Document:

Exhibit 4.4

 

 

 

	 
	Score Media and Gaming Inc.
	Q1 –2021
	Condensed Consolidated Interim Financial Statements
	For the Three Months Ended
	November 30, 2020 and 2019
	(Unaudited) 
	 

 

    1

     

    

 

Score Media and Gaming Inc.

 

Condensed Consolidated Interim Statements of Financial Position 

(in thousands of Canadian dollars)

(unaudited)

 

As at November 30, 2020 and August 31, 2020

 

	 	 	November 30, 2020	 	 	August 31, 2020	 
	ASSETS	 	 	 	 	 	 	 	 
	Current assets:	 	 	 	 	 	 	 	 
	Cash	 	$	19,216	 	 	$	40,116	 
	Restricted cash related to customer deposits	 	 	5,575	 	 	 	1,859	 
	Accounts receivable	 	 	10,150	 	 	 	5,455	 
	Tax credits recoverable (note 6)	 	 	1,616	 	 	 	1,616	 
	Prepaid expenses, deposits, and other assets	 	 	1,637	 	 	 	2,048	 
	 	 	 	38,194	 	 	 	51,094	 
	Non-current assets:	 	 	 	 	 	 	 	 
	Property and equipment (note 3)	 	 	3,785	 	 	 	4,136	 
	Intangible and other assets (note 4)	 	 	26,055	 	 	 	23,477	 
	 	 	 	29,840	 	 	 	27,613	 
	 	 	 	 	 	 	 	 	 
	Total assets	 	$	68,034	 	 	$	78,707	 
	 	 	 	 	 	 	 	 	 
	LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 	 	 	 	 	 
	Current liabilities:	 	 	 	 	 	 	 	 
	Accounts payable and accrued liabilities	 	$	16,191	 	 	$	10,353	 
	Current portion of loans and other borrowings (note 8)	 	 	401	 	 	 	6,645	 
	Current portion of lease liability	 	 	921	 	 	 	908	 
	Other current financial liabilities (note 15)	 	 	84	 	 	 	231	 
	 	 	 	17,597	 	 	 	18,137	 
	 	 	 	 	 	 	 	 	 
	Non-current liabilities:	 	 	 	 	 	 	 	 
	Loans and other borrowings (note 8)	 	 	638	 	 	 	740	 
	Lease liability	 	 	807	 	 	 	1,042	 
	Convertible debenture (note 14)	 	 	30,948	 	 	 	29,584	 
	 	 	 	32,393	 	 	 	31,366	 
	 	 	 	 	 	 	 	 	 
	Shareholders' equity	 	 	18,044	 	 	 	29,204	 
	 	 	 	 	 	 	 	 	 
	Commitments (note 9)	 	 	 	 	 	 	 	 
	Subsequent event (note 18)	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total liabilities and shareholders' equity	 	$	68,034	 	 	$	78,707	 

 

See accompanying notes to condensed consolidated interim financial statements.

 

    2

     

    

 

Score Media and Gaming Inc.

Condensed Consolidated Interim Statements of Comprehensive Loss

(in thousands of Canadian dollars, except per share amounts)

(unaudited)

 

	 	 	Three months ended November 30,	 
	 	 	2020	 	 	2019	 
	Revenue (note 11)	 	 	8,539	 	 	 	9,219	 
	 	 	 	 	 	 	 	 	 
	Operating expenses:	 	 	 	 	 	 	 	 
	Product development and content	 	 	2,800	 	 	 	2,582	 
	Sales and marketing	 	 	4,867	 	 	 	5,491	 
	Technology and operations	 	 	5,328	 	 	 	3,158	 
	General and administration	 	 	4,818	 	 	 	2,820	 
	Depreciation and amortization (note 3 and 4)	 	 	1,384	 	 	 	1,213	 
	 	 	 	19,197	 	 	 	15,264	 
	 	 	 	 	 	 	 	 	 
	Operating loss	 	 	(10,658	)	 	 	(6,045	)
	 	 	 	 	 	 	 	 	 
	Finance expense, net (note 16)	 	 	(2,015	)	 	 	(1,172	)
	 	 	 	 	 	 	 	 	 
	Loss before income tax expense (recovery)	 	 	(12,673	)	 	 	(7,217	)
	 	 	 	 	 	 	 	 	 
	Deferred income tax expense (recovery) (note 17)	 	 	-	 	 	 	(3,107	)
	 	 	 	 	 	 	 	 	 
	Net loss	 	$	(12,673	)	 	$	(4,110	)
	 	 	 	 	 	 	 	 	 
	Other comprehensive income	 	 	 	 	 	 	 	 
	Foreign currency translation differences from foreign operations	 	 	319	 	 	 	16	 
	 	 	 	 	 	 	 	 	 
	Total comprehensive loss for the period	 	$	(12,354	)	 	$	(4,094	)
	 	 	 	 	 	 	 	 	 
	Loss per share - basic and diluted (note 12)	 	$	(0.03	)	 	$	(0.01	)

 

See
accompanying notes to condensed consolidated interim financial statements.

 

    3

     

    

 

Score Media and Gaming Inc.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(in thousands of Canadian dollars, except share amounts)

Three months ended November 30, 2020 and 2019

(unaudited)

 

	 	 	Special
    Voting Shares	 	 	Class A
    Subordinate Voting Shares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount	 	 	Number
    of Shares	 	 	Amount	 	 	Number
    of Shares	 	 	Contributed
    Surplus	 	 	Accumulated
    OCI	 	 	Equity
    component of convertible debenture	 	 	Deficit	 	 	Total
    Shareholders' Equity	 
	Balance August 31, 2019	 	$	15	 	 	 	5,566	 	 	$	90,784	 	 	 	356,829,447	 	 	$	5,280	 	 	$	4	 	 	$	-	 	 	$	(64,846	)	 	$	31,237	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Transitional adjustments
    upon adoption of IFRS 16 Leases	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(225	)	 	 	(225	)
	Net loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(4,110	)	 	 	(4,110	)
	Stock based compensation
    expense (note 10)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	153	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	153	 
	Shares issued on exercise
    of stock options (note 10)	 	 	-	 	 	 	-	 	 	 	74	 	 	 	227,333	 	 	 	(25	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	49	 
	Convertible debenture,
    net of tax (note 13)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	8,891	 	 	 	-	 	 	 	8,891	 
	Foreign currency translation
    differences from foreign operations	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	16	 	 	 	-	 	 	 	-	 	 	 	16	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance November 30,
    2019	 	$	15	 	 	 	5,566	 	 	$	90,858	 	 	 	357,056,780	 	 	$	5,408	 	 	$	20	 	 	$	8,891	 	 	$	(69,181	)	 	$	36,011	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance August 31, 2020	 	$	15	 	 	 	5,566	 	 	$	115,547	 	 	 	399,319,612	 	 	$	7,240	 	 	$	512	 	 	$	8,891	 	 	$	(103,001	)	 	$	29,204	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(12,673	)	 	 	(12,673	)
	Stock based compensation
    expense (note 10)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	472	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	472	 
	Shares issued on exercise
    of stock options (note 10)	 	 	-	 	 	 	-	 	 	 	260	 	 	 	452,349	 	 	 	(109	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	151	 
	Foreign currency translation
    differences from foreign operations	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	319	 	 	 	-	 	 	 	-	 	 	 	319	 
	Shares issued on exercise
    of over-allotment via August bought offering (note 13)	 	 	-	 	 	 	-	 	 	 	571	 	 	 	960,600	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	571	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance November 30,
    2020	 	$	15	 	 	 	5,566	 	 	$	116,378	 	 	 	400,732,561	 	 	$	7,603	 	 	$	831	 	 	$	8,891	 	 	$	(115,674	)	 	$	18,044	 

 

See
accompanying notes to condensed consolidated interim financial statements

 

    4

     

    

 

Score Media and Gaming Inc.

Condensed Consolidated Interim Statements of Cash Flows

(in thousands of Canadian dollars)

(unaudited)

 

	 	 	Three months ended	 
	 	 	November 30, 2020	 	 	November 30, 2019	 
	Cash flows from (used) in operating activities	 	 	 	 	 	 	 	 
	Net income (loss) for the period	 	$	(12,673	)	 	$	(4,110	)
	Adjustments for:	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	1,384	 	 	 	1,213	 
	Stock based compensation (note 10)	 	 	472	 	 	 	153	 
	Interest accretion on lease liabilities	 	 	26	 	 	 	37	 
	Interest accretion on loans and other borrowings	 	 	22	 	 	 	-	 
	Interest accretion on convertible debenture (note 14)	 	 	1,364	 	 	 	1,167	 
	Unrealized foreign exchange (gain) loss	 	 	564	 	 	 	84	 
	Income tax recovery (note 17)	 	 	-	 	 	 	(3,107	)
	 	 	 	(8,841	)	 	 	(4,563	)
	Change in non-cash operating assets and liabilities:	 	 	 	 	 	 	 	 
	Accounts receivable	 	 	(4,694	)	 	 	(1,845	)
	Restricted cash related to customer deposits	 	 	(3,815	)	 	 	(832	)
	Prepaid expenses, deposits, and other assets	 	 	408	 	 	 	(719	)
	Accounts payable and accrued liabilities	 	 	5,919	 	 	 	70	 
	Other financial liabilities (note 15)	 	 	(147	)	 	 	27	 
	 	 	 	(2,329	)	 	 	(3,299	)
	Net cash used in operating activities	 	 	(11,170	)	 	 	(7,862	)
	 	 	 	 	 	 	 	 	 
	Cash flows from financing activities	 	 	 	 	 	 	 	 
	Exercise of stock options	 	 	75	 	 	 	49	 
	Payment of lease liabilities	 	 	(248	)	 	 	(249	)
	Payment of loans and other borrowings	 	 	(6,362	)	 	 	-	 
	Issuance of convertible debenture, net of transaction costs (note 14)	 	 	-	 	 	 	37,274	 
	Issuance of shares, net of transaction costs (note 13)	 	 	571	 	 	 	-	 
	Net cash from (used) in financing activities	 	 	(5,964	)	 	 	37,074	 
	 	 	 	 	 	 	 	 	 
	Cash flows used in investing activities	 	 	 	 	 	 	 	 
	Additions to property and equipment (note 3)	 	 	(73	)	 	 	(166	)
	Additions to intangible and other assets, net (note 4)	 	 	(3,674	)	 	 	(1,010	)
	Net cash used in investing activities	 	 	(3,747	)	 	 	(1,176	)
	 	 	 	 	 	 	 	 	 
	Increase (decrease) in cash and cash equivalents	 	 	(20,881	)	 	 	28,036	 
	 	 	 	 	 	 	 	 	 
	Net effect of exchange rate fluctuations on cash	 	 	(19	)	 	 	16	 
	 	 	 	 	 	 	 	 	 
	Cash and cash equivalents, beginning of period	 	 	40,116	 	 	 	4,035	 
	 	 	 	 	 	 	 	 	 
	Cash and cash equivalents, end of period	 	$	19,216	 	 	$	32,087	 

 

See accompanying notes to condensed consolidated interim financial statements

 

    5

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		1.	Nature of operations:

 

		Business:	

 

Score Media and Gaming Inc. ("theScore"
or the "Company") empowers millions of sports fans through its digital media and sports betting products. Its media app
'theScore' is one of the most popular in North America, delivering fans highly-personalized live scores, news, stats, and betting
information from their favorite teams, leagues, and players. The Company's sports betting app 'theScore Bet' delivers an immersive
and holistic mobile sports betting experience and is currently available to place wagers in New Jersey, Colorado, and Indiana.
Publicly traded on the Toronto Stock Exchange (SCR), theScore also creates and distributes innovative digital content through its
web, social and esports platforms. The Company is organized and operates as one operating segment for the purpose of making operating
decisions and assessing performance.

 

		2.	Significant accounting policies:

 

Basis
of presentation and statement of compliance:

 

These interim financial statements
have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”) using International Accounting Standard 34, Interim Financial Reporting and
using the same accounting policies and methods of computation theScore applied in its consolidated financial statements as at and
for the year ended August 31, 2020.

 

The notes presented in these
interim financial statements include only significant changes and transactions occurring since August 31, 2020, and do not
include all disclosures required by IFRS for annual financial statements. These interim financial statements should be read in
conjunction with the consolidated financial statements of the Company for the year ended August 31, 2020.

 

These interim financial statements
are presented in Canadian dollars, which is theScore's functional currency, and have been prepared primarily using the historical
cost basis.

 

These interim financial statements
were approved by the Board of Directors of theScore on January 13, 2020.

 

    6

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		2.	Significant accounting policies (continued):

 

(a) Measurement Uncertainty

 

The preparation of the condensed
consolidated interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses, consistent
with those disclosed in the 2020 annual consolidated financial statements and described in these condensed consolidated interim
financial statements. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances.
The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with
corresponding effect in profit or loss, when, and if, better information is obtained.

 

The extent to which the COVID-19
pandemic may impact the Company’s business and activities will depend on future developments which remain highly uncertain
and cannot be predicted with confidence, such as the spread of the disease, the duration of the outbreak, severity of the coronavirus
and actions taken by the Canadian and US authorities, the postponement, suspension, cancellation, rescheduling and resumption of
sporting events, the impact of the pandemic on consumer and advertiser spending, and the ability or willingness of suppliers and
vendors to provide products and services.

 

The actual and threatened spread
of COVID-19 globally could also have a material adverse effect on the regional economies in which the Company operates, could continue
to negatively impact stock markets, including the trading price of the Company’s Class A shares, could cause continued
interest rate volatility and movements and could adversely impact the Company’s ability to raise capital.

 

Any of these developments, and
others, could have a material adverse effect on the Company’s business, affairs, operations, results of operations, financial
condition, liquidity, availability of credit and foreign exchange exposure. In addition, because of the severity and global nature
of the COVID-19 pandemic, it is possible that estimates in the Company’s financial statements could change in the near term
and the effect of any such changes could be material, which could result in, among other things, an impairment of non-current assets
and a change in the expected credit losses on accounts receivable. The Company monitors the situation and its impacts or potential
impacts on its business on an ongoing basis.

 

    7

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		3.	Property and equipment

 

	 	 	Computer
    equipment	 	 	Office

equipment	 	 	Leasehold
    improvements	 	 	Right
    of use

lease	 	 	Total	 
	Cost	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	3,597	 	 	$	1,008	 	 	$	2,324	 	 	$	2,288	 	 	$	9,217	 
	Additions	 	 	70	 	 	 	-	 	 	 	3	 	 	 	-	 	 	 	73	 
	Revaluations
    of foreign currency balances	 	 	(1	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1	)
	Balance, November 30,
    2020	 	$	3,666	 	 	$	1,008	 	 	$	2,327	 	 	$	2,288	 	 	$	9,289	 
	Accumulated
    depreciation	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	1,894	 	 	$	733	 	 	$	1,712	 	 	$	742	 	 	$	5,081	 
	Depreciation	 	 	148	 	 	 	13	 	 	 	76	 	 	 	186	 	 	 	423	 
	Balance, November 30,
    2020	 	$	2,042	 	 	$	746	 	 	$	1,788	 	 	$	928	 	 	$	5,504	 
	Carrying amounts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	1,703	 	 	$	275	 	 	$	612	 	 	$	1,546	 	 	$	4,136	 
	Balance, November 30,
    2020	 	$	1,624	 	 	$	262	 	 	$	539	 	 	$	1,360	 	 	$	3,785	 

 

Right-of-Use lease:

 

theScore’s current lease
agreement is for a 30,881 square foot space at its head office in Toronto, Ontario, and runs until September 30, 2022.

 

		4.	Intangible and other assets:

 

	 	 	Product
    development &
 software	 	 	Trademarks &

    domain names	 	 	Licenses &

    Other Assets	 	 	Total	 
	Cost	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	27,050	 	 	$	358	 	 	$	15,255	 	 	$	42,663	 
	Additions	 	 	1,152	 	 	 	-	 	 	 	2,522	 	 	 	3,674	 
	Revaluations
    of foreign currency balances	 	 	-	 	 	 	-	 	 	 	(147	)	 	 	(147	)
	Balance, November 30,
    2020	 	$	28,202	 	 	$	358	 	 	$	17,630	 	 	$	46,190	 
	Accumulated
    amortization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	18,067	 	 	$	254	 	 	$	865	 	 	$	19,186	 
	Amortization	 	 	672	 	 	 	9	 	 	 	280	 	 	 	961	 
	Revaluations of foreign
    currency balances	 	 	-	 	 	 	-	 	 	 	(12	)	 	 	(12	)
	Disposals	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Balance, November 30,
    2020	 	$	18,739	 	 	$	263	 	 	$	1,133	 	 	$	20,135	 
	Carrying amounts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance, August 31, 2020	 	$	8,983	 	 	$	104	 	 	$	14,390	 	 	$	23,477	 
	Balance, November 30,
    2020	 	$	9,463	 	 	$	95	 	 	$	16,497	 	 	$	26,055	 

 

During the three months ended
November 30, 2020, the Company capitalized product development costs of approximately $1,152 (2019 - $977). The significant
development projects for the three month period ended November 30, 2020 consisted of new features in theScore’s betting
app, significant enhancements to live betting and sports data, and significant new enhancements to its core technology infrastructure.

 

    8

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		4.	Intangible and other assets (continued):

 

Licenses and Other Assets include
payments in respect of sports betting and online gaming related market access licenses and associated costs, as well as deposits
on sports betting and online casino related rights and licenses.

 

		5.	Related party transactions:

 

In fiscal 2013, theScore entered
into a lease for a property partially owned by the Chairman and Chief Executive Officer of the Company. The aggregate rent paid
during the three months ended November 30, 2020 amounted to $10 (2019 - $10). In addition, the payable balances as at November 30,
2020 were $1 (2019 - $281) owing to Norwest Video Inc. for amounts to be reimbursed pursuant to its management services agreement
with the Company. These transactions are recorded at the exchange amount, being the amount agreed upon between the parties, and
shall be repayable within 12 months.

 

		6.	Tax credits:

 

As at November 30, 2020,
tax credits recoverable of $1,616 are classified as current, in the consolidated statements of financial position (August 31,
2020 – $1,616). Tax credits recoverable reflect management's best estimate of credits for which realization is reasonably
assured based on consideration of both certificates of eligibility received from Ontario Creates (formerly, the Ontario Media Development
Corporation) for specific claims and Ontario Creates’ historical acceptance of expenditures of a similar nature for refundable
credit. No tax credits were accrued during the three month periods ended November 30, 2020 and 2019.

 

		7.	Capital risk management:

 

theScore's objectives in managing
capital are to maintain its liquidity to fund current and future development and growth of the business. The capital structure
consists of shareholders’ equity and cash.

 

theScore manages and adjusts
its capital structure in consideration of changes in economic conditions and the risk characteristics of the underlying assets.

 

    9

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited) 

 

		8.	Financial risk management:

 

The Company’s loans and
borrowings include:

 

	 	 	November 30,
    2020	 	 	August 31,
    2020	 
	Revolving term credit facility	 	$	-	 	 	$	6,250	 
	Current computer equipment financing	 	 	401	 	 	 	395	 
	 	 	$	401	 	 	$	6,645	 
	 	 	 	 	 	 	 	 	 
	Non-current computer equipment
    financing	 	$	638	 	 	$	740	 

 

The computer equipment financing
relates to the financing arrangement for servers and other equipment and has been calculated using discounted cash flows for future
payments over the three-year term of the borrowing using the effective interest rate of 5.62%.

 

theScore has exposure to credit
risk, liquidity risk and market risk from its use of financial instruments. This note presents information about theScore's exposure
to each of these risks and theScore's objectives, policies and processes for measuring and managing these risks.

 

		(a)	Credit risk:

 

Credit risk is the risk of financial
loss to theScore if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises
principally from theScore's receivables from customers. The carrying amount of financial assets represents the maximum credit
exposure. theScore's exposure to credit risk is influenced mainly by the individual characteristics of each customer.

 

As at November 30, 2020
and August 31, 2020, theScore had a loss allowance for trade receivables of $44 and $10, respectively.

 

At November 30, 2020 and
August 31, 2020, $389 and $655, respectively, of accounts receivable were considered past due, which is defined as amounts
outstanding beyond normal credit terms and conditions for respective customers that can extend up to 150 days from the date of
initial invoicing. theScore believes that its allowance for doubtful accounts sufficiently reflects the related credit risk based
on the nature of theScore's customers and consideration of past performance.

 

    10

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		8.	Financial risk management
                                         (continued):

 

theScore has customer concentration
risk as one customer, a programmatic network, represented 19% of revenue, for the three months ended November 30, 2020 (November 30,
2019 – one customer, a programmatic network, represented 13% of revenue).

 

As at November 30, 2020
one customer, a media agency, represented 9% of the accounts receivable balance (August 31, 2020 – two customers, a
media agency and programmatic network, represented 13% and 13% of accounts receivable balance, respectively).

 

		(b)	Liquidity
                                         risk:

 

Liquidity risk is the risk that
theScore will not be able to meet its financial obligations as they fall due. As at November 30, 2020 theScore had cash and
cash equivalents of $19,216 (August 31, 2020 - $40,116), restricted cash related to customer deposits on the betting
platform of $5,575 (August 31, 2020 - $1,859), accounts receivable of $10,150 (August 31, 2020 - $5,455), tax credits
recoverable of $1,616 (August 31, 2020 - $1,616) and accounts payable and accrued liabilities to third parties of $16,191
(August 31, 2020 - $10,353). Accounts payable and accrued liabilities have contracted maturities of less than twelve
months.

 

Management prepares budgets
and cash flow forecasts to assist in managing liquidity risk. theScore has a history of operating losses, and can be expected
to generate continued operating losses and negative cash flows in the future while it carries out its current business plan to
further develop and expand its digital media business.

 

The Company also has access
to an uncommitted variable demand credit facility (the “Demand Credit Facility”) of up to $5,000 with a Canadian chartered
bank, of which $5,000 was available as at November 30, 2020. The amount available under the Demand Credit Facility is based
on a percentage of the Company’s accounts receivable and those of certain of its subsidiaries. The Demand Credit Facility
is available for working capital purposes and is secured by substantially all of the assets of the Company and certain of its
subsidiaries.

 

The Demand Credit Facility bears
an interest rate at the lenders Prime rate plus 1.00% per annum. The Demand Credit Facility is repayable on demand and is subject
to certain financial covenants.

 

    11

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		8.	Financial risk management
                                         (continued):

 

In July 2020, the Company
entered into a $6,250 revolving term credit facility with the same Canadian chartered bank that maintains the Demand Credit Facility,
supported by Export Development Corporation's Business Credit Availability Program ("EDC BCAP"). The revolving term
credit facility is available to provide additional liquidity to the Company and to mitigate the impact of COVID-19 on the Company's
operations. The revolving term credit facility is secured by substantially all of the assets of the Company and certain of its
subsidiaries. The revolving term credit facility bears an interest rate at the lender's prime rate plus 2.00% per annum and is
subject to a facility fee in respect of the EDC BCAP program of 1.80%. The revolving term credit facility is repayable by July 15,
2021, is extendable for a further period of 364 days in certain circumstances and is subject to certain financial covenants. On
November 27, 2020, the Company repaid the full balance owing on the revolving term credit facility in the amount of $6,250.

 

While theScore can utilize its
cash, cash equivalents and credit facilities to fund its operating and development expenditures, it does not have access to other
committed sources of funding, and depending upon the level of expenditures and whether profitable operations can be achieved,
may be required to seek additional funding in the future.

 

		(c)	Market risk:

 

Market risk is the risk that
changes in market prices, such as interest rates, foreign exchange rates and equity prices, will affect theScore's income or the
value of its holdings of financial instruments.

 

The Company does not engage
in hedging or use of derivative instruments.

 

The Company's head office is
located in Toronto, Canada. Certain of theScore's customers and suppliers are based in Canada and, therefore, transact in Canadian
dollars. Other customers and suppliers are based outside of Canada and the associated financial assets and liabilities originate
in U.S. dollars, Euros or Pounds Sterling, thereby exposing theScore to foreign exchange risk. Total U.S. dollar denominated
receivables as at November 30, 2020 and August 31, 2020 were $3,569 and $2,553, respectively. The Company’s foreign
exchange revaluation is included in finance income in the condensed consolidated interim statement of comprehensive loss, and
primarily relates to advances to subsidiaries, and for the three months ended November 30, 2020 was ($533) (2019 –
($84)).

 

    12

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		8.	Financial risk management
                                         (continued):

 

		(d)	Fair values:

 

The Company provides disclosure
of the three-level hierarchy that reflects the significance of the inputs used in making the fair value measurement. The three
levels of fair value hierarchy based on the reliability of inputs are as follows:

 

		•	Level
                                         1 - inputs are quoted prices in active markets for identical assets and liabilities;

 

		•	Level
                                         2 - inputs are based on observable market data, either directly or indirectly other than
                                         quoted prices; and

 

		•	Level
                                         3 - inputs are not based on observable market data.

 

The fair values of theScore's
financial assets and liabilities, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable
and accrued liabilities were deemed to approximate their carrying amounts due to the relative short-term nature of these financial
instruments. The fair value of the convertible debenture was deemed to approximate the carrying amount due to the short passage
of time between issuance date and the date of these interim financial statements and the risk factors for the Company remaining
consistent within this period.

 

		9.	Commitments:

 

The Company has no off-balance
sheet arrangements or long-term obligations other than the agreements noted below.

 

theScore has the following undiscounted
contractual obligations (in thousands of Canadian dollars) at November 30, 2020:

 

		 	Payments Due by Period	 
	Contractual Obligation	 	Total	 	 	Within
    1 year	 	 	2-3 years	 	 	4-5 years	 	 	More than
    5 years	 
	Total
    Debt 1	 	 	46,755	 	 	 	-	 	 	 	-	 	 	 	46,755	 	 	 	-	 
	Lease
    Liabilities 2	 	 	1,783	 	 	 	973	 	 	 	810	 	 	 	-	 	 	 	-	 
	Purchase
    Obligations 3	 	 	46,282	 	 	 	9,591	 	 	 	12,774	 	 	 	6,077	 	 	 	17,840	 
	Total Contractual Obligations	 	 	94,820	 	 	 	10,564	 	 	 	13,584	 	 	 	52,832	 	 	 	17,840	 

 

 

1 Principal repayments related to convertible debenture.

2 Lease liabilities relate to right-of-use assets
which include head office space.

3 Purchase obligations are minimum payments under
contracts for periods ranging from one to twenty years.

 

    13

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		9.	Commitments (continued):

 

The Company has entered into
several new agreements relating to its sports betting and online casino business which has increased future contractual commitments.

 

		10.	Stock based compensation:

 

(a)  Stock Option Plan:

 

theScore has a stock option
and restricted stock unit plan (the "Plan") under which the Board of Directors, or a committee appointed for such purpose,
may, from time to time, grant to directors, officers and full-time employees of, or consultants to, theScore options to acquire
Class A Subordinate Voting shares and restricted stock units (“RSUs”). Under the Plan, the exercise price of
an option is based on the closing trading price on the day prior to the grant. An option's maximum term is 10 years and options
generally vest in six month tranches over a period of three to five years. RSUs entitle a holder, subject to the holder’s
satisfaction of any conditions, restrictions, performance objectives, vesting period or limitations imposed under the Plan or
set out in a grant letter, and subject to the Company’s clawback policy, to receive a payment in Class A Subordinate
Voting shares issued from treasury on the date when the RSU is vested. The maximum term of an RSU is 10 years. Certain of theScore’s
employees and consultants participate in the Plan in exchange for services provided to theScore.

 

The
following table summarizes the status of options granted to employees of theScore under the Plan:

 

	 	 	 	 	 	 	 	 	Weighted average	 
	 	 	Number	 	 	Exercise price	 	 	exercise price	 
	Outstanding options, August 31, 2020	 	 	35,738,583	 	 	$	 0.13-0.85	 	 	$	0.38	 
	Granted	 	 	-	 	 	 	-	 	 	 	-	 
	Cancelled	 	 	(449,586	)	 	 	0.145-0.85	 	 	 	0.61	 
	Exercised	 	 	(452,349	)	 	 	0.13-0.85	 	 	 	0.33	 
	Outstanding options, November 30, 2020	 	 	34,836,648	 	 	$	 0.13-0.85	 	 	$	0.38	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Options exercisable. November 30, 2020	 	 	21,658,763	 	 	$	 0.13-0.85	 	 	$	0.26	 

 

    14

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

		10.	Stock based compensation
                                         (continued):

 

The following table summarizes the
range of exercise prices and the weighted average prices of outstanding and exercisable options as at November 30, 2020.

 

	 	 	 	 	 	 	 	 	 	Weighted average	 
	 	 	 	 	 	 	 	 	 	exercise price for 	 
	Exercise price	 	 	Options outstanding	 	 	Options exercisable	 	 	options exercisable	 
	$	0.13	 	 	 	2,515,000	 	 	 	2,515,000	 	 	$	0.13	 
	 	0.145	 	 	 	6,159,083	 	 	 	3,725,352	 	 	 	0.145	 
	 	0.18	 	 	 	2,520,000	 	 	 	2,520,000	 	 	 	0.18	 
	 	0.21	 	 	 	2,415,000	 	 	 	2,415,000	 	 	 	0.21	 
	 	029	 	 	 	2,895,000	 	 	 	2,895,000	 	 	 	0.29	 
	 	0.30	 	 	 	4,816,249	 	 	 	2,152,509	 	 	 	0.30	 
	 	0.31	 	 	 	3,945,833	 	 	 	3,945,833	 	 	 	0.31	 
	 	0.345	 	 	 	400,000	 	 	 	80,000	 	 	 	0.345	 
	 	0.60	 	 	 	1,220,000	 	 	 	320,000	 	 	 	0.60	 
	 	0.85	 	 	 	7,950,483	 	 	 	1,090,069	 	 	 	0.85	 
	 	 	 	 		34,836,648	 	 		21,658,763	 	 	$	0.26	 

 

As at November 30, 2020,
the weighted average remaining contractual life of the options exercisable and outstanding is estimated to be 5.27 and 6.51 years,
respectively.

 

During the three months ended
November 30, 2020, share-based compensation recorded in connection with stock options issued by theScore was $472 (2019 -
$153).

 

(b) Share Purchase
Plan:

 

The Company has a share purchase
plan (the "SPP") in order to facilitate the acquisition and the retention of Class A Subordinate Voting shares
by eligible participants which as of May 1, 2020 has been paused as part of an initiative to reduce costs due to the impact
of COVID-19. The SPP allows eligible participants to voluntarily join in a share purchase program. Under the terms of the SPP,
eligible participants can have up to 5% of their compensation deducted from their pay to contribute towards the purchase of Class A
Subordinate Voting shares of the Company. The Company makes a contribution equal to the amount of the compensation contributed
by each participant. The Class A Subordinate Voting shares are purchased by an independent broker through the facilities
of the Toronto Stock Exchange and are held by a custodian on behalf of the SPP participants. During the three months ended November 30,
2020, theScore recorded an expense of ($2), as part of operating expenses, relating to its participating employees in the SPP
(2019 - $209).

 

    15

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		11.	Revenue:

 

Revenue from media activities
for the three months ended November 30, 2020 was $10,579 (2019 - $9,219).

 

The Company generated ($270)
(2019 – $242) of gross gaming revenue1 for the three months ended November 30, 2020. After taking into account
promotional costs and fair value adjustments of unsettled bets, the Company generated negative net gaming revenue2
of $2,040 (2019 – $26) for the period.

 

Revenue from Canadian sources
for the three months ended November 30, 2020 was $4,793 (2019 - $3,542), while revenue from non-Canadian sources (predominantly
USA) for the same period was $3,746 (2019 - $5,677). Revenue from non-Canadian sources includes both media and gaming related
amounts.

 

		12.	Basic and diluted income
                                         (loss) per share:

 

The following table
sets forth the computation of basic and diluted income (loss) per share:

 

	 	 	Three months ended,	 
	 	 	 	November 30, 2020	 	 	 	November 30, 2019	 
	Net loss attributable to shareholders - basic and diluted	 	$	 (12,673) 	 	 	$	(4,110	)
	 	 	 	 	 	 	 	 	 
	Weighted average shares outstanding - basic and diluted	 	 	363,300,812	 	 	 	357,005,888	 
	 	 	 	 	 	 	 	 	 
	Loss per share - basic and diluted	 	$	(0.03	)	 	$	(0.01	)

 

During the three months ended
November 30, 2020 and November 30, 2019 there were no outstanding stock options, warrants or shares resulting from the
convertible debenture included in the computation of diluted loss per share as the impact would have been anti-dilutive.

 

 

1 Gross gaming revenue is calculated
as dollar amounts wagered by customers, less the dollar amounts paid out to customers in respect of such wagers which have settled
in the applicable period.

2 Net gaming revenue is measured as gross gaming
revenue, less free bets, promotional costs, bonuses and fair value adjustments on unsettled bets. Refer to Note 15 for more details
on unsettled bets.

 

    16

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

		13.	Capital

 

Exercise of over-allotment of
the public offering:

 

On September 18, 2020,
the Company issued an additional 960,600 Class A Shares at a price of $0.65 per Class A Share in exchange for $624 of
gross proceeds under the over allotment option of the August 25, 2020. Proceeds net of commissions, and other direct costs
of the offering, were $571.

 

		14.	Convertible Debenture:

 

On September 5, 2019, the
Company completed a non-brokered financing of $40,000 by way of issuance of convertible debentures (“convertible debenture”).
The debentures carry an interest rate of 8.0%, payable in arrears, in equal semi-annual payments on the last day of February and
August in each year commencing on February 29, 2020, with a maturity date of August 31, 2024, or the earlier date
of redemption, repayment or conversion.

 

At the holder’s option,
the debenture may be converted into Class A subordinate voting shares of the Company (“Class A Shares”)
at any time prior to the close of business on the earlier of the business day immediately preceding the maturity date and the
business day immediately preceding the date fixed for redemption of the debenture. The conversion price will be $0.75 for each
Class A Share, being a conversion rate of 1,333.3333 Class A Shares issuable for each one thousand dollars principal
amount of the debenture, subject to adjustment in certain circumstances.

 

Subject to specified conditions,
the debenture may be redeemed at the Company’s option at par plus accrued and unpaid interest at any time after August 31,
2023 if the volume weighted average trading price of the Class A Shares during the 20 trading days ending on the fifth trading
day preceding the date on which notice of the redemption is given is not less than 125% of the conversion price, or if the principal
sum of the debenture outstanding is $4,000 or less.

 

Upon the occurrence of a change
of control of the Company or the sale by the Company of its core assets, the Company will be required to make an offer to purchase
the debenture at a price equal to 105% of the principal amount plus accrued and unpaid interest.

 

Transaction costs of $3,031,
were incurred and have been recorded pro rata against the liability and equity components.

 

    17

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

		14.	Convertible Debenture (continued):

 

Interest and accretion expense
for the three months ended November 30, 2020 was $1,364 (2019 - $1,167). As of November 30, 2020 the Company has elected
to accrue unpaid interest of $3,228, to the principal sum outstanding of the debenture.

 

On inception, the Company recorded the following amounts
related to the convertible debenture:

 

	Liability component	 	$	27,018	 
	Transaction costs	 	 	(2,047	)
	 	 	$	24,971	 
	 	 	 	 	 
	Equity component (conversion feature)	 	$	12,982	 
	Transaction costs	 	 	(984	)
	Income tax impact of convertible debenture	 	 	(3,107	)
	 	 	$	8,891	 

 

For accounting purposes, the
debentures are separated into their liability and equity components by first valuing the liability component. The fair value of
the liability component at the time of issue was calculated as the discounted cash flows for the debentures assuming a 19% discount
rate, which was the estimated rate for a similar debenture without a conversion feature. The fair value of the equity component
(conversion feature) was determined at the time of issue as the difference between the face value of the debentures and the fair
value of the liability component, less a deferred income tax adjustment to reflect the book to tax difference in value of the
debentures at the time of issuance.

 

		15.	Other financial liabilities

 

	 	 	Three months ended November 30,	 
	 	 	2020	 	 	2019	 
	Unsettled bets - at fair value	 	$	84	 	 	$	27	 

 

Other financial liabilities
consist of open betting positions (unsettled bets) at period end. Unsettled bets are accounted for as derivative financial instruments
and are carried at fair value. Gains and losses from these positions are recognised in revenue.

 

    18

     

    

 

Score Media and Gaming Inc.

Notes to Condensed Consolidated
Interim Financial Statements

(In thousands of Canadian
dollars, unless otherwise stated)

 

Three months ended November 30,
2020 and November 30, 2019 (unaudited)

 

 

		16.	Finance expense, net

 

	 	 	Three months ended November 30,	 
	 	 	2020	 	 	2019	 
	Interest expense	 	$	1,482	 	 	$	1,205	 
	Interest income	 	 	-	 	 	 	(117	)
	Revaluation of foreign currency balances	 	 	533	 	 	 	84	 
	Net finance expense (income)	 	$	2,015	 	 	$	1,172	 

 

		17.	Income Taxes

 

As a result of the income tax
impact related to the convertible debenture issue a deferred tax liability of $3.1 million was recorded in 2019, in the same period
the Company recorded a deferred tax recovery of $3.1 million, related to operating loss carry forwards through the statement of
operations, resulting in a net deferred taxes of nil at November 30, 2019.  At November 30, 2020 net deferred
tax remains nil. As the liability portion of the convertible debt accretes the deferred tax liability and corresponding deferred
tax asset are reduced accordingly through the statement of operations resulting in a deferred tax expense (recovery) of nil as
at November 30, 2020.

 

		18.	Subsequent Event

 

On December 17, 2020, the
Company completed a short-form bought deal prospectus offering where 28,572,000 Class A subordinate voting shares were issued
at a price per share of $1.40. On December 31, 2020, the underwriters exercised their overallotment option in full, purchasing
an additional 4,285,800 Class A subordinate voting shares for at a price per share of $1.40, resulting in total gross proceeds
of the offering of $46,001.

 

    19Exhibit 4.5

 

Score
Media and Gaming, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS
OF

FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

For the Three months ended November 30,
2020 and November 30, 2019

 

The following is Management's Discussion
and Analysis (“MD&A”) of the financial condition of Score Media and Gaming Inc. (“theScore”, “we”,
 “us” or “our”) and our financial performance for the three months ended November 30, 2020. The MD&A
should be read in conjunction with our unaudited Condensed Consolidated Interim Financial Statements for the three months ended
November 30, 2020 (“Interim Financial Statements”) and Notes thereto. The financial information presented herein
has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”)
as issued by the International Accounting Standards Board (“IASB”). The interim MD&A should be read in conjunction
with our MD&A for the year ended August 31, 2020. All amounts are in Canadian dollars unless otherwise stated. As a result
of the rounding of dollar differences, certain total dollar amounts in this MD&A may not add exactly to their constituent amounts.
Throughout this MD&A, percentage changes are calculated using numbers rounded as they appear. This MD&A reflects information
as of January 13, 2021.

 

Cautionary Note Regarding Forward-Looking
Statements

 

Certain statements contained in this MD&A
constitute “forward-looking information” within the meaning of applicable Canadian securities legislation (“forward-looking
statements”). All statements other than statements of historical fact contained in this MD&A, including, without limitation,
those regarding our future financial position and results of operations, strategy, plans, objectives, goals and targets, including
in light of the ongoing and evolving COVID-19 pandemic, regulatory approvals, future developments in the markets where we participate
or are seeking to participate, and any statements preceded by, followed by or that include the words “believe”, “expect”,
 “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”,
 “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”,
 “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical
facts but instead represent only our expectations, estimates and projections regarding future events. These statements are not
guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual
results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.

 

Additional known and unknown risks, uncertainties,
and other factors that could cause actual results, performance or achievements to differ materially include, but are not limited
to: the impact of the ongoing and evolving COVID-19 pandemic on our future financial position and results of operations, strategy,
plans, objectives, goals and targets; the enactment of enabling legislation and regulations in the jurisdictions in which we operate,
or intend to operate, to facilitate internet gaming, including (without limitation) the enactment of federal legislation in Canada
to permit single event sports wagering (including the timing of such legislation and regulations being passed and proclaimed in
force (if at all) and the terms and conditions imposed in such legislation and regulations on applicable industry participants);
receipt of all relevant licences and approvals under the applicable legislation and regulations (as applicable) of the jurisdictions
in which we operate, or intend to operate; and the rate of adoption of online gaming in Canada and other jurisdictions, as permitted
by applicable legislation and/or regulations.

 

     

     

    

 

Additional factors are discussed under
the heading "Risk Factors" in our Annual Information Form as filed with securities regulatory authorities in Canada
and available on SEDAR at www.sedar.com and elsewhere in documents that we file from time to time with securities regulatory authorities.
These risk factors include: risks associated with regulation of the gaming industry, reliance on the continued support of banks
and payment processors, potential losses with respect to individual events or betting outcomes, competition in the online and mobile
sports betting and media industry, becoming the subject of regulatory investigations, market access limitations, our shareholders
are subject to extensive governmental regulations, industry social responsibility concerns, digital sports media industry reliance
on mobile advertising, the recent expansion of our sports betting operations, our historical losses and negative operating cash
flows, liquidity risk, the impact of COVID-19, the cancellation, postponement or curtailing of sporting and other events, reductions
in discretionary consumer spending, our dependence on key suppliers, mobile device users limiting data tracking and targeting,
new and evolving industry, limited long-term agreements with our advertisers, our need for substantial capital requirements, protection
of intellectual property, infringement on intellectual property, maintaining and enhancing our brand, corporate social responsibility,
responsible gaming and ethical conduct, dependence on our key personnel and employees, rapid technology developments, defects in
our products, real or perceived inaccuracies in our key performance metrics, risks related to the use and collection of user data,
reliance on our collaborative partners, new business areas and geographic markets, our operational and financial infrastructure,
information technology defects, our reliance on third-party owned communication networks, uncertain economic health of the wider
economy (including as a result of the recent COVID-19 pandemic as discussed below), governmental regulation of the internet, currency
fluctuations, changes in taxation, our exposure to taxable presences, risk of litigation, internal controls, credit risk, free
and open source software utilization, our major shareholder controls or directs 100% of the special voting shares, market price
and trading volume of our Class A Shares (as defined herein), our debt obligations will have priority over the Class A
Shares in the event of a liquidation, dissolution or winding up, our dividend policy, future sales of Class A Shares by existing
shareholders and potential dilution.

 

In addition to these factors, other factors
not currently viewed as material could cause actual results to differ materially from those described in the forward-looking statements.
Although we have attempted to identify important risks and factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events
or results not to be anticipated, estimated or intended. Accordingly, readers should not place any undue reliance on forward-looking
statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results could differ materially from the expectations expressed in these forward-looking statements.
We do not intend, and do not assume any obligation, to update these forward-looking statements except as required by applicable
law or regulatory requirements.

 

    1

     

    

 

We provide forward-looking statements because
we believe they provide useful information to readers when considering their investment objectives and cautions readers that the
information may not be appropriate for other purposes. Consequently, all of the forward-looking statements made in this MD&A
are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance
that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences
to, or effects on, us.

 

COVID-19 Matters

 

The current COVID-19 pandemic crisis continues
to evolve rapidly and could have a material adverse impact on our business, affairs, operations, results of operations, financial
condition, liquidity, availability of credit and foreign exchange exposure. COVID-19 is altering business and consumer activity
in affected areas and beyond. The global response to the COVID-19 outbreak has resulted in, among other things, border closures,
severe travel restrictions, the temporary shut-down of non-essential services and extreme fluctuations in financial and commodity
markets. Additional measures may be implemented by one or more governments in jurisdictions where we operate. Labour shortages
due to illness, isolation programs imposed by us or the government, or restrictions on the movement of personnel could result in
a reduction or cessation of all or a portion of our operations.

 

The extent to which the COVID-19 pandemic
may impact our business and activities will depend on future developments which remain highly uncertain and cannot be predicted
with confidence, such as the spread of the disease, the duration of the outbreak, severity of the coronavirus and actions taken
by the Canadian and US authorities, the postponement, suspension, cancellation, rescheduling and resumption of sporting events,
the impact of the pandemic on consumer and advertiser spending, and the ability or willingness of suppliers and vendors to provide
products and services. If the coronavirus continues to spread at the current pace, disruption to consumer spending and trade could
trigger a global recession.

 

The actual and threatened spread of COVID-19
globally could also have a material adverse effect on the regional economies in which we operate, could continue to negatively
impact stock markets, including the trading price of our Class A Shares, could cause continued interest rate volatility and
movements and could adversely impact our ability to raise capital.

 

Any of these developments, and others,
could have a material adverse effect on our business, affairs, operations, results of operations, financial condition, liquidity,
availability of credit and foreign exchange exposure. In addition, because of the severity and global nature of the COVID-19 pandemic,
it is possible that estimates in our financial statements could change in the near term and the effect of any such changes could
be material, which could result in, among other things, an impairment of non-current assets and a change in the expected credit
losses on accounts receivable. We monitor the situation and any impacts or potential impacts on our business on an ongoing basis.

 

    2

     

    

 

theScore

 

Score Media and Gaming Inc. empowers
millions of sports fans through our digital media and sports betting products. Our media app ‘theScore’ is one of the
most popular in North America, delivering fans highly-personalized live scores, news, stats, and betting information from their
favorite teams, leagues, and players. Our sports betting app ‘theScore Bet’ delivers an immersive and holistic mobile
sports betting experience and is currently available to place wagers in New Jersey, Colorado and Indiana. Publicly traded on the
Toronto Stock Exchange (SCR), we also create and distribute innovative digital content through our web, social and esports platforms.
We are organized and operate as one operating segment for the purpose of making operating decisions and assessing performance.
At November 30, 2020 we had 5,566 special voting shares, 400,732,561 Class A subordinate voting shares (“Class A
Shares” and each is a “Class A Share”) and 34,836,648 options to acquire Class A Shares outstanding.

 

Revenue

 

Total revenues for the three months ended
November 30, 2020 and 2019 were $8.5 million and $9.2 million, respectively.

 

Revenues from media activities for the
three months ended November 30, 2020 and 2019 were $10.6 million and $9.2 million, respectively – a new all-time record
for us in a single quarter, primarily driven by strong growth in direct advertising compared to the prior period.

 

We generated $55.8 million of handle1
and ($0.3) million of gross gaming revenue2 for the three months ended November 30, 2020 (2019 – $8.8 million
and $0.2 million, respectively). After taking into account promotional costs and fair value adjustments of unsettled bets, we generated
negative net gaming revenue3 of $2.0 million (2019 – $26,000) for the three months ended November 30, 2020.

 

For the three months ended November 30,
2020 and 2019, revenue from Canadian sources was $4.8 million and $3.5 million, respectively, while revenue from non-Canadian sources
(predominately the U.S.) for the same period was $3.7 million and $5.7 million, respectively.

 

 

1
Handle is calculated as the total amount of money wagered by customers in respect of bets that have settled in the applicable period.
Handle does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open
at period end.

2 Gross gaming revenue is calculated as dollar amounts
wagered by customers, less the dollar amounts paid out to customers in respect of such bets which have settled in the applicable
period.

3 Net gaming revenue is measured
as gross gaming revenue, less free bets, promotional costs, bonuses and fair value adjustments on unsettled bets.

 

    3

     

    

 

We achieved 3.94 million average
monthly active users and 458 million average monthly user sessions on theScore app on iOS and Android during the period, equaling
116 average monthly-sessions-per-user4.

 

Operating Expenses

(in thousands of Canadian dollars)

 

	 	 	Three months ended	 
	 	 	November 30, 2020	 	 	November 30, 2019	 
	Product development and content	 	 	2,800	 	 	 	2,582	 
	Sales and marketing	 	 	4,867	 	 	 	5,491	 
	Technology and operations	 	 	5,328	 	 	 	3,158	 
	General and administration	 	 	4,818	 	 	 	2,820	 
	Depreciation and amortization	 	 	1,384	 	 	 	1,213	 
	 	 	$	19,197	 	 	$	15,264	 

 

Total operating expenses for the three
month period ended November 30, 2020 were $19.2 million compared to $15.3 million in the same period of the prior year, an
increase of $3.9 million as a result of higher expenses related to theScore Bet, along with higher personnel expenses relating
to an increase in employee headcount as we continue to expand our operations.

 

Product development and content expenses
for the three month period ended November 30, 2020 were $2.8 million compared to $2.6 million in the same period of the prior
year, an increase of $0.2 million attributable principally to an increase in headcount.

 

Sales and marketing expenses for the three
month period ended November 30, 2020 were $4.9 million compared to $5.5 million in the same period of the prior year, a decrease
of $0.6 million resulting primarily from higher product marketing costs incurred in connection with the launch of theScore Bet
in the prior year.

 

Technology and operations expenses for
the three month period ended November 30, 2020 were $5.3 million compared to $3.2 million in the same period of the prior
year, an increase of $2.1 million as a result of the multi-state rollout of theScore Bet which is now operational in three states
as compared to one state in the prior year.

 

General and administration expenses for
the three month period ended November 30, 2020 were $4.8 million compared to $2.8 million in the same period of the prior
year, an increase of $2.0 million. The increase was related to higher personnel costs and stock based compensation as we added
43 new full-time employees when compared to the same period in the prior year.

 

 

4 User metrics refer to audience and engagement
numbers for theScore app on iOS and Android.

 

    4

     

    

 

Depreciation and amortization for the three
month period ended November 30, 2020 was $1.4 million compared to $1.2 million in the same period of the prior year, an increase
of $0.2 million. The increase is a result of the continued investment in fixed and intangibles assets.

 

Impact of Ontario Interactive Digital Media Tax Credits
(“OIDMTC”)

 

As at November 30, 2020, tax credits
recoverable of $1.6 million are included as current assets in the condensed consolidated Statement of Financial Position (August 31,
2020 - $1.6 million current). Tax credits recoverable reflect our best estimate of credits that are reasonably assured of realization
considering both certificates of eligibility received from Ontario Creates (formerly, the Ontario Media Development Corporation)
for specific claims and Ontario Creates’ historical acceptance of expenditures of a similar nature for refundable credit.
In November 2020 we received a certificate of eligibility from Ontario Creates.

 

No tax credits were accrued during the
three months ended November 30, 2020 and November 30, 2019.

 

EBITDA and Net and Comprehensive losses

 

We utilize earnings before interest, taxes,
depreciation and amortization (“EBITDA”) to measure operating performance. Our definition of EBITDA excludes depreciation
and amortization, finance (income) expense and income taxes which in our view does not adequately reflect our core operating results.
EBITDA is used in the determination of short-term incentive compensation for all senior management personnel.

 

EBITDA is not a measure of performance
under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance
with IFRS or as a measure of operating performance or profitability. EBITDA does not have a standardized meaning prescribed by
IFRS and is not necessarily comparable to similar measures presented by other companies.

 

    5

     

    

 

The following table reconciles net and
comprehensive loss to EBITDA:

(in thousands of Canadian dollars)

 

	 	 	Three Months Ended	 
	 	 	November 30, 2020	 	 	November 30, 2019	 
	Net loss for the period	 	$	(12,673	)	 	$	(4,110	)
	 	 	 	 	 	 	 	 	 
	Adjustments:	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	1,384	 	 	 	1,213	 
	Finance (income) expense, net	 	 	2,015	 	 	 	1,172	 
	Deferred income tax (recovery)	 	 	-	 	 	 	(3,107	)
	 	 	 	 	 	 	 	 	 
	EBITDA	 	$	(9,274	)	 	$	(4,832	)

 

EBITDA loss for the three month period
ended November 30, 2020 was $9.3 million compared to an EBITDA loss of $4.8 million in the same period in the prior year,
an increase of $4.5 million.

 

Net loss for the three month period ended
November 30, 2020 was $12.7 million compared to a loss of $4.1 million in the same period in the prior year, an increase of
$8.6 million.

 

Loss per share for the three month period
ended November 30, 2020 was $(0.03) compared to loss per share of $(0.01) in the same period in the prior year.

 

Additions to Intangible Assets

 

During the three months ended November 30,
2020, we capitalized product development costs of $1.2 million (November 30, 2019 - $1.0 million). The significant development
projects for the three month period ended November 30, 2020 consisted of new features in theScore Bet app, significant enhancements
to live betting and sports data, and significant new enhancements to our core technology infrastructure.

 

We capitalized internal product development
costs during the three months ended November 30, 2020 and November 30, 2019 for both new development projects and projects
that, in our judgement, represent substantial improvements to existing products. In assessing whether costs can be capitalized
for improvements, we exercise significant judgement when considering the extent of the improvement and whether it is substantial,
whether it is sufficiently separable and whether expected future economic benefits are derived from the improvement itself. Factors
considered in assessing the extent of the improvement include, but are not limited to, the degree of change in functionality and
the impact of the project on the ability that we will be able to attract users to our products and increase user engagement with
our products. Costs, which do not meet these criteria, such as enhancements and routine maintenance, are expensed when incurred.
Future economic benefits from these capitalized projects include net cash flows from future sports betting revenue and future advertising
sales, which are dependent upon our ability to attract users to our products and increase user engagement with our products, and
may also include anticipated cost savings, depending upon the nature of the development project.

 

    6

     

    

 

Consolidated Quarterly Results

 

The following is selected consolidated
quarterly financial data which relates to our preceding eight quarters, inclusive of the quarter ended November 30, 2020.

 

	Quarterly Results	 	Revenue	 	 	EBITDA	 	 	Net income (loss)	 	 	Income (loss) per

 share – basic and 

diluted	 
	 	 	 	($000’s)	 	 	 	($000’s)	 	 	 	($000’s)	 	 	 	($)	 
	November 30, 2020	 	 	8,539	 	 	 	(9,274	)	 	 	(12,673	)	 	 	(0.03	)
	August 31, 2020	 	 	2,466	 	 	 	(8,270	)	 	 	(12,691	)	 	 	(0.04	)
	May 31, 2020	 	 	2,381	 	 	 	(8,736	)	 	 	(10,677	)	 	 	(0.03	)
	February 29, 2020	 	 	6,653	 	 	 	(8,625	)	 	 	(10,454	)	 	 	(0.03	)
	November 30, 2019	 	 	9,219	 	 	 	(4,832	)	 	 	(4,110	)	 	 	(0.01	)
	August 31, 2019	 	 	6,407	 	 	 	(4,149	)	 	 	(4,845	)	 	 	(0.01	)
	May 31, 2019	 	 	8,463	 	 	 	(1,120	)	 	 	(1,727	)	 	 	(0.01	)
	February 28, 2019	 	 	6,776	 	 	 	(2,189	)	 	 	(3,004	)	 	 	(0.01	)

 

Use of our applications has historically
reflected the general trends for sports schedules of the major North American sports leagues. As a result, our first fiscal quarter
ending November 30 is typically the strongest from a revenue perspective.

 

Quarterly revenue fluctuations are a combination
of the seasonality trend of usage described above and the market for digital media advertising in Canada and the United States.

 

EBITDA income (loss) and net income (loss)
fluctuations are due to revenue fluctuations (as above) as well as changes in discretionary marketing costs, infrastructure costs,
personnel costs, and in recent quarters, costs related to our sports betting operations and infrastructure costs, and seasonal
revenue fluctuations.

 

Liquidity Risk and Capital Resources

 

Cash and cash equivalents as of November 30,
2020 were $19.2 million compared to $40.1 million as of fiscal year ended August 31, 2020.

 

    7

     

    

 

Liquidity

 

Liquidity risk is the risk that we will
not be able to meet our financial obligations as they fall due. As at November 30, 2020 we had cash and cash equivalents of
$19.2 million (August 31, 2020 - $40.1 million), restricted cash related to customer deposits on the betting platform
of $5.6 million (August 31, 2020 - $1.9 million), accounts receivable of $10.2 million (August 31, 2020 - $5.5 million),
current tax credits recoverable of $1.6 million (August 31, 2020 - $1.6 million) and accounts payable and accrued liabilities
to third parties of $16.2 million (August 31, 2020 - $10.4 million). Accounts payable and accrued liabilities have contracted
maturities of less than twelve months.

 

We prepare budgets and cash flow forecasts
to assist in managing liquidity risk. We have a history of operating losses and can be expected to generate continued operating
losses and negative cash flows in the future while we carry out our current business plan to further develop and expand our business.
We can utilize our cash and cash equivalents to fund our operating and development expenditures.

 

We have access to an uncommitted variable
demand credit facility (the “Demand Credit Facility”) of up to $5.0 million with a Canadian chartered bank, of which
$5.0 million was available at November 30, 2020. The operating facility is available for working capital purposes. The amount
available under the Demand Credit Facility is based on a percentage of our accounts receivable and those of certain of our subsidiaries.
The Demand Credit Facility is available for working capital purposes and is secured by substantially all of our assets and all
of the assets of certain of our subsidiaries. The Demand Credit Facility bears interest at the lenders prime rate plus 1.00% per
annum. The Demand Credit Facility is repayable on demand and is subject to certain financial covenants. As of November 30,
2020 the amount drawn on the Demand Credit Facility is nil (August 31, 2020 – nil).

 

In July 2020, we entered into a $6.25
million revolving term credit facility with the same Canadian chartered bank that maintains the Demand Credit Facility, supported
by Export Development Corporation’s Business Credit Availability Program (“EDC BCAP”). The revolving term credit
facility is available to provide us additional liquidity and to mitigate the impact of COVID-19 on our operations. The revolving
term credit facility is secured by substantially all of our assets and all of the assets of certain of our subsidiaries. The revolving
term credit facility bears interest at the lenders prime rate plus 2.00% per annum and is subject to a facility fee in respect
of the EDC BCAP program of 1.80%. The revolving term credit facility is repayable by July 15, 2021, is extendable for a further
period of 364 days in certain circumstances and is subject to certain financial covenants. On November 27, 2020, we repaid
the full balance owing on the revolving term credit facility in the amount of $6.25 million.

 

While we can utilize our cash, cash equivalents
and credit facilities to fund our operating and development expenditures, we do not have access to other committed sources of funding,
and depending upon the level of expenditures and whether profitable operations can be achieved, we may be required to seek additional
funding in the future.

 

    8

     

    

 

Operations

 

Cash flows used in operating activities
for the three months ended November 30, 2020 were $11.2 million compared to $7.9 million in the same period of the prior year.
The increase in cash flows used in operations was a result of increases in costs related to our sports betting operations.

 

Financing

 

Cash flows used for financing activities
for the three months ended November 30, 2020 were $6.0 million compared to cash flows provided of $37.1 million in the same
period in the prior year. On November 27, 2020 we repaid $6.25 million owing on the revolving term credit facility and on
September 2, 2019 we closed a convertible debenture financing for $40.0 million less financing and other costs related to
closing of the financing.

 

Investing

 

Cash used in investing activities for the
three months ended November 30, 2020 was $3.7 million compared to $1.2 million in the same period in the prior year. The increase
in cash used in investing activities was due to increased investments in intangible assets.

 

Commitments

 

We have no debt guarantees, off-balance
sheet arrangements or long-term obligations other than the agreements noted below.

 

We have the following undiscounted contractual obligations at
November 30, 2020:

 

(in thousands of Canadian dollars)

 

	 	 	Payments Due by Period	 
	Contractual 

Obligation	 	Total	 	 	Within 1 

year	 	 	2-3 years	 	 	4-5 years	 	 	More than 5

 years	 
	Total Debt 1	 	 	46,755	 	 	 	-	 	 	 	-	 	 	 	46,755	 	 	 	-	 
	Lease Liabilities 2	 	 	1,783	 	 	 	973	 	 	 	810	 	 	 	-	 	 	 	-	 
	Purchase Obligations 3	 	 	46,282	 	 	 	9,591	 	 	 	12,774	 	 	 	6,077	 	 	 	17,840	 
	Total Contractual Obligations	 	 	94,820	 	 	 	10,564	 	 	 	13,584	 	 	 	52,832	 	 	 	17,840	 

 

 

1 Principal repayments related to convertible debenture.

2 Lease liabilities relate to right-of-use assets
which include head office space.

3 Purchase obligations are minimum payments under
contracts for periods ranging from one to twenty years.

 

    9

     

    

 

Convertible Debenture

 

On September 5, 2019, we completed
a non-brokered financing of $40.0 million by way of issuance of convertible debentures (“convertible debenture”). The
debentures carry an interest rate of 8.0%, payable in arrears, in equal semi-annual payments on the last day of February and
August in each year commencing on February 29, 2020, with a maturity date of August 31, 2024, or the earlier date
of redemption, repayment or conversion.

 

At the holder’s option, the debenture
may be converted into Class A Shares at any time prior to the close of business on the earlier of the business day immediately
preceding the maturity date and the business day immediately preceding the date fixed for redemption of the debenture. The conversion
price will be $0.75 for each Class A Share, being a conversion rate of 1,333.3333 Class A Shares issuable for each one
thousand dollars principal amount of the debenture, subject to adjustment in certain circumstances.

 

Subject to specified conditions, the debenture
may be redeemed at our option at par plus accrued and unpaid interest at any time after August 31, 2023 if the volume weighted
average trading price of the Class A Shares during the 20 trading days ending on the fifth trading day preceding the date
on which notice of the redemption is given is not less than 125% of the conversion price, or if the principal sum of the debenture
outstanding is $4.0 million or less.

 

Upon the occurrence of a change of control
of theScore or the sale of our core assets, we will be required to make an offer to purchase the debenture at a price equal to
105% of the principal amount plus accrued and unpaid interest.

 

The convertible debenture issuance resulted
in the recognition of a deferred tax liability of $3.1 million in the three months ended November 30, 2019.

 

Interest and accretion expense for the three months ended November 30,
2020 was $1.4 million (2019 - $1.2 million). As of November 30, 2020 we have elected to accrue unpaid interest of $3.2 million
(2019 – nil) to the principal sum outstanding of the debenture.

 

Related Party Transactions

 

In Fiscal 2013, we entered into a lease
for a property partially owned by John Levy, our Chairman and Chief Executive Officer. The aggregate rent paid during the three
months ended November 30, 2020 amounted to $10,000, respectively (2019 - $10,000).

 

The corresponding payable balance as at
November 30, 2020 was $808 (2019 - $0.3 million), which includes transactions whereby Norwest Video Inc. is to be reimbursed
for operational costs pursuant to its management services agreement with us.

 

These transactions are recorded at the
exchange amount, being the amount agreed upon between the parties.

 

    10

     

    

 

Financial Instruments and other instruments:

 

We have the following financial instruments:
cash and cash-equivalents, accounts receivable, accounts payable and a convertible debenture. Our financial instruments were comprised
of the following as at November 30, 2020; cash and cash equivalents of $19.2 million; accounts receivable of $10.2 million;
restricted cash related to customer deposits of $5.6 million; accounts payable and accrued liabilities $16.2 million and convertible
debenture of $30.9 million. Accounts receivable are carried at amortized cost. Accounts payable and accrued liabilities are carried
at amortized cost and are primarily comprised of short-term obligations owing to suppliers related to our operations.

 

Fair Value

 

Fair value is the estimated amount that
we would pay or receive to dispose of financial instruments in an arm’s length transaction between knowledgeable, willing
parties who are under no compulsion to act. The fair value of financial instruments that are traded in active markets at each reporting
date is determined by reference to quoted market prices, without any deduction for transaction costs. For financial instruments
not traded in an active market, the fair value is determined using appropriate valuation techniques that are recognized by market
participants. Such techniques may include using recent arm’s length market transactions, reference to the current fair value
of another instrument that is substantially the same, discounted cash flow analysis or other valuation models.

 

The fair values of our financial assets
and liabilities, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable and accrued liabilities
were deemed to approximate their carrying amounts due to the relative short-term nature of these financial instruments. The fair
value of the convertible debenture was deemed to approximate the carrying amount due to the short passage of time between issuance
date and the date of these interim financial statements and the risk factors for us remaining consistent within this period.

 

Customer concentration

 

As at November 30, 2020, no customer
had an accounts receivable balance exceeding 10% of the total accounts receivable balance (August 31, 2020 – two customers,
a media agency and programmatic network, represented 13% and 13% of the accounts receivable balance).

 

For the three
months ended November 30, 2020, sales to one customer, a programmatic network, exceeded 10% of total revenue, with this customer
representing 19% of total revenue for the period (three months ended November 30, 2019 – one customer, a media programmatic
network, represented 13% of total revenue for the period).

 

    11

     

    

 

Use of Proceeds – 2019 Convertible
Debenture Financing

 

On August 31, 2019, we entered into
an investment agreement (the “Investment Agreement”) with a fund managed and controlled by Fengate Asset Management
(“Fengate”), pursuant to which we issued a convertible debenture to Fengate on September 5, 2019 for gross proceeds
of $40.0 million and net proceeds of $37.0 million (the “2019 Convertible Debenture Financing”). The following is a
tabular comparison of the use of proceeds disclosed in our MD&A for the fiscal year ended August 31, 2020 (the “2020
Annual MD&A”) and the actual use of the net proceeds subsequent to the 2019 Convertible Debenture Financing. Net proceeds
from the convertible debenture were exhausted during the quarter ended November 30, 2020.

 

	Use of Proceeds	 	Disclosed in

 the
 2020 Annual
 MD&A	 	 	Net
 Proceeds and
 estimated use 
 of 2019
 Convertible
 Debenture
 Financing	 	 	Variance	 
		 	(Cdn$)	 	 	 	 	 	 	 
	Sources:	 	 	 	 	 	 	 	 	 
	Net proceeds of the 2019 Convertible Debenture Financing	 	$	40,000,000	 	 	$	36,969,204	 	 	$	3,030,796	 
	Total:	 	$	40,000,000	 	 	$	36,969,204	 	 	$	3,030,796	 
	Uses:	 	 	 	 	 	 	 	 	 	 	 	 
	Use of cash for the growth and development of our media and sports betting businesses	 	$	40,000,000	 	 	$	25,878,443	 	 	$	14,121,557	 
	Balance for working capital and general corporate purposes(1)	 	 	N/A	 	 	$	11,090,761	 	 	 	N/A	 
	Total:	 	$	40,000,000	 	 	$	36,969,204	 	 	$	3,030,796	 

 

 

1 Funds used for working capital and general corporate
purposes indirectly support the growth and development of our media and sports betting businesses. In addition, the variability
of various aspects of the growth and expansion of our sports betting business (including the enactment of enabling gaming legislation
and regulations, negotiation of market access, applications for direct licensure and the receipt of required licenses and other
regulatory approvals), and the impact this variability has on our ability to accurately predict the specific timing and need for
funds, funds may be reallocated from time to time as permitted.

 

    12

     

    

 

Use of Proceeds – 2020 August Bought
Deal Offering

 

In August 2020, we completed a bought
deal offering of Class A shares, including over-allotment option, of 39.5 million Class A shares (the “2020 August Bought
Deal Offering”) that resulted in gross proceeds of $25.6 million and net proceeds of $23.6 million. The following is a tabular
comparison of the use of proceeds disclosed in our short form prospectus and our estimated use of the net proceeds subsequent to
the 2020 August Bought Deal Offering. The $23.6 million of actual net proceeds shown below includes the net proceeds from
the partial exercise of the over-allotment option by the underwriters of the 2020 Offering.

 

	Use of Proceeds	 	Disclosed in 

the 2020 August

Bought Deal

 Offering 

Prospectus  	 	 	Net 

Proceeds and

 estimated use 

of 2020

 August 

Bought Deal

 Offering	 	 	Variance  	 
		 	(Cdn$)	 	 	 	 	 	 	 
	Sources:	 	 	 	 	 	 	 	 	 
	Net proceeds of the 2020 August Bought Deal Offering	 	$	23,023,500	 	 	$	23,610,426	 	 	$	586,926	 
	Total:	 	$	23,023,500	 	 	$	23,610,426	 	 	$	586,926	 
	Uses:	 	 	 	 	 	 	 	 	 	 	 	 
	Working capital and general corporate purposes(1)	 	$	23,023,500	 	 	$	23,610,426	 	 	$	586,926	 
	Total:	 	$	23,023,500	 	 	$	23,610,426	 	 	$	586,926	 

 

Consistent with the disclosures made in
the 2020 August Bought Deal Offering Prospectus, the increase in net proceeds resulting from the exercise of the over-allotment
option on September 18, 2020, that were allocated to working capital and general corporate purposes.

 

Other than the increased funds for working
capital and general corporate purposes disclosed above, to date, there have been no material variances in the estimated use of
proceeds from the disclosures made in the 2020 August Bought Deal Offering Prospectus.

 

 

1 General corporate
purposes includes the continued growth and expansion of theScore Bet’s operations in the United States and Canada by
supporting the multi-jurisdiction deployment and operation of the Score Bet and user acquisition and retention in
jurisdictions where we are or will be operating.

 

    13

     

    

 

Critical Accounting Estimates and Judgements

 

Our significant accounting policies are
described in note 2 to the fiscal 2020 audited consolidated financial statements and notes thereto, which have been prepared in
accordance with IFRS. The preparation of these fiscal 2020 consolidated financial statements requires us to make estimates, assumptions
and judgments that affect the reported amounts of assets and liabilities, and related disclosures at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting periods.

 

We use estimates when accounting for certain
items such as revenues, capitalization of product development costs, allowance for doubtful accounts, amortization of intangible
assets, useful lives of property and equipment, asset impairments, share-based compensation plans, deferred income taxes and impairment
of intangible assets.

 

Estimates are also made by us when recording
the fair value of assets capitalized and receivables recognized. Estimates are based on numerous factors, including historical
experience, current events and other assumptions that we believe are reasonable under the circumstances. By their nature, these
estimates are subject to measurement uncertainty and actual results could differ. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected.

 

Actual results could differ from those
estimates. Critical accounting estimates and significant judgments are generally discussed with the Audit Committee each quarter.
The most significant estimates and judgments made by us are described below.

 

Intangible assets

 

Our judgment is applied, and estimates
are used, in determining whether costs qualify for recognition as internally developed intangible assets. To be able to recognize
an intangible asset, we must demonstrate the item meets the definition of an intangible asset in IAS 38. We exercise significant
judgment in determining whether an item meets the identifiability criteria in the definition of an intangible asset which, in part,
requires that the item is capable of being separated or divided from us and sold, transferred or licensed either individually or
together with a related contract or asset, whether or not we intend to do so. Judgment is required to distinguish those expenditures
that develop the business as a whole, which cannot be capitalized as intangible assets and are expensed in the years incurred.

 

Also, to recognize an intangible asset,
we, in our judgment, must demonstrate that it is probable that expected future economic benefits will flow to us and that the cost
of the asset can be measured reliably. Estimates are used to determine the probability of expected future economic benefits that
will flow to us. Future economic benefits include net cash flows from the sports betting app as well as net cash flows from future
advertising sales, which are dependent upon our ability to attract users to our products and increase user engagement with our
products, and may also include anticipated cost savings, depending upon the nature of the development project.

 

    14

     

    

 

We capitalized internal product development
costs during quarter ended November 30, 2020 and 2019 for both new development projects and projects that, in our judgment,
represent substantial improvements to existing products. In assessing whether costs can be capitalized for improvements, we exercise
significant judgment when considering the extent of the improvement and whether it is substantial, whether it is sufficiently separable
and whether expected future economic benefits are derived from the improvement itself. Factors considered in assessing the extent
of the improvement include, but are not limited to, the degree of change in functionality and the impact of the project on our
ability to attract users to our products and increase user engagement with our products. Costs which do not meet these criteria,
such as enhancements and routine maintenance, are expensed when incurred.

 

In addition, we use estimation in determining
the measurement of internal labour costs capitalized to intangible assets. The capitalization estimates are based upon the nature
of the activities the developer performs.

 

Our judgment is also used in determining
appropriate amortization methods for intangible assets, and estimates are used in determining the expected useful lives of amortizable
intangible assets.

 

Tax credits

 

Refundable tax credits related to expenditures
to develop digital media products are recognized when there is reasonable assurance that they will be received and we have and
will comply with the conditions associated with the relevant government program. Our judgment is required in determining which
expenditures and projects are reasonably assured of compliance with the relevant conditions and criteria and have, accordingly,
met the recognition criteria.

 

Impairment of non-financial assets

 

An impairment test is carried out whenever
events or changes in circumstances indicate that carrying amounts may not be recoverable and is performed by comparing the carrying
amount of an asset or CGU and its recoverable amount. Our judgment is required in determining whether an impairment indicator exists.
The recoverable amount is the higher of fair value, less costs to sell, and its value in use over its remaining useful life.

 

This valuation process involves the use
of methods which use assumptions to estimate future cash flows. The recoverable amount depends significantly on the discount rate
used, as well as the expected future cash flows and the terminal growth rate used for extrapolation.

 

Programmatic receivables

 

We estimate receivables pertaining to programmatic
advertising revenues, based on the best information available at the recognition date. These estimates are trued up at the time
of payment.

 

Amongst other factors, we consider the
historic experience with the programmatic partner and the age of the outstanding balance.

 

    15

     

    

 

Allowance for doubtful accounts

 

The valuation of accounts receivable requires
valuation estimates to be made by us. These accounts receivable comprise a large and diverse base of advertisers dispersed across
varying industries and locations that purchase advertising on our digital media platforms.

 

We determine an allowance for doubtful
accounts based on knowledge of the financial conditions of our customers, the aging of our receivables, customer and industry concentrations,
our current business environment and our historical experience. A change in any of the factors impacting the estimate of the allowance
for doubtful accounts will directly impact the amount of bad debt expense recorded in facilities, administrative and other expenses.

 

The loss allowance for trade receivables
must be calculated using the expected lifetime credit loss and recorded at the time of initial recognition.

 

Subsequent Event

 

On December 17, 2020, we completed
a short-form bought deal prospectus offering where 28,572,000 Class A subordinate voting shares were issued at a price per
share of $1.40. On December 31, 2020, the underwriters exercised their overallotment option in full, purchasing an additional
4,285,800 Class A subordinate voting shares for at a price per share of $1.40, resulting in total gross proceeds of the offering
of $46.0 million.

 

We stated in our short form prospectus
dated December 11, 2020 (the “December Prospectus”) that we intend to use the net proceeds from the December 2020
Offering to fund working capital and other general corporate purposes, including the continued growth and expansion of theScore
Bet's operations in the United States and Canada by supporting the multi-jurisdiction deployment and operation of theScore Bet
and user acquisition and retention in jurisdictions where we currently operate, or will be operating in the future. To date, there
have been no material variances in the use of proceeds from the December 2020 Offering from the disclosures made in the December Prospectus.

 

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