 3.12. Receivables 40 3.13. Equity 41 3.14. Share-based payments 41 3.15. Payment of dividends 41 3.16. Provisions 41 3.17. Liabilities 42 3.18. Transactions with related parties 42 3.19. Significant values based on professional judgement and estimates 42 IV. ADDITIONAL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT 46 1. REVENUES 47 1.1. Information on operating segments and key performance indicators 48 1.2. Revenues – source 49 1.3. Revenues – games 50 1.4. Revenues by business partner 53 1.5. Revenues – distribution channel 53 1.6. Revenues – geographical breakdown 54 TABLE OF CONTENTS 4 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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2. OPERATING COSTS 55 3. OTHER OPERATING COSTS AND REVENUES 59 4. FINANCIAL INCOME AND EXPENSE 60 5. CURRENT AND DEFERRED TAX 61 6. DIVISION OF PROFIT FOR 2024 63 7. CHANGES IN TANGIBLE FIXED ASSETS 64 8. CHANGES IN INTANGIBLE ASSETS AND GOODWILL 67 9. OTHER FINANCIAL ASSETS 69 10. RECEIVABLES 70 10.1. Trade receivables 70 10.2. Other receivables 71 10.3. Accruals 71 11. TRADE LIABILITIES 72 12. OTHER LIABILITIES 73 13. PROVISIONS FOR EMPLOYEE BENEFITS 74 14. INFORMATION ON AFFILIATED ENTITIES, INCLUDING INFORMATION ON REMUNERATION OF SENIOR MANAGEMENT AND THE SUPERVISORY BOARD 75 14.1. Managerial personnel 75 14.2. Other affiliated party 77 15. INCENTIVE PROGRAMS BASED ON SHARES 79 16. LAW SUITS/COURT CASES 82 17. OTHER IMPORTANT EVENTS 82 18. EVENTS AFTER BALANCE SHEET DATE 82 V. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENT 83 1. INTERIM CONDENSED STANDALONE STATEMENT OF COMPREHENSIVE INCOME 84 2. INTERIM CONDENSED STANDALONE STATEMENT OF FINANCIAL SITUATION 86 3. INTERIM CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY 88 4. INTERIM CONDENSED STANDALONE CASH FLOW STATEMENT 90 VI. ADDITIONAL NOTES TO THE STANDALONE FINANCIAL STATEMENT 92 1. SALES REVENUES 93 1.1. Revenues by source 93 1.2. Revenues by games 94 1.3. Revenues by business partner 94 1.4. Revenues by distribution channel 95 1.5. Revenues – geographical division 95 2. OPERATING COSTS 96 3. FINANCIAL REVENUES 97 4. INCOME TAX AND DEFERRED TAX 98 APPROVAL OF THE FINANCIAL STATEMENT 101 5 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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GENERAL INFORMATION I
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Ten Square Games Sp. z o. o. was registered on 21 October 2011, entry no. 0000399940. Ten Square Games S.A. was established through the transformation of Ten Square Games Sp. z o. o., which was registered by the District Court on 20 November 2017. 1. COMPANY’S DATA Name Ten Square Games Legal form Joint Stock Company Registered seat 45 Traugutta Street, 50-416 Wroclaw Registration country Poland Core business activity publishing activity with regard to computer games (58.21.Z) Authority keeping the register District Court, VI Commercial Division of the National Court Register Entry no. 0000704863 Statistical Business Number (REGON) 021744780 Tax Identification Number (NIP) 8982196752 Company duration indefinite 7 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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2. CAPITAL GROUP Ten Square Games S.A. is the Parent Entity in the Capital Group, which prepares consolidated financial statements. The subsidiaries shown on the graph are subject to the consolidated financial statement since the date of a given company’s establishment/acquisition of control over the company until the date of loss of control over the company. As of 31.12.2024, 30.06.2025 and 25.08.2025: PLAY COOL ZOMBIE SPORT GAMES SP. Z O.O. TEN SQUARE GAMES GERMANY GMBH RORTOS S.R.L. GAMESTURE SP. Z O.O. 100% 100% 100% 36.9% 8 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Shareholder number of shares as at 31.12.2024 % share in basic capital number of votes at GSM % share in the number of votes Shareholders’ Arrangement [1] 1,969,176 30.4% 1,969,176 30.4% TFI Allianz S.A. 360,360 5.6% 360,360 5.6% own shares purchased by the Company 131,280 2.0% 131,280 2.0% others (of which none holds more than 5% of shares) 4,015,184 62.0% 4,015,184 62.0% TOTAL 6,476,000 100.0% 6,476,000 100.0% 3. SHAREHOLDING STRUCTURE 3.1. List of shareholders holding, directly or indirectly through subsidiaries, at least 5% of the total number of votes at the issuer’s general meeting of shareholders Shareholder number of shares as at 30.08.2025 and 25.08.2025 % share in basic capital number of votes at GSM % share in the number of votes Shareholders’ Arrangement [1] 1,969,176 30.4% 1,969,176 30.4% own shares purchased by the Company 116,135 1.8% 116,135 1.8% others (of which none holds more than 5% of shares) 4,390,689 67.8% 4,390,689 67.8% TOTAL 6,476,000 100.0% 6,476,000 100.0% [1] Shareholder s’ Arrangement of Oc tober 21, 2019 regarding the pur suit of a sustainable pol ic y towards the Company and the consistent exercise of voting rights attached to the Company’s shares (current report No. 30/2019). The parties to the Shareholders’ Arrangement include, among others: Fundacje Rodzinne (Family Foundations) related to Maciej Popowicz and Arkadiusz Pernal, founders of the Company. 9 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.2. List of shares held by members of the Management Board and Supervisory Board Shareholder number of shares as at 30.06.2025 and 25.08.2025 % share in basic capital number of votes at GSM % share in the number of votes President of the Management Board – Andrzej Ilczuk 17,813 0.3% 17,813 0.3% Member of the Management Board – Janusz Dziemidowicz 90,849 1.4% 90,849 1.4% Member of the Management Board – Magdalena Jurewicz 22,024 0.3% 22,024 0.3% Member of the Supervisory Board – Maciej Marszałek 44,000 0.7% 44,000 0.7% Member of the Supervisory Board – Rafał Olesiński 669 0.0% 669 0.0% Member of the Supervisory Board – Kinga Stanisławska 105 0.0% 105 0.0% MANAGEMENT AND SUPERVISORY BOARD IN TOTAL 175,460 2.6% 175,460 2.6% Others 6,300,540 97.4% 6,300,540 97.4% TOTAL 6,476,000 100.0% 6,476,000 100.0% Shareholder number of shares as at 31.12.2024 % share in basic capital number of votes at GSM % share in the number of votes President of the Management Board – Andrzej Ilczuk 14,888 0.23% 14,888 0.23% Member of the Management Board – Janusz Dziemidowicz 88,249 1.36% 88,249 1.36% Member of the Management Board – Magdalena Jurewicz 19,424 0.30% 19,424 0.30% Member of the Supervisory Board – Maciej Marszałek 44,000 0.68% 44,000 0.68% Member of the Supervisory Board – Rafał Olesiński 669 0.01% 669 0.01% Member of the Supervisory Board – Kinga Stanisławska 105 0.00% 105 0.00% MANAGEMENT AND SUPERVISORY BOARD IN TOTAL 167,335 2.58% 167,335 2.58% Others 6,308,665 97.42% 6,308,665 97.42% TOTAL 6,476,000 100.00% 6,476,000 100.00% 3.3. Series of shares series of shares number of shares as at 25.08.2025, 30.06.2025 and 31.12.2024 nominal value of shares (per one share) total nominal value of shares A 6 476 000 0.1 PLN 647 600.00 10 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.4. Description of changes in shareholding structure Changes in the shareholding structure between December 31, 2024 and August 25, 2025 result from the transactions described in: 1. the notification received on 28 March 2025 regarding a change in the shareholding of the Company, submitted by TFI Allianz Polska S.A., as disclosed by the Company in current report no. 6/2025; 2. the notifications received on 21 May 2025 regarding changes in the shareholding of the Company, submitted by members of the Management Board, i.e. Andrzej Ilczuk, Janusz Dziemidowicz, and Magdalena Jurewicz, as disclosed by the Company in current report no. 13/2025. The notifications were related to the award of shares under the incentive program (2nd tranche). The change in the number of own shares held is related to the settlement of the Company’s existing incentive programs – including the program described above, addressed to the Members of the Management Board. 11 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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4. COMPOSITION OF THE COMPANY’S BODIES AS AT 30.06.2025 The Management Board: » Andrzej Ilczuk – President of the Management Board; » Janusz Dziemidowicz – Member of the Management Board; » Magdalena Jurewicz – Member of the Management Board. During the reporting period and after it, until the date of preparation of the financial statements, there were no changes in the composition of the Management Board. The Supervisory Board: » Rafał Olesiński – President of the Supervisory Board; » Wiktor Schmidt – Vice – President of the Supervisory Board; » Marcin Biłos – Member of the Supervisory Board; » Maciej Marszałek – Member of the Supervisory Board; » Arkadiusz Pernal – Member of the Supervisory Board; » Kinga Stanisławska – Member of the Supervisory Board. During the reporting period and after it, until the date of preparation of these financial statements, there were no changes in the composition of the Supervisory Board. 12 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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5. FORM OF CONDENSED FINANCIAL STATEMENT The basis for the preparation of the financial statement This interim condensed consolidated financial statement has been prepared in accordance with the International Accounting Standard no 34 “Interim Financial Reporting”, approved by the EU (“IAS 34”). The interim condensed consolidated financial statement does not involve all information and disclosures required in the annual financial statement and it shall be read in conjunction with the consolidated financial statement of the Group for the year ending on 31 December 2024. Functional currency and presentation currency The interim condensed consolidated financial statement is presented in Polish zlotys (PLN), which is the functional currency and the presentation currency of the Company and the Capital Group. Transactions in foreign currencies shall be converted into the functional currency, in accordance with the exchange rate applicable as at the date of the transaction. Exchange profits and losses obtained as a result of the settlement of such transactions and the balance-sheet valuation of assets and financial liabilities in foreign currencies shall be included in the profit and loss statement, provided they are not deferred in equity if they are eligible for recognition as security of cash flows and hedges of net investments. Presented periods The interim condensed consolidated financial statement has been prepared as at 30.06.2025 and it covers the period of 6 months, i.e. since 01.01.2025 to 30.06.2025. For the data presented in the interim condensed consolidated statement of financial situation and off-balance sheet items, comparable financial data for the period from 01.01.2024 to 30.06.2024 were presented. For the data presented in the interim condensed consolidated statement of comprehensive income and in the interim condensed statement of cash flows, comparable financial data for the period from 01.01.2024 to 30.06.2024 were presented. 13 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Going concern assumption The interim condensed consolidated financial statement has been prepared assuming that the Company and the Capital Group shall continue their activities for the period of 12 months after the last balance-sheet date, i.e. 30.06.2025. The Management Board of the Parent Entity, as at the date of signing the statement, was not aware of any facts or circumstances which could indicate a threat to the continuation of operations for the period of 12 months after the balance-sheet date due to an intended or forced discontinuance or material limitation of the hitherto activity. Until the date of preparation of the interim condensed consolidated financial statement for the first six months of 2025, there were no events which were not and which should have been included in the accounting records of the reporting period. At the same time, no material events relating to previous years in these financial statements are included in the financial statement. Auditing company These interim condensed consolidated financial statements together with selected elements of the interim condensed the standalone financial statements has been reviewed by an independent audit firm: UHY ECA Audyt Spółka z o.o. Połczyńska 31A Street, 01-377 Warszawa entered into a register of auditing companies under the number 3886. 14 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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6. STATEMENT OF THE MANAGEMENT BOARD The Management Board of the Parent Entity declares that, to the best of its knowledge, this interim condensed consolidated financial statement and the comparative data have been prepared in accordance with the accounting provisions of the Capital Group Ten Square Games S.A. and that they reflect a true and fair view of the assets, financial standing and financial performance and results of the Company and the Capital Group. The Management Board also declares that the semi-annual report on the activities of the Capital Group contains a true picture of the development and achievements as well as the situation of the Capital Group, including a description of the basic threats and risks. This interim condensed consolidated financial statement has been prepared in accordance with the International Financial Reporting Standards (IAS 34 – Interim Financial Reporting) and related interpretations, applicable to the interim financial reporting, published in the forms of the European Commission’s regulations, which were approved by the European Union. The presented interim condensed consolidated financial statement has been prepared in accordance with the Regulation of the Minister of Finance of 6 June 2025 on current and periodical information submitted by issuers of securities. 15 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT II
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1. INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT CONSOLIDATED COMPREHENSIVE INCOME STATEMENT for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Revenues from the sales of services 181,088,144 198,117,155 Cost of services sold 29,808,823 35,253,141 Gross profit (loss) on sales 151,279,321 162,864,014 Other operating income 592,520 1,588,853 Selling costs 83,965,578 106,904,381 General and administrative costs 13,359,243 14,567,352 Other operating costs 266,633 594,327 Operating profit (loss) 54,280,387 42,386,807 Financial income 2,465,209 3,341,429 Financial expense 4,414,308 1,545,837 Loss (profit) on associates 375,648 -195,610 Profit(loss) before taxation 52,706,934 43,986,789 Income tax 5,264,005 4,023,602 Net profit (loss) on continued activity 47,442,931 39,963,187 Profit (loss) on discontinued activity 0 0 Net profit (loss) 47,442,931 39,963,187 Net profit (loss) attributable to the parent company 47,442,931 39,963,187 Items that may be reclassified subsequently to profit or loss -11,209,207 -8,575,998 Subject to reclassification to the result – exchange differences from translation of foreign statements -11,209,207 -8,575,998 Items that will not be reclassified to profit or loss in subsequent periods 0 0 Other comprehensive income -11,209,207 -8,575,998 Total comprehensive income 36,233,724 31,387,189 Total comprehensive income attributable to non-controlling shareholders 0 0 Total comprehensive income attributable to Parent company 36,233,724 31,387,189 17 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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CALCULATION OF EARNINGS PER SHARE for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Number of shares the weighted average number of shares for the purpose of calculating the value of basic earnings per share (in units) 6,476,000 7,334,822 the weighted average number of shares for the purpose of calculating the value of diluted earnings per share (in units) 6,359,865 6,342,120 net profit attributable to Parent Entity 27,485,767 39,963,187 Net earnings per share in PLN basic for the financial period 4.24 5.45 diluted for the financial period 4.32 6.30 Net earnings per share on continued operations in PLN basic for the financial period 4.24 5.45 diluted for the financial period 4.32 6.30 Net profit per share attributable to discontinued operations in PLN basic for the financial period 0.00 0.00 diluted for the financial period 0.00 0.00 EARNINGS PER SHARE 18 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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ASSETS 30.06.2025 31.12.2024 30.06.2024 Fixed assets 198,595,234 206,435,574 212,420,191 Tangible fixed assets 9,981,782 11,758,779 15,062,155 Intangible fixed assets 53,365,783 56,330,638 60,054,605 Goodwill 106,997,987 108,453,418 109,850,840 Other financial assets 23,503,483 24,408,483 22,886,470 Deferred income tax assets 4,746,199 5,484,256 4,566,121 Current assets 137,161,428 210,414,131 158,747,862 Receivables 33,786,151 40,864,028 40,651,716 Current income tax receivable 0 1,744,941 1,796,189 Contract assets 18,499,650 22,630,967 19,984,684 Loans granted 1,453,645 1,399,344 1,344,143 Cash and cash equivalents 83,421,982 143,774,851 94,971,130 TOTAL ASSETS 335,756,662 416,849,705 371,168,053 2. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL SITUATION 19 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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EQUITY & LIABILITIES 30.06.2025 31.12.2024 30.06.2024 Equity 190,872,795 243,263,256 217,607,423 Equity attributable to owners of the Parent Entity 190,872,795 243,263,256 217,607,423 Share capital 647,600 647,600 733,482 Reserve capital from the sale of shares above the nominal price 490,305 490,305 490,305 Capital from the settlement of the incentive scheme 101,549,317 99,448,841 98,637,955 Foreign exchange differences on translation of statements of foreign operations -11,209,207 -10,923,234 -8,575,998 Retained earnings 113,341,906 169,365,699 251,171,011 Own shares (negative value) -13,947,126 -15,765,955 -124,849,332 Long-term liabilities 6,965,511 25,410,058 24,222,240 Deferred income tax provisions 1,220,172 1,143,594 1,075,271 Provisions for employee benefits 1,416,148 2,946,201 2,061,321 Lease liabilities 4,329,191 5,586,049 6,862,783 Other liabilities 0 15,734,214 14,222,865 Short-term liabilities 137,918,356 148,176,391 129,338,390 Trade liabilities 9,101,316 10,543,440 10,250,622 Income tax provisions 23,435,773 23,435,773 23,435,773 Current income tax liabilities 612,999 0 0 Lease liabilities 2,425,291 2,363,832 2,275,864 Other liabilities 18,366,387 16,976,560 13,148,913 Provisions for employee benefits 5,328,579 6,966,436 6,231,670 Contract liabilities 78,648,011 87,890,350 73,995,548 Total liabilities 144,883,867 173,586,449 153,560,630 TOTAL EQUITY & LIABILITIES 335,756,662 416,849,705 371,168,053 20 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period of 6 months ended 30.06.2025 Share capital Reserve capital from the sale of shares above the nominal price Capital from the settlement of the incentive scheme Foreign exchange differences on translation Retained earnings Own shares Total equity Equity as at 01.01.2025 647,600 490,305 99,448,841 -10,923,234 169,365,699 -15,765,955 243,263,256 Contribution to the share capital 0 0 0 0 0 1,515 1,515 Share-based payments 0 0 2,100,476 0 0 0 2,100,476 Foreign exchange differences 0 0 0 0 9,314,500 0 9,314,500 Dividend payment 0 0 0 0 -100,040,676 0 -100,040,676 Net profit 0 0 0 0 47,442,931 0 47,442,931 Purchase of own shares 0 0 0 0 0 0 0 Distribution of own shares 0 0 0 0 -1,817,314 1,817,314 0 Sales of own shares 0 0 0 0 0 0 0 Cancellation of own shares 0 0 0 0 0 0 0 Other comprehensive income 0 0 0 -285,973 -10,923,234 0 -11,209,207 Total comprehensive income 0 0 0 -285,973 36,519,697 0 36,233,724 Change in equity 0 0 2,100,476 -285,973 -56,023,793 1,818,829 -52,390,461 Equity as at 30.06.2025 647,600 490,305 101,549,317 -11,209,207 113,341,906 -13,947,126 190,872,795 21 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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for the period of 12 months ended 31.12.2024 Share capital Reserve capital from the sale of shares above the nominal price Capital from the settlement of the incentive scheme Foreign exchange differences on translation Retained earnings Own shares Total equity Equity as at 01.01.2024 733,482 490,305 95,471,416 -8,035,808 220,987,589 -18,636,050 291,010,934 Contribution to the share capital 0 0 0 0 0 3,406 3,406 Share-based payments 0 0 3,977,425 0 0 0 3,977,425 Foreign exchange differences 0 0 0 0 6,707,617 0 6,707,617 Dividend payment 0 0 0 0 0 0 0 Net profit 0 0 0 0 67,077,028 0 67,077,028 Purchase of own shares 0 0 0 0 0 -114,589,920 -114,589,920 Distribution of own shares 0 0 0 0 -8,373,492 8,373,492 0 Sales of own shares 0 0 0 0 -311,985 311,985 0 Cancellation of own shares -85,882 0 0 0 -108,685,250 108,771,132 0 Other comprehensive income 0 0 0 -2,887,426 -8,035,808 0 -10,923,234 Total comprehensive income 0 0 0 -2,887,426 59,041,220 0 56,153,794 Change in equity -85,882 0 3,977,425 -2,887,426 -51,621,890 2,870,095 -47,747,678 Equity as at 31.12.2024 647,600 490,305 99,448,841 -10,923,234 169,365,699 -15,765,955 243,263,256 for the period of 6 months ended 30.06.2024 Share capital Reserve capital from the sale of shares above the nominal price Capital from the settlement of the incentive scheme Foreign exchange differences on translation Retained earnings Own shares Total equity Equity as at 01.01.2024 733,482 490,305 95,471,416 -8,035,808 220,987,589 -18,636,050 291,010,934 Contribution to the share capital 0 0 0 0 0 3,146 3,146 Share-based payments 0 0 3,166,539 0 0 0 3,166,539 Foreign exchange differences 0 0 0 0 -1,743,957 0 -1,743,957 Dividend payment 0 0 0 0 0 0 0 Net profit 0 0 0 0 39,963,187 0 39,963,187 Purchase of own shares 0 0 0 0 0 -114,589,920 -114,589,920 Distribution of own shares 0 0 0 0 0 8,373,492 8,373,492 Other comprehensive income 0 0 0 -540,190 -8,035,808 0 -8,575,998 Total comprehensive income 0 0 0 -540,190 31,927,379 0 31,387,189 Change in equity 0 0 3,166,539 -540,190 30,183,422 106,213,282 73,403,511 Equity as at 30.06.2024 733,482 490,305 98,637,955 -8,575,998 251,171,011 -124,849,332 217,607,423 22 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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CONDENSED CONSOLIDATED CASH FLOW STATEMENT for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 OPERATING ACTIVITY Profit/loss before taxation 52,706,934 43,986,789 Total adjustments: 6,999,391 12,018,305 Depreciation and amortization 6,286,520 8,934,315 Gain/loss on foreign exchange rate conversion 407,802 -1,013,949 Interest paid on lease 252,080 343,855 Interest accrued on deposits -890,570 -1,260,528 Interest on liabilities (Rortos) 540,801 1,113,829 Change in receivables 7,077,877 6,398,931 Change in liabilities and accrued expenses -3,251,307 -5,762,644 Change in liabilities due to contracts with customers -9,242,339 -2,238,765 Change in assets due to contracts with customers 4,131,317 2,885,612 Share-based payments (part not included in the acquisition of intangible assets) 2,100,476 3,166,539 Loss on associates -375,648 195,610 Loss / profit from the sale of fixed assets -37,618 -744,500 Other adjustments 0 0 Cash from operating activity 59,706,325 56,005,094 Income tax (paid) / reimbursed -3,391,432 3,268,633 A. Net operating cash flow 56,314,893 59,273,727 4. INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT 23 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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CONDENSED CONSOLIDATED CASH FLOW STATEMENT for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 INVESTMENT ACTIVITY Purchase of intangible and tangible fixed assets -1,911,007 -1,743,271 Disposal of intangible and tangible fixed assets 38,123 319,279 Earn-Out payment -14,668,721 -10,957,715 Loans granted 0 -353,275 Acquisition of stockholding 0 -1,211,790 B. Net cash flow from investment activities -16,541,605 -13,946,772 FINANCIAL ACTIVITY Net proceeds from the issue/distribution of shares 1,515 3,146 Dividend and other payments to the owners -100,040,678 0 Other financial inflows 0 1,445,951 Payment of finance lease liabilities -1,279,700 -1,608,940 Purchase of own shares 0 -114,589,920 Interest on lease -252,080 -343,855 Other financial expenditure -16,063 0 C. Net cash flow from financing activity -101,587,006 -115,093,618 D. Total net cash flow -61,813,718 -69,766,663 – change in cash due to exchange rate differences and accrued interest 1,460,849 1,912,075 E. Increase in cash and cash equivalents (incl. exchange rate differences) -60,352,869 -67,854,588 F. Cash at the beginning of the period 143,774,851 162,825,718 G. Cash at the end of the period 83,421,982 94,971,130 24 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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ACCOUNTING PRINCIPLES III
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1. COMPLIANCE WITH THE INTERNATIONAL ACCOUNTING STANDARDS This interim condensed financial statement has been prepared in accordance with the International Accounting Standard No. 34 „Interim Financial Reporting”. The accounting principles (policy) applied to prepare this report are consistent with those applied in the prepa - ration of the financial statements for the year ended December 31, 2024, except for the application of changes in standards and new interpretations applicable to annual periods beginning on or after 1st of January 2025: a. IFRS 18 Presentation and Disclosures in Financial Statements (published on 9 April 2024) – not endorsed by the EU as at the date of approval of these financial statements – applicable for annual periods beginning on or after 1 January 2027; b. IFRS 19 Subsidiaries without Public Accountability: Disclosures (published on 9 May 2024) – not endorsed by the EU as at the date of approval of these financial statements – applicable for annual periods beginning on or after 1 January 2027; c. Amendments to IFRS 9 and IFRS 7 – Contracts for Nature-Dependent Electricity (published on 18 December 2024) – applicable for annual periods beginning on or after 1 January 2026; d. Annual Improvements to IFRS/IAS – Volume 11 (published on 18 July 2024) – applicable for annual periods beginning on or after 1 January 2026; e. Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments (issued on 30 May 2024) – applicable for annual periods beginning on or after 1 January 2026. The above-mentioned changes have been reviewed by the Group’s Management Board and are not expected to have a material impact on the Group’s financial position, performance, or the scope of information presented in these interim condensed financial statements. 26 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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2. CHANGES IN THE ACCOUNTING POLICY In the reporting period there were no changes in the accounting policy. 27 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3. DESCRIPTION OF THE ADOPTED ACCOUNTING PRINCIPLES (POLICY) Consolidated financial statement Subsidiaries are all business entities over which the Group exercises control. The Group controls an entity if it is subject to or if it has a right to variable return on its contribution into an entity and if it can influence these returns through exercising control over such an entity. Subsidiaries are fully consolidated from the date control is transferred to the group. The consolidation ceases at the date the control ceases. The costs related to the acquisition of a business entity are recognized as costs of the period. Intra-group transactions, settlements and unrealized gains on transactions between the group’s entities are eliminated. Unrealized losses are also eliminated. If it is necessary, the amounts reported by subsidiaries are adjusted so that they comply with the accounting principles of the group. Standalone financial statement Pursuant to IAS 27, the Company, as the parent company preparing separate financial statements, recognizes investments in subsidiaries, jointly controlled entities and associates at cost. If the purchase price includes future contingent payments, the Company estimates the value of future cash flows as credibly as possible on the date of purchase, and then recognizes them at the present value, adjusted by the change in the value of cash over time. In accordance with IAS 28, the Company measures investments in associates using the equity method. An investment in an associate is recognized initially at cost, and the carrying amount is increased or decreased in order to recognize the investor’s share of the profit or loss of the investee, noted by it after the acquisition date. An associate is an entity over which the investor has significant influence and which is neither a subsidiary of the investor nor a joint venture of the investor. The management board of the parent company always considers the existence of significant influence and dependence of the company in which the shares are acquired. 3.1. Subsidiaries and associates 28 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.2. Earnings per share Net profit/loss per share for each period is calculated as the quotient of the net profit/loss for the period attributable to the Company’s shareholders and the weighted average number of shares outstanding during that period. The weighted average number of shares outstanding includes any treasury (own) shares, if applicable. For the purpose of calculating diluted earnings per share, the profit or loss attributable to ordinary shareholders of the parent entity and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential ordinary shares. 3.3. Cash flows The statement of cash flows is prepared in accordance with the key requirements of IAS 7 “Statement of cash flows.” Cash flows from operating activities Cash flows from operating activities are presented using the indirect method, whereby the profit is adjusted for the effects of non-cash transactions, past or future cash inflows or outflows, and income or expense items related to investing or financing cash flows. Cash flows from investing and financing activities The main categories of cash inflows and outflows arising from investing and financing activities are presented separately. 29 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.4. Revenues and costs of operating activity Revenues are gross inflows of economic benefits of a given period, arising in the course of (ordinary) economic activity of the Group and resulting in an increase of equity, other than an increase of equity resulting from the contributions of shareholders. Revenues include only gross inflows of economic benefits received or due inflows of economic benefits that accrue to the Group. Sales income is understood as due or received amounts from the sales of material elements and services, minus the effective VAT tax. The revenue is measured at the fair value of the received or due payment, taking into account the amounts of trade discounts granted by the Group. Sales of services are recognized in the accounting period in which the services were provided. The specific nature of the Group’s companies’ activity is based mainly on retail to the end customer (natural person). Upon concluding an agreement with the user, concerning the purchase of objects or services in a game, the transfer of the goods takes place immediately through the channels of Internet distribution upon receiving payment through a financial intermediary (payment aggregator). In the course of ongoing activities of the Group’s companies, concluding agreements with customers takes place on a continuous basis, with the use of remote agreements (i.e. the acceptance of the terms and conditions of the provision of services and making payment on the terms defined by the Group’s companies). REVENUES MICRO-PAYMENTS » revenues from additional functionalities purchased by the players ADVERTISEMENTS » revenues from advertise- ments displayed in games LICENSES » revenues from the users’ activity in games which are shared with the Company’s commercial partners on the basis of license agreements THE GROUP DISTINGUISHES THREE MAIN SOURCES OF REVENUES: 30 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Revenues from additional functionalities purchased by the players (micro-payments) As part of the games, premium packages are available to users, which include banknotes and pearls (the virtual currency of the game). Players can convert the virtual currency of the game into durable virtual goods such as fishing rods or lures or other accessories to improve the parameters of the equipment and thus the results achieved in the game, or into consumables – e.g. amplifiers (+ x% fish weight) or another possibility to draw a card. The Company verifies an average estimated conversion period of virtual currency into goods in a game for a group of paying users and subsequently estimates the amount of potential liability due to the realization of premium packages. The amount of such a liability reduces the revenue of a given period and is recognized as an accrued income settlement (balance sheet item). In 2020, the Company made changes to its information systems so that it began collecting data to analyze the use of durable goods over time. As a result, the Company estimates the amount of the liability (customer contract liability) for the provision of the durable good in the game – revenues related to the purchase of durable virtual goods (and the commission of digital distribution platforms such as Google Play and the App Store related to these revenues) are recognized by the estimated average play period of paying users. Estimating the average length of time a paying user remains in the game requires a sufficiently long history of player behavior. In the case of the games shared through Facebook and shared on digital distribution platforms, such as Google Play and App Store, the payments for additional functionalities received from users are decreased by commissions due for distributors. In the case of games shared through own website, the payments for additional functionalities received from users are decreased by commissions due for payment aggregators. Both the commissions of distributors and aggregators shall be recognized by the Company in the selling costs. Revenues from advertisements displayed in games (advertisements) Revenues due to advertisements displayed by players shall be recognized by the Group in the amount resulting from the sales report, received from an advertising intermediary. Revenues from the users’ activity in games which are shared with the Company’s commercial partners on the basis of license agreements (licenses) Revenues due to the users’ activity in games shall be recognized by the Group in the amount due resulting from the sales report, received from a partner (a part of revenues due to users’ payment, after deduction of applicable taxes, commissions, returns and discounts). Costs of services sold shall be recognized by the Group in the same period as revenues from sales of these components, according to the principle of matching revenues and costs. In this item, the Group shall recognize the costs of manufacturing services, direct costs and a reasonable proportion of indirect costs related to the maintenance of games after their premiere, i.e. after the so-called soft launch. In this item, the following positions shall be recognized: costs of server maintenance, personnel costs of design departments as well as the depreciation of (games) development costs and depreciation of IT equipment. Selling costs – include mainly costs connected with advertising, marketing and promotion of games as well as commissions for intermediation in the execution of transactions, set off by a payment aggregator or an on-line shop. General and administrative costs – in this item, the following positions shall be grouped: personnel costs concerning the Management Board and departments related to design, costs of administration and maintenance of the office’s usability. 31 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Financial revenues consists mainly of interest on free funds in bank accounts, commissions and interest on granted loans, interest on delay in settling receivables, the amount of released provisions concerning financial activity, revenues from sales of securities, positive exchange rate differences, restoration of lost value of investments, the value of redeemed credits and loans as well as profits from settlement of derivative instruments. Financial costs include mainly interest on credits and loans, interest on delay in the payment of receivables, created provisions for certain or probable losses on financial operations, acquisition value of sold shares, stocks, securities, commissions and handling fees, value of short-term investments, discount and exchange rate differences, losses on settlement of derivative instruments, and, in the case of financial leasing, other fees, excluding capital instalments. Income tax includes: current tax payable and deferred tax. Current tax Current tax is calculated on the basis of tax result (tax base) of a given trading year. Tax profit (loss) is different than balance-sheet profit (loss) due to the exclusion of revenues subject to taxation and costs which constitute tax-deductible revenues in the subsequent years as well as the revenues and costs which will never be subject to taxation. The current tax value is calculated on the basis of tax rate applicable in a given trading year. Ten Square Games S.A. as a company carrying out research and development activities and earning income from qualified intellectual property rights applies a preferential income tax rate. In order to take advantage of the IP BOX tax relief, the Company: » divides the tax income into income from qualified intellectual property rights (in the case of the company, these are games meeting the definition of computer programs) and other sources; » for income from qualified intellectual property rights, the nexus ratio is calculated in accordance with the rules set out in the Corporate Income Tax Act; » the nexus index is used to calculate the tax for each source of income. In the case of other sources of income, the Company benefits from a research and development relief, which is a reduction of taxable income. 3.5. Revenues and costs of financial activity 3.6. Income tax 32 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Deferred tax Deferred tax is a tax payable in the future, recognized in full value with the use of the balance sheet method, due to temporary differences between the tax value of assets and liabilities and their balance-sheet values in the financial statement. The deferred income tax asset is a tax refundable in the future, calculated with the use of the balance-sheet method, due to temporary differences between the tax value of assets and liabilities and their balance-sheet values in the financial statement. Deferred income tax assets are recognized when it is probable that in the future the Group shall achieve the revenue subject to taxation, which enables the use of temporary differences. Basic temporary differences concern different depreciation of the games created by the Group, balance sheet valuation of settlements and accounting for revenues from users over time. Deferred income tax is calculated with the use of tax rates, legally or actually binding as at the balance-sheet date, which will be applicable upon their implementation. Deferred tax is recognized in the profit and loss statement, and if it concerns transactions settled with equity, it is recognized in equity. Deferred income tax assets are recognized when it is probable that in the future the Group shall achieve the revenue subject to taxation, which enables the use of temporary differences. Deferred tax liabilities or assets are recognized as long-term liabilities or assets in the balance sheet. Uncertainty related to the recognition of income tax With the introduction in 2019 of „IFRIC 23: Uncertainty Related to the Recognition of Income Tax”, which clarifies the recognition of income tax when it is uncertain whether the tax treatment applied by an entity will be accepted by the tax authorities, the Company assesses each time the possible approach of the authorities to the tax return prepared by the Company. If it is probable that the tax authorities will accept the applied tax approach, the Company recognizes the taxes in the financial statements consistently with the tax returns without reflecting the uncertainty in the recognition of current and deferred tax. Otherwise, the tax base (or tax loss), tax values and unused tax losses are recognized by the Company in an amount which better reflects the resolution of the uncertainty, using the method of one most probable result or the expected value method (the sums weighted by probabilities of possible solutions). When assessing the probability of acceptance, the Company assumes that the tax authorities will verify the uncertain tax treatment and have full knowledge of this issue. 33 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The Group recognizes fixed assets as separate objects, suitable for use, meeting the criteria for fixed assets specified in IAS 16 Tangible fixed assets, if the purchase price (manufacturing cost) amounts to at least PLN 3.500. Fixed assets with the value below 3.500 PLN undergo one-off amortization and they are recognized as costs in the month of purchase. Tangible fixed assets are recognized according to the cost (purchase price or manufacturing cost) reduced in the subsequent periods by write-downs and impairment write-offs. External financing costs directly related to the acquisition or production of assets requiring a longer period of time in order to be fit for use or resale are added to the costs of production of such fixed assets until the moment of putting such fixed assets into use. The costs of modernization are included in the balance sheet value of fixed assets when it is probable that they will yield economic gains, and the costs incurred for modernization can be reliably measured. All other expenses for repairing and maintaining fixed assets are recognized in the profit and loss statement for the reporting periods in which they occurred. Amortization is calculated for all fixed assets, excluding land and fixed assets under construction, by estimated period of economic utility of those assets, using the straight-line method. The Group, using the significance rule, decided that amortization shall start in the month of the asset’s acceptance for use. The Group, no later than at the end of the financial year, conducts a periodical verification of the adopted economic useful life periods for fixed assets, final value and depreciation methods, and the effects of changes in these estimates are reflected in the following and subsequent financial years (prospectively). As at the balance-sheet date, the Group shall also evaluate tangible fixed assets for impairment and evaluates a necessity of preparing impairment write-downs. This takes place when the Group is sufficiently assured that a given asset shall not generate the expected economic benefits or the achieved benefits shall be significantly lower. The impairment loss shall be recognized in the amount by which the balance-sheet value exceeds the recoverable amount. The recoverable amount is the higher of two amounts: fair value less selling costs or value in use. The write-downs shall be recognized as other costs relevant for the property functions of fixed assets in the period during which the impairment was determined, no later than at the end of the financial year. If it has been established, with sufficient certainty, that the reasons for which a write-down on the value of assets had been made have stopped, the Company shall introduce the reversal of the conducted impairment write-down, in full or in part, by recognition of revenues. Profits or losses resulting from sales/liquidation or disposal of fixed assets shall be determined as the difference between sales revenues and net value of these fixed assets, and they shall be recognized in the profit and loss statement. 3.7. Tangible fixed assets 34 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.8. Intangible assets Intangible assets are valuated at acquisition or construction cost less amortization and impairment write-downs. Depreciation is made with a straight-line method. The Group, no later than at the end of the financial year, conducts a periodical verification of the adopted economic useful life periods for intangible assets, final value and depreciation methods, and the effects of changes in these estimates are reflected in the following and subsequent financial years (prospectively). As at the balance-sheet date, the Group shall also evaluate intangible assets for impairment and evaluate a necessity of preparing impairment write-downs. This takes place when the Group is sufficiently assured that a given asset shall not generate the expected economic benefits or the achieved benefits shall be significantly lower. The impairment loss shall be recognized in the amount by which the balance-sheet value exceeds the recoverable amount. The recoverable amount is the higher of two amounts: fair value less selling costs or value in use. The write-downs shall be recognized as other costs relevant for the property functions of intangible assets in the period during which the impairment was determined, no later than at the end of the financial year. If it has been established, with sufficient certainty, that the reasons for which a write-down on the value of assets had been made have stopped, the Company shall introduce the reversal of the conducted impairment write-down, in full or in part, by recognition of revenues. Intangible assets of the Group with the depreciation rates: 1. Computer software – from 2 to 5 years, 2. Development costs – from 5 to 10 years. 35 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Software development activities The Group’s intangible assets also include tangible assets in progress (games) if they can be qualified as development works, in accordance with IAS 38 Intangible assets, i.e. they meet all of the following conditions: a. it is technically possible to complete an intangible asset so that it is suitable for sale or use, b. it is possible to prove the intent of completing an asset and its use and sale, c. an asset will be suitable for use or sale, d. it is known in what way an asset will generate future economic benefits, e. technical and financial measures will be provided in order to complete development works and the asset’s use and sale, f. it is possible to reliably establish the expenditures incurred during development works. If the above conditions are not met, the Group shall treat the expenditures as research works and recognize them in a current period. Development works in progress, as unamortized intangible assets, are subject to impairment testing not less frequently than once a year. The Group shall treat the expenditures on games as completed and it shall requalify them to the development costs upon the so-called soft launch, which is the release of a game on a few chosen markets. Goodwill Goodwill arising from the acquisition of an entity is initially recognized at the purchase price being the amount of the excess of: (i) the consideration transferred, (ii) the amount of any non-controlling interest in the acquired entity and (iii) in the case of a business combination carried out in stages, the fair value as at the date of acquisition of the interest in capital of the acquired entity, previously belonging to the acquiring entity, over the net amount determined as at the acquisition date of the value of identifiable assets acquired and liabilities assumed. As at the acquisition date, the acquired goodwill is allocated to each of the cash-generating units that may benefit from the synergies resulting from the merger. After initial recognition, goodwill is carried at acquisition price less any accumulated impairment losses. The impairment test is performed as at December 31 or more frequently if there are grounds for doing so. Goodwill is not subject to amortization. The impairment loss is determined by estimating the recoverable value of the cash-generating unit to which a given goodwill was allocated. If the recoverable value of the cash-generating unit is lower than the carrying amount, an impairment loss is recognized. Goodwill is removed from the balance sheet when control over the entity to which it was allocated is lost. 36 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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In accordance with IFRS 16 on recognition, measurement, presentation and disclosure of leases, the Company presents assets and liabilities arising from the agreements described in IFRS 16. At the beginning of an agreement, an entity assesses whether the agreement is or contains a lease. An agreement is a lease or contains a lease if it gives the right to control the use of an identified asset for a given period in exchange for remuneration. At the date of commencement of the agreement, the Company recognizes an asset under the right of use and a liability under the lease. An asset under the right of use is measured at cost, while a liability under the lease is recognized at the present value of the lease payments outstanding at that date. The cost of the debt is the average market interest rate of PLN loans to enterprises published by the NBP. After the commencement date, the Company measures an asset by virtue of the right of use, using the cost model, while the liability is measured through: a. increasing the balance sheet value to reflect interest on the lease liability, b. a reduction in the balance sheet value to reflect the lease payments made; and c. revaluing the balance sheet value to reflect any reassessment or change in the lease, or to reflect revalued substantially fixed lease payments. Interest on the lease obligation at any time during the lease term is the amount by which a fixed periodic rate of interest is obtained on the outstanding balance of the lease obligation. The interest element of the finance charge is charged to the profit or loss for the current period. 3.9. Lease 37 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The Group shall recognize a financial asset or financial liability in the statement of financial situation only when it becomes bound by the provisions of the instrument agreement. Unconditional receivables and liabilities shall be recognized as assets or liabilities when the Group becomes a party to the agreement, and, as a consequence, has a legal right to receive or a legal obligation to pay cash. With the exception of trade receivables, which shall be valued on the basis of the amortized costs, on initial recognition, the Group shall valuate a financial asset or financial liability at its fair value, which in the case of financial assets or financial liabilities not valuated at fair value by financial result shall be increased or decreased by transaction costs that are directly attributable to the acquisition or issue of such financial assets or financial liabilities. The Group classifies a financial asset as valuated, after initial recognition, at amortized cost or at fair value by other comprehensive income or at fair value by financial result, on the basis of: a. the entity’s business model with regard to the management of financial assets, and b. the characterization of cash flows for a financial asset, resulting from an agreement. A financial asset shall be valuated at amortized costs if it meets both of the following conditions: a. a financial asset is maintained in accordance with the business model whose aim is maintaining financial assets for the purpose of obtaining cash flows resulting from the agreement; b. the provisions of the agreement concerning a financial asset result in the creation of cash flows, within specified periods, which are only the repayment of main amount and interest on the outstanding amount. A financial asset shall be valuated at fair value by other comprehensive income if it meets both of the following conditions: a. a financial asset is maintained in accordance with the business model whose aim is maintaining financial assets for the purpose of obtaining cash flows resulting from the agreement and the sales of financial assets; and b. the provisions of the agreement concerning a financial asset result in the creation of cash flows, within specified periods, which are only the repayment of main amount and interest on the outstanding amount. A financial asset shall be valuated at fair value by financial result unless it is valuated at amortized cost (due to meeting the conditions specified above) or at fair value by comprehensive income (due to meeting the conditions specified above). 3.10. Financial instruments 38 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The Group classifies all financial liabilities as valuated, after initial recognition, at amortized cost, excluding: financial liabilities valuated at fair value by financial result (one-off decision on initial recognition, if it is allowed by IFRS 9), financial liabilities arising from transferring a financial asset, financial guarantee agreements, commitments to provide loans at below-market interest rates, contingent considerations recognized by the acquiring entity under a merger. As at each reporting date, the Group shall valuate a write-down on expected credit losses due to financial instrument, in the amount equal to the expected credit losses during a life cycle if credit risk connected with a given financial instrument has significantly increased since initial recognition. In order to conduct the analysis of statistical receivables, the Group shall apply the division into the following categories of recipients: 1. International payment intermediaries (online shops, payment aggregators); 2. Advertising intermediaries; 3. Licensees. 39 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Items included in the financial statement are presented in Polish zloty (“PLN”) which is a functional currency of the Group. Valuation As at the balance-sheet date, financial assets and liabilities denominated in foreign currencies are converted according to the rates applicable as at that date. Assets and liabilities valuated at fair value and denominated in foreign currencies are valuated according to the rates applicable at the date when fair value was determined. Non-financial items are valuated at historical cost. Exchange rate differences are recognized in the comprehensive income statement during the period in which they arise, excluding exchange rate differences which constitute external financing costs relating to assets in progress, intended for future operating use, which shall be included in these assets and treated as corrections of interest costs. Transactions during a year Transactions denominated in currencies other than Polish zloty shall be converted to Polish zloty at the exchange rate actually applied at the date of concluding a transaction and if applying such a rate is not possible, at the average exchange rate for a given currency, announced by the National Bank of Poland on the previous day. The disbursement of cash in a foreign currency from own accounts shall be conducted according to the FIFO principle. Exchange rate differences are recognized in the comprehensive income statement during the period in which they arise, excluding exchange rate differences which constitute external financing costs relating to assets in progress, intended for future operating use, which shall be included in these assets and treated as corrections of interest costs. 3.12. Receivables Trade and other receivables Loans and receivables are classified as financial assets. Loans granted are measured at amortized cost using the interest rate specified in the loan agreement. Trade and other receivables are recognized in the books at amounts corresponding to the transaction prices, adjusted for appropriate impairment allowances under the expected credit loss model. Prepayments and accruals The Company shall recognize prepaid expenses if they concern future reporting periods. Accrued expenses shall be recognized in the amount of probable liabilities for a given reporting period. 3.11. Transactions in foreign currencies 40 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.13. Equity The share capital is recognized in the amount specified in the company’s articles of association and entered in the court register. If the shares are taken up at a price higher than the nominal value, the surplus is recognized in the supplementary capital. In the item other capitals, the Group recognizes the profit for the period allocated in accordance with the shareholders’ resolution to other capitals. 3.14. Share-based payments In the case of share-based payments in transactions with employees and other people providing similar services, the unit shall valuate the fair value of received services by reference to the fair value of the equity instruments. It is a consequence of the fact that it is usually not possible to reliably estimate the fair value of the received services. The fair value of equity instruments shall be determined at the date of granting such instruments. 3.15. Payment of dividends Dividends shall be recognized at the time of establishment of the Parent Company’s shareholders’ rights to the dividends. 3.16. Provisions Provisions shall be recognized if the Group is under an existing liability (legal or customary), resulting from past events and if it is probable or highly probable that fulfilment of this liability will require expending of funds that form economic benefits and if it is possible to reliably estimate the value of such liability. The amount of the created provisions shall be verified and updated at the end of the reporting period in order to adjust the estimates to the values prepared in accordance with the Group’s best knowledge as at that date. In the financial statement, provisions shall be recognized as long-term and short-term provisions. 41 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3.17. Liabilities Liabilities are the Group’s present obligation resulting from past events, the fulfilment of which will result in an outflow from the Company of funds embodying economic benefits. Long-term liabilities include liabilities whose maturity date, counting from the end of the reporting period, falls in the period longer than 12 months. Long-term liabilities include liabilities whose maturity date, counting from the end of the reporting period, falls in the period shorter than 12 months. Trade liabilities are recognized at nominal value. Any interest is recognized at the moment of receiving notes from suppliers. 3.18. Transactions with related parties The accounting policies as well as key estimates and assumptions presented in the section on receivables and liabilities apply to transactions conducted with related parties. 3.19. Significant values based on professional judgement and estimates The preparation of the consolidated financial statements requires the Management Board of the Parent Company to make certain estimates and assumptions, which are reflected in these statements and in additional information and explanations to these statements. Accounting judgements and estimates are derived from previous events and other factors, including but not limited to the forecasts on the future events that are likely to occur. Although the adopted assumptions and estimates are based on the best knowledge of the Management Board concerning current activities and events, actual results might differ from the expected outcome. Estimates and assumptions connected with them are subject to verification. The change of accounting judgements shall be recognized in the period during which it occurred or in the current or future periods, if a conducted change of estimates concerns both the current period and future periods. Basic judgements conducted by the Management Board of the Parent Entity in the process of applying the accounting principles of the entity and having the most significant impact on the values recognized in the financial statement are provided below. 42 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Moment of activation of development costs The Group commences the activation of expenditures on development works when it is possible to prove that the specified works shall generate future economic profits and under the condition that the Group possesses sufficient resources necessary to complete, use and achieve profits from an intangible asset. Meeting both of the criteria, i.e. a possibility of achieving future economic benefits and possessing sufficient resources is based on the Management Board’s estimates, resulting from the analysis of market and financials situation of the Group. Depreciation period of activated intangible assets The Management Board specifies the estimated periods of use and depreciation rates for the amounts of incurred development costs of activated intangible assets. This estimate is based on the expected period of economic utility of such assets. In the case of the occurrence of circumstances which change the expected period of economic utility (e.g. technological changes, withdrawal from use, etc.), the depreciation rates may change. As a consequence, the value of write-offs and net book value of activated costs of development works may also change. Deferred income tax assets and liabilities Deferred income tax assets and liabilities are valuated in accordance with tax rates, which are expected to apply at the moment when the assets are realized or the liabilities are released, adopting as a basis the tax regulations which were legally or actually effective at the end of the reporting period. The probability of realizing deferred income tax assets with future tax income is based on the Group’s plans. Fair value of share-based payments Fair value is the amount that a given asset could be exchanged for and liability settled, through a transaction effected on market terms, between the interested, well-informed, not affiliated parties. For transactions made before the Parent Company’s debut on the Warsaw Stock Exchange, i.e. until May 2018, the fair value of Parent Company’s shares was determined using the comparative method. The comparison involved public companies with a similar business profile to the Group and it shall be conducted on the basis of the Company’s best judgment. Since May 2018, i.e. when the Parent Company became a public entity, the fair value of the Parent Company’s shares has been determined on the basis of the market value of the shares. Recognition of revenue from the provision of durable virtual goods The Company estimates the amount of the liability (customer contract liability) for the provision of durable in-game goods – revenue related to the purchase of durable virtual goods (and the commission of digital distribution platforms such as Google Play and the App Store related to such revenue) is recognized over the estimated average play period of the paying users. Nature of sales of services in the Google Play store in the European Economic Area Under the distribution agreement with Google (full text of the agreement: https://play.google.com/intl/ALL_pl/ about/developer-distribution-agreement.html), the Company is required to provide virtual goods in exchange for cash received by Google Play. The above implies recognition of 100% of the net payment amount in sales revenue and 30% of the commission amount in cost of sales. PROFESSIONAL JUDGEMENT 43 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Impairment of assets As at each balance-sheet date, the Group shall verify the assets for impairment and evaluate a necessity of preparing impairment write-downs. This takes place when the Group is sufficiently assured that a given asset shall not generate the expected economic benefits or the achieved benefits shall be significantly lower. In the case of completed development works (the Group’s games), the estimate shall be based on the verification of several quality parameters of a game, which, in the Management Board’s opinion, can influence the ability to generate future economic benefits for the Group. However, taking into account the changes on the market, the Management Board’s estimates are subject to uncertainty. When impairment tests are carried out on a different group of assets (e.g. investment value, value of shares), the estimate is based on the cash-generating ability of the cash-generating unit (CGU), and the value of the cash flows generated is discounted using mathematical models. The final result of the test is largely influenced by the applied discount rate and the long-term growth rate, both of which are subject to significant market volatility. As for the estimation of inflows, these are also subject to uncertainty due to the need to forecast game revenues, and as noted above, the gaming market is highly dynamic and rapidly changing. The use of consumables over time As at the reporting date, the Group shall estimate a number of unused premium packages (notes and pearls) for active players*. The basis for determining a number of unused packages shall be their turnover rate (average period of using a package by active users*) and average revenues from sales of premium packages. The average period of using a package amounts to up to 7 days, according to the analysis. If the estimated amounts of commitments to provide services in return for the realization of premium packages are significant, the Company shall recognize the amount of liabilities in the statement of financial situation. When the estimated amount of the obligation to provide services is deemed significant (material), the Company also recognizes in the assets commission expenses related to deferred income. Under agreements concluded with major intermediaries (e.g. mobile shops), commissions usually amount to 30% of the payment amount. The use of durables over time As a general rule, virtual goods offered in video games fall into two main categories: durable virtual goods (which do not wear out under normal use in the virtual world and can be used by the player as long as the game is played) and consumable virtual goods (which wear out under normal use in the virtual world). Revenue in the second category is recognized when or as it is consumed, as described in the paragraph above. With respect to the recognition of revenue from the sale of so-called durables, the market uses models based on in-game statistics, e.g., the lifespan of a good and/or a group of players. Until 2019, the Group did not have statistical models to estimate the value of durables, which was related to, among other things, the fact that the Group’s game economics are based on: 1. the ability to exchange some goods for other goods; 2. possibility of receiving selected goods for free; 3. possibility of purchasing goods using both pearls received for free (e.g. by winning a competition) and those purchased for hard currency. UNCERTAINTY OF ESTIMATES *The Company defines an active user as one who has ever made a minimum of one payment up to the balance sheet date and has been active in the game (i.e. logged in at least 1 time) in the 30 days: before the balance sheet date and/or after the balance sheet date. 44 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The above-mentioned characteristics make it much more difficult to carry out the analysis of the average use of the good over time, hence the Company used the option of not valuing the pearls, in accordance with IFRS 15 par. 44. In the course of 2020, the Company made changes to its IT systems, which enabled it to start collecting data to analyze the use of durable goods over time. As a result, the Group has estimated the amount of the liability (customer contract liability) for the provision of durable goods in the game as of 31 December 2020 – revenue relating to the purchase of durable virtual goods is recognized by the estimated average playing period of paying users. Estimating the average period of time a paying user remains in the game requires a sufficiently long history of player behavior. Accordingly, as at 31 December 2020, the Company deferred revenue from durable goods over time only for Fishing Clash, and as at 31 December 2021, the Company deferred revenue from durable goods over time for the first time for its second leading title – Hunting Clash. Contingent earn-out payments In connection with the acquisition of Rortos in July 2021, the parent company has made an initial accounting for the acquisition of the shares and the calculation of the liability to pay. The payment for the acquisition of the shares consists of a cash portion, payable immediately after the acquisition of the shares, and future payments contingent on meeting Rortos’ financial targets as set out in the agreement. The acquisition liability has therefore been calculated based on the projected performance of Rortos and the amount of earn-out to be paid for the years 2021-2025 predicted on that basis. The projections of future performance have been determined based on the entity’s estimates of revenue, direct costs – including user acquisition expenses, and indirect costs. The calculation includes projected financial results by Rortos’ main game titles – including primarily Wings of Heroes, Real Flight Simulator and Airline Commander. As at 31 December 2024, the Company updated the valuation of the earn-out payments liability, taking into account the actual results achieved in the period from 01 July 2021 until 31 December 2024 and updating the financial model with future cash flows. In order to reflect the current market assessment of the time value of money and the risk inherent in the liability, future payments have been estimated taking into account the change in the value of money over time and discounted to the present value. In the calculation of acquisition liabilities, there is primarily uncertainty regarding the achievement of the assumed financial results of the related party. The results in subsequent years may assume a value higher or lower than assumed, resulting in a deviation of the actual liability from the estimated amount as at 30 June 2025. The amount recognised in the balance sheet under liabilities represents the most appropriate estimate, based on the best available knowledge as at the reporting date. Determination of materiality When preparing financial statements, the Group applies the materiality principle. The materiality principle introduces the possibility to apply simplifications, if it does not have a materially negative impact on the reliable and clear presentation of the property, financial situation and financial result. The Group has adopted the amount of PLN 1.0 million as the materiality level in the preparation of the financial statement (in accordance with the accounting policy, not more than 5% of the gross result after taking into account one-off events, i.e. write-offs of the value of games). 45 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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ADDITIONAL NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT IV
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1. REVENUES In accordance with IFRS 15, revenue from the sale of services, after deducting value added tax, discounts and rebates are recognized when the obligation to provide the service through the transfer of the service to the contractor is fulfilled. Revenues from discontinued operations did not occur. SPECIFICATION 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 Sales of services 181,088,144 198,117,155 TOTAL revenues from sales of services 181,088,144 198,117,155 Other operating revenues 592,520 1,588,853 Financial revenues 2,465,209 3,341,429 TOTAL revenues from continuing operations 184,145,873 203,047,437 TOTAL revenues 184,145,873 203,047,437 47 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The Management Board does not distinguish separate operating segments, in accordance with the definition specified in IFRS 8 par. 5, including revenues, costs, assets and liabilities, for which separate financial information shall be prepared and on the basis of which the decisions concerning the allocation of resources by main operating decision-making body would be made. The Management Board currently evaluates the Group’s financial performance primarily based on 2 metrics: „Bookings” and „Adjusted/Recurring EBITDA”. Under „Bookings”, the Group recognizes revenue not reduced by deferred revenue (i.e. in the case of micropayments, these are payments made by users during the period indicated). The amount of deferred revenue results from an estimate of the unused virtual currency and durable goods (durable) by active players made at the balance sheet date. The amount of such deferred revenue is reported in the financial statements under the balance sheet item „customer contract liabilities”. Recurring EBITDA means the operating profit shown in the consolidated financial statements achieved by the Group for a given financial year, increased by depreciation of fixed assets and intangible assets, adjusted by: » extraordinary and one-off events; » costs of conducting the Incentive Scheme in accordance with the financial reporting standards applicable to the Company; » the impact of non-cash adjustments to revenue (and the related cost of distributors’ commissions), related to e.g. deferral of revenue from virtual currency or durables; » the impact of any one-off write-downs on capital expenditures on the development of mobile games. 1.1. Information on operating segments and key performance indicators 48 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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The Group’s operations are based on the production and distribution of Free to Play (F2P) games. The Group generates sales revenues related to in-game advertising, in-game micropayments and on the basis of license agreements. 1.2. Revenues – source TYPE OF REVENUES bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Micro-payments 169,226,319 98.5% 193,526,939 98.8% Advertisements 2,397,197 1.4% 2,176,575 1.1% Licenses 233,528 0.1% 187,180 0.1% BOOKINGS TOTAL 171,857,045 100.0% 195,890,694 100.0% Deferred income (consumable) -1,991,009 N/A -4,080,463 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A REVENUES TOTAL 181,088,144 N/A 198,117,155 N/A Revenues from micropayments and licenses are entirely generated by individuals, while the flow of funds to the Group takes place through payment aggregators, mobile stores or licensees. Users purchase certain packages in the game, e.g. a package of pearls, a package of lures (in fishing games), upgraded fishing rods. The price of the package is fixed and determined by the Group. The goods are handed over to the user at the moment of registration of payment by the indicated entities. Although in the case of purchase of premium packages, i.e. packages containing e.g. virtual currency, the transfer of currency to the user’s account takes place immediately after the payment is made, but the use of the virtual currency in the game may be postponed in time – this depends on the decision of the player, who may individually, within the framework of an agreement between the parties, choose the moment of exchange of the virtual currency for other virtual goods. Revenues related to the purchase of durable virtual goods (and the commission of digital distribution platforms such as Google Play and App Store related to these revenues) are recognized by the estimated average playing time of paying users. In games advertisements are displayed to users (natural persons). The display of an advertisement is also the moment when the revenue is recognized. The advertiser pays for the display of the advertisement, while the due part of this revenue goes to the Group through advertising intermediaries on the basis of advertising reports. Settlement with intermediaries takes place on the basis of monthly sales reports, and the payment is made in accordance with the deadline specified in the contract, usually between 1 and 60 days from the end of the calendar month. 49 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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1.3. Revenues – games GAME bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Fishing Clash 101,352,902 59.0% 120,816,542 61.7% Hunting Clash 33,865,015 19.7% 45,842,249 23.4% Let's Fish 4,215,566 2.5% 3,495,967 1.8% Wild Hunt 3,700,384 2.2% 4,242,360 2.2% Airline Commander 3,599,187 2.1% 4,104,720 2.1% Real Flight Simulator 10,491,119 6.1% 9,720,544 5.0% Wings of Heroes 13,585,620 7.9% 6,416,941 3.3% Other 1,047,252 0.6% 1,251,371 0.6% TOTAL BOOKINGS 171,857,045 100.0% 195,890,694 100.0% Deferred income (consumable) -1,991,009 N/A -4,080,463 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 181,088,144 N/A 198,117,155 N/A GAME 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Fishing Clash 61,219,111 59,597,431 62,158,791 59,644,358 52,643,140 48,709,762 Hunting Clash 23,732,405 22,109,844 22,979,316 21,353,423 18,637,608 15,227,407 Let's Fish 1,732,040 1,763,927 1,609,632 2,227,217 2,024,803 2,190,763 Wild Hunt 2,209,336 2,033,024 1,898,167 2,258,507 1,999,937 1,700,447 Airline Commander 2,204,710 1,900,010 1,894,589 1,590,837 2,018,051 1,581,136 Real Flight Simulator 4,959,726 4,760,818 5,468,430 5,238,091 5,297,592 5,193,527 Wings of Heroes 2,922,235 3,494,706 5,638,924 7,086,439 7,291,234 6,294,386 Other 681,137 570,234 658,639 539,986 549,062 498,190 TOTAL BOOKINGS 99,660,700 96,229,994 102,306,488 99,938,858 90,461,427 81,395,618 Deferred income (consumable) -2,725,192 -1,355,271 -2,093,391 -1,518,240 1,000,827 -2,991,836 Deferred income (durable) 3,182,710 3,124,214 -6,234,054 -4,063,695 5,190,738 6,031,370 TOTAL REVENUES 100,118,218 97,998,937 93,979,043 94,356,923 96,652,992 84,435,152 BREAKDOWN OF REVENUES BY QUARTER FOR THE MAIN TITLES Deferred revenue by game and quarters in 2024 and 2025, and the balance sheet balance as at 01.01.2024, 01.01.2025 and 30.06.2025 (balance sheet item “contract liabilities” for deferred revenue and balance sheet item “contract assets” for deferred commission costs): 50 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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YEAR 2025 CONSUMABLE Balance sheet item Change of deferral Valuation Change of deferral Valuation Balance sheet item 31.12.2024 Q1 2025 Q1 2025 Q2 2025 Q2 2025 30.06.2025 Fishing Clash deferred revenues -11,137,616 205,217 -2,699,847 -13,632,246 deferred costs 2,797,078 -234,016 441,907 3,004,969 Hunting Clash deferred revenues -4,106,374 716,040 -177,279 -3,567,613 deferred costs 1,102,759 -242,270 29,777 890,266 Let's Fish deferred revenues -454,459 63,127 -119,208 -510,540 deferred costs 136,338 -18,938 35,762 153,162 Wild Hunt deferred revenues -445,647 41,458 20,042 -384,147 deferred costs 133,694 -12,437 -6,013 115,244 Real Flight Simulator deferred revenues -1,558,250 -25,016 32,597 -15,488 -21,412 -1,587,569 deferred costs 467,475 7,505 -9,779 4,608 6,462 476,271 TOTAL deferred revenues -17,702,346 1,000,826 32,597 -2,991,780 -21,412 -19,682,115 deferred costs 4,637,344 -500,156 -9,779 506,041 6,462 4,639,912 DURABLE Balance sheet item Change of deferral Valuation Change of deferral Valuation Balance sheet item 31.12.2024 Q1 2025 Q1 2025 Q2 2025 Q2 2025 30.06.2025 Fishing Clash deferred revenues -53,979,343 3,166,906 4,239,642 -46,572,795 deferred costs 13,627,088 -1,229,467 -1,660,936 10,736,685 Hunting Clash deferred revenues -16,208,661 2,023,832 1,791,728 -12,393,101 deferred costs 4,366,535 -693,827 -549,655 3,123,053 TOTAL deferred revenues -70,188,004 5,190,738 6,031,370 -58,965,896 deferred costs 17,993,623 -1,923,294 -2,210,591 13,859,738 CONSUMABLE + DURABLE Balance sheet item Change of deferral Valuation Change of deferral Valuation Balance sheet item 31.12.2024 Q1 2025 Q1 2025 Q2 2025 Q2 2025 30.06.2025 deferred revenues -87,890,350 6,191,564 32,597 3,039,590 -21,412 -78,648,011 deferred costs 22,630,967 -2,423,450 -9,779 -1,704,550 6,462 18,499,650 impact on result -65,259,383 3,768,114 22,818 1,335,040 -14,950 -60,148,361 51 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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CONSUMABLE Balance sheet item Change of deferral Valuation Change of deferral Valuation Change of deferral Valuation Change of deferral Valuation Balance sheet item 01.01.2024 Q1 2024 Q1 2024 Q2 2024 Q2 2024 Q3 2024 Q3 2024 Q4 2024 Q4 2024 31.12.2024 Fishing Clash deferred revenues -6,064,690 -1,743,726 -1,407,391 -1,653,556 -268,253 -11,137,616 deferred costs 1,819,407 308,583 291,844 399,030 -21,786 2,797,078 Hunting Clash deferred revenues -2,064,054 -914,130 160,550 -351,124 -937,616 -4,106,374 deferred costs 619,216 245,624 -69,339 73,159 234,099 1,102,759 Let's Fish deferred revenues -166,339 -16,788 -104,081 3,684 -170,935 -454,459 deferred costs 49,900 5,038 31,224 -1,105 51,281 136,338 Wild Hunt deferred revenues -205,651 -48,365 -63,752 -24,902 -102,977 -445,647 deferred costs 61,695 14,510 19,125 7,471 30,893 133,694 Real Flight Simulator deferred revenues -1,536,400 -2,183 16,660 59,403 -4,356 -67,492 12,107 -38,459 2,470 -1,558,250 deferred costs 460,921 654 -4,998 -17,820 1,306 20,247 -3,631 11,538 -742 467,475 TOTAL deferred revenues -10,037,134 -2,725,192 16,660 -1,355,271 -4,356 -2,093,390 12,107 -1,518,240 2,470 -17,702,346 deferred costs 3,011,139 574,409 -4,998 255,034 1,306 498,802 -3,631 306,025 -742 4,637,344 DURABLE Fishing Clash deferred revenues -49,459,504 1,715,546 2,386,381 -5,252,443 -3,369,323 -53,979,343 deferred costs 14,837,854 -1,785,799 -1,024,933 1,156,873 443,093 13,627,088 Hunting Clash deferred revenues -16,737,675 1,467,164 737,833 -981,611 -694,372 -16,208,661 deferred costs 5,021,303 -577,264 -323,367 157,840 88,023 4,366,535 TOTAL deferred revenues -66,197,179 3,182,710 3,124,214 -6,234,054 -4,063,695 -70,188,004 deferred costs 19,859,157 -2,363,063 -1,348,300 1,314,713 531,116 17,993,623 CONSUMABLE + DURABLE deferred revenues -76,234,313 457,518 16,660 1,768,943 -4,356 -8,327,444 12,107 -5,581,935 2,470 -87,890,350 deferred costs 22,870,296 -1,788,654 -4,998 -1,093,266 1,306 1,813,515 -3,631 837,141 -742 22,630,967 impact on result -53,364,017 -1,331,136 11,662 675,677 -3,050 -6,513,929 8,476 -4,744,794 1,728 -65,259,383 YEAR 2024 52 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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DISTRIBUTION CHANNEL bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Mobile 165,741,485 96.4% 189,965,953 97.0% Browsers 6,115,560 3.6% 5,924,741 3.0% TOTAL BOOKINGS 171,857,045 100.0% 195,890,694 100.0% Deferred income (consumable) -1,991,009 N/A -4,080,463 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 181,088,144 N/A 198,117,155 N/A 1.5. Revenues – distribution channel BUSINESS PARTNER bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Google Inc. 79,950,716 46.5% 101,369,474 51.7% Apple Distribution International 49,117,197 28.6% 65,290,864 33.3% Appcharge Inc. 14,260,984 8.3% 315,885 0.2% Xsolla Inc. 11,782,099 6.9% 20,636,826 10.5% Adyen N.V. 7,828,845 4.6% 0 0.0% Others (none exceeding 10% share) 8,917,204 5.1% 8,277,645 4.2% TOTAL BOOKINGS 171,857,045 100.0% 195,890,694 100.0% Deferred income (consumable) -1,991,009 N/A -4,080,463 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 181,088,144 N/A 198,117,155 N/A 1.4. Revenues by business partner 53 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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REGION bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 North America 73,822,133 43.0% 84,707,000 43.2% Europe 69,990,901 40.7% 82,288,156 42.0% including Poland 9,559,537 5.6% 11,341,044 5.8% Asia 18,319,007 10.7% 18,357,075 9.4% South America 4,782,352 2.8% 5,288,540 2.7% Australia and Oceania 3,537,884 2.1% 3,841,543 2.0% Africa 1,404,768 0.7% 1,408,380 0.7% TOTAL BOOKINGS 171,857,045 100.0% 195,890,694 100.0% Deferred income (consumable) -1,991,009 N/A -4,080,463 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 181,088,144 N/A 198,117,155 N/A 1.6. Revenues – geographical breakdown With regard to the analysis of payments by geographic markets, the Group allocates user payments based on IP address using external databases and relies on country-level sales reports available on selected distribution platforms. 54 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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2. OPERATING COSTS SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Amortization and depreciation 6,286,520 8,934,315 Materials and energy 372,027 317,422 Third-party services 97,208,629 122,685,152 Taxes and fees 746,108 834,410 Remuneration 19,401,685 20,849,930 Social insurance and other benefits 4,268,663 4,043,871 Other 376,922 259,352 Total costs by type, including: 128,660,554 157,924,452 Cost of products and services sold 29,808,823 35,253,141 Selling costs 83,965,578 106,904,381 General and administrative costs 13,359,244 14,567,352 Cost of manufacturing products for the entity's own needs (capitalization) 1,526,909 1,199,578 55 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Depreciation – completed development work (mainly games) 2,599,617 2,622,130 2,172,943 2,138,220 2,063,508 2,114,471 Depreciation – other assets 1,256,589 975,024 950,256 954,225 596,355 540,929 Salaries and subcontractor services 13,365,280 11,065,615 11,801,284 11,200,038 11,191,466 11,110,084 Translations 573,512 498,240 457,376 345,224 317,254 350,529 Outsourcing of 3D models 289,639 430,986 203,963 133,912 93,338 103,677 Other 1,402,657 1,583,504 1,505,483 1,521,211 1,499,932 1,354,189 Cost of producing products for internal use (capitalization) -97,504 -1,312,148 -1,305,363 -1,010,491 -748,935 -777,974 TOTAL COSTS OF GOODS AND SERVICES SOLD 19,389,790 15,863,351 15,785,942 15,282,339 15,012,918 14,795,905 SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Cost of products and services sold 29,808,823 35,253,141 Depreciation – completed development work (mainly games) 4,177,979 5,221,747 Depreciation – other assets 1,137,284 2,231,613 Salaries and subcontractor services 22,301,550 24,430,895 Translations 667,783 1,071,752 Outsourcing of 3D models 197,015 720,625 Other 2,854,121 2,986,161 Cost of producing products for internal use (capitalization) -1,526,909 -1,409,652 BREAKDOWN OF COST OF PRODUCTS AND SERVICES SOLD: 56 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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BREAKDOWN OF SELLING COSTS: SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Selling costs 83,965,578 106,904,381 marketing: 28,329,568 39,165,080 – Fishing Clash 15,062,672 21,744,189 – Hunting Clash 7,199,190 15,445,036 – Wings of Heroes 5,157,851 1,964,064 – other titles 909,855 11,791 provisions 43,956,271 54,797,460 revenue share 728,041 681,816 remuneration, subcontractor services 8,725,707 8,765,121 mobile market research services 140,130 343,511 other 2,085,861 3,151,393 SPECIFICATION 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Selling costs 54,950,259 51,954,122 55,896,498 53,049,158 44,823,513 39,142,065 marketing: 19,807,135 19,357,945 24,714,879 22,658,472 15,602,094 12,727,474 – Fishing Clash 11,245,527 10,498,662 15,322,183 11,386,040 8,151,812 7,565,442 – Hunting Clash 7,728,250 7,716,786 6,284,059 7,938,295 4,402,922 2,796,268 – Wings of Heroes 833,358 1,130,706 3,013,752 3,254,840 2,992,203 2,165,648 – other titles 0 11,791 94,885 79,297 55,156 200,117 provisions 28,370,749 26,426,711 24,978,911 24,605,279 23,804,627 20,151,644 revenue share 337,715 344,101 287,231 346,821 362,608 365,433 remuneration, subcontractor services 4,599,678 4,165,443 4,606,542 4,214,237 4,117,114 4,608,593 mobile market research services 187,284 156,227 74,907 68,842 69,453 70,677 other 1,647,698 1,503,695 1,234,028 1,155,507 867,617 1,218,244 57 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 recurring costs, including: 6,287,713 6,905,113 6,453,532 6,554,225 6,086,580 5,996,171 salaries, subcontractor services of Parent Company 3,039,408 3,011,205 3,081,199 2,749,388 2,826,448 2,924,104 maintenance costs of subsidiaries 926,234 1,023,526 1,000,437 1,205,538 949,065 869,616 rental and maintenance of office – Parent Company 560,856 704,560 674,137 749,190 677,914 590,001 other 1,761,214 2,165,822 1,697,760 1,850,109 1,633,153 1,612,450 non-recurring costs, including: 1,221,364 153,162 229,743 168,629 296,636 979,857 motivation scheme cost 1,531,618 153,162 229,743 211,893 306,249 979,857 M&A cost -310,254 0 0 -43,264 -9,613 0 TOTAL GENERAL AND ADMINISTRATIVE COST 7,509,077 7,058,275 6,683,275 6,722,854 6,383,216 6,976,028 BREAKDOWN OF GENERAL AND ADMINISTRATIVE COSTS: SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 recurring costs, including: 12,082,751 13,192,826 salaries, subcontractor services of Parent Company 5,750,552 6,050,613 maintenance costs of subsidiaries 1,818,681 1,949,760 rental and maintenance of office – Parent Company 1,267,915 1,265,416 other 3,245,603 3,927,036 non-recurring costs, including: 1,276,493 1,374,526 motivation scheme cost 1,286,106 1,684,780 M&A cost -9,613 -310,254 TOTAL GENERAL AND ADMINISTRATIVE COST 13,359,244 14,567,352 58 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3. OTHER OPERATING COSTS AND REVENUES OTHER OPERATING REVENUES for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 sponsorship cooperation (barter) 211,810 215,650 profit from the settlement of leasing contracts 0 710,243 re-invoicing of operating costs (markup) 215,623 0 other 165,087 662,960 Total 592,520 1,588,853 OTHER OPERATING COSTS for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 writing off uncollectible receivables 19,149 51,823 sponsorship cooperation (barter) 211,810 215,650 other 35,674 326,854 Total 266,633 594,327 59 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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4. FINANCIAL INCOME AND EXPENSE FINANCIAL INCOME for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Interest income 2,465,209 1,357,250 Surplus of positive exchange rate differences 0 1,984,179 Total 2,465,209 3,341,429 FINANCIAL COSTS for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Surplus of negative exchange rate differences 3,620,912 0 Interest – unwinding of the discount on the liability for the purchase of Rortos 540,801 1,113,829 Costs from other interest (mainly lease-related) 252,081 429,961 Other 514 2,047 Total 4,414,308 1,545,837 60 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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5. CURRENT AND DEFERRED TAX SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Taxable income 40,011,415 38,327,336 Current income tax 4,451,051 3,903,091 Deferred income tax 812,954 120,511 Income tax disclosed in the statement of comprehensive income 5,264,005 4,023,602 SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Gross financial result (profit or loss) 52,706,934 43,986,789 Exchange rate differences 1,742,674 -1,890,808 Write off of receivables (non-tax-deductible) 19,149 44,432 Release and recognition of vacation provision 285,872 264,529 Recognition and release of provision for other costs -170,014 -682,894 Donations 0 2,000 Amortization of intangible assets 196,692 366,763 Depreciation of right of use (lease) 1,408,502 870,286 Amortization of fixed assets -243,328 1,001,302 Capitalization of development costs -1,392,067 -1,199,578 Other costs that are not tax deductible -2,314,891 1,784,353 Loss/profit on associates -375,648 195,610 Unwinding of discount, update of valuation 540,801 1,113,829 Share based payments 2,100,476 3,166,545 Revenue (and related cost) deferred over time for balance sheet purposes -5,131,545 695,513 R&D relief -6,667,306 -9,579,254 Other tax-deductible costs not recognized for balance sheet purposes -1,446,461 -1,812,081 Loss from previous years -1,248,425 0 Taxable income 40,011,415 38,327,336 THE RECONCILIATION OF GROSS PROFIT TO THE TAX BASE IS PRESENTED AS FOLLOWS: 61 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 deferred recognition of consumables over time (net basis) 716,166 598,965 462,080 deferred recognition of durables over time (net basis) 2,323,244 2,735,435 2,327,836 holiday provision 309,423 255,107 311,461 provision for audit costs 10,640 25,270 6,460 lease – IFRS 16 valuation 799,444 839,874 642,103 provision for remuneration 527,140 968,710 704,570 other provisions 60,142 60,895 111,611 Total 4,746,199 5,484,256 4,566,121 SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 amortization of games 1,122,427 961,993 945,091 revaluation of receivables and payables 97,745 181,601 130,180 Total 1,220,172 1,143,594 1,075,271 STRUCTURE OF DEFERRED INCOME TAX ASSETS: STRUCTURE OF DEFERRED INCOME TAX PROVISION: 62 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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6. DIVISION OF PROFIT FOR 2024 In accordance with the resolution adopted on 14 May 2025, the net profit reported in the Company’s financial statements for the financial year 2024 in the amount of PLN 72,694,774 (in words: seventy-two million six hundred ninety-four thousand seven hundred seventy-four zlotys) was allocated in full for distribution to shareholders in the form of a dividend. Additionally, the Ordinary General Meeting resolved to allocate part of the reserve capital created from retained earnings from previous years, in the amount of PLN 27,345,902.45 (in words: twenty-seven million three hundred forty-five thousand nine hundred two zlotys and forty-five groszy), for the payment of a dividend to shareholders. This brings the total amount designated for distribution to shareholders to PLN 100,040,676.45 (in words: one hundred million forty thousand six hundred seventy-six zlotys and forty-five groszy), which translates to PLN 15.73 per share. The Ordinary General Meeting set the dividend record date as 20 June 2025 and the dividend payment date as 27 June 2025. The number of shares entitled to the dividend was 6,359,865. The Company’s treasury shares (as of the dividend record date) were not entitled to the dividend. 63 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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7. CHANGES IN TANGIBLE FIXED ASSETS SPECIFICATION Machinery and equipment Buildings and premises Other fixed assets TOTAL Gross carrying amount as at 01.01.2025 5,720,328 26,831,355 5,069,229 37,620,912 Increases due to: 313,424 0 21,286 334,710 – purchase of tangible fixed assets 304,508 0 21,286 325,794 – balance sheet valuation 8,916 0 0 8,916 Decreases due to: 90,631 6,114 267,059 363,804 – sales of tangible fixed assets 90,631 0 0 90,631 – liquidation 0 0 267,059 267,059 – balance sheet valuation 0 6,114 0 6,114 Gross carrying amount as at 30.06.2025 5,943,121 26,825,241 4,823,456 37,591,818 Depreciation as at 01.01.2025 4,608,216 18,454,004 2,799,913 25,862,133 Increases due to amortization 289,461 1,306,946 508,681 2,105,088 Decreases due to: 90,126 0 267,059 357,185 – sales 90,126 0 0 90,126 – liquidation 0 0 267,059 267,059 Depreciation as at 30.06.2025 4,807,551 19,760,950 3,041,535 27,610,036 Write-downs as at 01.01.2025 0 0 0 0 Increases 0 0 0 0 Decreases 0 0 0 0 Write-downs as at 30.06.2025 0 0 0 0 Net carrying amount as at 30.06.2025 1,135,570 7,064,291 1,781,921 9,981,782 CHANGES IN FIXED ASSETS (BY TYPE) in the period of 1.01.2025 – 30.06.2025 64 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION Machinery and equipment Buildings and premises Other fixed assets TOTAL Gross carrying amount as at 01.01.2024 5,648,685 20,866,334 5,262,943 31,777,962 Increases due to: 420,855 6,727,834 135,498 7,284,187 – purchase of tangible fixed assets 416,403 0 126,458 542,861 – changes to lease contracts 0 6,727,834 0 6,727,834 – balance sheet valuation 4,452 0 9,040 13,492 Decreases due to: 349,212 762,813 329,212 1,441,237 – sales of tangible fixed assets 349,212 0 329,212 678,424 – termination of lease agreements 0 747,223 0 747,223 – balance sheet valuation 0 15,590 0 15,590 Gross carrying amount as at 31.12.2024 5,720,328 26,831,355 5,069,229 37,620,912 Depreciation as at 01.01.2024 3,984,661 13,267,783 1,872,766 19,125,210 Increases due to amortization 894,156 5,186,221 1,035,704 7,116,081 Decreases due to sales 270,601 0 108,557 379,158 Depreciation as at 31.12.2024 4,608,216 18,454,004 2,799,913 25,862,133 Write-downs as at 01.01.2024 0 0 0 0 Increases 0 0 0 0 Decreases 0 0 0 0 Write-downs as at 31.12.2024 0 0 0 0 Net carrying amount as at 31.12.2024 1,112,112 8,377,351 2,269,316 11,758,779 CHANGES IN FIXED ASSETS (BY TYPE) in the period of 1.01.2024 – 31.12.2024 65 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION Machinery and equipment Buildings and premises Other fixed assets TOTAL Gross carrying amount as at 01.01.2024 5,648,685 20,866,334 5,262,943 31,777,962 Increases due to: 240,999 6,727,834 94,811 7,063,644 – purchase of tangible fixed assets 235,692 0 94,811 330,503 – changes to lease contracts 0 6,727,834 0 6,727,834 – balance sheet valuation 5,307 0 0 5,307 Decreases due to: 158,061 754,889 321,732 1,234,682 – sales of tangible fixed assets 158,061 0 317,974 476,035 – termination of lease agreements 0 747,223 0 747,223 – balance sheet valuation 0 7,666 3,758 11,424 Gross carrying amount as at 30.06.2024 5,731,623 26,839,279 5,036,022 37,606,924 Depreciation as at 01.01.2024 3,984,661 13,267,783 1,872,766 19,125,210 Increases due to amortization 451,248 2,633,704 525,621 3,610,573 Decreases due to sales 90,323 0 100,691 191,014 Depreciation as at 30.06.2024 4,345,586 15,901,487 2,297,696 22,544,769 Write-downs as at 01.01.2024 0 0 0 0 Increases 0 0 0 0 Decreases 0 0 0 0 Write-downs as at 30.06.2024 0 0 0 0 Net carrying amount as at 30.06.2024 1,386,037 10,937,792 2,738,326 15,062,155 CHANGES IN FIXED ASSETS (BY TYPE) in the period of 1.01.2024 – 30.06.2024 SPECIFICATION 30.06.2025 31.12.2024 Own 3,095,316 3,381,428 Used under a lease, tenancy or other agreement, including a lease agreement 7,669,014 8,377,351 Total 10,764,330 11,758,779 OWNERSHIP STRUCTURE (NET VALUE) 66 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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8. CHANGES IN INTANGIBLE ASSETS AND GOODWILL SPECIFICATION Development costs Computer software Intangible assets under construction Goodwill TOTAL Gross carrying amount as at 01.01.2025 93,727,214 1,456,554 3,530,093 149,654,782 248,368,643 Increases due to: 3,861,204 59,817 1,525,396 0 5,446,417 – purchase 0 59,817 1,525,396 0 1,585,213 – reclassification 3,861,204 0 0 0 3,861,204 Decreases due to: 366,631 2,005 5,055,489 1,455,431 6,879,556 – reclassification 0 0 3,861,204 0 3,861,204 – liquidation 0 0 1,194,285 0 1,194,285 – balance sheet valuation 366,631 2,005 0 1,455,431 1,824,067 Gross carrying amount as at 30.06.2025 97,221,787 1,514,366 0 148,199,351 246,935,504 Depreciation as at 01.01.2025 39,776,022 1,412,916 0 0 41,188,938 Increases due to amortization 4,177,980 3,452 0 0 4,181,432 Depreciation as at 30.06.2025 43,954,002 1,416,368 0 0 45,370,370 Write-downs as at 01.01.2025 0 0 1,194,285 41,201,364 42,395,649 Increases 0 0 0 0 0 Decreases 0 0 1,194,285 0 1,194,285 Write-downs as at 30.06.2025 0 0 0 41,201,364 41,201,364 Net carrying amount as at 30.06.2025 53,267,785 97,998 0 106,997,987 160,363,770 CHANGE OF VALUE in the period of 1.01.2025 – 30.06.2025: 67 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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As at 30 June 2025, the net carrying amount reported under “completed development work” consists of the following: 1. Games acquired from Rortos S.r.l. – valued at fair value using the DCF method at the time of acquisition accounting, and subsequently measured at each balance sheet date based on the EUR/PLN exchange rate: • Airline Commander – net value: PLN 18,080,766, remaining amortisation period: 72 months; • Real Flight Simulator – net value: PLN 17,183,918, remaining amortisation period: 72 months; • Wings of Heroes – net value: PLN 13,924,717, remaining amortisation period: 84 months; 2. New game by Rortos, Real Combat Simulator, recognized as “completed development work” as of 31 March 2025 – net value: PLN 677,590, remaining amortisation period: 57 months; 3. New game by Ten Square Games S.A., Trophy Hunter, recognized as “completed development work” as of 30 June 2025 – net value: PLN 3,170,591, remaining amortisation period: 60 months; 4. Tools – total net value: PLN 230,203. SPECIFICATION Development costs Computer software Intangible assets under construction Goodwill TOTAL Gross carrying amount as at 01.01.2024 94,560,833 1,454,043 59,061,319 152,274,948 307,351,143 Increases due to purchase 0 3,352 1,409,416 0 1,412,768 Decreases due to balance sheet valuation 504,872 421 1,222,744 1,728,037 Gross carrying amount as at 30.06.2024 94,055,961 1,456,974 60,470,735 151,052,204 307,035,874 Depreciation as at 01.01.2024 30,243,112 1,300,892 0 0 31,544,004 Increases due to amortization 5,221,748 101,994 0 0 5,323,742 Depreciation as at 30.06.2024 35,464,860 1,402,886 0 0 36,867,746 Write-downs as at 31.01.2024 0 0 59,061,319 41,201,364 100,262,683 Increases 0 0 0 0 0 Decreases 0 0 0 0 0 Write-downs as at 30.06.2024 0 0 59,061,319 41,201,364 100,262,683 Net carrying amount as at 30.06.2024 58,591,101 54,088 1,409,416 109,850,840 169,905,445 CHANGE OF VALUE in the period of 1.01.2024 – 30.06.2024: 68 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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9. OTHER FINANCIAL ASSETS SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Other financial assets: 23,503,483 24,408,483 22,886,470 Gamesture investment 12,533,210 12,157,562 12,030,240 – gross value 26,164,795 26,164,795 26,164,795 – share in Gamesture’s loss -8,217,250 -8,592,898 -8,720,220 – write-down of the investment value (Gamesture) -5,414,335 -5,414,335 -5,414,335 participation units in the investment fund Sisu Game Ventures 9,672,908 10,969,619 9,574,927 office rental deposit 1,297,365 1,281,302 1,281,303 69 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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10. RECEIVABLES CURRENCY 30.06.2025 31.12.2024 30.06.2024 amount in currency valuation % share amount in currency valuation % share amount in currency valuation % share USD 3,364,224 12,166,381 43.85% 3,581,158 14,687,044 44.30% 4,380,095 17,235,672 51.08% PLN 7,820,255 7,820,255 28.18% 11,414,741 11,414,741 34.43% 10,458,145 10,458,145 30.99% EUR 1,825,561 7,743,845 27.91% 1,641,310 7,013,316 21.15% 1,369,096 5,952,828 17.64% Other currencies ------ 15,699 0.06% ------ 40,373 0.12% ------ 95,201 0.29% TOTAL 27,746,180 100% 33,155,474 100% 33,741,846 100% CURRENCY STRUCTURE OF TRADE RECEIVABLES: AGE STRUCTURE: AGE STRUCTURE – OVERDUE 30.06.2025 31.12.2024 30.06.2024 value of receivables value of receivables value of receivables not overdue 27,673,990 33,101,129 33,627,531 up to 1 month 66,910 53,866 91,034 1-3 months 1,359 0 22,990 3-6 months 2,748 180 291 6-12 months 0 299 0 over a year 1,173 0 0 Total receivables 27,746,180 33,155,474 33,741,846 SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Trade receivables 27,746,180 33,155,474 33,741,846 Other receivables 2,710,918 3,898,039 2,784,569 Accruals 3,329,053 3,810,515 4,125,300 TOTAL RECEIVABLES 33,786,151 40,864,028 40,651,716 10.1. Trade receivables 70 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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User payments are aggregated by intermediaries (mobile stores, payment aggregators, licensees). The largest receivable balances as of the reporting dates were from: » Apple Distribution International – 31.68% as of 30 June 2025, compared to 40.55% as of 31 December 2024; » Google Inc. – 33.35% as of 30 June 2025, compared to 37.79% as of 31 December 2024; » Xsolla Inc. – 9.61% as of 30 June 2025, compared to 10.29% as of 31 December 2024; » Appcharge Inc. – 8.20% as of 30 June 2025, compared to 2.05% as of 31 December 2024; » Adyen N.V. – 7.77% as of 30 June 2025, compared to 1.03% as of 31 December 2024. No other entity exceeded 10% of total receivables as of June 30, 2025. 10.2. Other receivables 10.3. Accruals SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Other short-term receivables, including: 2,710,918 3,898,039 2,784,569 – tax related (mainly VAT) 2,683,894 3,854,095 2,740,625 – deposit for office rental 27,024 43,944 43,944 SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Maintenance of software technical service/program subscriptions 2,119,717 3,512,053 3,005,009 Annual fee – marketing campaign tracking tool 448,877 136,418 358,513 Insurance 131,595 62,124 136,673 Promotional services 302,528 0 366,078 Other accruals 326,336 99,920 259,027 Active cost accruals 3,329,053 3,810,515 4,125,300 71 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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11. TRADE LIABILITIES SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Trade liabilities 9,101,316 10,543,440 10,250,622 towards related parties 348,973 155,718 358,454 towards other parties 8,752,343 10,387,722 9,892,168 72 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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12. OTHER LIABILITIES SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 Liabilities due to the acquisition of Rortos (earn-out payments) 16,157,002 30,498,681 25,142,014 – long – term 0 15,734,214 14,222,865 – short – term 16,157,002 14,764,467 10,919,149 Other liabilities 2,209,385 2,212,093 2,229,764 – long – term 0 0 0 – short – term, including: 2,209,385 2,212,093 2,229,764 Tax at source 0 2,952 360 Personal Income Tax 161,848 238,571 171,075 Social insurance contributions (ZUS) 1,387,544 1,325,684 1,334,690 State Fund for Rehabilitation of Disabled People (Polish: PFRON) 33,517 30,043 31,368 Other liabilities 626,476 614,843 692,271 TOTAL OTHER LIABILITIES 2,209,385 32,710,774 27,371,778, – long – term 0 15,734,214 14,222,865 – short – term 18,366,387 16,976,560 13,148,913 73 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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13. PROVISIONS FOR EMPLOYEE BENEFITS SPECIFICATION As at 01.01.2025 Changes during the year As at 30.06.2025 Plan Reclassification from long-term to short-term Usage Holiday provision 1,914,472 2,229,087 0 -1,914,472 2,229,087 Severance provision (TFR – Rortos) 1,155,907 106,821 0 0 1,262,728 Provision for bonuses (short-term) 3,890,839 149,439 2,158,791 -4,362,305 1,836,764 Provision for bonuses (long-term) 2,951,419 623,520 -2,158,791 0 1,416,148 TOTAL PROVISIONS 9,912,637 3,108,867 0 -6,276,777 6,744,727 74 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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14. INFORMATION ON AFFILIATED ENTITIES, INCLUDING INFORMATION ON REMUNERATION OF SENIOR MANAGEMENT AND THE SUPERVISORY BOARD The following tables present the total amounts of transactions concluded between the Parent and related parties for the current and previous reporting periods: The table below presents remuneration split into amounts paid and due. Where no annotation is provided, the amount paid is equal to the amount due for the reporting period. The totals for each individual reflect only the amounts due, in accordance with the accrual principle – i.e. the basis on which these financial statements have been prepared. For members of the Management Board, fixed cash remuneration includes amounts arising from two legal relationships: » appointment, and » employment contract / cooperation agreement. AFFILIATED PERSON Remuneration Net dividend PERIOD 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 Management Board (total due remuneration) 2,667,315 3,043,019 1,665,110 0 Andrzej Ilczuk 1,302,511 1,329,019 226,961 0 – cash fixed renumeration 431,700 417,000 — — – cash variable remuneration due 313,507 305,644 — — – cash variable remuneration due, paid 158,109 349,902 — — – share-based incentive program 557,304 606,375 — — 14.1. Managerial personnel 75 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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AFFILIATED PERSON Remuneration Net dividend PERIOD 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 Janusz Dziemidowicz 682,402 857,000 1,157,534 0 – cash fixed renumeration 318,000 318,000 — — – share-based incentive program 364,402 539,000 — — Magdalena Jurewicz 682,402 857,000 280,614 0 – cash fixed renumeration 318,000 318,000 — — – share-based incentive program 364,402 539,000 — — Supervisory Board 186,000 186,000 570,479 0 Rafał Olesiński 51,000 51,000 8,524 0 Maciej Marszałek 30,000 30,000 560,617 0 Wiktor Schmidt 24,000 24,000 0 0 Marcin Biłos 27,000 27,000 0 0 Kinga Stanisławska 27,000 27,000 1,338 0 Arkadiusz Pernal 27,000 27,000 0 0 Affiliates (Ten Square Games S.A.) 28,000 34,000 n/a n/a Maciej Popowicz 28,000 34,000 n/a n/a Key personnel (Ten Square Games S.A.) 0 0 n/a n/a Family members of key personnel / Management Board (Ten Square Games) 0 0 n/a n/a AFFILIATED PERSON Liabilities/provisions Receivables PERIOD 30.06.2025 30.06.2024 30.06.2025 30.06.2024 Management Board 493,762 482,835 1,360 1,221 Andrzej Ilczuk 432,262 421,335 1,360 1,221 Janusz Dziemidowicz 61,500 61,500 0 0 Magdalena Jurewicz 0 0 0 0 Supervisory Board 0 0 0 0 Affiliated persons (Ten Square Games S.A.) 5,535 6,150 0 0 Key personnel (Ten Square Games S.A.) 0 0 0 0 Family members of key personnel / Management Board (Ten Square Games S.A.) 0 0 0 0 76 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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AFFILIATED PARTY Net sales Net purchase Dividend Earn-out payment PERIOD 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 01.01.2025 – 30.06.2025 01.01.2024 – 30.06.2024 Subsidiaries: 3,998,135 2,891,457 0 466,900 10,043,303 7,358,024 0 0 Play Cool Zombie Sport Games Sp. z o.o. 8,700 8,700 0 0 0 2,000,000 0 0 Ten Square Games Germany GmbH 0 0 0 434,754 0 0 0 0 Ten Square Games S.R.L 0 0 0 32,146 0 0 0 0 RORTOS S.R.L. 3,989,435 2,882,757 0 0 10,043,303 5,358,024 0 0 Personally affiliated entities: 0 0 92,453 14,350 0 0 14,077,384 10,521,483 Olesiński i Wspólnicy Spółka komandytowa 0 0 92,453 14,350 0 0 0 0 Roberto Simonetto 0 0 0 0 0 0 8,428,415 6,288,630 Antonio Farina 0 0 0 0 0 0 5,648,969 4,232,853 Associates: 554,243 83,862 0 29,138 0 0 0 0 Gamesture Sp. z o.o. 554,243 83,862 0 29,138 0 0 0 0 14.2. Other affiliated party AFFILIATED PARTY Gross receivables Gross payables Loans AS AT: 30.06.2025 30.06.2024 30.06.2025 30.06.2024 30.06.2025 30.06.2024 Subsidiaries: 1,603,098 1,785,391 0 468,411 0 0 Play Cool Zombie Sport Games Sp. z o.o. 3,567 1,784 0 0 0 0 Ten Square Games Germany GmbH 0 4,950 0 435,951 0 0 Ten Square Games S.R.L 0 0 0 32,461 0 0 RORTOS S.R.L. 1,599,531 1,778,657 0 0 0 0 Personally affiliated entities: 0 0 16,157,002 25,143,243 0 0 Olesiński i Wspólnicy Spółka komandytowa 0 0 0 1,230 0 0 Roberto Simonetto 0 0 9,656,947 15,027,237 0 0 Antonio Farina 0 0 6,500,055 10,114,776 0 0 Associates: 354,710 93,693 0 21,310 1,453,645 1,344,143 Gamesture Sp. z o.o. 354,710 93,693 0 21,310 1,453,645 1,344,143 77 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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In previous years, the parent company sold games developed in-house to its Polish subsidiaries and, in return, receives remuneration based on a revenue share model. In contrast, Ten Square Games Germany GmbH and Ten Square Games S.R.L were established to attract talent in the gaming industry within their respective markets. Employees of these companies worked on games produced by the parent company, and the related personnel costs were subsequently invoiced to the parent. Transactions between the parent company and Rortos S.r.l. involve production and maintenance support for Rortos’ games, for which the parent company receives remuneration. The parent company uses legal and tax advisory services provided by Olesiński i Wspólnicy Sp.k., as needed, based on individual project valuations. All related party transactions were conducted on terms equivalent to those that prevail in arm’s length transactions. The liability to Mr. Roberto Simonetto and Mr. Antonio Farina arises from the acquisition of 100% of shares in Rortos and is disclosed in the note titled “Other liabilities”. 78 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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15. INCENTIVE PROGRAMS BASED ON SHARES INCENTIVE PROGRAM FOR THE MANAGEMENT BOARD – DECEMBER 2023 On 19 December 2023, the General Meeting of Shareholders of the Company adopted an incentive program for 2024 – 2025 addressed to the members of the Company’s Management Board. The conditions for receiving shares under the program include: submission of an action plan for 2024 (1st tranche); achievement of financial targets (Group results) for 2024 – 2025 (2nd and 3rd tranches); and continued membership on the Management Board. In total, participants may acquire up to 37,500 shares across three tranches. Upon meeting the program’s conditions, participants will be entitled to acquire shares at their nominal value of PLN 0.10 per share. The shares used in this program come from the buyback of treasury/own shares conducted in the first quarter of 2022. Shares granted to participants will be subject to a lock-up period restricting their sale. As at the date of this report, the program has been settled as follows: » in the first quarter of 2024, 12,500 shares were granted to participants (1st tranche); » in the second quarter of 2025, 8,125 shares were granted to participants, corresponding to the achievement of the Adjusted EBITDA target in the range of PLN 105 – 110 million, i.e. 65% of the original share allocation (2nd tranche); » for the 3rd tranche, in March 2025 the Supervisory Board established the 2025 performance target, defined as reaching a specific Adjusted EBITDA figure (consolidated data), as detailed in the table below: In accordance with the rules of the program, following the finalization of the financial statements for a given year, the Supervisory Board will adopt a resolution on the final allocation of shares. As at the date of this report, the cost of the program recognized in the first half of 2025 corresponds to the performance range entitling participants to acquire 100% of the initially allocated shares, i.e. 12,500 shares. PROGRAM CRITERION – ADJUSTED EBITDA AMOUNT (CONSOLIDATED DATA IN PLN) % of the number of shares from the initially allocated pool that a Management Board Member is entitled to acquire Number of shares from the 2025 pool (total for all Management Board Members) 122.500.000 & more 100% 12,500 113.000.000 – 122.499.999 95% 11,875 104.000.000 – 112.999.999 85% 10,625 99.000.000 – 103.999.999 75% 9,375 95.000.000 – 98.999.999 65% 8,125 Below 95.000.000 0 0 79 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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INCENTIVE PROGRAM FOR KEY PERSONNEL – DECEMBER 2023 On 21 December 2023, the Management Board of the Parent Company adopted an incentive program for 2024 – 2025, addressed to key employees and collaborators of the Capital Group. The conditions for receiving shares include: » meeting individual qualitative criteria specific to each participant, » achieving financial targets (Group performance), and » continued employment within the Group. Participants may acquire up to 32,400 shares in total across three tranches. Upon meeting the program’s conditions, participants will be entitled to acquire shares at their nominal value of PLN 0.10 per share. The shares used in this program come from the buybacks of treasury shares conducted in the first quarter of 2022 and 2024. Shares granted to participants will be subject to a lock-up period restricting their sale. As at the date of this report, the settlement of the program is as follows: » in the first quarter of 2024, 10,800 shares were granted to participants (1st tranche); » in the second quarter of 2025, 7,020 shares were granted to participants (2nd tranche); » the cost of the program recognized in the first half of 2025 corresponds to the performance range entitling participants to acquire 100% of the initially allocated shares for the 3rd tranche, i.e. 5,500 shares. 80 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Upon meeting the program conditions, participants will be entitled to acquire shares at their nominal value of PLN 0.10 per share. The shares used in this program will come from either the buyback of treasury shares or a new issue of shares. As at the date of this report, 106,760 rights have been initially allocated. The program cost recognised in the first half of 2025, amounting to PLN 1.1 million, corresponds to the performance target being achieved within the range entitling participants to acquire 65% of the initially allocated shares, assuming that the market condition is also met. INCENTIVE PROGRAM FOR 2025 – 2029 On 14 May 2025, the General Meeting of Shareholders of the Company adopted an incentive program for the years 2025–2029, addressed to key employees, collaborators, and members of the Company’s Management Board. The program consists of three tranches: Tranche I: 2025–2027, Tranche II: 2026–2028, Tranche III: 2027–2029. A total of 323,799 rights (Company shares) may be granted under all tranches, which represents approximately 5% of the Company’s share capital. Participants will be entitled to acquire the rights (Company shares) subject to the fulfilment of: » a performance condition (80% weight), and » a market condition (20% weight). The market condition is defined as the Company’s share price outperforming the WIG index by at least 10 percentage points for each tranche. Additionally, individual performance goals may be assigned. For Tranche I (2025–2027), the performance target has been set at PLN 438 million of cumulative Adjusted EBITDA for the years 2025–2027. Partial achievement of the target entitles participants to acquire shares in accordance with the following table: % ACHIEVEMENT OF THE PERFORMANCE CONDITION % OF ENTITLEMENTS UNDER THE PERFORMANCE CONDITION 100% 100% 91% 65% 83% 35% 81 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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16. LAW SUITS/COURT CASES The Group had no pending lawsuits in either 2025 or 2024. 17. OTHER IMPORTANT EVENTS There were no other significant events not described above that could affect the financial data included in the report for the period ended June 30, 2025. 18. EVENTS AFTER BALANCE SHEET DATE There were no significant events after the balance sheet date that could affect the financial data presented in the financial statements for the period ended 30 June 2025. 82 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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INTERIM CONDENSED STANDALONE FINANCIAL STATEMENT V
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1. INTERIM CONDENSED STANDALONE STATEMENT OF COMPREHENSIVE INCOME CONDENSED STANDALONE STATEMENT OF COMPREHENSIVE INCOME for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Revenues from the sales of services 152,553,058 176,717,519 Costs of services sold 20,842,313 25,793,150 Gross profit (loss) on sales 131,710,745 150,924,369 Other operating revenues 517,984 1,587,792 Selling costs 71,254,414 99,238,829 General and administrative costs 11,540,073 12,640,128 Other operating costs 237,211 571,102 Operating profit (loss) 49,197,031 40,062,102 Financial revenues 12,499,413 10,580,800 Financial costs 4,661,847 1,539,272 Loss /profit on associates 375,648 -195,610 Profit /loss before taxation 57,410,245 48,908,020 Income tax 2,623,495 1,932,691 Net profit on continued activity 54,786,750 46,975,329 Items for requalification for the profit and loss statement in the subsequent periods 0 0 Items which will not be subject to requalification for the profit and loss statement in the subsequent periods 0 0 TOTAL COMPREHENSIVE INCOME 54,786,750 46,975,329 84 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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CALCULATION OF EARNINGS PER SHARE for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Number of shares the weighted average number of shares for the purpose of calculating the value basic of earnings per share (in units) 6,476,000 7,334,822 the weighted average number of shares for the purpose of calculating the value of diluted earnings per share (in units) 6,359,865 6,342,120 net profit assigned to the Parent Entity 25,957,044 46,975,329 Net earnings per share on continued operations in PLN basic for the financial period 4.01 6.40 diluted for the financial period 4.08 7.41 Net profit per share attributable to discontinued operations in PLN basic for the financial period 0.00 0.00 diluted for the financial period 0.00 0.00 EARNINGS PER SHARE 85 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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ASSETS 30.06.2025 31.12.2024 30.06.2024 Fixed assets 242,929,972 245,043,741 245,340,940 Tangible fixed assets 9,001,033 10,672,451 13,864,006 Intangible assets 3,400,796 2,205,420 1,759,989 Investments in associates 202,284,550 202,284,550 202,307,550 Other financial assets 23,503,483 24,408,483 22,886,470 Deferred income tax assets 4,740,110 5,472,837 4,522,925 Current assets 110,724,609 181,631,338 135,529,239 Receivables 30,070,321 37,896,492 38,028,717 Current income tax receivable 7,718 2,046,925 1,226,668 Customer contracts liabilities 18,023,379 22,163,492 19,544,621 Loans granted 1,453,645 1,399,344 1,344,143 Cash and cash equivalents 61,169,546 118,125,085 75,385,090 TOTAL ASSETS 353,654,581 426,675,079 380,870,179 2. INTERIM CONDENSED STANDALONE STATEMENT OF FINANCIAL SITUATION 86 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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EQUITY & LIABILITIES 30.06.2025 31.12.2024 30.06.2024 Equity 216,536,895 259,688,832 233,158,241 Share capital 647,600 647,600 733,482 Share premium 496,100 496,100 496,100 Capital from the settlement of the incentive scheme 101,549,317 99,448,841 98,637,955 Retained earnings 127,791,004 174,862,246 258,140,036 Own shares (negative value) -13,947,126 -15,765,955 -124,849,332 Long-term liabilities 5,866,780 24,178,857 22,854,182 Deferred income tax provisions 743,896 600,631 463,417 Lease liabilities 3,706,736 4,897,812 6,106,579 Provisions for employee benefits 1,416,148 2,946,201 2,061,321 Other liabilities 0 15,734,213 14,222,865 Short-term liabilities 131,250,906 142,807,390 124,857,756 Trade liabilities 7,871,000 9,839,272 10,209,311 Income tax provision 23,435,773 23,435,773 23,435,773 Lease liabilities 2,304,008 2,242,188 2,153,614 Other liabilities 17,119,028 15,724,548 11,899,668 Provisions for employee benefits 3,460,656 5,233,509 4,630,718 Contract liabilities 77,060,441 86,332,100 72,528,672 TOTAL EQUITY & LIABILITIES 353,654,581 426,675,079 380,870,179 87 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3. INTERIM CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY for the period of 6 months ended 30.06.2025 Share capital Share premium Capital from settlement of incentive program Retained earnings Own shares TOTAL EQUITY Equity as at 01.01.2025 647,600 496,100 99,448,841 174,862,246 -15,765,955 259,688,832 Equity contribution 0 0 0 0 1,515 1,515 Share-based payments 0 0 2,100,475 0 0 2,100,475 Dividend payment 0 0 0 -100,040,677 0 -100,040,677 Purchase of own shares 0 0 0 0 0 0 Issuance of own shares 0 0 0 -1,817,315 1,817,315 0 Disposal of own shares 0 0 0 0 0 0 Cancellation of own shares 0 0 0 0 0 0 Net profit 0 0 0 54,786,750 0 54,786,750 Total comprehensive income 0 0 0 54,786,750 0 54,786,750 Equity as at 30.06.2025 647,600 496,100 101,549,316 127,791,004 -13,947,125 216,536,895 88 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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for the period of 6 months ended 30.06.2024 Share capital Share premium Capital from settlement of incentive program Retained earnings Own shares TOTAL EQUITY Equity as at 01.01.2024 733,482 496,100 95,471,416 219,538,199 -18,636,050 297,603,147 Equity contribution 0 0 0 0 3,146 3,146 Share-based payments 0 0 3,166,539 0 0 3,166,539 Dividend payment 0 0 0 0 0 0 Purchase of own shares 0 0 0 0 -114,589,920 -114,589,920 Issuance of own shares 0 0 0 -8,373,492 8,373,492 0 Net profit 0 0 0 46,975,329 0 46,975,329 Total comprehensive income 0 0 0 46,975,329 0 46,975,329 Equity as at 30.06.2024 733,482 496,100 98,637,955 258,140,036 -124,849,332 233,158,241 for the period of 12 months ended 31.12.2024 Share capital Share premium Capital from settlement of incentive program Retained earnings Own shares TOTAL EQUITY Equity as at 01.01.2024 733,482 496,100 95,471,416 219,538,199 -18,636,050 297,603,147 Equity contribution 0 0 0 0 3,406 3,406 Share-based payments 0 0 3,977,425 0 0 3,977,425 Dividend payment 0 0 0 0 0 0 Purchase of own shares 0 0 0 0 -114,589,920 -114,589,920 Issuance of own shares 0 0 0 -8,373,492 8,373,492 0 Disposal of own shares 0 0 0 -311,985 311,985 0 Cancellation of own shares -85,882 0 0 -108,685,250 108,771,132 0 Net profit 0 0 0 72,694,774 0 72,694,774 Total comprehensive income 0 0 0 72,694,774 0 0 Equity as at 31.12.2024 647,600 496,100 99,448,841 174,862,246 -15,765,955 259,688,832 89 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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4. INTERIM CONDENSED STANDALONE CASH FLOW STATEMENT STANDALONE CASH FLOW STATEMENT for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 OPERATING ACTIVITY Profit/loss before taxation 57,410,245 48,908,020 Total corrections: -7,698,795 428,802 Amortization 2,175,565 3,927,168 Profit/loss on exchange differences 497,323 -759,129 Interest paid on lease 248,708 339,884 Interest on deposits -890,570 -1,282,675 Interest on liabilities (Rortos) 540,801 1,113,829 Interest and share in profits (dividends) -10,043,303 -7,358,024 Change in receivables 7,826,171 6,173,460 Change in liabilities and accrued expenses -4,609,154 -5,038,874 Change in contract liabilities -9,271,659 -2,169,241 Change in contract assets 4,140,113 2,864,755 Share-based payments (part not included in capitalization of intangible assets) 2,100,476 3,166,539 Loss on associates -375,648 195,610 Profit/loss on sales of fixed assets -37,618 -744,500 Other adjustments 0 0 Cash on operating activity 49,711,450 49,336,822 Income tax (paid) / refunded -306,940 3,268,633 A. Net operating cash flow 49,404,510 52,605,455 90 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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STANDALONE CASH FLOW STATEMENT for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 INVESTMENT ACTIVITY Repayment of loans granted 0 178,793 Purchase of intangible and tangible fixed assets -1,700,026 -1,438,622 Disposal of intangible and fixed assets 38,123 319,279 Purchase of shares 0 -1,211,790 Loans granted 0 -353,275 Interest on loans 0 11,768 Earn-Out payment -14,668,721 -10,957,715 B. Net cash flow from investment activities -16,330,624 -13,451,562 FINANCIAL ACTIVITY Net proceeds from issuance of shares and other equity instruments and capital contributions 1,515 3,146 Dividends from subsidiaries 10,043,303 7,358,024 Other financial inflows 0 1,445,951 Dividends and other payments to shareholders -100,040,678 0 Payments of financial lease liabilities -1,222,974 -1,548,142 Purchase of own shares 0 -114,589,920 Interest on lease -248,708 -339,884 Other financial expenditure -16,063 0 C. Net cash flow from financing activity -91,483,605 -107,670,825 D. Total net cash flow -58,409,719 -68,516,932 – change in cash due to exchange losses/gains 1,454,180 1,896,540 E. Balance-sheet change in cash, including foreign exchange -56,955,539 -66,620,392 F. Cash at the beginning of the period 118,125,085 142,005,482 G. Cash at the end of the period 61,169,546 75,385,090 91 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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ADDITIONAL NOTES TO THE STANDALONE FINANCIAL STATEMENT VI
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1. SALES REVENUES SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Sales of services 152,553,058 176,717,519 TOTAL revenues from sales of services 152,553,058 176,717,519 Other operating revenues 517,984 1,587,792 Financial revenues 12,499,413 10,580,800 TOTAL revenues from continuing operations 165,570,455 188,886,111 TOTAL revenues 165,570,455 188,886,111 There were no revenues from discontinued operations. TYPE OF REVENUES bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Micro-payments 143,036,222 99.8% 174,320,259 99.9% Advertisements 2,950 0.0% 32,139 0.0% Licenses 242,228 0.2% 195,880 0.1% TOTAL BOOKINGS 143,281,400 100.0% 174,548,278 100.0% Deferred income (consumable) -1,950,450 N/A -4,137,683 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 152,553,058 N/A 176,717,519 N/A 1.1. Revenues by source 93 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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GAME bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Fishing Clash 101,352,902 70.7% 120,816,542 69.2% Hunting Clash 33,865,015 23.6% 45,842,249 26.3% Let's Fish 4,215,566 2.9% 3,495,967 2.0% Wild Hunt 3,700,384 2.6% 4,242,360 2.4% Other 147,533 0.2% 151,160 0.1% TOTAL BOOKINGS 143,281,400 100.0% 174,548,278 100.0% Deferred income (consumable) -1,950,450 N/A -4,137,683 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 152,553,058 N/A 176,717,519 N/A BUSINESS PARTNER bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Google Inc. 67,665,561 47.2% 92,801,170 53.2% Apple Distribution International 35,278,198 24.6% 54,749,559 31.4% Appcharge Inc. 14,260,984 10.0% 315,885 0.2% Xsolla Inc. 11,782,099 8.2% 20,636,826 11.8% Adyen N.V. 7,828,381 5.5% 0 0.0% Others 6,466,177 4.5% 6,044,838 3.4% TOTAL BOOKINGS 143,281,400 100.0% 174,548,278 100.0% Deferred income (consumable) -1,950,450 N/A -4,137,683 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 152,553,058 N/A 176,717,519 N/A 1.2. Revenues by games 1.3. Revenues by business partner 94 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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DISTRIBUTION CHANNEL bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 Mobile 137,165,376 95.7% 168,953,332 96.8% Browsers 6,116,024 4.3% 5,594,946 3.2% TOTAL BOOKINGS 143,281,400 100.0% 174,548,278 100.0% Deferred income (consumable) -1,950,450 N/A -4,137,683 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 152,553,058 N/A 176,717,519 N/A REGION bookings 01-06.2025 share in bookings 01-06.2025 bookings 01-06.2024 share in bookings 01-06.2024 North America 58,235,934 40.6% 76,523,118 43.8% Europe 65,567,701 45.8% 75,970,655 43.5% i) including Poland 10,129,131 7.1% 11,063,238 6.3% ii) including revenues from subsidiaries 8,700 0.0% 8,700 0.0% Asia 11,576,605 8.1% 13,713,212 7.9% South America 4,005,028 2.8% 3,965,320 2.3% Australia and Oceania 2,818,860 2.0% 3,213,008 1.8% Africa 1,077,272 0.7% 1,162,965 0.7% TOTAL BOOKINGS 143,281,400 100.0% 174,548,278 100.0% Deferred income (consumable) -1,950,450 N/A -4,137,683 N/A Deferred income (durable) 11,222,108 N/A 6,306,924 N/A TOTAL REVENUES 152,553,058 N/A 176,717,519 N/A 1.4. Revenues by distribution channel 1.5. Revenues – geographical division 95 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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2. OPERATING COSTS SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Amortization and depreciation 2,175,565 3,927,168 Consumption of materials and energy 312,664 268,309 Third-party services 82,094,959 112,997,636 Taxes and fees 746,097 834,410 Remuneration 15,272,543 16,728,593 Social insurance and other benefits 4,268,663 4,043,871 Other costs by type 158,377 71,699 Total costs by type, including: 105,028,868 138,871,686 Costs of goods sold 20,842,313 25,793,150 Selling costs 71,254,414 99,238,829 General and administrative costs 11,540,074 12,640,129 Cost of manufacturing products for the entity's own needs (capitalization) 1,392,067 1,199,578 96 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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3. FINANCIAL REVENUES SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Dividends received 10,043,303 7,358,024 Interest income 2,456,110 1,359,447 Surplus of positive exchange differences 0 1,863,329 Total 12,499,413 10,580,800 97 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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4. INCOME TAX AND DEFERRED TAX Starting from 2019, with the introduction of the so-called IP Box relief, the Parent Company uses preferential taxation of part of its income. This relief consists of taxing income from qualified property rights at a rate of 5% instead of the standard 19%. The Entity recognizes its games as qualified property rights and therefore uses the IP Box relief for profitable titles. Due to the fact that the relief is relatively new in Polish law, for the years 2019 and 2020 the Company settled and paid the tax using only part of the preferences. Partial application of the preferences consisted in the calculation of the Nexus ratio in a way that limited the possibility of taxing the Company’s income with the 5% tax rate. As the practice developed, in 2022 the Company decided to apply the relief more widely and submitted an annual CIT declaration for 2021 with full application of the relief. In addition, at the beginning of 2023, the Company submitted a CIT adjustment for 2019 and 2020, also taking into account the wider application of the relief, enabling the Company to tax a larger part of its income with the 5% tax rate. No further adjustments are planned. The submission of corrections to the declaration resulted in the initiation of a customs and tax inspection for 2020. Simultaneously with the customs and fiscal inspection, the Company was subject to tax proceedings regarding the determination of an overpayment in corporate income tax for 2019 and 2020. After a positive conclusion of the tax proceedings, the Company received in May 2023. tax refund for 2019-2020 in the total amount of PLN 12.5 million (PLN 3.6 million for 2019 and PLN 8.9 million for 2020). Therefore, write-downs for tax receivables for the financial years 2019 and 2020 were reversed. However, due to the fact that the customs and tax inspection for 2020 has not been completed (the inspection as at the date of issue of this report was extended to the end of October 2025.) The Company recognized a provision for tax in the amount of returns received. This solution is a continuation of the Company’s approach to the prudent presentation of tax settlements – i.e. showing the amounts resulting from the corrections of declarations in the net carrying amount of PLN 0 as at balance sheet date. The Company believes that the tax for 2021 has been settled in the correct amount and there is no need to pay additional tax, but due to the need to consistently recognize the tax liability/amount due for previous years, the Company recognizes a tax provision in the financial statements (PLN 10.9 million ). The CIT calculation for the years 2022–2024, assuming a more limited application of tax reliefs related to the IP BOX regime, would result in a cumulative additional tax liability of PLN 0.7 million. Given that this amount is not material, the Company has not recognized a provision for the potential tax payment. 98 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Taxable income 34,950,032 34,086,742 current income tax 1,747,502 1,745,771 deferred income tax 875,993 186,920 Income tax shown in comprehensive income report 2,623,495 1,932,691 SPECIFICATION for the period 01.01.2025 – 30.06.2025 for the period 01.01.2024 – 30.06.2024 Financial gross profit/loss 57,410,245 48,908,020 Exchange rate differences 1,742,674 -1,890,808 Dividends received -10,043,303 -7,358,024 Write off of receivables (non-tax-deductible) 19,149 44,432 Release and recognition of vacation provision 285,872 264,529 Recognition and release of provision for other costs -170,014 -682,894 Donations 0 2,000 Amortization of intangible assets 196,692 366,763 Depreciation of right of use (lease) 1,408,502 870,286 Amortization of fixed assets -243,328 1,001,302 Capitalization of development costs -1,392,067 -1,199,578 Other costs that are not tax deductible -2,036,282 -19,448 Loss/profit on associates -375,648 195,610 Unwinding of discount, update of valuation 540,801 1,113,829 Share based payments 2,100,476 3,166,545 Revenue (and related cost) deferred in the balance sheet in time -5,131,545 695,513 R&D relief -6,667,306 -9,579,254 Other tax deductible costs not included in the balance sheet costs -1,446,461 -1,812,081 Loss from previous years -1,248,425 0 Taxable income 34,950,032 34,086,742 including income taxed at 5% (IP Box) 34,950,032 34,915,419 including income taxed at 19% 0 -828,677 CIT SETTLEMENTS AS AT 30 JUNE 2025 Amount in PLN Current CIT settlements -23,428,055 Receivable related to the financial year 2025 7,718 Provision related to the financial year 2021 -10,894,769 Provision related to the financial year 2020 -8,941,882 Provision related to the financial year 2019 -3,599,122 RECONCILIATION OF GROSS PROFIT WITH TAXABLE INCOME: 99 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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STRUCTURE OF DEFERRED INCOME TAX ASSETS: STRUCTURE OF DEFERRED INCOME TAX PROVISION: SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 result deferred in time – consumable (per balance) 716,166 598,965 462,080 result deferred in time – durable (per balance) 2,323,244 2,735,435 2,327,836 holiday provision 309,423 255,107 311,461 provision for audit costs 10,640 25,270 6,460 lease – IFRS 16 valuation 799,444 839,874 642,103 provision for remuneration 527,140 968,710 704,570 other provisions 54,053 49,476 68,415 Total 4,740,110 5,472,837 4,522,925 SPECIFICATION 30.06.2025 31.12.2024 30.06.2024 amortization of games 646,151 419,030 333,237 revaluation of receivables and payables 97,745 181,601 130,180 Total 743,896 600,631 463,417 Deferred income tax assets and liabilities are measured using the tax rates that, according to available forecasts, will be applied at the moment of realizing the asset or dissolving the liability. For a significant part of temporary differences, a rate of 5% was applied, resulting from the use by the Company of the IP Box tax relief. 100 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.
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Wrocław, 25 August 2025 PRESIDENT OF THE MANAGEMENT BOARD Andrzej Ilczuk MEMBER OF THE MANAGEMENT BOARD Janusz Dziemidowicz MEMBER OF THE MANAGEMENT BOARD Magdalena Jurewicz APPROVAL OF THE FINANCIAL STATEMENT This report for the period from January 1 to June 30, 2025 was signed and approved for publication by the Management Board of Ten Square Games S.A. on August 25, 2025. 101 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF TEN SQUARE GAMES S.A. GROUP for 01.01.2025 – 30.06.2025 This document is a non-binding translation of the graphical version of the official financial statements published by the ESPI channel.