New Risk • May 22
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 38% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Earnings have declined by 60% per year over the past 5 years. Shareholders have been substantially diluted in the past year (38% increase in shares outstanding). Market cap is less than US$10m (€6.34m market cap, or US$7.36m). Announcement • May 21
East Side Games Group Inc. announced that it has received CAD 2.95865 million in funding On May 20, 2026, East Side Games Group Inc. closed the transaction. The company issued an aggregate of 26,896,816 units at a price of CAD 0.11 per unit for aggregate gross proceeds of CAD 2,958,650. Each warrant is exercisable to acquire one common share of the company at a price of CAD 0.14 per share until May 12, 2029. The transaction includes investor participation of a group of new strategic investors alongside participation from existing insiders, Derek Lew, a director of the company for CAD 1,000,000, representing 9,090,909 units, and Russell Ovans, a director of the company for CAD 22,000, representing 200,000 units. The transaction has been approved by the board of directors of the company. All the securities issued under the offering are subject to a hold period expiring on September 13, 2026. Reported Earnings • May 20
First quarter 2026 earnings released: CA$0.047 loss per share (vs CA$0.007 loss in 1Q 2025) First quarter 2026 results: CA$0.047 loss per share (further deteriorated from CA$0.007 loss in 1Q 2025). Revenue: CA$12.5m (down 33% from 1Q 2025). Net loss: CA$3.62m (loss widened CA$3.04m from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Announcement • May 08
East Side Games Group Inc. to Report Q1, 2026 Results on May 14, 2026 East Side Games Group Inc. announced that they will report Q1, 2026 results After-Market on May 14, 2026 Announcement • May 03
East Side Games Group Inc. announced that it expects to receive CAD 3.5 million in funding East Side Games Group Inc. announced a non-brokered private placement to issue 31,818,182 units at an issue price of CAD 0.11 for gross proceeds of CAD 3,500,000.02 on May 1, 2026. Each unit will comprise one common share and one full whole warrant. It is anticipated that Derek Lew will participate in the private placement for an amount of CAD 999,999.99 for 9,090,909 units. Each whole warrant will be exercisable at CAD 0.14 per share for a period of three years from issuance. The warrants will be subject to standard anti-dilution adjustments. The private placement will be offered in reliance on prospectus exemptions, and any securities sold will be subject to a four-month statutory hold period. The private placement is not anticipated to have any material impact on the control of the company, nor is it anticipated that any new control persons would be created as a result of the private placement. Lew holds 1,667,244 common shares of the company (2.17%). If the private placement is completed as anticipated, Lew will hold 10,758,153 common shares (representing 9.89% of the common shares anticipated to be outstanding upon completion of the private placement on a partially diluted basis), 9,090,909 warrants and 250,000 incentive stock options. Upon exercise of his warrants, Lew would own 19,849,062 common shares, representing 16.84% of the then issued and outstanding common shares assuming no other share issuances. The company anticipates that the private placement will close on or before May 8, 2026, subject to acceptance by the TSX. The company reserves the right to pay finders' fees in the form of common shares (in lieu of cash fees) and broker warrants to arm's-length finders in connection with the private placement to arm's-length parties, in accordance with TSX policies. No finders' fees will be paid to any non-arm's-length parties nor with respect to subscriptions from non-arm's-length parties. Announcement • Apr 03
East Side Games Group Inc. Provides Earnings Guidance for the Year 2026 East Side Games Group Inc. provided earnings guidance for the year 2026. For the year, the company expects revenue of $50 million to $56 million. Announcement • Apr 02
East Side Games Group Inc. Accepts the Resignation of Rob McLay, Member of Board of Directors, Effective March 31, 2026 East Side Games Group Inc. announced that it has accepted the resignation of Rob McLay, member of ESGG's Board of Directors, effective March 31, 2026. Announcement • Mar 25
East Side Games Group Inc. to Report Q4, 2025 Results on Mar 31, 2026 East Side Games Group Inc. announced that they will report Q4, 2025 results After-Market on Mar 31, 2026 Announcement • Mar 10
East Side Games Group Inc., Annual General Meeting, May 07, 2026 East Side Games Group Inc., Annual General Meeting, May 07, 2026. Announcement • Nov 08
East Side Games Group Inc. to Report Q3, 2025 Results on Nov 14, 2025 East Side Games Group Inc. announced that they will report Q3, 2025 results at 5:00 PM, US Eastern Standard Time on Nov 14, 2025 Announcement • Aug 08
East Side Games Group Inc. to Report Q2, 2025 Results on Aug 14, 2025 East Side Games Group Inc. announced that they will report Q2, 2025 results at 5:00 PM, US Eastern Standard Time on Aug 14, 2025 Announcement • May 09
East Side Games Group Inc. Announces Board of Directors Changes East Side Games Group Inc. announced that Darren Xu and Rob McLay are joining the Company's board of directors as newly elected members. Darren Xu is the Managing Member of Questline Capital, a San Francisco–based investment firm. Prior to his current role, he was a Managing Director at Farallon Capital and began his career in investment banking at Citigroup in New York. Darren joins the board as an active and engaged shareholder, bringing deep expertise in capital markets and investor relations. He aims to support East Side Games Group in making great games, and to offer strategic perspectives drawn from his experience across the investment landscape. Rob McLay is the Portfolio Manager of Azalea Fund LP. Azalea is a private investment fund with ownership in a concentrated portfolio of smaller capitalization public equities in North America, primarily Canada. Azalea utilizes a disciplined, private-equity style mindset and fundamental research process to identify undervalued and overlooked opportunities with value-surfacing catalysts. Prior to launching Azalea, Rob has over a decade of experience as a capital markets and investment professional, holding roles at a family office, hedge fund, private equity fund, and as an investment banking analyst specializing in equity and M&A transactions. Rob is a registered Advising Representative and Dealing Representative with Sharno Capital Corporation, the manager of Azalea Fund LP. Announcement • May 06
East Side Games Group Inc. to Report Q1, 2025 Results on May 13, 2025 East Side Games Group Inc. announced that they will report Q1, 2025 results on May 13, 2025 Announcement • Mar 18
East Side Games Group Inc. to Report Q4, 2024 Results on Mar 24, 2025 East Side Games Group Inc. announced that they will report Q4, 2024 results at 2:00 PM, Pacific Standard Time on Mar 24, 2025 Announcement • Mar 11
East Side Games Group Inc., Annual General Meeting, May 07, 2025 East Side Games Group Inc., Annual General Meeting, May 07, 2025. Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: CA$0 (vs CA$0.003 in 3Q 2023) Third quarter 2024 results: EPS: CA$0 (down from CA$0.003 in 3Q 2023). Revenue: CA$21.4m (up 2.8% from 3Q 2023). Net income: CA$13.4k (down 94% from 3Q 2023). Profit margin: 0.1% (down from 1.1% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 37% per year, which means it is performing significantly worse than earnings. Announcement • Nov 13
East Side Games Group Inc. to Report Q3, 2024 Results on Nov 14, 2024 East Side Games Group Inc. announced that they will report Q3, 2024 results at 2:00 PM, Pacific Standard Time on Nov 14, 2024 Buy Or Sell Opportunity • Oct 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to €0.44. The fair value is estimated to be €0.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.6% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 10% in a year. Earnings are forecast to grow by 90% in the next year. Buy Or Sell Opportunity • Aug 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.2% to €0.45. The fair value is estimated to be €0.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.6% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 10% in a year. Earnings are forecast to grow by 90% in the next year. Reported Earnings • Aug 15
Second quarter 2024 earnings released: EPS: CA$0.008 (vs CA$0.002 loss in 2Q 2023) Second quarter 2024 results: EPS: CA$0.008 (up from CA$0.002 loss in 2Q 2023). Revenue: CA$20.5m (down 3.5% from 2Q 2023). Net income: CA$630.7k (up CA$763.0k from 2Q 2023). Profit margin: 3.1% (up from net loss in 2Q 2023). The move to profitability was driven by lower expenses. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has fallen by 35% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 10
First quarter 2024 earnings released: EPS: CA$0.023 (vs CA$0.013 loss in 1Q 2023) First quarter 2024 results: EPS: CA$0.023 (up from CA$0.013 loss in 1Q 2023). Revenue: CA$20.8m (down 14% from 1Q 2023). Net income: CA$1.89m (up CA$2.92m from 1Q 2023). Profit margin: 9.1% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 42% per year, which means it has not declined as severely as earnings. New Risk • May 09
New major risk - Revenue and earnings growth Earnings have declined by 18% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings have declined by 18% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (€41.5m market cap, or US$44.6m). Announcement • May 08
East Side Games Group Launches Cheech & Chong's Kush Kingdom, a New Match-3 Mobile Game! East Side Games Group announced 'Cheech & Chong's Kush Kingdom', their latest mobile game featuring the iconic comedic duo. This game marks ESGG's second collaboration with Cheech & Chong, following the success of their first game, 'Cheech and Chong Bud Farm'—an idle game with over 3 million installs and an iOS store rating of 4.8/5 stars in the US. Combining the duo's signature humor with compelling puzzle gameplay, the game offers fans a hilarious and engaging experience. Building on the success of Bud Farm Munchie Match, 'Cheech & Chong's Kush Kingdom' continues ESGG's expansion within the GameKit framework, showcasing record-breaking retention rates within East Side Games Group's history. Starting May 7th 2024, 'Cheech & Chong's Kush Kingdom' will be available for download globally on both the App Store and Google Play Store. KEY FEATURES: Boogie down with fun Match-3 gameplay puzzles featuring Cheech & Chong!. Experience thousands of out of sight levels, maaaan!. Build and decorate the far out city together with Cheech & Chong!. Unlock new business areas such as the groovy DISPENSORIA™, modelled after Cheech & Chong's real-world dispensaries!. Unlock and activate radical Cheech & Chong-inspired boosters!. Announcement • May 03
East Side Games Group Inc. to Report Q1, 2024 Results on May 08, 2024 East Side Games Group Inc. announced that they will report Q1, 2024 results After-Market on May 08, 2024 Reported Earnings • Apr 02
Full year 2023 earnings released: EPS: CA$0.001 (vs CA$0.13 in FY 2022) Full year 2023 results: EPS: CA$0.001 (down from CA$0.13 in FY 2022). Revenue: CA$87.0m (down 25% from FY 2022). Net income: CA$86.7k (down 99% from FY 2022). Profit margin: 0.1% (down from 9.2% in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 29 percentage points per year, which is a significant difference in performance. Announcement • Mar 26
East Side Games Group Inc. to Report Q4, 2023 Results on Apr 01, 2024 East Side Games Group Inc. announced that they will report Q4, 2023 results at 4:00 PM, US Eastern Standard Time on Apr 01, 2024 Announcement • Mar 01
East Side Games Group Inc., Annual General Meeting, May 09, 2024 East Side Games Group Inc., Annual General Meeting, May 09, 2024. Announcement • Nov 17
East Side Games Group Celebrates the Remarkable Worldwide Launch of the New Mobile Game Bud Farm East Side Games Group Inc. announced the exceptional performance of their latest mobile game, Bud Farm: Munchie Match, which has achieved exceptional success with strongest retention metrics of any game launched in the company's thirteen-year history. During an extended soft launch, Bud Farm: Munchie Match excelled, surpassing industry standards. The deliberate duration enabled ESGG to fine-tune every aspect of the game, achieving over 60% Day One player engagement, and Day Thirty retention over 15%. Since its global launch on October 1st, Bud Farm: Munchie Match has more than tripled its Daily Active Users (DAU). The enthusiastic reception from players worldwide has been pivotal in fuelling this exceptional growth, highlighting the game's captivating appeal. This surge is a testament to ESGG's unwavering commitment to delivering exceptional gaming experiences, further emphasized by the game's iOS store rating of 4.8/5 stars in the US. New Risk • Nov 14
New major risk - Revenue and earnings growth Earnings have declined by 14% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Earnings have declined by 14% per year over the past 5 years. Minor Risk Market cap is less than US$100m (€21.3m market cap, or US$23.2m). Announcement • Nov 03
East Side Games Group Inc. to Report Q3, 2023 Results on Nov 09, 2023 East Side Games Group Inc. announced that they will report Q3, 2023 results After-Market on Nov 09, 2023 Reported Earnings • Aug 11
Second quarter 2023 earnings released: CA$0.002 loss per share (vs CA$0.21 profit in 2Q 2022) Second quarter 2023 results: CA$0.002 loss per share (down from CA$0.21 profit in 2Q 2022). Revenue: CA$21.3m (down 28% from 2Q 2022). Net loss: CA$132.3k (down 101% from profit in 2Q 2022). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Entertainment industry in Germany. Announcement • Aug 04
East Side Games Group Inc. to Report Q2, 2023 Results on Aug 10, 2023 East Side Games Group Inc. announced that they will report Q2, 2023 results After-Market on Aug 10, 2023 Reported Earnings • May 14
First quarter 2023 earnings released: CA$0.013 loss per share (vs CA$0.007 profit in 1Q 2022) First quarter 2023 results: CA$0.013 loss per share (down from CA$0.007 profit in 1Q 2022). Revenue: CA$24.3m (down 32% from 1Q 2022). Net loss: CA$1.02m (down 293% from profit in 1Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Entertainment industry in Germany. Announcement • May 10
East Side Games Group Inc. to Report Q1, 2023 Results on May 11, 2023 East Side Games Group Inc. announced that they will report Q1, 2023 results After-Market on May 11, 2023 Reported Earnings • Nov 16
Third quarter 2022 earnings released: CA$0.043 loss per share (vs CA$0.019 loss in 3Q 2021) Third quarter 2022 results: CA$0.043 loss per share (further deteriorated from CA$0.019 loss in 3Q 2021). Revenue: CA$25.0m (up 32% from 3Q 2021). Net loss: CA$3.51m (loss widened 143% from 3Q 2021). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Entertainment industry in Germany. Board Change • Nov 16
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 1 independent director (4 non-independent directors). Secretary & Director Franklin Lew is the most experienced director on the board, commencing their role in 2018. Independent Director Birgit Troy was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Nov 12
Third quarter 2022 earnings released: CA$0.043 loss per share (vs CA$0.019 loss in 3Q 2021) Third quarter 2022 results: CA$0.043 loss per share (further deteriorated from CA$0.019 loss in 3Q 2021). Revenue: CA$25.0m (up 32% from 3Q 2021). Net loss: CA$3.51m (loss widened 143% from 3Q 2021). Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Entertainment industry in Germany. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €1.27, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 15x in the Entertainment industry in Europe. Total loss to shareholders of 38% over the past year. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 16% share price gain to €1.43, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Entertainment industry in Europe. Total loss to shareholders of 31% over the past year. Reported Earnings • Aug 13
Second quarter 2022 earnings released: EPS: CA$0.21 (vs CA$0.012 loss in 2Q 2021) Second quarter 2022 results: EPS: CA$0.21 (up from CA$0.012 loss in 2Q 2021). Revenue: CA$29.7m (up 32% from 2Q 2021). Net income: CA$17.3m (up CA$18.2m from 2Q 2021). Profit margin: 58% (up from net loss in 2Q 2021). The move to profitability was primarily driven by lower expenses. Over the next year, revenue is forecast to grow 44%, compared to a 130% growth forecast for the industry in Germany. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: CA$0.007 (vs CA$0.02 in 1Q 2021) First quarter 2022 results: EPS: CA$0.007 (down from CA$0.02 in 1Q 2021). Revenue: CA$35.6m (up 55% from 1Q 2021). Net income: CA$530.8k (down 58% from 1Q 2021). Profit margin: 1.5% (down from 5.5% in 1Q 2021). Over the next year, revenue is forecast to grow 57%, compared to a 180% growth forecast for the industry in Germany. Board Change • Apr 27
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (3 non-independent directors). Secretary & Director Franklin Lew is the most experienced director on the board, commencing their role in 2018. Independent Director Birgit Troy was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Recent Insider Transactions • Mar 23
Executive Chair & Chief Revenue Officer recently bought €5.4m worth of stock On the 21st of March, Jason Bailey bought around 3m shares on-market at roughly €1.62 per share. This was the largest purchase by an insider in the last 3 months. Jason has been a buyer over the last 12 months, purchasing a net total of €5.4m worth in shares. Reported Earnings • Mar 12
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: CA$0.026 loss per share (down from CA$0.71 profit in FY 2020). Revenue: CA$93.2m (up 37% from FY 2020). Net loss: CA$1.88m (down 112% from profit in FY 2020). Revenue exceeded analyst estimates by 3.3%. Over the next year, revenue is forecast to grow 81%, compared to a 335% growth forecast for the industry in Germany. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 16% share price gain to €2.12, the stock trades at a trailing P/E ratio of 77x. Average forward P/E is 25x in the Entertainment industry in Germany. Reported Earnings • Nov 18
Third quarter 2021 earnings released: CA$0.019 loss per share (vs CA$0.061 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: CA$19.0m (up 3.8% from 3Q 2020). Net loss: CA$1.45m (down 156% from profit in 3Q 2020). Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improved over the past week After last week's 15% share price gain to €1.87, the stock trades at a trailing P/E ratio of 22x. Average forward P/E is 25x in the Entertainment industry in Germany. Simply Wall St's valuation model estimates the intrinsic value at €0.78 per share. Board Change • Oct 19
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Secretary & Director Franklin Lew is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improved over the past week After last week's 17% share price gain to €2.22, the stock trades at a trailing P/E ratio of 27.1x. Average forward P/E is 27x in the Entertainment industry in Germany. Reported Earnings • Aug 21
Second quarter 2021 earnings released: CA$0.012 loss per share (vs CA$6.03 profit in 2Q 2020) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CA$22.5m (up 23% from 2Q 2020). Net loss: CA$894.2k (down 133% from profit in 2Q 2020).