Enthusiast Gaming Holdings Inc. (formerly J55 Capital Corp.) + Consolidated Statements of Financial Position As at December 31, 2020 and 2019 Expressed in Canadian Dollars) Note December 31, 2020 December 31, 2019 7 6 23 4,323,823 $ 124,998 22,424,596 194,389 290,077 576,802 27,934,685 13,211,722 804,865 6,701,087 205,936 18 612,386 21,535,996 ASSETS Current Cash Investments Trade and other receivables Loans receivable Income tax receivable Prepaid expenses Total current assets Non-current Property and equipment Right-of-use asset - lease contract Long-term investment Investment in associates Long-term portion of prepaid expenses Intangible assets Goodwill Total Assets 9 12 7 8 354,850 2,848,400 2,606,100 1,026,910 263,196 81,106,007 106,181,086 222,321,234 $ 298,312 733,413 2,480,405 914,295 104,630 60,017,320 83,259,416 169,343,787 18 5. 10 5, 11 S LIABILITIES AND SHAREHOLDERS' EQUITY Current D Focus W 20C JA C 13 $ 23,602,547 $ 1,625,594 7.423.396 1.647.594 2,415 1,208,413 14 16 15 12 1,250,000 636,600 7,546,453 578,330 35,239,524 193.366 10,475,184 Accounts payable and accrued liabilities Contract liabilities Income tax payable Current portion of long-term debt Current portion of deferred payment liability Current portion of convertible debentures Current portion of lease contract liability Total current liabilities Non-current Long-term debt Long-term lease contract liability Long-term portion of convertible debentures Vendor-take-back loan Long-term portion of deferred payment liability Deferred tax liability Total liabilities 21,651,956 2,308,336 19,691.220 548,846 7,015,820 14 12. 15 17 16 22 5,559,250 529,124 15,161,987 80,450,177 $ 473,413 12,482,605 50,687,088 $ 18 232,616,997 19 20 21 Shareholders' Equity Share capital Shares to be returned to treasury Warrants reserve Contributed surplus Accumulated other comprehensive income Deficit Total shareholders' equity Total liabilities and shareholders' equity Commitments (Note 26) Subsequent events (Note 28) Approved by the Board of Directors of the Company: 7,494,164 45,428 (98,285,532) 141,871,057 222,321,234 $ 176,511.857 (3.858,756) 15,404.728 9.439,324 90.078 (78,930,532) 118,656,699 169.343,787 $ D Focus 5 1,882,081 2,057,135 5,236,482 Other expenses (income) Listing expense Transaction cost Share of loss from investment in associates Interest and accretion Goodwill impairment on acquisition of businesses Change in fair value of investment Loss on modification of long-term debt Loss on conversion of convertible debentures Interest income Net loss before income taxes 5 8 12, 14, 15, 16, 17 5 7 14 15 6,829,371 3.154.313 746.424 2.825,793 46,170,418 57,708 (183,951) 1,140,320 49,002 (102,158) (26,930,501) (677.276) (79,542.142) Income taxes Current tax expense Deferred tax (recovery) Net loss for the year 22 22 5,617 (83,786) (26,852,332) (995.715) (78,546,427) (44,650) (26,896,982) S 90.078 (78,456,349) S Other comprehensive income Items that may be reclassified to profit or loss Foreign currency translation adjustment Net loss and comprehensive loss for the year Net loss and comprehensive loss per share, basic and diluted Weighted average number of common shares outstanding, basic and diluted $ (0.32) S (2.07) 83,401,398 37,872,549 Net loss and comprehensive loss per share and weighted average number of shares outstanding, basic and diluted, are nd ofter giving effect to the 1:8 share consolidation (Note 18). E $ 27 10,27 72,758,717 S 204,764 72,963,481 54,294,967 18,668,514 11.760.927 448,399 12.209,326 7.245.000 4.964,326 23 Revenue Revenue Gain on player buyout Total revenue Cost of sales Gross margin Operating expenses Professional fees Consulting fees Advertising and promotion Office and general Salaries and wages Technology support, web development and content Esports player, team and game expenses Foreign exchange (gain) loss Share-based compensation Amortization and depreciation Total operating expenses 18 23 2,273,088 5,805,134 1,409,084 2,878,813 9,131,447 4,734,548 3,446,652 (13,832) 818,383 5,036,787 35,520,104 1.174,890 6,793.925 2.104.622 1,371,821 1,794,054 1.144,534 1.728.525 239,828 6,113,644 2,933,874 25,399,717 21 9, 10, 12 5 5 Other expenses (income) Listing expense Transaction cost Share of loss from investment in associates tion 6,829,371 3,154,313 746,424 2825 703 1,882,081 2,057,135 5 236 482 ro' Focus 8 12 14 15 16 17 Calcula (vertical/horizontal) and conclude if the busi Enthusiast Gaming Holdings Inc. (formerly J55 Capital Corp.) + Consolidated Statements of Financial Position As at December 31, 2020 and 2019 Expressed in Canadian Dollars) Note December 31, 2020 December 31, 2019 7 6 23 4,323,823 $ 124,998 22,424,596 194,389 290,077 576,802 27,934,685 13,211,722 804,865 6,701,087 205,936 18 612,386 21,535,996 ASSETS Current Cash Investments Trade and other receivables Loans receivable Income tax receivable Prepaid expenses Total current assets Non-current Property and equipment Right-of-use asset - lease contract Long-term investment Investment in associates Long-term portion of prepaid expenses Intangible assets Goodwill Total Assets 9 12 7 8 354,850 2,848,400 2,606,100 1,026,910 263,196 81,106,007 106,181,086 222,321,234 $ 298,312 733,413 2,480,405 914,295 104,630 60,017,320 83,259,416 169,343,787 18 5. 10 5, 11 S LIABILITIES AND SHAREHOLDERS' EQUITY Current D Focus W 20C JA C 13 $ 23,602,547 $ 1,625,594 7.423.396 1.647.594 2,415 1,208,413 14 16 15 12 1,250,000 636,600 7,546,453 578,330 35,239,524 193.366 10,475,184 Accounts payable and accrued liabilities Contract liabilities Income tax payable Current portion of long-term debt Current portion of deferred payment liability Current portion of convertible debentures Current portion of lease contract liability Total current liabilities Non-current Long-term debt Long-term lease contract liability Long-term portion of convertible debentures Vendor-take-back loan Long-term portion of deferred payment liability Deferred tax liability Total liabilities 21,651,956 2,308,336 19,691.220 548,846 7,015,820 14 12. 15 17 16 22 5,559,250 529,124 15,161,987 80,450,177 $ 473,413 12,482,605 50,687,088 $ 18 232,616,997 19 20 21 Shareholders' Equity Share capital Shares to be returned to treasury Warrants reserve Contributed surplus Accumulated other comprehensive income Deficit Total shareholders' equity Total liabilities and shareholders' equity Commitments (Note 26) Subsequent events (Note 28) Approved by the Board of Directors of the Company: 7,494,164 45,428 (98,285,532) 141,871,057 222,321,234 $ 176,511.857 (3.858,756) 15,404.728 9.439,324 90.078 (78,930,532) 118,656,699 169.343,787 $ D Focus 5 1,882,081 2,057,135 5,236,482 Other expenses (income) Listing expense Transaction cost Share of loss from investment in associates Interest and accretion Goodwill impairment on acquisition of businesses Change in fair value of investment Loss on modification of long-term debt Loss on conversion of convertible debentures Interest income Net loss before income taxes 5 8 12, 14, 15, 16, 17 5 7 14 15 6,829,371 3.154.313 746.424 2.825,793 46,170,418 57,708 (183,951) 1,140,320 49,002 (102,158) (26,930,501) (677.276) (79,542.142) Income taxes Current tax expense Deferred tax (recovery) Net loss for the year 22 22 5,617 (83,786) (26,852,332) (995.715) (78,546,427) (44,650) (26,896,982) S 90.078 (78,456,349) S Other comprehensive income Items that may be reclassified to profit or loss Foreign currency translation adjustment Net loss and comprehensive loss for the year Net loss and comprehensive loss per share, basic and diluted Weighted average number of common shares outstanding, basic and diluted $ (0.32) S (2.07) 83,401,398 37,872,549 Net loss and comprehensive loss per share and weighted average number of shares outstanding, basic and diluted, are nd ofter giving effect to the 1:8 share consolidation (Note 18). E $ 27 10,27 72,758,717 S 204,764 72,963,481 54,294,967 18,668,514 11.760.927 448,399 12.209,326 7.245.000 4.964,326 23 Revenue Revenue Gain on player buyout Total revenue Cost of sales Gross margin Operating expenses Professional fees Consulting fees Advertising and promotion Office and general Salaries and wages Technology support, web development and content Esports player, team and game expenses Foreign exchange (gain) loss Share-based compensation Amortization and depreciation Total operating expenses 18 23 2,273,088 5,805,134 1,409,084 2,878,813 9,131,447 4,734,548 3,446,652 (13,832) 818,383 5,036,787 35,520,104 1.174,890 6,793.925 2.104.622 1,371,821 1,794,054 1.144,534 1.728.525 239,828 6,113,644 2,933,874 25,399,717 21 9, 10, 12 5 5 Other expenses (income) Listing expense Transaction cost Share of loss from investment in associates tion 6,829,371 3,154,313 746,424 2825 703 1,882,081 2,057,135 5 236 482 ro' Focus 8 12 14 15 16 17 Calcula (vertical/horizontal) and conclude if the busi