System1 (SST) 8-K Unaudited Statements of Operations

Exhibit 99.1

S1 Holdco

Unaudited Statements of Operations

(in thousands)

	QTD		QTD		QTD		QTD		QTD		QTD			QTD			YTD		YTD		YTD		YTD			YTD
	30-Sep-21		30-Jun-21		31-Mar-21		31-Dec-20		30-Sep-20		30-Jun-20			31-Mar-20			30-Sep-21		30-Jun-21		31-Dec-20		30-Sep-20			30-Jun-20
Revenue		171,446		169,579		147,561		135,755		117,268		100,019			122,935			488,586		317,140		475,977		340,222			222,954
Operating cost and expenses:
Cost of revenues		128,885		126,167		110,785		96,635		83,892		73,937			86,532			365,837		236,952		340,996		244,361			160,469
Salaries, commissions, and benefits		15,139		17,698		15,195		15,915		13,120		13,183			13,330			48,032		32,893		55,548		39,633			26,513
Selling, general, and administrative		7,936		6,277		6,950		5,863		7,095		4,879			5,142			21,163		13,227		22,979		17,116			10,021
Depreciation and amortization		3,459		3,112		3,689		3,082		3,331		3,889			3,530			10,260		6,801		13,832		10,750			7,419
Total operating costs and expenses		155,419		153,254		136,619		121,495		107,438		95,888			108,534			445,292		289,873		433,355		311,860			204,422
Operating income		16,027		16,325		10,942		14,260		9,830		4,131			14,401			43,294		27,267		42,622		28,362			18,532
Interest expense		4,184		4,476		4,048		5,781		5,741		6,332			6,497			12,708		8,524		24,351		18,570			12,829
Income (loss) from continuing operations before income tax		11,843		11,849		6,894		8,479		4,089		(2,201	)		7,904			30,586		18,743		18,271		9,792			5,703
Income tax expense		475		77		151		1,527		198		(173	)		355			703		228		1,907		380			182
Net income (loss) from continuing operations		11,368		11,772		6,743		6,952		3,891		(2,028	)		7,549			29,883		18,515		16,364		9,412			5,521
Gain (loss) from discontinued operations, net of taxes		—		—		—		55,315		99		(4,460	)		(3,557	)		—		—		47,397		(7,918	)		(8,017	)
Net income		11,368		11,772		6,743		62,267		3,990		(6,488	)		3,992			29,883		18,515		63,761		1,494			(2,496	)

S1 Holdco

Unaudited Condensed Balance Sheet

(in thousands)

	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
ASSETS
Current Assets:
Cash and cash equivalents	$	36,209		$	34,567		$	30,853		$	29,013		$	37,657		$	33,985		$	55,763
Accounts receivable, net of allowance for doubtful accounts		85,588			79,446			75,610			71,140			58,404			53,662			66,331
Prepaid expenses and other current assets		7,236			4,870			3,996			3,016			4,012			4,825			5,739
Assets of discontinued operations		—			—			—			—			20,602			13,936			13,229
Total current assets		129,033			118,883			110,459			103,169			120,675			106,408			141,062
Property and equipment, net	$	836		$	916		$	976		$	1,057		$	1,137		$	1,139		$	1,243
Internal-use software development costs, net		11,012			10,578			9,764			9,660			10,079			9,414			9,045
Intangible assets, net		52,534			54,698			56,740			59,009			60,829			52,638			54,764
Goodwill		44,820			44,820			44,820			44,820			44,820			54,566			54,898
Due from related party		2,469			2,453			1,222			969			969			—			—
Other assets		529			—			—			—			—			—			—
Assets of discontinued operations		—			—			—			—			67,714			69,138			70,101
Total Assets	$	241,233		$	232,348		$	223,981		$	218,684		$	306,223		$	293,304		$	331,114
LIABILITIES AND MEMBERS’ DEFICIT
Current Liabilities:
Accounts payable	$	64,625		$	60,659		$	57,410		$	52,104		$	40,690		$	34,058		$	42,476
Accrued expenses and other current liabilities		22,419			21,197			12,041			19,039			18,714			16,764			20,048
Notes payable, current		171,780			4,739			9,374			9,374			19,347			24,347			44,237
Liabilities of discontinued operations		—			—			—			—			62,523			56,303			47,141
Total current liabilities		258,824			86,595			78,825			80,517			141,274			131,473			153,902
Notes payable, non-current	$	—		$	168,226		$	169,411		$	170,595		$	226,417		$	228,469		$	229,432
Other long-term liabilities		9,368			9,051			16,497			15,801			12,935			11,821			13,208
Liabilities of discontinued operations		—			—			—			—			—			—			—
Total liabilities	$	268,192		$	263,872		$	264,733		$	266,913		$	380,626		$	371,763		$	396,543
Commitments and contingencies (Note 8)
Members’ deficit:
Members’ deficit in S1 Holdco		(27,182	)		(31,646	)		(40,850	)		(47,886	)		(74,078	)		(78,017	)		(64,753	)
Accumulated other comprehensive income		223			122			98			(343	)		(325	)		(443	)		(675	)
Total members’ deficit		(26,959	)		(31,524	)		(40,752	)		(48,229	)		(74,403	)		(78,460	)		(65,428	)
Total Liabilities And Members’ Deficit	$	241,233		$	232,348		$	223,981		$	218,684		$	306,223		$	293,303		$	331,115

S1 Holdco

Unaudited Condensed Statements of Cash Flow

(in thousands)

	QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Cash Flows From Operating Activities:
Net cash provided by operating activities of continuing operations		12,056			17,185			10,128			15,714			12,971			9,122			14,600			39,369			27,313			52,407			36,693			23,722
Net cash used for operating activities of discontinued operations		—			—			—			(1,917	)		1,979			(390	)		(5,532	)		—			—			(5,860	)		(3,943	)		(5,922	)
Net cash provided by operating activities		12,056			17,185			10,128			13,797			14,950			8,732			9,068			39,369			27,313			46,547			32,750			17,800
Cash Flows From Investing Activities:
Purchases of property and equipment		—									(11	)		(8	)								—			—			(19	)		(8	)		—
Proceeds from sale of Protected		—									74,544			—									—			—			74,544			—
Expenditures for internal-use software development costs		(1,668	)		(1,793	)		(1,440	)		(617	)		(1,632	)		(1,970	)		(1,893	)		(4,901	)		(3,233	)		(6,112	)		(5,495	)		(3,863	)
Net cash provided by (used in) investing activities of continuing operations		(1,668	)		(1,793	)		(1,440	)		73,916			(1,640	)		(1,970	)		(1,893	)		(4,901	)		(3,233	)		68,413			(5,503	)		(3,863	)
Net cash provided by (used in) investing activities of discontinued operations		—			—			—			(142	)		(79	)		144			(170	)		—			—			(247	)		(105	)		(26	)
Net cash provided by (used in) investing activities		(1,668	)		(1,793	)		(1,440	)		73,774			(1,719	)		(1,826	)		(2,063	)		(4,901	)		(3,233	)		68,166			(5,608	)		(3,889	)
Cash Flows From Financing Activities:
Proceeds from line of credit		—			—			—			—			—			—			20,000			—			—			20,000			20,000			20,000
Repayment of line of credit		—									(34,862	)		—									—			—			(34,862	)		—
Repayment of term loan		(1,750	)		(6,386	)		(1,750	)		(32,231	)		(7,715	)		(21,727	)		(1,750	)		(9,886	)		(8,136	)		(63,423	)		(31,192	)		(23,477	)
Member capital contributions		109			3			147			206			551			747			751			259			150			2,255			2,049			1,498
Payments on contingent consideration		—			(1,715	)		(5,000	)		—			—			(5,038	)		(462	)		(6,715	)		(6,715	)		(5,500	)		(5,500	)		(5,500	)
Related party loan		—			(1,500	)		—			—			—			—			—			(1,500	)		(1,500	)		—			—			—
Distributions to members from sale of Protected		—									(28,765	)		—									—			—			(28,765	)		—
Distributions to members		(7,102	)		(2,691	)		—			(12,575	)		(1,146	)		(3,558	)		(501	)		(9,793	)		(2,691	)		(17,780	)		(5,205	)		(4,059	)
Net cash provided by financing activities		(8,743	)		(12,289	)		(6,603	)		(108,227	)		(8,310	)		(29,576	)		18,038			(27,635	)		(18,892	)		(128,075	)		(19,848	)		(11,538	)
Effect of exchange rate changes in cash, cash equivalents and restricted cash		(3	)		611			(245	)		120			35			130			(735	)		363			366			(450	)		(570	)		(605	)
Net Increase In Cash		1,642			3,714			1,840			(20,536	)		4,956			(22,540	)		24,308			7,196			5,554			(13,812	)		6,724			1,768
Cash and restricted cash:
Beginning of period		34,567			30,853			29,013			49,549			44,593			67,133			42,825			29,013			29,013			42,825			42,825			42,825
End of period	$	36,209		$	34,567		$	30,853		$	29,013		$	49,549		$	44,593		$	67,133		$	36,209		$	34,567		$	29,013		$	49,549		$	44,593

S1 Holdco

Non-GAAP Financials

(in thousands)

	QTD			QTD		QTD			QTD		QTD		QTD			QTD			YTD		YTD		YTD		YTD		YTD
	30-Sep-21			30-Jun-21		31-Mar-21			31-Dec-20		30-Sep-20		30-Jun-20			31-Mar-20			30-Sep-21		30-Jun-21		31-Dec-20		30-Sep-20		30-Jun-20
Net Income	$	11,368		$	11,772	$	6,743		$	6,952	$	3,891	$	(2,029	)	$	7,549		$	29,883	$	18,515	$	16,364	$	9,412	$	5,520
Income tax expense		475			77		151			1,527		198		(173	)		355			703		228		1,907		380		183
Interest expense		4,185			4,237		4,286			5,781		5,741		6,332			6,497			12,708		8,524		24,351		18,570		12,829
Depreciation & amortization		3,458			3,113		3,689			3,082		3,331		3,889			3,530			10,259		6,801		13,832		10,750		7,419
Other income/expense (1)		(25	)		256		(154	)		196		294		138			(229	)		77		102		399		202		(91	)
Stock-based compensation and distributions to Members (2)		673			3,342		2,118			3,362		1,817		2,288			2,008			6,133		5,460		9,474		6,113		4,295
Terminated product lines (3)		—			—		—			—		—		(2	)		559			—		—		556		556		556
Costs related to acquisitions/business combinations		2,755			623		1,484			1,033		222		71			1,032			4,862		2,108		2,358		1,325		1,103
Acquisition earnout		31			32		63			62		2,278		373			—			126		95		2,713		2,651		373
Severance costs		118			164		330			121		393		545			21			612		494		1,080		960		567
Other costs, including restructuring		8			98		99			101		11		185			98			205		197		396		294		283
Adjusted EBITDA	$	23,046		$	23,715	$	18,809		$	22,217	$	18,177	$	11,616		$	21,420		$	65,570	$	42,524	$	73,430	$	51,214	$	33,036

(1) Non-cash adjustments related to foreign exchange and asset disposals

(2) Comprised of distributions to equity holders and non-cash stock-based compensation

(3) In 2020, S1 Holdco terminated its Social Publishing product line, where it created quiz content primarily for the purpose of display advertising monetization. S1 Holdco has excluded revenue and direct costs associated with this product line for all presented periods

S1 Holdco

Non-Financial Metrcis

(In thousands except ratios)

	QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
O&O Advertising	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20						30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Revenue	$	162,606		$	160,817		$	139,426		$	125,241		$	108,314		$	92,067		$	111,878		$	462,848		$	300,242		$	437,501		$	312,259		$	203,945
Advertising Spend (1)	$	126,404		$	123,244		$	107,298		$	93,800		$	80,217		$	69,406		$	84,066		$	356,946		$	230,542		$	327,489		$	233,689		$	153,472
Adjusted Gross Profit	$	36,202		$	37,572		$	32,128		$	31,442		$	28,097		$	22,661		$	27,812		$	105,902		$	69,700		$	110,012		$	78,570		$	50,473
O&O Sessions (2)		859,392			766,293			741,122			691,279			644,780			670,112			815,554			2,366,807			1,507,415			2,821,726			2,130,446			1,485,666
O&O CPS (3)	$	0.15		$	0.16		$	0.14		$	0.14		$	0.12		$	0.10		$	0.10		$	0.15		$	0.15		$	0.12		$	0.11		$	0.10
O&O RPS (4)	$	0.19		$	0.21		$	0.19		$	0.18		$	0.17		$	0.14		$	0.14		$	0.20		$	0.20		$	0.16		$	0.15		$	0.14
Spread		29	%		30	%		30	%		34	%		35	%		33	%		33	%		30	%		30	%		34	%		34	%		33	%
Partner Network
Revenue	$	8,840		$	8,763		$	8,135		$	10,514		$	8,955		$	7,951		$	11,056		$	25,738		$	16,898		$	38,477		$	27,963		$	19,008
Adjusted Gross Profit	$	8,840		$	8,763		$	8,135		$	10,514		$	8,955		$	7,951		$	11,056		$	25,738		$	16,898		$	38,477		$	27,963		$	19,008
Network Sessions (5)		278,460			312,406			326,127			318,930			323,878			484,653			392,906			916,993			638,533			1,520,367			1,201,437			877,559
Network RPS (6)	$	0.03		$	0.03		$	0.02		$	0.03		$	0.03		$	0.02		$	0.03		$	0.03		$	0.03		$	0.03		$	0.02		$	0.02
Other COR (7)	$	2,481		$	2,922		$	3,487		$	2,831		$	3,674		$	4,531		$	2,466		$	8,890		$	6,410		$	13,503		$	10,672		$	6,998
Consolidated S1 Revenue	$	171,445		$	169,579		$	147,561		$	135,755		$	117,269		$	100,019		$	122,935		$	488,586		$	317,140		$	475,977		$	340,222		$	222,953
Consolidated S1 Gross Profit	$	42,561		$	43,413		$	36,776		$	39,124		$	33,377		$	26,081		$	36,402		$	122,749		$	80,188		$	134,985		$	95,861		$	62,484
O&O Advertising, Excluding Terminated Product Lines
Revenue	$	162,606		$	160,817		$	139,426		$	125,241		$	108,314		$	91,712		$	106,587		$	462,848		$	300,242		$	431,855		$	306,613		$	198,299
Advertising Spend	$	126,404		$	123,244		$	107,298		$	93,800		$	80,217		$	69,053		$	79,165		$	356,946		$	230,542		$	322,235		$	228,436		$	148,218
Adjusted Gross Profit	$	36,202		$	37,572		$	32,128		$	31,442		$	28,097		$	22,659		$	27,422		$	105,902		$	69,700		$	109,619		$	78,178		$	50,081
O&O Sessions (2)		859,392			766,293			741,122			691,279			644,780			663,135			737,243			2,366,807			1,507,415			2,736,438			2,045,159			1,400,378
O&O CPS (3)	$	0.15		$	0.16		$	0.14		$	0.14		$	0.12		$	0.10		$	0.11		$	0.15		$	0.15		$	0.12		$	0.11		$	0.11
O&O RPS (4)	$	0.19		$	0.21		$	0.19		$	0.18		$	0.17		$	0.14		$	0.14		$	0.20		$	0.20		$	0.16		$	0.15		$	0.14
Spread		29	%		30	%		30	%		34	%		35	%		33	%		35	%		30	%		30	%		34	%		34	%		34	%

(1) Advertising spend is the amount of advertising that is spent to acquire traffic to Owned & Operated websites

(2) O&O sessions are the total number of monetizable user visits to Owned & Operated websites

(3) CPS is advertising spend divided by O&O Sessions

(4) RPS is O&O Revenue divided by O&O Sessions

(5) Network sessions are the number of monetizable user visits delivered by network partners to RAMP

(6) RPS is Partner Network revenue divided by Network Sessions

(7) Other COR are costs of revenue other than advertising spend

Protected.net Group Limited

Unaudited Statements of Operations

(in thousands)

	QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Revenue		38,199			36,028			31,199			25,149			25,415			21,965			18,379			105,426			67,227			90,908			65,759			40,345
Cost of Revenue		22,570			23,460			29,731			23,122			23,827			27,892			23,139			75,760			53,191			97,980			74,858			51,030
Gross profit (Loss)		15,629			12,568			1,469			2,027			1,587			(5,926	)		(4,759	)		29,666			14,037			(7,072	)		(9,099	)		(10,686	)
General and administrative		3,910			5,074			2,697			2,365			1,730			1,978			637			11,681			7,771			6,711			4,346			2,616
Related party rent expense		133			180			144			111			159			116			150			457			324			536			425			266
Total Operating Expenses		4,042			5,254			2,841			2,476			1,889			2,094			788			12,138			8,095			7,247			4,771			2,882
Gain on sale of intangible assets		—			—			—			—			(1,580	)		—			—			—			—			(1,580	)		(1,580	)		—
Foreign currency transaction (gains)/losses		583			209			322			(170	)		37			60			207			1,115			532			135			304			267
Other operating income		(0	)		(222	)		(121	)		(18	)		(3	)		(27	)		(0	)		(343	)		(343	)		(48	)		(30	)		(27	)
Other operating expense (income)		583			(13	)		201			(188	)		(1,546	)		33			207			772			189			(1,494	)		(1,306	)		240
Operating income (loss)		11,004			7,326			(1,574	)		(262	)		1,244			(8,054	)		(5,754	)		16,757			5,753			(12,826	)		(12,564	)		(13,808	)
Related party interest expense		—			—			—			105			136			130			35			—			—			406			301			165
Related party interest income		(153	)		(328	)		(157	)		—			—			—			—			(638	)		(485	)		—			—			—
Interest expense		144			235			151			29			—			—			—			530			386			29			—			—
Other non-operating expenses/(income)		—			(70	)		70			(2	)		—			—			—			—			—			(2	)		—			—
Total non-operating expenses/(income), net		(9	)		(163	)		64			132			136			130			35			(108	)		(99	)		433			301			165
Net income (loss) before income taxes		11,013			7,489			(1,638	)		(394	)		1,108			(8,184	)		(5,789	)		16,865			5,852			(13,258	)		(12,865	)		(13,973	)
Income Tax Expense (Benefit)		966			—			—			—			—			—			—			966			—			—			—			—
Net income (loss)		10,047			7,489			(1,638	)		(394	)		1,108			(8,184	)		(5,789	)		15,899			5,852			(13,258	)		(12,865	)		(13,973	)

Protected.net Group Limited

Unaudited Statements of Operations

(in thousands)

	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20
ASSETS
Current assets:
Cash	$	21,112		$	14,227		$	11,296		$	6,253		$	7,060		$	5,356		$	7,020
Restricted cash		2,148			2,458			5,757			5,604			4,943			4,874			7,321
Prepaid expenses and other current assets		548			691			791			359			317			404			327
Deposits		3,000			3,000			3,000			3,000			3,000			3,000			—
Total current assets		26,807			20,376			20,844			15,216			15,320			13,634			14,667
Due from related parties		33,115			26,249			15,719			10,230			—			244			139
Property, plant and equipment		398			373			370			270			195			184			196
Intangible Assets		386			415			62			53			54			90			108
Goodwill		284			284			—			—			—			—			—
Total assets	$	60,991		$	47,696		$	36,995		$	25,769		$	15,568		$	14,153		$	15,112
Liabilities and Shareholders’ Deficit:
Accounts payable	$	3,029		$	732		$	2,876		$	3,005		$	2,698		$	3,739		$	436
Accrued expenses		7,537			6,199			7,686			6,704			5,896			5,907			8,441
VAT tax liability		9,696			9,351			6,965			6,366			8,939			8,446			6,211
Deferred revenue		58,186			58,731			54,139			47,431			41,855			39,044			34,156
Related party deferred revenue		187			208			229			168			—			—			—
Current portion of note payable		2,250			2,813			2,250			1,500			—			—			—
Due to related party		—			—			—			4			3,501			5,599			6,243
Refund liability		429			449			597			512			558			405			428
Total current liabilities		81,313			78,482			74,741			65,690			63,447			63,140			55,915
Note payable, net of current portion and deferred financing costs		11,086			11,636			12,164			8,352			—			—			—
Deferred tax liability		966			—			—			—			—			—			—
Total liabilities	$	93,365		$	90,118		$	86,905		$	74,042		$	63,447		$	63,140		$	55,915
Commitments and Contingencies
Shareholders’ Deficit:
Class A Preferred shares		11			11			11			11			11			11			11
Class B Common shares		11			11			11			11			11			11			11
Additional paid-in capital		40,953			40,953			40,953			40,953			40,953			40,953			40,953
Accumulated deficit		(73,349	)		(83,396	)		(90,885	)		(89,247	)		(88,854	)		(89,962	)		(81,778	)
Total Shareholders’ deficit		(32,374	)		(42,421	)		(49,911	)		(48,273	)		(47,879	)		(48,987	)		(40,803	)
Total Liabilities and Shareholders’ Deficit	$	60,991		$	47,696		$	36,995		$	25,769		$	15,568		$	14,153		$	15,112

* Class A Preferred shares, par value £0.0001 per share, 7,992,009 shares authorized, issued, and outstanding on September 30, 2021 and December 31, 2020, respectively

** Class B Common shares, par value £0.0001 per share, 7,960,105 shares authorized, issued, and outstanding on September 30, 2021 and December 31, 2020, respectively

Protected.net Group Limited

Unaudited Condensed Statements of Cash Flow

(in thousands)

	QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Cash Flows From Operating Activities:
Net income (loss)		10,047			7,489			(1,638	)		(394	)		1,108			(8,184	)		(5,789	)		15,899			5,852			(13,258	)		(12,865	)		(13,973	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		39			36			28			24			18			17			15			102			63			75			51			33
Amortization		29			29			12			13			16			18			19			70			41			67			54			37
Gain on sale of Network Protected intangible assets		—			—			—			—			(1,580	)		—			—			—			—			(1,580	)		(1,580	)		—
Amortization of deferred financing costs		13			34			13			2			—			—			—			59			46			2			—			—
Interest income on loan with System 1 SS Protect Holdings, Inc.		(189	)		(307	)		(143	)		(2	)		—			—			—			(638	)		(450	)		(2	)		—			—
Financing fee income on loan with System 1 SS Protect Holdings, Inc.		(21	)		(21	)		(14	)		—			—			—			—			(56	)		(35	)		—			—			—
Change in operating assets and liabilities:		—			—			—			—			—			—			—			—			—			—			—			—
Prepaid expenses and other current assets		143			112			(432	)		(43	)		188			(77	)		(244	)		(177	)		(320	)		(177	)		(134	)		(321	)
Deposits		—			—			—			—			—			(3,000	)		—			—			—			(3,000	)		(3,000	)		(3,000	)
Accounts payable		2,295			(2,471	)		(129	)		302			(1,041	)		3,303			(2,620	)		(305	)		(2,600	)		(56	)		(358	)		683
Accrued expenses		1,338			(1,402	)		982			808			(11	)		(2,534	)		3,809			918			(420	)		2,072			1,264			1,275
VAT tax liability		345			2,385			599			(2,573	)		494			2,235			(1,957	)		3,329			2,984			(1,801	)		772			278
Refund liability		(20	)		(148	)		85			(46	)		152			(22	)		11			(83	)		(63	)		95			141			(11	)
Deferred revenue		(545	)		4,593			6,708			5,576			2,811			4,888			4,453			10,755			11,300			17,727			12,152			9,340
Related party deferred revenue		(21	)		(21	)		61			168			—			—			—			19			40			168			—			—
Deferred tax liability		966			—			—			—			—			—			—			966			—			—			—			—
Due from related party		109			29			(83	)		(168	)		244			(104	)		(137	)		55			(54	)		(165	)		3			(241	)
Due to related party		—			—			(4	)		1,266			(861	)		(644	)		(11	)		(4	)		(4	)		(250	)		(1,516	)		(655	)
Net cash generated by (used in) operating activities		14,529			10,337			6,043			4,933			1,539			(4,105	)		(2,451	)		30,909			16,380			(84	)		(5,017	)		(6,556	)
Cash Flows From Investing Activities:
Purchases of intangibles, property, plant and equipment		(63	)		(40	)		(147	)		106			(29	)		(5	)		(72	)		(250	)		(187	)		—			(106	)		(77	)
Proceeds from sale of intangibles		—			—			—						1,500			—			—			—			—			1,500			1,500			—
Cash received in acquisition of Host Plus Limited, net of cash paid		—			13			—			—			—			—			—			13			13			—			—			—
Loan advanced to Just Develop It		(4,981	)		(8,430	)		—			—			—			—			—			(13,411	)		(8,430	)		—			—			—
Repayment of loan by Just Develop It		4,981			8,430			—			(213	)		—			—			—			13,411			8,430			(213	)		—			—
Loan advanced to Company director		(1,706	)		(282	)		—			238			(238	)		—			—			(1,988	)		(282	)		—			(238	)		—
Repayment of loan by Company director		1,651			—			—			—			—			—			—			1,651			—			—			—			—
Loan advanced to System 1 SS Protect Holdings, Inc.		(6,711	)		(9,948	)		(5,250	)		(10,060	)		—			—			—			(21,909	)		(15,197	)		(10,060	)		—			—
Net cash used by investing activities		(6,829	)		(10,257	)		(5,397	)		(9,929	)		1,234			(5	)		(72	)		(22,483	)		(15,653	)		(8,773	)		1,157			(77	)
Cash Flows From Financing Activities:
Proceeds from bank loan		—			—			5,000			10,000			—			—			—			5,000			5,000			10,000			—			—
Repayment of principal on bank loan		(1,125	)		—			(375	)		—			—			—			—			(1,500	)		(375	)		—			—			—
Proceeds from related party loans		—			—			—			2,000			—			—			9,000			—			—			11,000			9,000			9,000
Repayment of related party loans		—			—			—			(11,000	)		3,000			—			(3,000	)		—			—			(11,000	)		—			(3,000	)
Repayment of loan to Just Develop It		—			(449	)		—			4,000			(4,000	)		—			—			(449	)		(449	)		—			(4,000	)		—
Payment of deferred financing costs		—			—			(75	)		(150	)		—			—			—			(75	)		(75	)		(150	)		—			—
Net cash (used in) provided by financing activities		(1,125	)		(449	)		4,550			4,850			(1,000	)		—			6,000			2,976			4,101			9,850			5,000			6,000
Effect of exchange rate changes on cash		—			—			—			—			—			—			—			—			—			—			—			—
Net change in cash		6,574			(368	)		5,197			(147	)		1,773			(4,110	)		3,477			11,403			4,828			993			1,140			(633	)
Cash, beginning of period		16,685			17,053			11,856			12,003			10,230			14,341			10,863			11,856			11,856			10,863			10,863			10,863
Cash, end of period	$	23,259		$	16,685		$	17,053		$	11,856		$	12,003		$	10,230		$	14,341		$	23,259		$	16,685		$	11,856		$	12,003		$	10,230

Protected.net Group Limited

Non-GAAP Financials

(in thousands)

	QTD			QTD			QTD			QTD			QTD			QTD			QTD			YTD			YTD			YTD			YTD			YTD
	30-Sep-21			30-Jun-21			31-Mar-21			31-Dec-20			30-Sep-20			30-Jun-20			31-Mar-20			30-Sep-21			30-Jun-21			31-Dec-20			30-Sep-20			30-Jun-20
Net income (loss)	$	10,047		$	7,489		$	(1,638	)	$	(394	)	$	1,108		$	(8,184	)	$	(5,789	)	$	15,899		$	5,852		$	(13,258	)	$	(12,865	)	$	(13,973	)
Income Tax Expense		966			—			—			—			—			—			—			966			—			—			—			—
Interest expense, net		(131	)		(165	)		(6	)		93			131			176			35			(302	)		(171	)		435			342			211
Depreciation & amortisation		69			65			39			37			35			35			34			172			104			141			105			70
Terminated product lines (1)		29			3			62			(336	)		(1,691	)		86			163			94			64			(1,777	)		(1,441	)		250
Costs related to acquisitions/business combinations		196			499			297			32			—			—			—			991			795			32			—			—
Non-cash foreign exchange adjustments		581			209			322			(194	)		46			68			190			1,112			532			110			304			258
VAT accrual for previously uncollected VAT		1,110			1,492			1,116			615			866			1,408			46			3,718			2,608			2,934			2,319			1,453
Director salary payments		936			949			—			—			—			—			—			1,885			949			—			—			—
Other costs including restructuring		—			—			—			424			34			—			—			—			—			458			34			—
Adjusted EBITDA	$	13,803		$	10,540		$	193		$	277		$	529		$	(6,411	)	$	(5,320	)	$	24,536		$	10,733		$	(10,925	)	$	(11,202	)	$	(11,731	)

(1) Protected terminated its Network Protect VPN product. Protected has excluded revenue, direct costs and operating expenses associated with this product line from Adjusted EBITDA for all presented periods

Protected.net Group Limited

Non-Financial Metrcis

(In thousands except ratios)

	QTD			QTD		QTD		QTD		QTD		QTD		QTD		YTD		YTD		YTD		YTD		YTD
	30-Sep-21			30-Jun-21		31-Mar-21		31-Dec-20		30-Sep-20		30-Jun-20		31-Mar-20		30-Sep-21		30-Jun-21		31-Dec-20		30-Sep-20		30-Jun-20
Billings (1)	$	37,632		$	40,473	$	37,992	$	31,126	$	27,758	$	26,458	$	22,529	$	116,097	$	78,465	$	107,871	$	76,745	$	48,987
Change in Deferred Revenue During Period	$	(567	)	$	4,445	$	6,792	$	6,287	$	2,591	$	4,796	$	4,409	$	10,671	$	11,238	$	18,084	$	11,796	$	9,205
Advertising Spend (2)	$	16,966		$	17,884	$	23,626	$	17,562	$	18,059	$	22,467	$	18,575	$	58,477	$	41,510	$	76,664	$	59,101	$	41,042
Beginning Subscribers		2,187			2,128		1,905		1,770		1,586		1,357		1,234		1,905		1,905		1,234		1,234		1,234
Ending Subscribers (3)		2,208			2,187		2,128		1,905		1,770		1,586		1,357		2,208		2,187		1,905		1,770		1,586
New Subscribers (4)		298			331		462		324		341		398		275		1,091		793		1,338		1,014		673
CTA (5)	$	56.91		$	54.10	$	51.10	$	54.23	$	52.95	$	56.42	$	67.53	$	53.60	$	52.35	$	57.29	$	58.27	$	60.96
ARPU (6)	$	17.13		$	18.76	$	18.84	$	16.94	$	16.54	$	17.98	$	17.39	$	56.45	$	38.35	$	68.72	$	51.09	$	34.74

(1) Billings is the total amount billed to customers during a period

(2) Advertising spend is the total amount spent on advertising to acquire new subscribers during a period

(3) Ending subscribers are the number of paying subscribers for its products, at the end of a period

(4) New subscribers are the number of new subscribers acquired for its products, during a period

(5) CTA is advertising spend divided by new subscribers in a period

(6) ARPU is the billings in a period divided by average of the beginning and ending subscribers during that period

* Deferred revenue from billings is amortized on a straight line basis over the subscription period and recognized as revenue in the financial statements

** Excludes metrics for terminated product lines