Financial · April 1, 2024

Annual Report and Consolidated Financial Statements for the Year Ended 31 December 2023

Summary

The 2023 fiscal year represented a strategic "reset" for tinyBuild, characterized by a transition from aggressive acquisition-led growth to a leaner, internal-production model. Facing a challenging macroeconomic environment and a sharp decline in large-contract deals, revenues fell 29% to $44.7 million. The period was marked by a comprehensive loss of $62.8 million, primarily driven by $48.1 million in asset impairments related to studio closures, game cancellations, and the write-down of software development costs. Despite these headwinds, the company maintained a strong back-catalogue performance, which accounted for 92% of total sales, and leveraged its owned intellectual property for 68% of revenue. To stabilize its financial position and address a year-end cash low of $2.5 million, the company executed a $12.3 million fundraise in early 2024. This capital injection, which included investment from Atari, resulted in CEO Alex Nichiporchik becoming the majority shareholder with a 57.9% stake. Operational restructuring involved the divestment of several titles and studios, the settlement of a $3.5 million legal claim regarding the Versus Evil acquisition, and a pivot toward "games as a service" and high-potential emergent gameplay titles. The geographic and operational scope remains global, though the company is actively mitigating geopolitical risks associated with its workforce in Ukraine and Eastern Europe. Moving forward, the strategy emphasizes "canon-commercial" multimedia expansions and a data-centric publishing model to reduce dependency on external suppliers. Management expresses optimism for 2024, citing a significantly reduced cost base and a focused pipeline of high-potential franchises designed to deliver more predictable, long-term growth.

From the report

ANNUAL R THE YEAR ENDED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

tinyBuild Annual Report 2023 CONTENTS Strategic Report Chairman's statement 5 Strategic Report 6 Chairman’s statement 5 History and background 6 Strategy 8 Business model 10 Chief Executive’s review 15 Chief Financial Officer’s review 17 Environmental, social and governance (ESG) 19 Principal risks and uncertainties 20 Corporate Governance 25 Board of Directors 25 Corporate governance report 26 Audit committee report 30 Remuneration committee report 31 Directors’ report 33 Directors’ responsibilities statement 35 Financial Statements Financial Statements 37 Report of Independent Certified Public Accountants 37 Consolidated income statement 39 Consolidated statement of comprehensive income 40 Consolidated statement of financial position 41 Consolidated statement of changes in equity 42 Consolidated statement of cash flows 44 Notes to the consolidated financial statements 45

3 tinyBuild Annual Report 2023 NEXT-GEN ENTERTAINMENT TINYBUILD IS A GLOBAL VIDEO GAMES PUBLISHER AND DEVELOPER WITH A CATALOGUE OF MORE THAN 80 PREMIUM TITLES ACROSS DIFFERENT GENRES, PRIMARILY FOR PC AND PI CONSOLES. Headquartered in Bellevue, Washington, USA, tinyBuild’s operations stretch across the Americas, Europe and Asia using a flexible, decentralised model. The Company’s innovative grassroots approach to marketing, involving stakeholders, such as influencers and players, in the development of franchises and the wider brand, has enabled tinyBuild to build a loyal customer base across different demographics.

HIGHL HIGHLIGHTS OF THE YEAR $44.7m $10.6m consolidated reve consolidated revenues cash from operations >80 68% games portfolio of sales from Own-IP 92% $2.5m* of sales from catalogue net cash position at the end of Dec ‘23 d of Dec '23 *Net Cash is defined as Cash and Cash Equivalents minus short and long term financial debt Net Cash is defined as Cash an “IN 2023 WE HAVE REFOCUSED ON PRODUCTS THAT CONNECT WITH AUDIENCES, USING HARD DATA TO BACK IT UP, EVIDENCED BY EARLY 2024 TRACTION AND ANNOUNCEMENTS. WE ARE ALSO LEANER AND MORE EFFICIENT, WITH A LOWER AND MORE FLEXIBLE COST BASE.”

5 tinyBuild Annual Report 2023 CHAIRMAN’S STATEMENT RESTARTING THE GAME It’s an understatement to proclaim it has been a Given our stated ambition of transitioning a significant portion of our challenging financial year for tinyBuild. From key portfolio from premium games to games as a service, this realignment changes to its executive team to the closure of studios; towards production and publishing is key and features higher odds of delivering the expected results. Greenshoots of this work can already from delayed titles to an equity fundraise underwritten be seen in the form of the successful announcements of Kingmakers, by its CEO and founder, tinyBuild has worked with and Level Zero: Extraction and DUCKSIDE, and how these titles’ premises around a great deal of issues, and the management resonated with players to a higher degree compared to the titles the Group announced or launched last year. continues to work hard to address the challenges of a Overall, the fundamentals of the gan fast-changing industry.

yers to a higher degree compared to the titles the Group announced or launched last year. continues to work hard to address the challenges of a Overall, the fundamentals of the gan fast-changing industry. Overall, the fundamentals of the games industry remain solid and promising, full of opportunities, not least the opening gap in While it's true the industry as a whole faced headwinds in the past release windows that is being created by the recent series of titles While it’s true the industry as a whole faced headwinds in the past cancellations and teams’ closures industry-wide: in the next 12 to 36 twelve months, the travails of the Group should not be solely ascribed months, there should be less competing titles launched than otherwise to these variables. Our merger & acquisitions (M&A) growth strategy across all platforms, creating more space for our games to be seen and delivered underwhelming results, prompting a refocusing towards experienced.

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