Trebia Acquisition : Supplemental Financial Information - Form 8-K

S1 Holdco

Unaudited Statements of Operations

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Revenue			171,446				169,579				147,561				135,755				117,268				100,019				122,935				488,586				317,140				475,977				340,222				222,954
Operating cost and expenses:
Cost of revenues			128,885				126,167				110,785				96,635				83,892				73,937				86,532				365,837				236,952				340,996				244,361				160,469
Salaries, commissions, and benefits			15,139				17,698				15,195				15,915				13,120				13,183				13,330				48,032				32,893				55,548				39,633				26,513
Selling, general, and administrative			7,936				6,277				6,950				5,863				7,095				4,879				5,142				21,163				13,227				22,979				17,116				10,021
Depreciation and amortization			3,459				3,112				3,689				3,082				3,331				3,889				3,530				10,260				6,801				13,832				10,750				7,419
Total operating costs and expenses			155,419				153,254				136,619				121,495				107,438				95,888				108,534				445,292				289,873				433,355				311,860				204,422
Operating income			16,027				16,325				10,942				14,260				9,830				4,131				14,401				43,294				27,267				42,622				28,362				18,532
Interest expense			4,184				4,476				4,048				5,781				5,741				6,332				6,497				12,708				8,524				24,351				18,570				12,829
Income (loss) from continuing operations before income tax			11,843				11,849				6,894				8,479				4,089				(2,201	)			7,904				30,586				18,743				18,271				9,792				5,703
Income tax expense			475				77				151				1,527				198				(173	)			355				703				228				1,907				380				182
Net income (loss) from continuing operations			11,368				11,772				6,743				6,952				3,891				(2,028	)			7,549				29,883				18,515				16,364				9,412				5,521
Gain (loss) from discontinued operations, net of taxes			-				-				-				55,315				99				(4,460	)			(3,557	)			-				-				47,397				(7,918	)			(8,017	)
Net income			11,368				11,772				6,743				62,267				3,990				(6,488	)			3,992				29,883				18,515				63,761				1,494				(2,496	)

S1 Holdco

Unaudited Condensed Balance Sheet

(in thousands)

		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
ASSETS
Current Assets:
Cash and cash equivalents		$	36,209			$	34,567			$	30,853			$	29,013			$	37,657			$	33,985			$	55,763
Accounts receivable, net of allowance for doubtful accounts			85,588				79,446				75,610				71,140				58,404				53,662				66,331
Prepaid expenses and other current assets			7,236				4,870				3,996				3,016				4,012				4,825				5,739
Assets of discontinued operations			-				-				-				-				20,602				13,936				13,229
Total current assets			129,033				118,883				110,459				103,169				120,675				106,408				141,062
Property and equipment, net		$	836			$	916			$	976			$	1,057			$	1,137			$	1,139			$	1,243
Internal-use software development costs, net			11,012				10,578				9,764				9,660				10,079				9,414				9,045
Intangible assets, net			52,534				54,698				56,740				59,009				60,829				52,638				54,764
Goodwill			44,820				44,820				44,820				44,820				44,820				54,566				54,898
Due from related party			2,469				2,453				1,222				969				969				-				-
Other assets			529				-				-				-				-				-				-
Assets of discontinued operations			-				-				-				-				67,714				69,138				70,101
Total Assets		$	241,233			$	232,348			$	223,981			$	218,684			$	306,223			$	293,304			$	331,114
LIABILITIES AND MEMBERS' DEFICIT
Current Liabilities:
Accounts payable		$	64,625			$	60,659			$	57,410			$	52,104			$	40,690			$	34,058			$	42,476
Accrued expenses and other current liabilities			22,419				21,197				12,041				19,039				18,714				16,764				20,048
Notes payable, current			171,780				4,739				9,374				9,374				19,347				24,347				44,237
Liabilities of discontinued operations			-				-				-				-				62,523				56,303				47,141
Total current liabilities			258,824				86,595				78,825				80,517				141,274				131,473				153,902
Notes payable, non-current		$	-			$	168,226			$	169,411			$	170,595			$	226,417			$	228,469			$	229,432
Other long-term liabilities			9,368				9,051				16,497				15,801				12,935				11,821				13,208
Liabilities of discontinued operations			-				-				-				-				-				-				-
Total liabilities		$	268,192			$	263,872			$	264,733			$	266,913			$	380,626			$	371,763			$	396,543
Commitments and contingencies (Note 8)
Members' deficit:
Members' deficit in S1 Holdco			(27,182	)			(31,646	)			(40,850	)			(47,886	)			(74,078	)			(78,017	)			(64,753	)
Accumulated other comprehensive income			223				122				98				(343	)			(325	)			(443	)			(675	)
Total members' deficit			(26,959	)			(31,524	)			(40,752	)			(48,229	)			(74,403	)			(78,460	)			(65,428	)
Total Liabilities And Members' Deficit		$	241,233			$	232,348			$	223,981			$	218,684			$	306,223			$	293,303			$	331,115

S1 Holdco

Unaudited Condensed Statements of Cash Flow

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Cash Flows From Operating Activities:
Net cash provided by operating activities of continuing operations			12,056				17,185				10,128				15,714				12,971				9,122				14,600				39,369				27,313				52,407				36,693				23,722
Net cash used for operating activities of discontinued operations			-				-				-				(1,917	)			1,979				(390	)			(5,532	)			-				-				(5,860	)			(3,943	)			(5,922	)
Net cash provided by operating activities			12,056				17,185				10,128				13,797				14,950				8,732				9,068				39,369				27,313				46,547				32,750				17,800
Cash Flows From Investing Activities:
Purchases of property and equipment			-						(11	)			(8	)					-				-				(19	)			(8	)			-
Proceeds from sale of Protected			-						74,544				-						-				-				74,544				-
Expenditures for internal-use software development costs			(1,668	)			(1,793	)			(1,440	)			(617	)			(1,632	)			(1,970	)			(1,893	)			(4,901	)			(3,233	)			(6,112	)			(5,495	)			(3,863	)
Net cash provided by (used in) investing activities of continuing operations			(1,668	)			(1,793	)			(1,440	)			73,916				(1,640	)			(1,970	)			(1,893	)			(4,901	)			(3,233	)			68,413				(5,503	)			(3,863	)
Net cash provided by (used in) investing activities of discontinued operations			-				-				-				(142	)			(79	)			144				(170	)			-				-				(247	)			(105	)			(26	)
Net cash provided by (used in) investing activities			(1,668	)			(1,793	)			(1,440	)			73,774				(1,719	)			(1,826	)			(2,063	)			(4,901	)			(3,233	)			68,166				(5,608	)			(3,889	)
Cash Flows From Financing Activities:
Proceeds from line of credit			-				-				-				-				-				-				20,000				-				-				20,000				20,000				20,000
Repayment of line of credit			-						(34,862	)			-						-				-				(34,862	)			-
Repayment of term loan			(1,750	)			(6,386	)			(1,750	)			(32,231	)			(7,715	)			(21,727	)			(1,750	)			(9,886	)			(8,136	)			(63,423	)			(31,192	)			(23,477	)
Member capital contributions			109				3				147				206				551				747				751				259				150				2,255				2,049				1,498
Payments on contingent consideration			-				(1,715	)			(5,000	)			-				-				(5,038	)			(462	)			(6,715	)			(6,715	)			(5,500	)			(5,500	)			(5,500	)
Related party loan			-				(1,500	)			-				-				-				-				-				(1,500	)			(1,500	)			-				-				-
Distributions to members from sale of Protected			-						(28,765	)			-						-				-				(28,765	)			-
Distributions to members			(7,102	)			(2,691	)			-				(12,575	)			(1,146	)			(3,558	)			(501	)			(9,793	)			(2,691	)			(17,780	)			(5,205	)			(4,059	)
Net cash provided by financing activities			(8,743	)			(12,289	)			(6,603	)			(108,227	)			(8,310	)			(29,576	)			18,038				(27,635	)			(18,892	)			(128,075	)			(19,848	)			(11,538	)
Effect of exchange rate changes in cash, cash equivalents and restricted cash			(3	)			611				(245	)			120				35				130				(735	)			363				366				(450	)			(570	)			(605	)
Net Increase In Cash			1,642				3,714				1,840				(20,536	)			4,956				(22,540	)			24,308				7,196				5,554				(13,812	)			6,724				1,768
Cash and restricted cash:
Beginning of period			34,567				30,853				29,013				49,549				44,593				67,133				42,825				29,013				29,013				42,825				42,825				42,825
End of period		$	36,209			$	34,567			$	30,853			$	29,013			$	49,549			$	44,593			$	67,133			$	36,209			$	34,567			$	29,013			$	49,549			$	44,593

S1 Holdco

Non-GAAP Financials

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Net Income		$	11,368			$	11,772			$	6,743			$	6,952			$	3,891			$	(2,029	)		$	7,549			$	29,883			$	18,515			$	16,364			$	9,412			$	5,520
Income tax expense			475				77				151				1,527				198				(173	)			355				703				228				1,907				380				183
Interest expense			4,185				4,237				4,286				5,781				5,741				6,332				6,497				12,708				8,524				24,351				18,570				12,829
Depreciation & amortization			3,458				3,113				3,689				3,082				3,331				3,889				3,530				10,259				6,801				13,832				10,750				7,419
Other income/expense (1)			(25	)			256				(154	)			196				294				138				(229	)			77				102				399				202				(91	)
Stock-based compensation and distributions to Members (2)			673				3,342				2,118				3,362				1,817				2,288				2,008				6,133				5,460				9,474				6,113				4,295
Terminated product lines (3)			-				-				-				-				-				(2	)			559				-				-				556				556				556
Costs related to acquisitions/business combinations			2,755				623				1,484				1,033				222				71				1,032				4,862				2,108				2,358				1,325				1,103
Acquisition earnout			31				32				63				62				2,278				373				-				126				95				2,713				2,651				373
Severance costs			118				164				330				121				393				545				21				612				494				1,080				960				567
Other costs, including restructuring			8				98				99				101				11				185				98				205				197				396				294				283
Adjusted EBITDA		$	23,046			$	23,715			$	18,809			$	22,217			$	18,177			$	11,616			$	21,420			$	65,570			$	42,524			$	73,430			$	51,214			$	33,036

(1)	Non-cash adjustments related to foreign exchange and asset disposals

(2)	Comprised of distributions to equity holders and non-cash stock-based compensation

(3)	In 2020, S1 Holdco terminated its Social Publishing product line, where it created quiz content primarily for the purpose of display advertising monetization. S1 Holdco has excluded revenue and direct costs associated with this product line for all presented periods

S1 Holdco

Non-Financial Metrcis

(In thousands except ratios)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
O&O Advertising		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20						30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Revenue		$	162,606			$	160,817			$	139,426			$	125,241			$	108,314			$	92,067			$	111,878			$	462,848			$	300,242			$	437,501			$	312,259			$	203,945
Advertising Spend (1)		$	126,404			$	123,244			$	107,298			$	93,800			$	80,217			$	69,406			$	84,066			$	356,946			$	230,542			$	327,489			$	233,689			$	153,472
Adjusted Gross Profit		$	36,202			$	37,572			$	32,128			$	31,442			$	28,097			$	22,661			$	27,812			$	105,902			$	69,700			$	110,012			$	78,570			$	50,473
O&O Sessions (2)			859,392				766,293				741,122				691,279				644,780				670,112				815,554				2,366,807				1,507,415				2,821,726				2,130,446				1,485,666
O&O CPS (3)		$	0.15			$	0.16			$	0.14			$	0.14			$	0.12			$	0.10			$	0.10			$	0.15			$	0.15			$	0.12			$	0.11			$	0.10
O&O RPS (4)		$	0.19			$	0.21			$	0.19			$	0.18			$	0.17			$	0.14			$	0.14			$	0.20			$	0.20			$	0.16			$	0.15			$	0.14
Spread			29	%			30	%			30	%			34	%			35	%			33	%			33	%			30	%			30	%			34	%			34	%			33	%
Partner Network
Revenue		$	8,840			$	8,763			$	8,135			$	10,514			$	8,955			$	7,951			$	11,056			$	25,738			$	16,898			$	38,477			$	27,963			$	19,008
Adjusted Gross Profit		$	8,840			$	8,763			$	8,135			$	10,514			$	8,955			$	7,951			$	11,056			$	25,738			$	16,898			$	38,477			$	27,963			$	19,008
Network Sessions (5)			278,460				312,406				326,127				318,930				323,878				484,653				392,906				916,993				638,533				1,520,367				1,201,437				877,559
Network RPS (6)		$	0.03			$	0.03			$	0.02			$	0.03			$	0.03			$	0.02			$	0.03			$	0.03			$	0.03			$	0.03			$	0.02			$	0.02
Other COR (7)		$	2,481			$	2,922			$	3,487			$	2,831			$	3,674			$	4,531			$	2,466			$	8,890			$	6,410			$	13,503			$	10,672			$	6,998
Consolidated S1 Revenue		$	171,445			$	169,579			$	147,561			$	135,755			$	117,269			$	100,019			$	122,935			$	488,586			$	317,140			$	475,977			$	340,222			$	222,953
Consolidated S1 Gross Profit		$	42,561			$	43,413			$	36,776			$	39,124			$	33,377			$	26,081			$	36,402			$	122,749			$	80,188			$	134,985			$	95,861			$	62,484
O&O Advertising, Excluding Terminated Product Lines
Revenue		$	162,606			$	160,817			$	139,426			$	125,241			$	108,314			$	91,712			$	106,587			$	462,848			$	300,242			$	431,855			$	306,613			$	198,299
Advertising Spend		$	126,404			$	123,244			$	107,298			$	93,800			$	80,217			$	69,053			$	79,165			$	356,946			$	230,542			$	322,235			$	228,436			$	148,218
Adjusted Gross Profit		$	36,202			$	37,572			$	32,128			$	31,442			$	28,097			$	22,659			$	27,422			$	105,902			$	69,700			$	109,619			$	78,178			$	50,081
O&O Sessions (2)			859,392				766,293				741,122				691,279				644,780				663,135				737,243				2,366,807				1,507,415				2,736,438				2,045,159				1,400,378
O&O CPS (3)		$	0.15			$	0.16			$	0.14			$	0.14			$	0.12			$	0.10			$	0.11			$	0.15			$	0.15			$	0.12			$	0.11			$	0.11
O&O RPS (4)		$	0.19			$	0.21			$	0.19			$	0.18			$	0.17			$	0.14			$	0.14			$	0.20			$	0.20			$	0.16			$	0.15			$	0.14
Spread			29	%			30	%			30	%			34	%			35	%			33	%			35	%			30	%			30	%			34	%			34	%			34	%

(1)	Advertising spend is the amount of advertising that is spent to acquire traffic to Owned & Operated websites

(2)	O&O sessions are the total number of monetizable user visits to Owned & Operated websites

(3)	CPS is advertising spend divided by O&O Sessions

(4)	RPS is O&O Revenue divided by O&O Sessions

(5)	Network sessions are the number of monetizable user visits delivered by network partners to RAMP

(6)	RPS is Partner Network revenue divided by Network Sessions

(7)	Other COR are costs of revenue other than advertising spend

Protected.net Group Limited

Unaudited Statements of Operations

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Revenue			38,199				36,028				31,199				25,149				25,415				21,965				18,379				105,426				67,227				90,908				65,759				40,345
Cost of Revenue			22,570				23,460				29,731				23,122				23,827				27,892				23,139				75,760				53,191				97,980				74,858				51,030
Gross profit (Loss)			15,629				12,568				1,469				2,027				1,587				(5,926	)			(4,759	)			29,666				14,037				(7,072	)			(9,099	)			(10,686	)
General and administrative			3,910				5,074				2,697				2,365				1,730				1,978				637				11,681				7,771				6,711				4,346				2,616
Related party rent expense			133				180				144				111				159				116				150				457				324				536				425				266
Total Operating Expenses			4,042				5,254				2,841				2,476				1,889				2,094				788				12,138				8,095				7,247				4,771				2,882
Gain on sale of intangible assets			-				-				-				-				(1,580	)			-				-				-				-				(1,580	)			(1,580	)			-
Foreign currency transaction (gains)/losses			583				209				322				(170	)			37				60				207				1,115				532				135				304				267
Other operating income			(0	)			(222	)			(121	)			(18	)			(3	)			(27	)			(0	)			(343	)			(343	)			(48	)			(30	)			(27	)
Other operating expense (income)			583				(13	)			201				(188	)			(1,546	)			33				207				772				189				(1,494	)			(1,306	)			240
Operating income (loss)			11,004				7,326				(1,574	)			(262	)			1,244				(8,054	)			(5,754	)			16,757				5,753				(12,826	)			(12,564	)			(13,808	)
Related party interest expense			-				-				-				105				136				130				35				-				-				406				301				165
Related party interest income			(153	)			(328	)			(157	)			-				-				-				-				(638	)			(485	)			-				-				-
Interest expense			144				235				151				29				-				-				-				530				386				29				-				-
Other non-operating expenses/(income)			-				(70	)			70				(2	)			-				-				-				-				-				(2	)			-				-
Total non-operating expenses/(income), net			(9	)			(163	)			64				132				136				130				35				(108	)			(99	)			433				301				165
Net income (loss) before income taxes			11,013				7,489				(1,638	)			(394	)			1,108				(8,184	)			(5,789	)			16,865				5,852				(13,258	)			(12,865	)			(13,973	)
Income Tax Expense (Benefit)			966				-				-				-				-				-				-				966				-				-				-				-
Net income (loss)			10,047				7,489				(1,638	)			(394	)			1,108				(8,184	)			(5,789	)			15,899				5,852				(13,258	)			(12,865	)			(13,973	)

Protected.net Group Limited

Unaudited Statements of Operations

(in thousands)

		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
ASSETS
Current assets:
Cash		$	21,112			$	14,227			$	11,296			$	6,253			$	7,060			$	5,356			$	7,020
Restricted cash			2,148				2,458				5,757				5,604				4,943				4,874				7,321
Prepaid expenses and other current assets			548				691				791				359				317				404				327
Deposits			3,000				3,000				3,000				3,000				3,000				3,000				-
Total current assets			26,807				20,376				20,844				15,216				15,320				13,634				14,667
Due from related parties			33,115				26,249				15,719				10,230				-				244				139
Property, plant and equipment			398				373				370				270				195				184				196
Intangible Assets			386				415				62				53				54				90				108
Goodwill			284				284				-				-				-				-				-
Total assets		$	60,991			$	47,696			$	36,995			$	25,769			$	15,568			$	14,153			$	15,112
Liabilities and Shareholders' Deficit:
Accounts payable		$	3,029			$	732			$	2,876			$	3,005			$	2,698			$	3,739			$	436
Accrued expenses			7,537				6,199				7,686				6,704				5,896				5,907				8,441
VAT tax liability			9,696				9,351				6,965				6,366				8,939				8,446				6,211
Deferred revenue			58,186				58,731				54,139				47,431				41,855				39,044				34,156
Related party deferred revenue			187				208				229				168				-				-				-
Current portion of note payable			2,250				2,813				2,250				1,500				-				-				-
Due to related party			-				-				-				4				3,501				5,599				6,243
Refund liability			429				449				597				512				558				405				428
Total current liabilities			81,313				78,482				74,741				65,690				63,447				63,140				55,915
Note payable, net of current portion and deferred financing costs			11,086				11,636				12,164				8,352				-				-				-
Deferred tax liability			966				-				-				-				-				-				-
Total liabilities		$	93,365			$	90,118			$	86,905			$	74,042			$	63,447			$	63,140			$	55,915
Commitments and Contingencies
Shareholders' Deficit:
Class A Preferred shares			11				11				11				11				11				11				11
Class B Common shares			11				11				11				11				11				11				11
Additional paid-in capital			40,953				40,953				40,953				40,953				40,953				40,953				40,953
Accumulated deficit			(73,349	)			(83,396	)			(90,885	)			(89,247	)			(88,854	)			(89,962	)			(81,778	)
Total Shareholders' deficit			(32,374	)			(42,421	)			(49,911	)			(48,273	)			(47,879	)			(48,987	)			(40,803	)
Total Liabilities and Shareholders' Deficit		$	60,991			$	47,696			$	36,995			$	25,769			$	15,568			$	14,153			$	15,112

*	Class A Preferred shares, par value £0.0001 per share, 7,992,009 shares authorized, issued, and outstanding on September 30, 2021 and December 31, 2020, respectively

**	Class B Common shares, par value £0.0001 per share, 7,960,105 shares authorized, issued, and outstanding on September 30, 2021 and December 31, 2020, respectively

Protected.net Group Limited

Unaudited Condensed Statements of Cash Flow

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Cash Flows From Operating Activities:
Net income (loss)			10,047				7,489				(1,638	)			(394	)			1,108				(8,184	)			(5,789	)			15,899				5,852				(13,258	)			(12,865	)			(13,973	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			39				36				28				24				18				17				15				102				63				75				51				33
Amortization			29				29				12				13				16				18				19				70				41				67				54				37
Gain on sale of Network Protected intangible assets			-				-				-				-				(1,580	)			-				-				-				-				(1,580	)			(1,580	)			-
Amortization of deferred financing costs			13				34				13				2				-				-				-				59				46				2				-				-
Interest income on loan with System 1 SS Protect Holdings, Inc.			(189	)			(307	)			(143	)			(2	)			-				-				-				(638	)			(450	)			(2	)			-				-
Financing fee income on loan with System 1 SS Protect Holdings, Inc.			(21	)			(21	)			(14	)			-				-				-				-				(56	)			(35	)			-				-				-
Change in operating assets and liabilities:			-				-				-				-				-				-				-				-				-				-				-				-
Prepaid expenses and other current assets			143				112				(432	)			(43	)			188				(77	)			(244	)			(177	)			(320	)			(177	)			(134	)			(321	)
Deposits			-				-				-				-				-				(3,000	)			-				-				-				(3,000	)			(3,000	)			(3,000	)
Accounts payable			2,295				(2,471	)			(129	)			302				(1,041	)			3,303				(2,620	)			(305	)			(2,600	)			(56	)			(358	)			683
Accrued expenses			1,338				(1,402	)			982				808				(11	)			(2,534	)			3,809				918				(420	)			2,072				1,264				1,275
VAT tax liability			345				2,385				599				(2,573	)			494				2,235				(1,957	)			3,329				2,984				(1,801	)			772				278
Refund liability			(20	)			(148	)			85				(46	)			152				(22	)			11				(83	)			(63	)			95				141				(11	)
Deferred revenue			(545	)			4,593				6,708				5,576				2,811				4,888				4,453				10,755				11,300				17,727				12,152				9,340
Related party deferred revenue			(21	)			(21	)			61				168				-				-				-				19				40				168				-				-
Deferred tax liability			966				-				-				-				-				-				-				966				-				-				-				-
Due from related party			109				29				(83	)			(168	)			244				(104	)			(137	)			55				(54	)			(165	)			3				(241	)
Due to related party			-				-				(4	)			1,266				(861	)			(644	)			(11	)			(4	)			(4	)			(250	)			(1,516	)			(655	)
Net cash generated by (used in) operating activities			14,529				10,337				6,043				4,933				1,539				(4,105	)			(2,451	)			30,909				16,380				(84	)			(5,017	)			(6,556	)
Cash Flows From Investing Activities:
Purchases of intangibles, property, plant and equipment			(63	)			(40	)			(147	)			106				(29	)			(5	)			(72	)			(250	)			(187	)			-				(106	)			(77	)
Proceeds from sale of intangibles			-				-				-					1,500				-				-				-				-				1,500				1,500				-
Cash received in acquisition of Host Plus Limited, net of cash paid			-				13				-				-				-				-				-				13				13				-				-				-
Loan advanced to Just Develop It			(4,981	)			(8,430	)			-				-				-				-				-				(13,411	)			(8,430	)			-				-				-
Repayment of loan by Just Develop It			4,981				8,430				-				(213	)			-				-				-				13,411				8,430				(213	)			-				-
Loan advanced to Company director			(1,706	)			(282	)			-				238				(238	)			-				-				(1,988	)			(282	)			-				(238	)			-
Repayment of loan by Company director			1,651				-				-				-				-				-				-				1,651				-				-				-				-
Loan advanced to System 1 SS Protect Holdings, Inc.			(6,711	)			(9,948	)			(5,250	)			(10,060	)			-				-				-				(21,909	)			(15,197	)			(10,060	)			-				-
Net cash used by investing activities			(6,829	)			(10,257	)			(5,397	)			(9,929	)			1,234				(5	)			(72	)			(22,483	)			(15,653	)			(8,773	)			1,157				(77	)
Cash Flows From Financing Activities:
Proceeds from bank loan			-				-				5,000				10,000				-				-				-				5,000				5,000				10,000				-				-
Repayment of principal on bank loan			(1,125	)			-				(375	)			-				-				-				-				(1,500	)			(375	)			-				-				-
Proceeds from related party loans			-				-				-				2,000				-				-				9,000				-				-				11,000				9,000				9,000
Repayment of related party loans			-				-				-				(11,000	)			3,000				-				(3,000	)			-				-				(11,000	)			-				(3,000	)
Repayment of loan to Just Develop It			-				(449	)			-				4,000				(4,000	)			-				-				(449	)			(449	)			-				(4,000	)			-
Payment of deferred financing costs			-				-				(75	)			(150	)			-				-				-				(75	)			(75	)			(150	)			-				-
Net cash (used in) provided by financing activities			(1,125	)			(449	)			4,550				4,850				(1,000	)			-				6,000				2,976				4,101				9,850				5,000				6,000
Effect of exchange rate changes on cash			-				-				-				-				-				-				-				-				-				-				-				-
Net change in cash			6,574				(368	)			5,197				(147	)			1,773				(4,110	)			3,477				11,403				4,828				993				1,140				(633	)
Cash, beginning of period			16,685				17,053				11,856				12,003				10,230				14,341				10,863				11,856				11,856				10,863				10,863				10,863
Cash, end of period		$	23,259			$	16,685			$	17,053			$	11,856			$	12,003			$	10,230			$	14,341			$	23,259			$	16,685			$	11,856			$	12,003			$	10,230

Protected.net Group Limited

Non-GAAP Financials

(in thousands)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Net income (loss)		$	10,047			$	7,489			$	(1,638	)		$	(394	)		$	1,108			$	(8,184	)		$	(5,789	)		$	15,899			$	5,852			$	(13,258	)		$	(12,865	)		$	(13,973	)
Income Tax Expense			966				-				-				-				-				-				-				966				-				-				-				-
Interest expense, net			(131	)			(165	)			(6	)			93				131				176				35				(302	)			(171	)			435				342				211
Depreciation & amortisation			69				65				39				37				35				35				34				172				104				141				105				70
Terminated product lines (1)			29				3				62				(336	)			(1,691	)			86				163				94				64				(1,777	)			(1,441	)			250
Costs related to acquisitions/business combinations			196				499				297				32				-				-				-				991				795				32				-				-
Non-cash foreign exchange adjustments			581				209				322				(194	)			46				68				190				1,112				532				110				304				258
VAT accrual for previously uncollected VAT			1,110				1,492				1,116				615				866				1,408				46				3,718				2,608				2,934				2,319				1,453
Director salary payments			936				949				-				-				-				-				-				1,885				949				-				-				-
Other costs including restructuring			-				-				-				424				34				-				-				-				-				458				34				-
Adjusted EBITDA		$	13,803			$	10,540			$	193			$	277			$	529			$	(6,411	)		$	(5,320	)		$	24,536			$	10,733			$	(10,925	)		$	(11,202	)		$	(11,731	)

(1)	Protected terminated its Network Protect VPN product. Protected has excluded revenue, direct costs and operating expenses associated with this product line from Adjusted EBITDA for all presented periods

Protected.net Group Limited

Non-Financial Metrcis

(In thousands except ratios)

		QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
		30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Billings (1)		$	37,632			$	40,473			$	37,992			$	31,126			$	27,758			$	26,458			$	22,529			$	116,097			$	78,465			$	107,871			$	76,745			$	48,987
Change in Deferred Revenue During Period		$	(567	)		$	4,445			$	6,792			$	6,287			$	2,591			$	4,796			$	4,409			$	10,671			$	11,238			$	18,084			$	11,796			$	9,205
Advertising Spend (2)		$	16,966			$	17,884			$	23,626			$	17,562			$	18,059			$	22,467			$	18,575			$	58,477			$	41,510			$	76,664			$	59,101			$	41,042
Beginning Subscribers			2,187				2,128				1,905				1,770				1,586				1,357				1,234				1,905				1,905				1,234				1,234				1,234
Ending Subscribers (3)			2,208				2,187				2,128				1,905				1,770				1,586				1,357				2,208				2,187				1,905				1,770				1,586
New Subscribers (4)			298				331				462				324				341				398				275				1,091				793				1,338				1,014				673
CTA (5)		$	56.91			$	54.10			$	51.10			$	54.23			$	52.95			$	56.42			$	67.53			$	53.60			$	52.35			$	57.29			$	58.27			$	60.96
ARPU (6)		$	17.13			$	18.76			$	18.84			$	16.94			$	16.54			$	17.98			$	17.39			$	56.45			$	38.35			$	68.72			$	51.09			$	34.74

(1)	Billings is the total amount billed to customers during a period

(2)	Advertising spend is the total amount spent on advertising to acquire new subscribers during a period

(3)	Ending subscribers are the number of paying subscribers for its products, at the end of a period

(4)	New subscribers are the number of new subscribers acquired for its products, during a period

(5)	CTA is advertising spend divided by new subscribers in a period

(6)	ARPU is the billings in a period divided by average of the beginning and ending subscribers during that period

*	Deferred revenue from billings is amortized on a straight line basis over the subscription period and recognized as revenue in the financial statements

**	Excludes metrics for terminated product lines