Snipp Interactive Inc. — Interim / Quarterly Report 2025

May 31, 2025

SNIPP INTERACTIVE INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars unless otherwise noted)
(Unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2025

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the unaudited condensed interim consolidated financial statements for the period ended March 31, 2025.

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SNIPP INTERACTIVE INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in U.S. Dollars)

(Unaudited)

As at

		March 31, 2025	December 31, 2024
ASSETS
Current
Cash	(Note 3)	$ 5,768,607	$ 3,704,155
Accounts receivable, net of expected credit loss of $nil (2023 - $nil)	(Note 12)	1,414,220	3,407,915
Deferred costs, current		87,300	189,889
Deposits, prepaid expenses and other assets		1,484,490	1,020,755
		8,754,617	8,322,714
Deferred costs, non-current		10,119	2,763
Right of use assets	(Note 13)	478,449	487,706
Equipment	(Note 5)	37,678	38,934
Intangible assets	(Note 6)	2,882,239	2,841,378
Goodwill	(Note 6)	3,516,363	3,516,363
		$ 15,679,465	$ 15,209,858
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities		$ 2,683,105	$ 2,919,114
Deferred revenue		6,124,896	5,310,996
Due to related parties	(Note 7)	47,448	178,322
Lease liabilities, current	(Note 13)	31,821	31,628
		8,887,270	8,440,060
Lease liabilities, non-current	(Note 13)	456,002	464,030
		9,343,272	8,904,090
Shareholders' equity
Common shares	(Note 8)	38,586,900	38,586,900
Reserves	(Note 8)	7,805,941	7,665,945
Deficit		(38,094,308)	(37,929,562)
Accumulated other comprehensive loss		(1,962,340)	(2,017,515)
		6,336,193	6,305,768
		$ 15,679,465	$ 15,209,858

Nature of operations (Note 1)
Commitment (Note 11)
Approved and authorized by the Board of Directors on May 30, 2025.

“Atul Sabharwal” Director
Atul Sabharwal

“Sarfaraz Haji” Director
Sarfaraz Haji

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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SNIPP INTERACTIVE INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. Dollars)

(Unaudited)

	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024
REVENUE (Note 4)	$ 6,400,177	$ 4,660,275
EXPENSES
Salaries and compensation (Note 7)	2,986,264	2,471,149
General and administrative	250,118	274,603
Campaign infrastructure	2,564,947	2,127,274
Professional fees	127,744	118,554
Marketing and investor relations	175,967	234,371
Travel	31,282	34,065
Bad debt expense	-	-
Amortization of intangible assets (Note 6)	269,015	258,779
Depreciation of equipment (Note 5)	5,020	3,018
Share-based payments (Notes 7 & 8)	139,996	350,448
	6,550,353	5,872,261
Net loss before interest, foreign exchange, other income and taxes	(150,176)	(1,211,986)
Interest income	33,432	24,515
Foreign exchange gain (loss)	(12,766)	31,773
Other income	1,693	2,388
Net loss before tax provision	(127,817)	(1,153,310)
Provision for taxes	(36,929)	-
Net loss for the period	(164,746)	(1,153,310)
OTHER COMPREHENSIVE INCOME (LOSS)
Items that may be subsequently reclassified to profit or loss
Cumulative translation adjustment	55,175	(33,168)
Comprehensive loss for the period	$ (109,571)	$ (1,186,478)
Basic and diluted loss per common share	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding – basic	286,113,829	284,910,488
Weighted average number of common shares outstanding – diluted	286,113,829	284,910,488

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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SNIPP INTERACTIVE INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in U.S. Dollars)

(Unaudited)

	Common Shares	Amount	Reserves	Accumulated Other Comprehensive Loss	Deficit	Total Shareholders' Equity
Balance, December 31, 2023	282,337,829	$ 38,146,376	$ 6,853,555	$ (1,645,315)	$ (36,924,091)	$ 6,430,525
Stock options exercised	3,776,000	275,847	-	-	-	275,847
Share-based payments	-	-	350,448	-	-	350,448
Cumulative translation adjustment	-	-	-	(33,168)	-	(33,168)
Net loss for the period	-	-	-	-	(1,153,310)	(1,153,310)
Balance, March 31, 2024	286,113,829	$ 38,422,223	$ 7,204,003	$ (1,678,483)	$ (38,077,401)	$ 5,870,342
Stock options exercised	-	164,677	(164,677)	-	-	-
Share-based payments	-	-	626,619	-	-	626,619
Cumulative translation adjustment	-	-	-	(339,032)	-	(339,032)
Net income for the period	-	-	-	-	147,839	147,839
Balance, December 31, 2024	286,113,829	$ 38,586,900	$ 7,665,945	$ (2,017,515)	$ (37,929,562)	$ 6,305,768
Share-based payments	-	-	139,996	-	-	139,996
Cumulative translation adjustment	-	-	-	55,175	-	55,175
Net income for the period	-	-	-	-	(164,746)	(164,746)
Balance, March 31, 2024	286,113,829	$ 38,586,900	$ 7,805,941	$ (1,962,340)	$ (38,094,308)	$ 6,336,193

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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SNIPP INTERACTIVE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Unaudited)

	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the year	$ (164,746)	$ (1,153,310)
Items not involving cash:
Amortization of intangible assets	269,015	258,779
Depreciation of equipment	5,020	3,018
Share-based payments	139,996	350,448
Changes in non-cash working capital items:
Accounts receivable	1,993,695	(182,030)
Deferred costs, current	102,589	55,175
Deferred costs, non-current	(7,356)	3,126
Deposits, prepaid expenses and other assets	(463,735)	(210,106)
Accounts payable and accrued liabilities	(236,009)	(220,658)
Deferred revenue	813,900	2,446,629
Due to related parties	(130,874)	(27,848)
Net cash flows (used in) generated by operating activities	2,321,495	1,323,223
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to equipment	(3,676)	-
Additions to intangible assets	(253,496)	(319,938)
Net cash flows used in investing activities	(257,172)	(319,938)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from options exercised	-	275,847
Net cash flows (used in) provided by financing activities	-	275,847
Effect of exchange rate changes on cash	129	(45,984)
Change in cash for the year	2,064,452	1,233,148
Cash, beginning of year	3,704,155	2,943,006
Cash, end of year	$ 5,768,607	$ 4,176,154

Supplemental disclosure regarding cash flows (Note 9)

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

1 NATURE OF OPERATIONS

Snipp Interactive Inc. (the “Company” or “Snipp”), a reporting issuer listed on the TSX Venture Exchange trading under the symbol SPN.V, was incorporated under the Business Corporations Act (British Columbia) on January 21, 2010 and its business is to provide a full suite of mobile marketing, rebates and loyalty solutions in the US, Canada and internationally.

Unless otherwise indicated in these consolidated financial statements, references to “$” are to U.S. dollars.

These condensed interim consolidated financial statements have been prepared on a going concern basis, which assumes the realization of assets and settlement of liabilities in the normal course of business.

The registered address, head office, principal address and records office of the Company are located at Suite 1700, 666 Burrard Street, Vancouver, BC, V6C 2X8, Canada.

The condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on May 30, 2025.

The Company has a working capital deficiency of $132,653 (December 31, 2024: working capital deficiency $661,118), net loss of $164,746, accumulated deficit of $38,094,308 and positive cash flows from operations of $2,321,495. Management is of the opinion that sufficient working capital will be obtained from operations to meet the Company's liabilities and commitments as they come due for the next twelve months.

2 MATERIAL ACCOUNTING POLICIES

Statement of Compliance

These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (IAS 34), as issued by the International Accounting Standards Board (IASB). These unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Company’s audited annual consolidated financial statements as at and for the year ended December 31, 2024 (December 31, 2024 consolidated financial statements) filed on SEDAR on May 15, 2025. All defined terms used herein are consistent with those terms defined in the December 31, 2024 consolidated financial statements.

Basis of presentation

The condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.

Principles of consolidation

These condensed interim consolidated financial statements include the accounts of the Company and its wholly-owned legal subsidiaries Snipp Interactive Inc., which was incorporated in Delaware, USA, Snipp Interactive (India) Private Limited, which was incorporated in India, Snipp Interactive Limited, which was incorporated in Ireland, Snipp Interactive AG, which was incorporated in Switzerland. All material inter-company balances and transactions have been eliminated.

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SNIPP INTERACTIVE INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
March 31, 2025

2 MATERIAL ACCOUNTING POLICIES (cont'd...)

Revenue from contracts with customers

IFRS 15 requires a single, principles-based, five-step model for the recognition of revenue when control of goods is transferred to the customer. The five steps are: identify the contract(s) with the customer, identify the performance obligation(s) in the contract, determine the transaction price, allocate the transaction price to each performance obligation and recognize revenue as each performance obligation is satisfied. The Company only recognizes revenue when collection is reasonably assured. If collection is not considered reasonably assured, revenue is recognized only once all amounts are collected. Revenue is recorded net of rebates. Amounts billed in excess of revenue recognized to date on an arrangement-by-arrangement basis are classified as deferred revenue, whereas revenue recognized in excess of amounts billed is classified as accrued receivables and included as part of accounts receivable.

Many of the Company’s arrangements with customers include multiple performance obligations which are delivered at varying times. In these cases, the Company treats the delivered items as separate performance obligations of accounting if they are distinct, being separately identifiable and providing value to the customer on a standalone basis. The Company provides a full suite of promotions-related marketing services in the US, Canada and internationally, and generates revenue by designing and developing software solutions, platform licensing, receipt processing services, reward fulfilment and reward gaming. Design and development, platform services, licensing, receipt processing, and reward fulfilment services are often included within a single contract. In these contracts, design and development, platform services, licensing, receipt processing are all included as a single performance obligation, while reward fulfilment services are a separate performance obligation.

Design and development of software solutions provides customers with the creation of campaign specific software to facilitate end user engagement and participation in our customer’s promotional campaigns. The design and development services are provided as part of a performance obligation that includes multiple services, and are recognized over the term that the performance obligation is delivered. Platform licensing and related service agreements provide customers the right to access the Company’s software platform for promotions and loyalty programs that are used to validate purchases, provide rewards and generate data analytics on transactions, on a subscription basis. The length of these platform licensing agreements varies as some are linked to the customer’s short-term promotional campaigns which can range in length from four to twelve weeks and others may be linked to the customer’s longer-term loyalty-based programs and be subscribed to on an annual or multiyear basis. Licensing revenues are recognized over the term that the performance obligation is delivered which is from activation date to end of contract term. Variable revenue is recognized at a point in time when specific variable transactions occur.

Reward fulfilment involves various third-party rewards being procured and delivered to our customer’s end users who participate in their promotional campaigns. These reward fulfilment solutions are typically part of agreements that include a subset of the other product offerings listed above. The length of these services varies as some are linked to the customer’s short-term promotional campaigns which can range in length from four to twelve weeks and others may be linked to the customer’s longer-term loyalty-based programs and be for an annual or multiyear basis. Funds are collected from customers in advance and included in deferred revenue until reward fulfilment services occur, at which point these are recognized in revenue. There are refund obligations for any amounts collected that are above the actual usage of rewards fulfilled when the service period has concluded. These refund amounts are reclassified out of deferred revenue and into accounts payable. Reward fulfilment revenues are recognized on a gross basis based on the Company acting as the principal in these arrangements.

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SNIPP INTERACTIVE INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
March 31, 2025

2 MATERIAL ACCOUNTING POLICIES (cont'd...)

Critical judgement and accounting estimates

The preparation of these consolidated financial statements requires management to make certain estimates, judgements and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported expenses during the period. Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period relate to provisions for receivables, amortization and depreciation, impairment testing, determining the risk-free rate of return, expected volatility and future market conditions when calculating the fair value of stock options and warrants, and determining fair values of financial instruments. Actual results could differ from these estimates due to the underlying uncertainty that could result in a material adjustment to the carrying amounts of assets, liabilities, and equity in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

i) The recoverability of accounts receivable and the expected credit loss allowance that are included in the consolidated statements of financial position are based on historical collection and anticipated credit risk of customers.

ii) The inputs used in accounting for share-based payments expense included in profit and loss calculated using the Black-Scholes option pricing model (Note 8).

iii) The carrying value of intangible assets (capitalized software platform and intellectual property) and goodwill that are included in the consolidated statements of financial position are based on management assessments of the recoverable amount of the asset. As well, management estimates on the capitalized costs that are directly attributable to the development of the intangible asset (Note 6).

iv) The timing of revenue recognition, determination of transaction prices, and the allocation of transaction prices to each performance obligation, require management to exercise judgement in determining when performance obligations have been completed.

v) The recognition of deferred tax assets is based on forecasts of future taxable profit. The measurement of future taxable profit for the purposes of determining whether or not to recognize deferred tax assets depends on many factors, including the Company's ability to generate such profits and the implementation of effective tax planning strategies. The occurrence or non-occurrence of such events in the future may lead to significant changes in the measurement of deferred tax assets (Note 13).

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

3 CASH

Cash in the consolidated financial statements of financial position comprise of cash deposits held in financial institutions. The balance at March 31, 2025 and December 31, 2024 consists of cash on deposit with major Canadian, US, Irish, Swiss, and Indian banks.

	March 31, 2025	December 31, 2024
Cash on deposit	$ 5,768,607	$ 3,704,155
Total	$ 5,768,607	$ 3,704,155

4 SEGMENTED INFORMATION

IFRS 8 “Operating Segments” defines an operating segment as i) a component of an entity that engages in business activities from which it may earn revenues and incur expenses; ii) whose operating results are regularly reviewed by the entity’s chief operating decision maker (the Company's CEO) to make decisions about resources to be allocated to the segment and to assess its performance; and iii) for which discrete financial information is available.

The Company’s management and chief operating decision maker reviews performance of the Company on a consolidated basis and has integrated its products and services as one operating segment, which provides a full suite of mobile marketing and loyalty services in the United States, Canada, Ireland and internationally.

Geographic information

The Company has one operating segment, which provides a full suite of mobile marketing and loyalty services in the United States, Canada, Ireland and internationally.

For the Company’s geographically segmented non-current assets (equipment and intangible assets), the Company has allocated based on location of assets as follows:

	March 31, 2025	December 31, 2024
United States	$ 907,631	$ 929,894
Canada	667,656	655,985
Ireland	1,336,052	1,283,185
International	8,578	11,248
Total	$ 2,919,917	$ 2,880,312

For the Company’s geographically segmented revenue, the Company has allocated revenue based on the location of the customer, as follows:

	Three Months Ended March 31 2025	Three Months Ended March 31 2024
United States	$ 5,688,231	$ 4,151,974
Canada	327,183	302,781
Ireland	316,181	140,176
International	68,582	65,344
Total	$ 6,400,177	$ 4,660,275

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

5 EQUIPMENT

	March 31, 2025
	Opening cost balance	Additions	Additions from business acquisitions	Disposals	Closing cost balance	Opening accumulated depreciation	Depreciation during the period	Closing depreciation balance	Accumulated foreign exchange adjustment	Net book value
Office Equipment	$ 18,026	$ -	$ -	$ -	$ 18,026	$ 18,026	$ -	$ 18,026	$ -	$ -
Computer Equipment	276,920	3,676	-	-	280,596	235,590	5,020	240,610	(2,308)	37,678
	$ 294,946	$ 3,676	$ -	$ -	$ 298,622	$ 253,616	$ 5,020	$ 258,636	$ (2,308)	$ 37,678

December 31, 2024

	Opening cost balance	Additions	Additions from business acquisitions	Disposals	Closing cost balance	Opening accumulated depreciation	Depreciation during the year	Closing depreciation balance	Accumulated foreign exchange adjustment	Net book value
Office Equipment	$ 18,026	$ -	$ -	$ -	$ 18,026	$ 18,026	$ -	$ 18,026	$ -	$ -
Computer Equipment	259,690	17,230	$ -	-	276,920	222,626	12,964	235,590	(2,396)	38,934
	$ 277,716	$ 17,230	$ -	$ -	$ 294,946	$ 240,652	$ 12,964	$ 253,616	$ (2,396)	$ 38,934

6 INTANGIBLE ASSETS AND GOODWILL

Intangible assets

	March 31, 2025
	Opening cost balance	Additions	Additions from business acquisitions	Disposals	Closing cost balance	Opening accumulated amortization	Amortization during the period	Closing amortization balance	Accumulated foreign exchange adjustment	Net book value
Software platform	$ 11,908,926	$ 253,496	$ -	$ -	$ 12,162,422	$ 8,977,028	$ 269,015	$ 9,246,043	$ (34,140)	$ 2,882,239
Intellectual property	3,020,000	-	-	-	3,020,000	3,020,000	-	3,020,000	-	-
	$ 14,928,926	$ 253,496	$ -	$ -	$ 15,182,422	$ 11,997,028	$ 269,015	$ 12,266,043	$ (34,140)	$ 2,882,239

December 31, 2024

	Opening cost balance	Additions	Additions from business acquisitions	Disposals	Closing cost balance	Opening accumulated amortization	Amortization during the year	Closing amortization balance	Accumulated foreign exchange adjustment	Net book value
Software platform	$ 10,693,641	$ 1,215,285	$ -	$ -	$ 11,908,926	$ 7,921,928	$ 1,055,100	$ 8,977,028	$ (90,520)	$ 2,841,378
Intellectual property	3,020,000	-	$ -	-	3,020,000	3,020,000	$ -	3,020,000	-	-
	$ 13,713,641	$ 1,215,285	$ -	$ -	$ 14,928,926	$ 10,941,928	$ 1,055,100	$ 11,997,028	$ (90,520)	$ 2,841,378

Goodwill

The carrying amount of goodwill at December 31, 2024 was $3,516,363 (2023 - $3,516,363). The Company considers the full business to be a single CGU as this is the smallest identifiable group of assets that generates cash inflows. The Company performed an impairment test on its CGU at December 31, 2024. The Company assessed the recoverable amount of this CGU based on its value in use, using a discounted future cash flow model. The recoverable amount of the CGU was determined to exceed its carrying value as at December 31, 2024. The key assumptions used in the discounted future cash flow model include a post-tax discount rate of 14.5%, implied average revenue compound annual growth rate of 8% for 2025 to 2029 and 2% terminal value, and implied average operating costs compound annual growth rate of 5% for 2025 to 2029 and 0.3% terminal value. The analyses concluded there was no impairment on the Company's CGU.

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SNIPP INTERACTIVE INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. Dollars)
March 31, 2025

7 RELATED PARTY TRANSACTIONS AND BALANCES

Key management includes members of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the Chief Legal Officer, the Chief Technology Officer, the Chief Operating Officer, the Chief Revenue Officer and the Chief Marketing Officer. The aggregate compensation paid, or payable, to key management personnel included in salaries and compensation during the periods ended March 31, 2025 and 2024 were $432,248 and $631,633, respectively. At March 31, 2025, $47,448 was due to officers and directors (December 31, 2024 - $178,322).

The amounts due to related parties represent unpaid salaries and compensation and unpaid reimbursable expenses. The amounts are non-interest bearing, unsecured and have no specified terms of repayment. During the three months ended March 31, 2025, key management personnel received share-based payments of $58,399 (2024 - $292,365) corresponding to the fair value of stock options that vested during the period.

8 SHAREHOLDERS' EQUITY

Authorized

Unlimited common shares, without par value

Unlimited preferred shares, without par value, issuable in series:

Unlimited Series 1 voting preferred shares, without par value, redeemable at C$0.0001 per share

Stock options

On December 6, 2024, disinterested shareholders approved and the Company adopted an amended fixed number incentive stock option plan which was previously approved on December 15, 2023 (the "Option Plan") which provides that a committee of the Board of Directors appointed in accordance with the Option Plan (the "Committee") may from time to time, in its discretion, and in accordance with the TSX-V requirements, grant to directors, officers and consultants of the Company, non-transferable options to purchase common shares ("Options"), reserving 57,222,765 shares, being 20% of the Company's issued and outstanding shares as at December 6, 2024. Such Options will be exercisable for a period of up to 10 years from the date of grant. Vesting terms are determined at the time of grant by the Committee.

During the three months ended March 31, 2025, the Company recognized share-based payments expense of $139,996 corresponding to the vesting of stock options that were granted during prior periods. During the three months ended March 31, 2024, the Company recognized share-based payments expense of $350,448 corresponding to the vesting of stock options that were granted during the three months ended March 31, 2024 and stock options that were granted during prior periods. 7,283,333 options granted remain to be vested in future periods.

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

8 SHAREHOLDERS' EQUITY (cont'd...)

Stock options (cont'd...)

Stock option activity is presented below:

	Number of Options	Weighted Average Exercise Price C$	Weighted Average Share Price C$
Outstanding, December 31, 2023	22,459,334	0.11
Exercised	(3,776,000)	0.10	0.12
Granted	18,950,000	0.10
Outstanding, December 31, 2024	37,633,334	0.11
Cancelled	(280,000)	0.10	0.12
Outstanding, March 31, 2025	37,353,334	0.11

The weighted average remaining life of the stock options outstanding is 3.12 years as at March 31, 2025. As at March 31, 2025, the following stock options are outstanding and exercisable:

Number of Options Outstanding	Number of Options Exercisable	Exercise Price C$	Expiry Date
53,334	53,334	$0.05	08-Jun-25
500,000	500,000	$0.05	31-Aug-25
500,000	500,000	$0.05	01-Oct-25
3,950,000	3,950,000	$0.05	07-Dec-25 to 08-Dec-25
600,000	600,000	$0.13	20-Apr-26
10,000,000	9,583,333	$0.145	12-Jun-27
3,000,000	2,666,667	$0.115	12-Jul-27
8,000,000	8,000,000	$0.12	29-Jan-30
4,000,000	2,000,000	$0.095	05-Jun-29
6,500,000	-	$0.09	06-Jun-29
250,000	83,333	$0.095	06-Nov-29
37,353,334	27,936,667

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

9 SUPPLEMENTAL DISCLOSURE REGARDING CASH FLOWS

	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024
Cash paid during the period for income taxes	$ 36,929	$ -

10 CAPITAL MANAGEMENT

The Company defines capital as all components of shareholders' equity. The Board of Directors does not establish quantitative return on capital criteria for management due to the nature of the Company's business. The Company does not pay dividends. The Company is not subject to any externally imposed capital requirements. There has been no change in the Company's capital management from fiscal 2024 to fiscal 2025. Management reviews these policies on an ongoing basis.

11 COMMITMENT

The Company has leased office space in Ireland, Switzerland and India. The remaining term of the Ireland lease is 19.5 years with the ability to terminate the lease every 5 years during the term of the lease. The remaining term of the Switzerland lease is 3.2 years and the India lease is 1.8 years with the ability to terminate the lease after the first year. The amounts noted as commitments are for leases included in lease liabilities (Note 14), and includes the initial committed terms, plus expected renewals, which are the future lease payments beyond 5 years. Future remaining lease payments as at March 31, 2025 are as follows:

2025	$ 47,630
2026	27,048
2027	43,360
2028	36,760
2029	30,160
Thereafter	442,923
	$ 627,880

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

12 FINANCIAL INSTRUMENTS

Financial risk factors

The Company’s risk exposures and the impact on the Company’s consolidated financial statements are summarized below.

Credit risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and accounts receivable excluding sales tax. The Company places its cash with major financial institutions to limit risk from cash. The maximum exposure to credit risk is equal to the fair value or carrying value of the related financial assets. The Company’s receivables consist of amounts due from customers. Some customers settle their accounts past normal trade terms and in cases where amounts become uncollectible the Company recognizes bad debt expense to write off the uncollectible amounts. At March 31, 2025, the Company had approximately $158,000 (December 31, 2024 - $480,000) in amounts due from customers greater than 90 days and during the three months ended March 31, 2025 recognized bad debt expense of $nil (March 31, 2024 - $nil). At March 31, 2025, the Company's accounts receivable included four customers with a balance making up 40%, 30%, 12% & 12% of accounts receivable. During the three months ended March 31, 2025, revenue from two customers made up 16% & 13% of the Company's total revenue. At March 31, 2024, the Company's accounts receivable included two customers with balance making up 19% & 13% of accounts receivable. During the three months ended March 31, 2024, revenue from one customer made up 17% of the Company's total revenue.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. Management is of the opinion that sufficient working capital is available from its financings and will be obtained from operations to meet the Company's liabilities and commitments as they come due. All current liabilities will be settled within one year of the balance sheet date. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments.

The following are the contractual payments that impact the liquidity of the organization in future periods, as at March 31, 2025:

	Liability maturity
	Total	1 year	2-5 years	> 5 years
Accounts payable and accrued liabilities	$ 2,683,105	$ 2,683,105	$ -	$ -
Due to related parties	47,448	47,448	-	-
Lease liabilities	487,823	31,821	124,142	331,860
Total liability maturity	$ 3,218,376	$ 2,762,374	$ 124,142	$ 331,860

Market risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates and commodity and equity prices. Such fluctuations may be significant.

a) Interest rate risk

The Company is exposed to interest rate risk to the extent that the cash maintained at financial institutions is subject to a floating rate of interest. The interest rate risks on cash and on the Company’s, obligations are not considered significant. A plus or minus 1% change in interest rates would affect profit or loss by approximately 40,000 (2024 - $4,000).

b) Foreign currency risk

The Company is not exposed to foreign currency risk on fluctuations related to cash, accounts receivable, accounts payable and accrued liabilities since they are each held in their functional currency in each of the Company’s entities.

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SNIPP INTERACTIVE INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

March 31, 2025

13 RIGHT OF USE ASSETS AND LEASE LIABILITIES

Right of Use Asset

Right of use assets, as of March 31, 2025, consisted of two office leases in Ireland and Switzerland. The carrying amounts of the Company’s right of use assets and movements during the year ended March 31, 2025 were as follows:

Cost
Balance, December 31, 2024	537,382
Additions	-
Balance, March 31, 2025	537,382
Accumulated Amortization
---	---
Balance, December 31, 2024	49,676
Amortization expense	9,257
Balance, March 31, 2025	58,933
Net Book Value
---	---
Balance, December 31, 2024	487,706
Balance, March 31, 2025	478,449

Lease liabilities

The Company has one short-term office lease in India that has not been capitalized and two office leases (Ireland, Switzerland) that have been capitalized that were entered during prior periods. The Ireland office lease has a term of 20 years with the ability to terminate the lease every 5 years during the term of the lease. The Switzerland office lease has a term of 5 years.

The carrying amounts of the Company’s lease obligations and movements during the period ended March 31, 2025 were as follows:

Balance, December 31, 2024	495,658
Interest expense	3,463
Payments	(11,298)
Balance, March 31, 2025	487,823
Current portion	31,821
Long-term portion	456,002

During prior periods, the carrying amount of lease obligations was measured due to new leases that were included in the calculation of the lease obligations. Accordingly, the Company recorded the above lease obligations. The total cash outflows related to lease liabilities was $11,298 during the three months ended March 31, 2025.