Page 1

FLEXION Q3 Report - 31 December 2020 Flexion reports another record - breaking quarter . Third quarter revenue up by 176 % and gross profit increases by 223 % . This is the third consecutive quarter with reported positive adjusted EBITDA * October 2020 to December 2020 performance • Total revenue increased by 176 % to GBP 6.9m ( GBP 2.5m ) * • Gross profit increased by 223 % to GBP 0.9m ( GBP 0.3m ) • Adjusted EBITDA * improved by 124 % to GBP 0.1m ( GBP -0.5m ) • Operating result improved by 110 % to an operating profit of GBP 0.06m ( GBP -0.5m ) • Earnings per share amounted to GBP 0.13 pence ( GBP - 133 pence ) • Cash amounted to GBP 12.4m ( GBP 3.7m ) April 2020 to December 2020 performance Total revenue increased by 167 % to GBP 18m ( GBP 6.7m ) • Gross profit increased by 209 % to GBP 24m ( GBP 0.8m ) • Adjusted EBITDA * increased by 117 % to GBP 0.3m ( GBP -15m ) • Operating result improved by 104 % to an operating profit of GBP 0.07m ( GBP -1.6m ) • Earnings per share amounted to GBP 0.22 pence ( GBP - 3.63 pence ) Important events during the quarter • Directed share issue to 11 institutional funds with gross proceeds of SEK 93.4m • Directed share issue to Company's largest channel with gross proceeds of SEK 20.6m Signing of a three year Business Collaboration Agreement with Huawei Signing of Taptap Heroes ( Ajoy Lab Games ) , Gods & Glory from Deca Games and Clash of Empire from Leme Games Launch of Z Day on Huawei AppGallery and Taptap Heroes on Samsung and Amazon • A loss - making multi - game contract expired on 31st December 2020 and Flexion is unlikely to extend the contract unless new improved terms can be agreed Important event after the quarter • The directed share issue related to gross proceeds of SEK 20.6m was settled after the December 2020 quarter end * Comparable number for the same quarter of the previous financial year in brackets # The Company defines adjusted EBITDA as earnings before interest , tax , depreciation , amortisation , finance costs , impairment losses and other income . Adjusted EBITDA ( adjusting operating profit for several non - cash items ) is used by the Company for internal performance analysis to assess the execution of our strategies Management believe that this adjusted measure is a more appropriate metric to understand the underlying performance of the Company