Ten Square Games S.A.

Management Reports • Feb 6, 2024

Additional events affecting the results of the Ten Square Games Groupand Company in 2023.The Management Board of Ten Square Games S.A.based in Wrocław (_quot;Company_quot;) informs that in the course of work on thestand alone and consolidated financial statements for 2023, the Companyrecorded additional one-off events that will affect the results of theGroup and Ten Square Games S.A. in 2023.1. Write-off of costsincurred for the development of one of the titles of the Krakow studioGamesture Sp. z o. o.Ten Square Games S.A. is a minority shareholderin Gamesture Sp. z o. o. with 36.9% of shares. Gamesture Sp. z o. o.,like Ten Square Games S.A., underwent restructuring process in 2023,including, among others decreasing of employment in the company. Thedecision of the Management Board of Gamestue Sp. z o.o. to stopdevelopment of one of the studio's titles and write off the costsincurred to create the game was an element of the restructuring processin Gamesture Sp. z o. o. The main reason to cease further development ofthe game was the need to incur additional costs to further develop thetitle. In 2024, Gamesture sold the rights to this title to a third party.Dueto the cost of the write-off development cost and the loss from theoperating activities of Gamesture Sp. z o. o., Ten Square Games S.A.will record a loss on the investment in associates of approximately PLN3.3 million in the fourth quarter of 2023. The above event is of anon-cash nature.2. Correction of tax settlementsBased on theaudit of tax liabilities, the Company decided to correct the historicalsettlement of sales tax outside the country in 2020-2022. The year 2023does not require adjustment. For this reason, the Company will report atax liability in the amount of approximately PLN 2.4 million as atDecember 31, 2023, while the interest on this liability will be settledin 2024. The above adjustment will be included:- in the openingbalance as of January 1, 2022 in the amount of approximately PLN 1.65million- in sales revenues in 2022 in the amount of approx. PLN 0.73million.The amounts given individually or cumulatively are notsignificant from the perspective of the financial condition of the Groupand Ten Square Games S.A. and do not affect the liquidity situation ofthe Company and the Group. The values provided are estimates that maystill change, and their final value will be provided in the stand aloneand consolidated financial statements for 2023.The Company decidedto publish the above information to ensure equal access to informationand transparency of communication to all shareholders.