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**Consolidated Balance Sheets**  
**(Dollar amounts in thousands of U.S. dollars)**

|  | 2024(unaudited) | 2023(audited) |
| --- | --- | --- |
| Assets |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $66,590 | $92,687 |
| Restricted cash | 4,034 | 3,639 |
| Accounts receivable | 19,683 | 22,206 |
| Contract asset | 124 | 1,417 |
| Inventory | 6,095 | 6,786 |
| Prepaid expenses and deposits | 16,142 | 17,387 |
| Derivative instrument asset | 571 | 2,277 |
| Deferred costs of fulfillment, current portion | 100,346 | 95,649 |
| Income taxes recoverable | 346 | 709 |
| Total current assets | 213,931 | 242,757 |
| Deferred costs of fulfillment, long-term portion | 15,741 | 15,419 |
| Investments | 2,012 | 2,012 |
| Secured notes reserve funds | 8,760 | 8,652 |
| Property and equipment, net | 350,397 | 339,644 |
| Right of use lease asset | 28,504 | 27,467 |
| Contract costs | 2,618 | 2,581 |
| Intangible assets, net | 27,899 | 29,484 |
| Goodwill | 130,410 | 130,410 |
| Total assets | $780,272 | $798,426 |
| Liabilities and Stockholders' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $12,770 | $12,676 |
| Accrued liabilities | 36,040 | 35,356 |
| Customer deposits | 17,780 | 19,335 |
| Operating lease liability, current portion | 5,518 | 5,397 |
| Deferred revenue, current portion | 133,363 | 126,733 |
| Accreditation fees payable | 687 | 609 |
| Income taxes payable | 2,036 | 1,235 |
| Total current liabilities | 208,194 | 201,341 |
| Deferred revenue, long-term portion | 21,744 | 21,350 |
| Operating lease liability, long-term portion | 18,908 | 18,255 |
| Syndicated revolver | 205,001 | 210,354 |
| Notes payable | 223,791 | 222,895 |
| Redeemable preferred units | 115,612 | 111,390 |
| Deferred tax liability | 2,966 | 2,966 |
| Stockholders' deficit: |  |  |
| Common stock - no par value, 250,000,000 shares authorized; 10,928,623 shares issued and outstanding as of March 31, 2024 and 10,903,405 shares issued and outstanding as of December 31, 2023 | 35,035 | 34,373 |
| Additional paid-in capital | 15,370 | 14,072 |
| Accumulated deficit | (66,782) | (40,298) |
| Accumulated other comprehensive income (loss) | 433 | 1,728 |
| Total stockholders' deficit | (15,944) | 9,875 |
| Total liabilities and stockholders' deficit | $780,272 | $798,426 |

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**Consolidated Statements of Operations**  
**and Comprehensive Income**  
**(Dollar amounts in thousands of U.S. dollars)**

|  | Three months ended March 31, |  |  |
| --- | --- | --- | --- |
|  | 2024 | 2023 |  |
|  | (unaudited) |  |  |
| Net revenues | $ | 87,457 | $80,430 |
| Cost of revenues: |  |  |  |
| Direct cost of revenues |  | 51,794 | 49,290 |
| Network, other costs |  | 7,064 | 6,323 |
| Network, depreciation of property and equipment |  | 9,865 | 8,436 |
| Network, amortization of intangible assets |  | 365 | 378 |
| Network, impairment of property and equipment |  | 53 | 1,942 |
| Total cost of revenues |  | 69,141 | 66,369 |
| Gross profit |  | 18,316 | 14,061 |
| Expenses: |  |  |  |
| Sales and marketing(*) | $ | 18,565 | $15,737 |
| Technical operations and development(*) |  | 5,016 | 4,815 |
| General and administrative(*) |  | 9,818 | 8,146 |
| Depreciation of property and equipment |  | 122 | 152 |
| Amortization of intangible assets |  | 1,314 | 2,494 |
| Total expenses |  | 34,835 | 31,344 |
| Loss from operations |  | (16,519) | (17,283) |
| Other income (expenses): |  |  |  |
| Interest expense, net |  | (11,879) | (7,880) |
| Income earned on sale of transferred assets, net |  | 3,621 | 4,370 |
| Other income (expense), net |  | 67 | - |
| Total other income (expenses) |  | (8,191) | (3,510) |
| Loss before provision for income taxes |  | (24,710) | (20,793) |
| Provision for income taxes |  | 1,774 | (1,710) |
| Net loss for the period |  | (26,484) | (19,083) |
| Other comprehensive income (loss), net of tax |  |  |  |
| Unrealized income (loss) on hedging activities |  | (1,126) | 68 |
| Net amount reclassified to earnings |  | (169) | (236) |
| Other comprehensive income (loss) net of tax recovery |  | (1,295) | (168) |
| Comprehensive loss, net of tax for the period | $ | (27,779) | $ (19,251) |
| Basic and diluted loss per common share | $ | (2.42) | $ (1.77) |
| Shares used in computing basic and diluted loss per common share |  | 10,923,599 | 10,806,321 |
| (*) Stock-based compensation has been included in expenses as follows: |  |  |  |
| Network expenses | $ | 120 | $ 169 |
| Sales and marketing | $ | 539 | $ 607 |
| Technical operations and development | $ | 214 | $ 304 |
| General and administrative | $ | 1,000 | $ 1,167 |

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**Consolidated Statements of Cash Flows**  
**(Dollar amounts in thousands of U.S. dollars)**  
**Three months ended March 31,**

|  | Three months ended March 31, |  |  |
| --- | --- | --- | --- |
|  | 2024 | 2023 |  |
|  | (unaudited) |  |  |
| Cash provided by: |  |  |  |
| Operating activities: |  |  |  |
| Net loss for the period | $ (26,484) | $ (19,083) |  |
| Items not involving cash: |  |  |  |
| Depreciation of property and equipment | 9,987 | 8,588 |  |
| Impairment of property and equipment | 53 | 1,942 |  |
| Amortization of debt discount and issuance costs | 1,067 | 238 |  |
| Amortization of intangible assets | 1,679 | 2,872 |  |
| Net amortization contract costs | (37) | (149) |  |
| Deferred income taxes (recovery) | 385 | (2,710) |  |
| Excess tax benefits on share-based compensation expense | - | (1) |  |
| Net right of use operating assets/operating lease liability | (263) | (82) |  |
| Disposal of domain names | 2 | - |  |
| Accretion of redeemable preferred units | 3,755 | 3,037 |  |
| Loss (gain) on change in the fair value of forward contracts | - | 745 |  |
| Amortization of discontinued cash flow hedge | - | (572) |  |
| Stock-based compensation | 1,873 | 2,246 |  |
| Change in non-cash operating working capital: |  |  |  |
| Accounts receivable | 2,523 | (5,769) |  |
| Contract assets | 1,293 | 2,191 |  |
| Inventory | 691 | 745 |  |
| Prepaid expenses and deposits | 1,245 | (1,326) |  |
| Deferred costs of fulfillment | (5,019) | (3,956) |  |
| Income taxes recoverable | 366 | 518 |  |
| Accounts payable | 318 | (156) |  |
| Accrued liabilities | (4,659) | (926) |  |
| Customer deposits | (1,555) | 343 |  |
| Deferred revenue | 7,024 | 6,303 |  |
| Accreditation fees payable | 78 | (289) |  |
| Net cash provided by (used in) operating activities | (5,678) | (5,251) |  |
| Financing activities: |  |  |  |
| Proceeds from redeemable preferred units | - | 30,000 |  |
| Deferred preferred financing costs | - | 145 |  |
| Contingent consideration for acquisitions | - | (1,600) |  |
| Proceeds received on loan payable | (5,500) | (2,800) |  |
| Deferred syndicate revolver issued | - | (305) |  |
| Net cash provided by (used in) financing activities | (5,500) | 25,440 |  |
| Investing activities: |  |  |  |
| Additions to property and equipment | (14,320) | (31,746) |  |
| Acquisition of intangible assets | (96) | (166) |  |
| Net cash provided by (used in) investing activities | (14,416) | (31,912) |  |
| (Decrease) increase in cash and cash equivalents | (25,594) | (11,723) |  |
| Cash and cash equivalents, restricted cash, and restricted cash | 104,978 | 23,496 |  |
| Cash and cash equivalents, restricted cash, and restricted cash | $ 79,384 | $ 11,773 |  |
| Reconciliation of cash, cash equivalents, restricted cash, and restricted Cash and cash equivalents | 66,590 | 11,773 |  |
| Restricted cash included in funds held for trustee | 4,034 | - |  |
| Restricted cash included in secured notes reserve funds | 8,760 | - |  |
| Total Cash and cash equivalents, restricted cash, and restricted cash | 79,384 | 11,773 |  |
| Supplemental cash flow information: |  |  |  |
| Interest paid | $ 9,009 | $ 3,885 |  |
| Income taxes paid, net | $ 695 | $ 501 |  |
| Supplementary disclosure of non-cash investing and financing activities: |  |  |  |
| Property and equipment acquired during the period not yet paid for | $ 5,945 | $ 1,581 |  |

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## Three months ended March 31,

## (In Thousands of U.S. Dollars)

| (unaudited) | 2024(unaudited) | 2023(unaudited) |
| --- | --- | --- |
| Net Loss for the Period | $ (26,484) | $(19,083) |
| Less: |  |  |
| Provision for income taxes | 1,774 | (1,710) |
| Depreciation of property and equipment | 9,987 | 8,588 |
| Impairment and loss on disposition of property and equipment | 53 | 1,942 |
| Amortization of intangible assets | 1,679 | 2,872 |
| Interest expense, net | 11,879 | 7,880 |
| Stock-based compensation | 1,873 | 2,246 |
| Unrealized loss(gain)on foreign exchange revaluation of foreign denominated monetary assets and liabilities | 390 | 40 |
| Acquisition and other costs1 | 3,051 | 255 |
| AdjustedEBITDA | $ 4,202 | $ 3,030 |

include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.