Some Pretty Cool Reading . From the MD&A Live Dealer Product Its current software platform includes a Live Dealer Casino (“LDC”) which includes the most popular table games, and E-Table games, which are Playgon’s version of random number generated (RNG) table games. The Company is focused on leading the innovation curve in LDC technology with an unmatched mobile first platform. Playgon will stream the first and only LDC action from Las Vegas, Nevada (Vegas Lounge™) for regulated online casino gaming markets globally. Live dealer gaming is one of the fastest growing segments in the online casino market where mobile-devices generate over 70% of casino revenues. Players are able to experience a highly interactive gaming experience through any browser on any mobile device with Playgon’s Live-Dealer casino from Las Vegas, Nevada. Playgon Games Inc. Management’s Discussion and Analysis For the three months ended March 31, 2022 1 Vixio Gambling Compliance - 4 - The Company leases a 12,000 sq. ft. state-of-the-art broadcasting studio streaming live casino games with dealers from Las Vegas. The LDC games cover the classic and most played casino favourites, Roulette, Blackjack, Baccarat and Tiger Bonus Baccarat™, a proprietary game. All LDC games come with new in game features and functionality to boost online casino revenues and enhance player engagement. Playgon’s proprietary live dealer technology is designed to operate in both real money and social gaming verticals. In an LDC game, a human dealer operates the game in real time from a casino gaming table, which can be seen via a live streaming video link. Players can make betting decisions via their mobile device or desktop and can communicate with the dealer in real time via Playgon’s software interface. Daily Fantasy Sports Product The Company’s DFS software and network can be licensed to customers offering a customized and fully branded DFS to their end users. DFS is a subset of year-long fantasy sport games. As with traditional fantasy sports games, site end users compete against others by building a team of professional athletes from a particular league or competition and earn points based on the actual statistical performance of the players in real-world competitions. DFS is an accelerated variant of traditional Fantasy Sports Games that are conducted over short-term periods, such as a week or single day of competition, as opposed to those that are played across an entire season and is one of the fastest growing segments of the fantasy sports industry today. DFS is structured in the form of competitions referred to as a contest, where site end users pay an entry fee in order to participate and build a team of athletes in a certain sport while complying with different contest rules. Depending on the overall performance of the athletes selected, site end users may win a share of a pre-determined prize pool. Revenue Segmentation The Company currently anticipates two sources of revenue. The first is for licensing and use of the Company’s SaaS products. The second are set-up fees which typically pay for the integration, customization and branding of the customer site for the use of our Live Dealer and DFS products. The online gaming industry is heavily regulated, and the Company will license its products to customers who hold a gaming license. Initially, the Company’s target markets are outside of North America, however, due to the accelerated growth of the United States and Canadian market the Company has advanced plans to enter the North American market as well. On March 23, 2021, the Company commenced its United States strategy towards licensing efforts in New Jersey, Pennsylvania and Michigan, by engaging Duane Morris LLP in New Jersey. Completion of this process would allow the Company to offer its Live Dealer technology to customers within those states. The timing for entry is fluid and will be driven by customer acquisition and studio cost consideration to service individual markets. The iGaming and Sport Betting industry is expected to exceed $12.9 billion in market size by 20251 and presents a significant opportunity for the Company. On April 4, 2022, iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO) launched a new regulated regime for on-line gaming in Ontario. The Company has made application with the AGCO to service this market with its current Las Vegas studio. The decision on market entry will depend on customer acquisition. Ontario’s licensed online gaming and sports betting market will generate gross revenues of C$989m in its first year of opening, growing to C$1.86bn by 2026. Ontario, the first province to allow private operators to offer online gambling, is set to be one of the largest online gambling markets in North America, alongside Pennsylvania, New Jersey and Michigan.