Document:

Exhibit 4.4

 

AcuityAds Holdings Inc.

 

Condensed Interim Consolidated

Financial Statements

(Unaudited)

Three months ended

March 31, 2021 and 2020

(expressed in Canadian dollars)

 

     

     

    

 

AcuityAds Holdings Inc.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited)

 

(expressed in Canadian dollars)

 

	 	 	March 31,

    2021
 $	 	 	December 31,

    2020
 $	 
	Assets	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current
    assets	 	 	 	 	 	 	 	 
	Cash
    and cash equivalents	 	 	27,010,140	 	 	 	22,638,300	 
	Accounts
    receivable	 	 	27,443,181	 	 	 	31,859,306	 
	Prepaid
    expenses and other	 	 	2,041,419	 	 	 	1,901,067	 
	Investment
    tax credits receivable	 	 	–	 	 	 	21,922	 
	 	 	 	56,494,740	 	 	 	56,420,595	 
	Non-current
    assets	 	 	 	 	 	 	 	 
	Property
    and equipment (note 3)	 	 	6,954,965	 	 	 	7,945,110	 
	Intangible
    assets (note 4)	 	 	2,845,385	 	 	 	3,197,953	 
	Goodwill	 	 	4,869,841	 	 	 	4,869,841	 
	 	 	 	71,164,931	 	 	 	72,433,499	 
	Liabilities	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current
    liabilities	 	 	 	 	 	 	 	 
	Accounts
    payable and accrued liabilities	 	 	20,833,225	 	 	 	23,232,661	 
	Term
    loans (note 16)	 	 	2,436,213	 	 	 	2,481,550	 
	International
    loans (note 17)	 	 	528,280	 	 	 	1,092,297	 
	Lease
    obligations (notes 5)	 	 	2,276,678	 	 	 	2,850,497	 
	 	 	 	26,074,396	 	 	 	29,657,005	 
	Non-current
    liabilities	 	 	 	 	 	 	 	 
	Term
    loans (note 16)	 	 	5,102,996	 	 	 	5,796,454	 
	International
    loans (note 17)	 	 	782,418	 	 	 	887,932	 
	Lease
    obligations (notes 5)	 	 	3,667,373	 	 	 	4,041,520	 
	 	 	 	35,627,183	 	 	 	40,382,911	 
	 	 	 	 	 	 	 	 	 
	Shareholders’
    Equity (notes 7)	 	 	35,537,748	 	 	 	32,050,588	 
	 	 	 	71,164,931	 	 	 	72,433,499	 

 

     

     

    

 

AcuityAds Holdings Inc.

Condensed Interim Consolidated Statements of Income (Loss)

(Unaudited)

 

(expressed in Canadian dollars)

 

	 	 	March 31,
 2021
 $	 	 	March 31,
 2020
 $	 
	Revenue	 	 	 	 	 	 	 	 
	Managed services	 	 	22,256,217	 	 	 	19,318,275	 
	Self-service	 	 	5,198,375	 	 	 	4,897,325	 
	 	 	 	27,454,592	 	 	 	24,215,600	 
	Media costs	 	 	13,090,500	 	 	 	12,027,213	 
	Gross profit	 	 	14,364,092	 	 	 	12,188,387	 
	Operating expenses	 	 	 	 	 	 	 	 
	Sales and marketing	 	 	4,554,024	 	 	 	4,828,925	 
	Technology (note 11)	 	 	3,793,370	 	 	 	4,053,022	 
	General and administrative	 	 	1,531,793	 	 	 	1,600,238	 
	Share-based compensation (note 7)	 	 	864,392	 	 	 	143,124	 
	Depreciation and amortization	 	 	1,383,026	 	 	 	2,166,344	 
	 	 	 	12,126,605	 	 	 	12,791,653	 
	Income (loss) from operations	 	 	2,237,487	 	 	 	(603,266	)
	Finance costs (note 8)	 	 	274,880	 	 	 	602,392	 
	Foreign exchange (gain) loss	 	 	568,483	 	 	 	(1,514,296	)
	 	 	 	843,363	 	 	 	(911,904	)
	Net income before income taxes	 	 	1,394,124	 	 	 	308,638	 
	Income taxes (note 18)	 	 	30,243	 	 	 	103,864	 
	Net income for the year	 	 	1,363,881	 	 	 	204,774	 
	Net income per share (note 9)	 	 	 	 	 	 	 	 
	Basic and diluted	 	 	0.03	 	 	 	0.00	 

 

     

     

    

 

AcuityAds Holdings Inc.

Condensed Interim Consolidated Statements of Comprehensive Income
(Loss)

(Unaudited)

 

(expressed in Canadian dollars)

 

	 	 	March 31,
 2021
 $	 	 	March 31,
 2020
 $	 
	Net income for the period	 	 	1,363,881	 	 	 	204,774	 
	Exchange differences on translating foreign operations	 	 	754,331	 	 	 	664,172	 
	Comprehensive income (loss) for the period	 	 	609,550	 	 	 	(459,398	)

 

     

     

    

 

AcuityAds Holdings Inc.

Condensed Interim Consolidated Statements of Changes in Shareholders’
Equity

(Unaudited)

For the three-month periods ended March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

	 	 	2021	 
	 	 	Common
    shares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	  	Number 	  	  	Amount 

$	  	  	Contributed
  

surplus 

$	  	  	Warrants
  

$	  	  	Other
  reserves 

$	  	  	Deficit

 $	  	  	Total
  

$	  
	Balance
    – December 31, 2020	 	 	53,422,024	 	 	 	56,983,111	 	 	 	7,224,222	 	 	 	31,279	 	 	 	415,049	 	 	 	(32,603,073	)	 	 	32,050,588	 
	Shares
  issued – options exercised	  	  	 611,666	  	  	  	 857,882	  	  	  	 –	  	  	  	 –	  	  	  	 –	  	  	  	 –	  	  	  	 857,882	  
	Share-based
    compensation (note 7(c))	 	 	–	 	 	 	–	 	 	 	864,392	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	864,392	 
	Shares
  issued – Warrants exercised	  	  	 39,821	  	  	  	 61,723	  	  	  	 30,663	  	  	  	 (30,663	 )	  	  	 –	  	  	  	 –	  	  	  	 61,723	  
	Shares
    issued – DSUs/RSUs exercised (notes 7(d) and 7(e))	 	 	564,330	 	 	 	744,419	 	 	 	(744,419	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other
  comprehensive income	  	  	 –	  	  	  	 –	  	  	  	 –	  	  	  	 –	  	  	  	 339,282	  	  	  	 –	  	  	  	 339,282	  
	Net
    income for the year	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	1,363,881	 	 	 	1,363,881	 
	Balance
    – March 31, 2021	 	 	54,637,841	 	 	 	58,647,135	 	 	 	7,374,858	 	 	 	616	 	 	 	754,331	 	 	 	(31,239,192	)	 	 	35,537,748	 

 

	 	 	2020	 
	 	 	Common
    shares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	  	Number 	  	  	Amount

  $	  	  	Contributed

  surplus

  $	  	  	Warrants

  $	  	  	Other

  reserves

  $	  	  	Deficit

  $	  	  	Total

  $	  
	Balance
    – December 31, 2019	 	 	47,824,212	 	 	 	42,185,794	 	 	 	6,965,447	 	 	 	2,337,372	 	 	 	415,915	 	 	 	(36,294,063	)	 	 	15,599,465	 
	Share-based
    compensation (note 7(c))	 	 	–	 	 	 	–	 	 	 	143,124	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	143,124	 
	Shares
    issued – Warrants exercised	 	 	706,168	 	 	 	712,502	 	 	 	533,564	 	 	 	(533,564	)	 	 	–	 	 	 	–	 	 	 	712,502	 
	Shares
    issued – DSUs/RSUs exercised (notes 7(d) and 7(e))	 	 	593,236	 	 	 	507,623	 	 	 	(507,623	)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 
	Other
    comprehensive income	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,080,086	)	 	 	–	 	 	 	(1,080,086	)
	Net
    loss for the year	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	–	 	 	 	204,774	 	 	 	204,774	 
	Balance
    – March 31, 2020	 	 	49,123,616	 	 	 	43,405,919	 	 	 	7,123,512	 	 	 	1,803,808	 	 	 	(664,171	)	 	 	(36,089,289	)	 	 	15,579,779	 

 

     

     

    

 

AcuityAds Holdings Inc.

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited)

For the three-month periods ended March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

	 	 	2021

$	 	 	2020

$	 
	Cash provided by (used in)	 	 	 	 	 	 	 	 
	Operating activities	 	 	 	 	 	 	 	 
	Income for the year	 	 	1,363,881	 	 	 	204,774	 
	 	 	 	 	 	 	 	 	 
	Adjustments to reconcile net income to net cash flows	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	1,383,026	 	 	 	2,166,344	 
	Finance costs (note 8)	 	 	274,880	 	 	 	602,392	 
	Share-based compensation (note 7(c))	 	 	864,392	 	 	 	143,124	 
	Change in non-cash operating working capital	 	 	 	 	 	 	 	 
	Accounts receivable	 	 	4,416,125	 	 	 	8,003,584	 
	Prepaid expenses and other	 	 	(140,352	)	 	 	(540,503	)
	Investment tax credits receivable	 	 	21,922	 	 	 	65,918	 
	Accounts payable and accrued liabilities	 	 	(2,287,367	)	 	 	(6,130,551	)
	Interest paid – net	 	 	(241,264	)	 	 	(559,988	)
	 	 	 	5,655,243	 	 	 	3,955,094	 
	Investing activities	 	 	 	 	 	 	 	 
	Additions to property and equipment (note 3)	 	 	(40,313	)	 	 	(2,967,097	)
	Additions to intangible assets (note 4)	 	 	-	 	 	 	(260,929	)
	 	 	 	(40,313	)	 	 	(3,228,026	)
	Financing activities	 	 	 	 	 	 	 	 
	Amount drawn from revolving line of credit (note 15)	 	 	-	 	 	 	23,690,010	 
	Repayment of revolving line of credit (note 15)	 	 	-	 	 	 	(25,893,227	)
	Repayment of term loans principal (note 16)	 	 	(616,722	)	 	 	(302,625	)
	Additions to international loans	 	 	154,303	 	 	 	-	 
	Repayment of international loans	 	 	(823,834	)	 	 	(113,766	)
	Additions to leases	 	 	-	 	 	 	2,424,379	 
	Repayment of leases	 	 	(876,442	)	 	 	(847,102	)
	Proceeds from the exercise of warrants	 	 	61,723	 	 	 	712,502	 
	Proceeds from the exercise of stock options	 	 	857,882	 	 	 	-	 
	 	 	 	(1,243,090	)	 	 	(329,829	)
	 	 	 	 	 	 	 	 	 
	Increase (decrease) in cash and cash equivalents	 	 	4,371,840	 	 	 	397,239	 
	Cash and cash equivalents - Beginning of year	 	 	22,638,300	 	 	 	7,407,122	 
	Cash and cash equivalents - End of year	 	 	27,010,140	 	 	 	7,804,361	 
	Supplemental disclosure of non-cash transactions	 	 	 	 	 	 	 	 
	Additions
    to property and equipment under leases	 	 	-	 	 	 	2,962,605	 

 

     

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

		1	Corporate information

 

AcuityAds Holdings Inc. (“AcuityAds” or the “Company”),
and its wholly owned subsidiaries AcuityAds Inc., AcuityAds US Inc., 140 Proof Inc., and ADman Interactive S.L.U. (“ADman”),
a company that holds certain technology assets, is a leading provider of targeted digital media solutions, enabling advertisers to connect
intelligently with their audiences across online display, video, social and mobile campaigns. AcuityAds is a publicly traded company,
incorporated in Canada, and its head office is located at 70 University Ave, Suite 1200, Toronto, Ontario M5J 2M4. The Company’s
common shares are listed on the Toronto Stock Exchange in Canada, under the trading symbol “AT”.

 

Effective January 1, 2020 AcuityAds MM Inc. and Visible
Measures Corp were merged into AcuityAds US Inc. and 2422330 Ontario Inc. was amalgamated into AcuityAds Inc.

 

		2	Summary of significant accounting policies

 

Statement of compliance

 

These consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards
Board. The date the Board of Directors authorized the consolidated financial statements for issue is May 10, 2021.

 

Basis of presentation

 

These condensed interim consolidated financial statements
are prepared in Canadian dollars, which is the Company’s functional and reporting currency and have been prepared mainly under the
historical cost basis. Other measurement bases used are described in the applicable notes.

 

Significant accounting policies

 

The disclosures contained in these unaudited condensed interim
consolidated financial statements do not include all the requirements of IFRS for annual financial statements. The unaudited condensed
interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements for
the year ended December 31, 2020.

 

The unaudited condensed interim consolidated financial statements
are based on accounting policies, as described in note 2 to the 2020 audited annual consolidated financial statements.

 

Risks and uncertainties

 

On March 11, 2020, the World Health Organization declared
the outbreak of COVID-19 which continues to spread throughout Canada and around the world, as a global pandemic. To date, the Canadian
federal and provincial governments as well as businesses have mandated various measures, including: travel restrictions, restrictions
on public gatherings, stay-at-home orders and advisories, and the quarantine of individuals who have been exposed to the virus. COVID-19
and actions taken to mitigate the spread of it have had, and are expected to continue to have, an adverse impact on the economies and
financial markets of many countries, including the geographical area in which the Company operates.

 

The severity of the impact of the COVID-19 pandemic on the
Company’s business will depend on a number of factors, including but not limited to the duration and severity of the pandemic and
the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. COVID-19 could
cause a further and sustained decline in the Company’s share price or the occurrence of what management would deem to be a triggering
event that could, under certain circumstances, cause the Company to perform a goodwill or intangible assets impairment test and result
in an impairment charge being recorded for that period.

 

    1 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

As of the date of issuance of these condensed interim consolidated
financial statements, the extent to which the COVID-19 pandemic may materially impact the Company’s financial condition, liquidity
or results of operations is uncertain.

 

	3	Property and equipment

 

	 	 	Furniture
 and
 fixtures
 $	 	 	Data
 centre
 equipment
 $	 	 	Office
 computer
 equipment
 $	 	 	Equipment
 under
 finance
 leases
 $	 	 	Total
 $	 
	Net book value – December 31, 2020	 	 	850,831	 	 	 	8,824	 	 	 	367,405	 	 	 	6,718,050	 	 	 	7,945,110	 
	Additions	 	 	-	 	 	 	-	 	 	 	40,313	 	 	 	-	 	 	 	40,313	 
	Depreciation	 	 	(58,521	)	 	 	(2,503	)	 	 	(69,165	)	 	 	(900,269	)	 	 	(1,030,458	)
	Net book value – March 31, 2021	 	 	792,310	 	 	 	6,321	 	 	 	338,553	 	 	 	5,817,781	 	 	 	6,954,965	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	 	 	Furniture
 and
 fixtures
 $	 	 	Data
 centre
 equipment
 $	 	 	Office
 computer
 equipment
 $	 	 	Equipment
 under
 finance
 leases
 $	 	 	Total
 $	 
	Net book value – December 31, 2019	 	 	373,330	 	 	 	21,351	 	 	 	482,641	 	 	 	6,101,512	 	 	 	6,978,834	 
	Additions	 	 	-	 	 	 	-	 	 	 	4,491	 	 	 	2,962,606	 	 	 	2,967,097	 
	Depreciation	 	 	(29,966	)	 	 	(3,250	)	 	 	(56,619	)	 	 	(852,272	)	 	 	(942,107	)
	Net book value – March 31, 2020	 	 	343,364	 	 	 	18,101	 	 	 	430,513	 	 	 	8,211,846	 	 	 	9,003,824	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	4	Intangible assets

 

	 	 	Customer
 relationships
 $	 	 	Tradename
 $	 	 	Technology
 $	 	 	Total
 $	 
	Net book value – December 31, 2020	 	 	52,460	 	 	 	-	 	 	 	3,145,493	 	 	 	3,197,953	 
	Amortization	 	 	(29,912	)	 	 	-	 	 	 	(322,656	)	 	 	(352,568	)
	Net book value – March 31, 2021	 	 	22,548	 	 	 	-	 	 	 	2,822,837	 	 	 	2,845,385	 

 

	 	 	Customer
 relationships
 $	 	 	Tradename
 $	 	 	Technology
 $	 	 	Total
 $	 
	Net book value – December 31, 2019	 	 	1,641,517	 	 	 	336,548	 	 	 	5,763,817	 	 	 	7,741,883	 
	Additions	 	 	-	 	 	 	-	 	 	 	260,929	 	 	 	260,929	 
	Amortization	 	 	(381,232	)	 	 	(116,473	)	 	 	(726,533	)	 	 	(1,224,238	)
	Net book value – March 31, 2020	 	 	1,260,285	 	 	 	220,075	 	 	 	5,298,213	 	 	 	6,778,573	 

 

    2 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

During the three months ended March 31, 2021, the Company
capitalized $nil (2020 – $260,929) of development costs relating to revenue generating technology.

 

		5	Lease obligations

 

	 	 	March 31
 2021
 $	 	 	December 31,
 2020
 $	 
	Obligations under leases	 	 	5,944,051	 	 	 	6,892,017	 
	Less: Current portion	 	 	2,276,678	 	 	 	2,850,497	 
	 	 	 	3,667,373	 	 	 	4,041,520	 

 

The Company has minimum lease payment commitments under leases
for the following amounts:

 

	 	 	$	 
	2021	 	 	2,385,168	 
	2022	 	 	2,118,475	 
	2023	 	 	1,560,947	 
	2024	 	 	542,868	 
	 	 	 	6,607,458	 
	Less: Interest	 	 	663,407	 
	Present value of minimum lease payments	 	 	5,944,051	 

 

		6	Related party transactions and balances

 

Directors and officers are eligible to participate in the
Company’s long-term incentive plans. During the three months ended March 31, 2021, the Company issued nil (2020 – 170,000)
stock options to directors and officers of the Company (note 7(c)).

 

During the three months ended March 31, 2021, the Company
issued 97,498 (2020 - nil) RSUs to directors and officers of the Company. Of those issued in 2021, 85,225 were granted to officers and
12,273 were granted to directors in lieu of cash bonuses and director fees, all vesting immediately.

 

As at March 31, 2021 $nil (2020 - $1,319,625) of the
current outstanding term loans (note 16) relates to amounts loaned by related parties.

 

		7	Share capital and share based payments

 

		a)	Share capital

 

As at March 31, 2021, the Company had an unlimited number
of common shares authorized for issuance (2020 – unlimited) and 54,637,841 common shares outstanding (2020 – 53,422,024).

 

		b)	Equity financing

 

On December 4, 2020, the Company closed a bought deal
offering comprised of 1,968,000 common shares issued from treasury and offered by the Company at a price of $6.10 per share for total
gross proceeds of $12,004,800, including the full exercise by the underwriters of the over-allotment option. The offering was completed
by a syndicate of underwriters. In consideration for their services, the underwriters received aggregate cash compensation equal to 6%
of the gross proceeds of the offering. The Company incurred additional share issuance costs of $1,386,913 in connection with the offering.

 

    3 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

		c)	Stock option plan and Omnibus Incentive Plan

 

The Company has a stock option plan (the “Stock Option
Plan”), deferred share unit plan (the “Deferred Share Unit Plan”) and an omnibus long-term incentive plan (the “Omnibus
Incentive Plan”). Since the adoption of the Omnibus Incentive Plan by shareholders on June 16, 2020, the Company has stopped
issuing new stock options under its Stock Option Plan and new DSUs under its Deferred Share Unit plan. Previously issued stock options
and DSUs remain outstanding and are governed by the plans under which they were initially issued.

 

Under the Stock Option Plan, the Board of Directors granted
stock options to employees, officers, directors and consultants of the Company. The expiry date of options granted under the Stock Option
Plan typically did not exceed five years from the grant date. The vesting schedule was at the discretion of the Board of Directors and
was generally annually over a three-year period. The exercise price of options was equal to the market price per share on the day preceding
the grant date.

 

The Omnibus Incentive Plan allows for a variety of equity-based
awards to be granted to officers, directors, employees and consultants (in the case of stock options, PSUs and RSUs) and non-employee
directors (in the case of DSUs). Stock options, PSUs, RSUs and DSUs are collectively referred to herein as “Awards”. Each
Award represents the right to receive common shares, or in the case of PSUs, RSUs and DSUs, common shares or cash, in accordance with
the terms of the Omnibus Incentive Plan.

 

The maximum number of common shares reserved for issuance,
in the aggregate, under the Omnibus Incentive Plan, the Stock Option Plan, the Deferred Share Unit Plan of the Company and any other security
based compensation arrangement, collectively, is 15% of the aggregate number of common shares issued and outstanding from time to time.

 

As at March 31, 2021, the Company was entitled to issue
a maximum of 8,195,676 equity-based awards, collectively under the Omnibus Incentive Plan, the existing Stock Option Plan, the existing
DSU Plan and any other security-based compensation arrangement.

 

    4 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

The following table summarizes the continuity of options issued
under the Stock Option Plan:

 

	 	 	March 31,

2021	 	 	March 31,

2020	 
	 	 	Number of options	 	 	Weighted

average

exercise

price

$	 	 	Number of options	 	 	Weighted

average

exercise

price

$	 
	Outstanding – Beginning of year	 	 	1,865,519	 	 	 	1.69	 	 	 	3,409,886	 	 	 	1.45	 
	Granted	 	 	3,333	 	 	 	1.06	 	 	 	235,000	 	 	 	1.59	 
	Forfeited or cancelled	 	 	-	 	 	 	-	 	 	 	(703,385	)	 	 	1.03	 
	Exercised	 	 	(611,666	)	 	 	1.40	 	 	 	-	 	 	 	-	 
	Outstanding – End of year	 	 	1,257,186	 	 	 	1.83	 	 	 	2,941,501	 	 	 	1.45	 
	Options exercisable – End of year	 	 	780,688	 	 	 	2.14	 	 	 	1,857,836	 	 	 	1.73	 

 

The following table summarizes the continuity of options issued
under the Omnibus Incentive Plan:

 

	 	 	March 31,

2021	 	 	March 31,

2020	 
	 	 	Number of options	 	 	Weighted average

exercise

price

$	 	 	Number of

options	 	 	Weighted

average

exercise

price

$	 
	Outstanding – Beginning of year	 	 	35,000	 	 	 	2.09	 	 	 	-	 	 	 	-	 
	Granted	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Forfeited or cancelled	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Exercised	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Outstanding – End of year	 	 	35,000	 	 	 	2.09	 	 	 	-	 	 	 	-	 
	Options exercisable – End of year	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 

 

    5 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

A summary of the Company’s combined stock options
and Omnibus options outstanding under the above plans is as follows:

 

	 	 	March 31,
 2021	 
	Range of

 exercise 

prices 

$	 	Number
 of options
	 	 	Weighted
 average
 remaining
 contractual
 life (years)
	 	 	Weighted
 average
 number of
 options
 exercisable
	 
	0.96	 	 	37,333	 	 	 	2.42	 	 	 	667	 
	1.06	 	 	132,168	 	 	 	2.50	 	 	 	43,667	 
	1.13	 	 	95,000	 	 	 	4.17	 	 	 	-	 
	1.14	 	 	10,000	 	 	 	2.67	 	 	 	6,667	 
	1.15	 	 	20,000	 	 	 	3.67	 	 	 	6,667	 
	1.27	 	 	8,334	 	 	 	3.42	 	 	 	1,668	 
	1.55	 	 	83,017	 	 	 	3.17	 	 	 	4,351	 
	1.59	 	 	185,000	 	 	 	3.92	 	 	 	51,668	 
	1.71	 	 	506,334	 	 	 	3.00	 	 	 	485,333	 
	1.94	 	 	50,000	 	 	 	0.42	 	 	 	50,000	 
	2.09	 	 	35,000	 	 	 	4.42	 	 	 	-	 
	4.12	 	 	7,500	 	 	 	1.17	 	 	 	7,500	 
	4.47	 	 	22,500	 	 	 	1.42	 	 	 	22,500	 
	4.60	 	 	100,000	 	 	 	1.00	 	 	 	100,000	 
	 	 	 	1,292,186	 	 	 	 	 	 	 	780,688	 

 

	 	 	March 31,
 2020	 
	Range of

 exercise

 prices

 $	 	Number
 of options
	 	 	Weighted
 average
 remaining
 contractual
 life (years)
	 	 	Weighted
 average
 number of
 options
 exercisable
	 
	0.64	 	 	500,000	 	 	 	3.17	 	 	 	166,667	 
	0.78	 	 	90,000	 	 	 	0.17	 	 	 	90,000	 
	0.83	 	 	100,000	 	 	 	0.67	 	 	 	100,000	 
	0.94	 	 	90,000	 	 	 	0.42	 	 	 	90,000	 
	0.96	 	 	110,000	 	 	 	3.42	 	 	 	36,666	 
	1.00	 	 	75,000	 	 	 	0.92	 	 	 	75,000	 
	1.06	 	 	285,500	 	 	 	3.50	 	 	 	95,167	 
	1.08	 	 	75,000	 	 	 	1.00	 	 	 	75,000	 
	1.14	 	 	10,000	 	 	 	3.67	 	 	 	3,333	 
	1.15	 	 	20,000	 	 	 	4.67	 	 	 	-	 
	1.27	 	 	10,000	 	 	 	4.42	 	 	 	-	 
	1.34	 	 	10,001	 	 	 	1.17	 	 	 	10,001	 
	1.55	 	 	118,000	 	 	 	4.17	 	 	 	-	 
	1.59	 	 	235,000	 	 	 	4.92	 	 	 	-	 
	1.71	 	 	828,000	 	 	 	4.00	 	 	 	786,000	 
	1.94	 	 	100,000	 	 	 	1.42	 	 	 	100,000	 
	4.12	 	 	95,000	 	 	 	2.17	 	 	 	63,334	 
	4.47	 	 	70,000	 	 	 	2.42	 	 	 	46,668	 
	4.60	 	 	120,000	 	 	 	2.00	 	 	 	120,000	 
	 	 	 	2,941,501	 	 	 	 	 	 	 	1,857,836	 

 

    6 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

During the three months ended March 31, 2021, the Company
recorded share-based compensation expense under the Black-Scholes option pricing model, related to stock options granted to employees,
officers, directors and consultants of the Company of $864,392 (2020 – $143,124).

 

During the three months ended March 31, 2021, the Company
granted nil (2020 – 235,000) stock options with a weighted average exercise price of $nil (2020 – $1.59) to employees, officers,
directors and consultants of the Company. Of those options, nil (2020 – 235,000) options were granted to officers or employees of
the Company. Nil (2020 – nil) options were granted to consultants as compensation for services rendered at a weighted average price
of $nil (2020 – $nil).

 

During the three months ended March 31, 2021, 611,666
options were exercised at a weighted average exercise price of $1.40 per option, for gross proceeds of $857,882 (2020 – no options
were exercised).

 

During three months ended March 31, 2021, the Company
granted nil (2020 – nil) options under the Omnibus Incentive Plan with a weighted average exercise price of $nil (2020 – nil)
to employees, officers, and directors.

 

During the three months ended March 31, 2021, nil (2020
 – nil) options were exercised.

 

Share-based compensation expense was determined based on the
fair value of the options at the date of measurement using the Black-Scholes option pricing model with the weighted average assumptions
for options granted during the three months ended March 31 as follows:

 

	 	 	2021

$	 	 	2020

$	 
	Weighted average grant date fair value of options granted	 	$	1.45	 	 	$	1.46	 
	Weighted average assumptions used	 	 	 	 	 	 	 	 
	Expected option life	 	 	5 years	 	 	 	5 years	 
	Risk-free interest rate	 	 	1.43	%	 	 	1.46	%
	Expected volatility	 	 	143	%	 	 	101	%

 

The expected volatility was estimated based on the historical
volatility of the Company’s shares that covers the expected life of the options granted. The expected option life was estimated
based on historical data and represents the numbers of years the options are expected to be outstanding. The risk-free rate was estimated
based on the Government of Canada marketable bonds with a term that covers the expected life of the options granted.

 

		d)	Deferred share units

 

During the three months ended March 31, 2021, the Company
issued nil (2020 – 132,415) DSUs to employees, officers, independent directors and consultants of the Company, vesting every year
in the measure of one third. During the three months ended March 31, 2021, 374,496 DSUs were exercised.

 

		e)	Restricted share units

 

During the three months ended March 31, 2021, the Company
issued 171,693 (2020 – nil) RSUs to employees, officers, directors and consultants of the Company. During the three months ended
March 31, 2021, 189,834 (2020 – nil) RSUs were exercised.

 

    7 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

	8	Finance costs

 

	 	 	March 31
 2021
 $	 	 	March 31,
 2020
 $	 
	Finance costs	 	 	 	 	 	 	 	 
	Interest on finance leases and other interest	 	 	147,593	 	 	 	184,920	 
	Interest and fees on revolving line of credit (note 15)	 	 	-	 	 	 	250,736	 
	Interest and fees on term loans (note 16)	 	 	127,287	 	 	 	166,736	 
	 	 	 	274,880	 	 	 	602,392	 

 

	9	Net income (loss) per share

 

The computations for basic and diluted net income (loss)
per share for the three months ended March 31, 2021 and 2020 are as follows:

 

	 	 	2021

$	 	 	2020

$	 
	Net income (loss) for the year	 	 	1,363,881	 	 	 	204,774	 
	Weighted average number of shares outstanding – basic and diluted	 	 	54,398,478	 	 	 	48,997,938	 
	Net income (loss) per share – basic and diluted	 	 	0.03	 	 	 	0.00	 

 

Exercisable options to purchase 780,688 common shares (2020
 – 1,857,836) and 800 warrants (2020 – 1,785,872) were outstanding as at March 31, 2021. The weighted average numbers
of options and warrants were excluded from the calculation of diluted income (loss) per share for the three months ended March 31,
2021 and 2020 because their inclusion would have been anti-dilutive.

 

		10	Segment information

 

The Company’s assets and operations are substantially
located in Canada; however, the Company also has employees and customers in the United States and Europe, and generates revenue in each
region. Revenue by region for the three months ended March 31, 2021 and 2020 is as follows:

 

	 	 	2021

$	 	 	2020

$	 
	United States	 	 	21,430,134	 	 	 	17,829,363	 
	Canada	 	 	3,111,483	 	 	 	2,780,381	 
	Europe and other	 	 	2,912,975	 	 	 	3,605,856	 
	 	 	 	27,454,592	 	 	 	24,215,600	 

 

During the three months ended March 31, 2021, the Company
had one customer that represented 18% (2020 - 18%) of total revenue.

 

		11	Government assistance

 

During the year ended December 31, 2020, the Company
secured a $3,000,000 commitment funding from the National Research Council’s Industrial Research Assistance Program (“IRAP”)
that is expected to be paid between May 2020 and October 2021, subject to the Company meeting certain program requirements.
During the three months ended March 31, 2021, the Company has received $815,930 of this commitment from IRAP, and these amounts were
used to reduce technology costs on the condensed interim consolidated statement of income (loss).

 

    8 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

	12	Financial instruments

 

Classification of financial instruments

 

The following table provides the allocation of financial
instruments and their associated financial instrument classifications:

 

	 	 	Loans
and receivables/
 financial liabilities

(amortized cost)
	 
	Measurement basis	 	March 31,
 2021
 $	 	 	December 31,
 2020
 $	 
	Financial assets	 	 	 	 	 	 	 	 
	Cash and cash equivalents	 	 	27,010,140	 	 	 	22,638,300	 
	Accounts receivable	 	 	27,443,181	 	 	 	31,859,306	 
	Investment tax credit receivable	 	 	-	 	 	 	21,922	 
	 	 	 	54,453,321	 	 	 	54,519,528	 

 

	 	 	Loans
and receivables/
 financial liabilities

(amortized cost)
	 
	Measurement basis	 	 	March 31,
 2021
 $	 	 	 	December 31,
 2020
 $	 
	Financial liabilities	 	 	 	 	 	 	 	 
	Accounts payable and accrued liabilities	 	 	20,833,225	 	 	 	23,232,661	 
	Term loans	 	 	7,539,209	 	 	 	8,278,004	 
	International loans	 	 	1,310,698	 	 	 	1,980,229	 
	Lease obligations	 	 	5,944,051	 	 	 	6,892,017	 
	 	 	 	35,627,183	 	 	 	40,382,911	 

 

Fair value measurements

 

The Company provides disclosure of the three-level hierarchy
that reflects the significance of the inputs used in making the fair value measurement. The carrying values of cash and cash equivalents,
restricted cash, accounts receivable, ITC receivable, revolving line of credit, repayable government grant, accounts payable and
accrued liabilities, current portion of finance lease obligations, current portion of contingent consideration and current portion of
term loans approximate their fair values given their short-term nature. The carrying value of the non-current liabilities approximates
their fair value, given that the difference between the discount rates used to recognize the liabilities in the consolidated statements
of financial position and the market rates of interest is not considered significant. 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;

 

    9 

     

    

  

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

		·	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.

 

There were no transfers of financial assets during the three
months ended March 31, 2021 and 2020 between any of the levels.

 

		13	Capital risk management

 

The Company’s objectives in managing capital are to
ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions and to provide returns to its
shareholders. The Company defines capital that it manages as the aggregate of its shareholders’ equity, which comprises issued capital,
contributed surplus and deficit. The Company manages its capital structure and makes adjustments to it in working capital requirements.
In order to maintain or adjust its capital structure, the Company, upon approval from the Board of Directors, may issue shares, repurchase
shares, pay dividends or undertake other activities as deemed appropriate under the specific circumstances. The Company is not subject
to externally imposed capital requirements, except for certain monthly financial covenants associated with the revolving line of credit
as described in note 19.

 

		14	Financial risk management

 

The Company’s Board of Directors has overall responsibility
for the establishment and oversight of the Company’s risk management framework and reviews the Company’s risk management policies
on an annual basis. Management identifies and evaluates financial risks and is charged with the responsibility of establishing controls
and procedures to ensure that financial risks are mitigated in accordance with the approved policies.

 

Credit risk

 

Credit risk is the risk of financial loss to the Company
if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises from the Company’s
accounts receivable and cash. As at March 31, 2021, one customer represented 18% of the gross accounts receivable balance of $27,743,181
(2020 - $30,734,142).

 

The Company reviews the components of these accounts on a
regular basis to evaluate and monitor this risk. The Company’s customers are generally financially established organizations, which
limits the credit risk relating to the customers. In addition, credit reviews by the Company take into account the counterparty’s
financial position, past experience and other factors.

 

The accounts receivable balances due from these significant
customers were current as at March 31, 2021. As at March 31, 2021, the allowance for doubtful accounts was $300,000 (2020 –
$502,974). In establishing the appropriate allowance for doubtful accounts, management makes assumptions with respect to the future collectability
of the receivables. Assumptions are based on an individual assessment of a customer’s credit quality as well as subjective factors
and trends. Overdue accounts as at March 31, 2021 were $4,035,829 (2020 – $3,265,926), which is in the normal course of business.
Management believes that the allowance is adequate.

 

The Company from time to time invests its excess cash in
accounts with Schedule I banks, with the objective of maintaining the safety of the principal and providing adequate liquidity to meet
current payment obligations and future planned capital expenditures and with the secondary objective of maximizing the overall yield of
the portfolio. The Company’s cash as at March 31, 2021 is not subject to external restrictions. Investments must be rated at
least investment grade by recognized rating agencies. Given these high credit ratings, the Company does not expect any counterparties
to these investments to fail to meet their obligations.

 

    10 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

Liquidity risk

 

Liquidity risk is the risk that the Company will not be able
to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure, to the extent possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation. The Company manages its liquidity risk by continually monitoring
forecasted and actual revenue and expenditures and cash flows from operations. Management is also actively involved in the review and
approval of planned expenditures. The Company’s principal cash requirements are for principal and interest payments on its debt,
capital expenditures and working capital needs. The Company uses its operating cash flows, loans and borrowings and cash balances to maintain
liquidity. In the event that future cash flows from operations are lower than expected, the Company may need to seek additional financing,
either by issuing additional equity or by undertaking additional borrowings. There is no certainty that additional financing will be available
or that it will be available on attractive terms.

 

The following are the contractual maturities for the financial
liabilities:

 

	 	 	March 31,

2021
	 
	 	 	 	Carrying
 amount
 $
	 	 	 	Total
 contractual
 cash flows
 $
	 	 	 	Less than
 1
                                                                                                                                                                                                                      year
 $
	 	 	 	1 to 3
 Years
 $
	 	 	 	>3 years
 $	 
	Accounts payable and accrued liabilities	 	 	20,833,225	 	 	 	20,833,225	 	 	 	20,833,225	 	 	 	-	 	 	 	-	 
	Revolving line of credit	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	International Loans	 	 	1,310,698	 	 	 	1,310,698	 	 	 	528,280	 	 	 	782,418	 	 	 	-	 
	Term Loans	 	 	7,539,209	 	 	 	7,942,577	 	 	 	2,436,213	 	 	 	5,506,364	 	 	 	-	 
	Lease Obligation	 	 	5,944,051	 	 	 	6,607,458	 	 	 	2,385,168	 	 	 	4,222,290	 	 	 	-	 
	 	 	 	35,627,183	 	 	 	36,693,958	 	 	 	26,182,886	 	 	 	10,511,072	 	 	 	-	 

 

	 	 	December 31,

2021
	 
	 	 	 	Carrying
 amount
 $
	 	 	 	Total
 contractual
 cash flows
 $
	 	 	 	Less than
 1
                                                                                                                                                                                                                      year
 $
	 	 	 	1 to 3
 Years
 $
	 	 	 	>3 years
 $	 
	Accounts payable and accrued liabilities	 	 	23,232,661	 	 	 	23,232,661	 	 	 	23,232,661	 	 	 	-	 	 	 	-	 
	Revolving line of credit	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	International Loans	 	 	1,980,229	 	 	 	1,980,229	 	 	 	1,092,297	 	 	 	887,932	 	 	 	-	 
	Term Loans	 	 	8,278,004	 	 	 	8,710,774	 	 	 	2,481,550	 	 	 	6,229,224	 	 	 	-	 
	Lease Obligation	 	 	6,892,017	 	 	 	7,315,497	 	 	 	3,366,199	 	 	 	3,949,298	 	 	 	-	 
	 	 	 	40,382,911	 	 	 	41,239,161	 	 	 	30,172,707	 	 	 	11,066,454	 	 	 	-	 

 

    11 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

Interest rate risk

 

Interest rate risk is the risk of financial loss to the Company
if interest rates increase on interest-bearing instruments. The revolving line of credit bears interest at 4.6%. The term loans bear interest
at a fixed rate of 4.75%, which the Company believes is consistent with market interest rates for this type of debt.

 

Foreign exchange or currency risk

 

The Company is exposed to foreign exchange risk from purchase
transactions, as well as recognized financial assets and liabilities denominated in US dollars. The Company’s main objective in
managing its foreign exchange risk is to maintain US cash on hand to support US forecasted obligations and cash flows. To achieve this
objective, the Company monitors forecasted cash flows in foreign currencies and attempts to mitigate the risk by modifying the nature
of cash held.

 

If a shift in foreign currency exchange rates of 10% were
to occur, the foreign exchange gain or loss on the Company’s net monetary assets could change by approximately $1,539,421 due to
the fluctuation and this would be recorded in the consolidated statements of comprehensive loss.

 

Balances held in US dollars are as follows in CAD:

 

	 	 	March 31,
 2021
 $	 	 	December 31,
 2020
 $	 
	Cash	 	 	6,474,041	 	 	 	9,255,266	 
	Accounts receivable	 	 	21,618,218	 	 	 	24,011,673	 
	Accounts payable	 	 	12,698,050	 	 	 	14,547,342	 
	Line of credit	 	 	-	 	 	 	-	 

 

		15	Revolving line of credit

 

The Company currently has a revolving line of credit with
Silicon Valley Bank (“SVB”). The Line of Credit has been amended several times in 2016, 2018, and 2019. Currently the line
of credit has a maximum borrowing availability of US$18 million (CAD$22 million). Actual availability from time to time depends on the
Company’s borrowing base at such time.

 

Most recently on December 24, 2020, the Company and
SVB agreed to amend the applicable interest rate on the line of credit to the greater of prime plus 1.35% or 4.60%. At March 31,
2021, the prime rate was 3.25%. The line of credit is secured by a general security agreement, an assignment of ITCs and a pledge of all
shares of any direct or indirect subsidiary of the Company.

 

    12 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

The following table outlines the activity of the line of
credit during the three months ended March 31, 2021 and 2020:

 

	 	 	$	 
	Amortized cost – January 1, 2021	 	-	 
	Amount drawn from revolving line of credit	 	-	 
	Principal amount repaid	 	-	 
	Accrued interest on revolving line of credit	 	-	 
	Payment of interest on revolving line of credit	 	-	 
	Foreign exchange differences	 	-	 
	Amortized cost – March 31, 2021	 	-	 

 

	 	 	$	 
	Amortized cost – January 1, 2020	 	15,384,498	 
	Amount drawn from revolving line of credit	 	23,690,010	 
	Principal amount repaid	 	(25,893,227	)
	Accrued interest on revolving line of credit	 	250,736	 
	Payment of interest on revolving line of credit	 	(221,152	)
	Foreign exchange differences	 	488,808	 
	Amortized cost – March 31, 2021	 	13,699,673	 

 

During the three months ended March 31, 2021, transaction
costs incurred securing the line of credit were $nil (2020 – $nil). All transaction costs have been capitalized and deferred. These
deferred transaction costs are being amortized over the term of the agreement under the effective interest method and are included in
finance costs.

 

		16	Term loans

 

On June 15, 2018, all outstanding principal balances
related to previous term loans were repaid and the Company obtained a new $7,263,000 term loan (the “2018 Loan”) from a group
of private lenders (the “Lenders”). The 2018 Loan was made pursuant to a credit agreement dated June 15, 2018, between
the Company and various Lenders, including several individuals who are non-arms’ length to the Company (the “NAL Lenders”).
The NAL Lenders included several officers and directors of the Company who funded an aggregate of $2,263,000 of the 2018 Loan.

 

The 2018 Loan was subordinate to the Company’s existing
line of credit with SVB and had a term of two years. The 2018 Loan accrued interest at the rate of 12.0% per annum and the Lenders were
issued an aggregate of 2,420,990 warrants (the “Warrants”) as bonus warrants in connection with the 2018 Loan. Each Warrant
entitled the Lender to acquire one common share for a period of two years at an exercise price of $1.01 per common share, which represented
the closing price of the common shares on June 14, 2018. At the time of issuance, the 2,420,990 Warrants had a fair value of $0.46
per Warrant. The fair value of the Warrants was determined using the Black-Scholes option pricing model using the following assumptions:
risk-free interest rate of 2.18%, expected volatility of 98%, expected life of 1.75 years and expected dividends of $nil.

 

Transaction costs incurred in securing the 2018 Loan were
$256,403. Included in that amount are nominal fees that the Company agreed to pay to two eligible parties assisting in the 2018 Loan.
All transaction costs were capitalized and deferred. These deferred transaction costs are being amortized over the term of the agreement
under the effective interest rate method and included in the finance costs.

 

Fifty percent of the principal portion of the 2018 Loan was
to be repaid in ten equal quarterly installments beginning January 1, 2019. The remaining 50% of the 2018 Loan was to be paid at
maturity.

 

    13 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

On March 31, 2019, the Company entered into an amending
agreement to its credit agreement dated June 15, 2018, whereby the maturity date of the 2018 Loan was extended from June 15,
2020 to June 15, 2021.

 

On April 12, 2020, the Company borrowed US$5,400,00
from SVB pursuant to a secured term loan which expires April 1, 2024 (the “Secured Term Loan”), and which bears interest
at the annual rate equal to the greater of (i) prime plus 2.0% and (ii) 6.75%. All transaction costs related to the Secured
Term Loan have been capitalized and deferred and are being amortized over the term of the agreement under the effective interest rate
method and included in finance costs.

 

On April 17, 2020, all outstanding principal balances
related to the 2018 Loan were repaid in the amount of $5,144,625 and the Company incurred an early repayment penalty of 2.5% totalling
$128,616. During the year ended December 31, 2020, $372,188 of transaction costs were incurred securing the Secured Term Loan. All
transaction costs have been capitalized and deferred. These deferred transaction costs are being amortized over the term of the agreement
under the effective interest method and included in finance costs.

 

On November 9, 2020, the Company and SVB agreed to increase
the availability under the Secured Term Loan by additional US$2,350,000 to a total of US$7,750,000.

 

On December 24, 2020, the Company and SVB agreed to
amend the applicable interest rate to the greater of prime plus 1.50% or 4.75%. At December 31, 2020, the prime rate was 3.25%.

 

On May 5, 2020, the Company secured a loan of US$1,390,294
(CAD$1,816,836) pursuant to the Paycheck Protection Program as part of the United States’ Coronavirus Aid, Relief and Economic
Security Act. On October 12, 2020 the Company applied for the loan forgiveness in accordance with the terms of that program,
and the loan was fully forgiven on November 25, 2020. The total loan of US$1,390,294 (CAD$1,816,836) was used to reduce salary costs
on the statement of income (loss), $1,282,208 for sales and marketing costs, $465,481 for technology costs, and $69,147 for general and
administrative costs.

 

The following table outlines the activity of the term loans
during the three months ended March 31, 2021 and 2020:

 

	 	 	$	 
	Amortized cost – January 1, 2021	 	 	8,278,004	 
	Accrued Interest	 	 	127,287	 
	Payment of interest	 	 	(93,671	)
	Principal amount repaid	 	 	(616,722	)
	Exchange	 	 	(155,689	)
	Balance – March 31, 2021	 	 	7,539,209	 

 

	 	 	$	 
	Amortized cost – January 1, 2020	 	 	3,452,331	 
	Accrued interest	 	 	166,736	 
	Payment of interest	 	 	(153,916	)
	Principal amount repaid	 	 	(302,625	)
	Balance – March 31, 2020	 	 	3,162,526	 

 

    14 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

 

(expressed in Canadian dollars)

 

		17	International loans

 

On June 15, 2018, as a part of the acquisition of ADman,
the Company assumed various government and bank loans and lines of credits.

 

Term loans

 

The interest rate and maturity date of each of the unsecured
term loans held and the activity during the three months ended March 31, 2021 and 2020 are set out in the table below.

 

Line of credit

 

The line of credit is secured against the Company’s
accounts receivable. The interest rate and term date of line of credit held and the activity during the three months ended March 31,
2021 and 2020 are set out in the table below:

 

	 	 	Balance
                                            – 

January 1,
 2021
 $
	 	 	Amount

                                            drawn
 $
	 	 	Principal
                                            

amount 

repaid
 $
	 	 	Balance
                                            –

 March 31,
 2021
 $
	 	 	Interest
 rate
 %
	 	 	Maturity
    date
	Term
    Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bankinter	 	 	20,054	 	 	 	-	 	 	 	14,106	 	 	 	5,948	 	 	 	2.75	%	 	May 20,
    2021
	Banco
    Sabadell	 	 	29,346	 	 	 	-	 	 	 	9,904	 	 	 	19,442	 	 	 	3.25	%	 	October 15,
    2022
	Bankinter	 	 	119,770	 	 	 	-	 	 	 	19,207	 	 	 	100,563	 	 	 	2.35	%	 	August 17,
    2022
	Banco
    Sabadell	 	 	67,648	 	 	 	-	 	 	 	9,619	 	 	 	58,029	 	 	 	4.60	%	 	October 20,
    2022
	Santander	 	 	353,658	 	 	 	-	 	 	 	38,191	 	 	 	315,467	 	 	 	2.53	%	 	May 18,
    2023
	Bankinter_ICO
    2020	 	 	53,580	 	 	 	69,631	 	 	 	5,589	 	 	 	117,622	 	 	 	2.25	%	 	May 22,
    2024
	Santander_ICO	 	 	390,200	 	 	 	-	 	 	 	-	 	 	 	390,200	 	 	 	2.03	%	 	April 8,
    2025
	Sabadell_ICO
    2020	 	 	156,082	 	 	 	-	 	 	 	-	 	 	 	156,082	 	 	 	1.75	%	 	May 21,
    2025
	CDTI	 	 	125,167	 	 	 	-	 	 	 	-	 	 	 	125,167	 	 	 	3.00	%	 	December 31,
    2022
	 	 	 	1,315,505	 	 	 	69,631	 	 	 	96,616	 	 	 	1,288,520	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Line
    of credit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bankinter	 	 	7,554	 	 	 	21,986	 	 	 	7,362	 	 	 	22,178	 	 	 	2.65	%	 	July 17,
    2021
	Bankinter	 	 	120,141	 	 	 	-	 	 	 	120,141	 	 	 	-	 	 	 	Euribor
                                            + 2,25	 	 	May 19,
    2022
	Santander	 	 	525,890	 	 	 	-	 	 	 	525,890	 	 	 	-	 	 	 	Euribor
                                            + 1,95	 	 	April 16,
    2023
	Banco
    Sabadell	 	 	-	 	 	 	62,686	 	 	 	62,686	 	 	 	-	 	 	 	1.75	%	 	May 21,
    2023
	Bankia	 	 	11,139	 	 	 	-	 	 	 	11,139	 	 	 	-	 	 	 	2.90	%	 	August 6,
    2023
	 	 	 	664,724	 	 	 	84,672	 	 	 	727,218	 	 	 	22,178	 	 	 	 	 	 	 
	Total	 	 	1,980,229	 	 	 	154,303	 	 	 	823,834	 	 	 	1,310,698	 	 	 	 	 	 	 

 

    15 

     

    

 

AcuityAds Holdings Inc.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

March 31, 2021 and 2020

(expressed in Canadian dollars)

 

	 	 	Balance
                                            – 

January 1,
 2021
 $
	 	 	Amount

                                            drawn
 $
	 	 	Principal

                                            amount 

repaid
 $
	 	 	Balance
                                            –

 March 31
 2021
 $
	 	 	Interest
 rate
 %
	 	 	Maturity
    date
	Term
    Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bankinter	 	 	80,322	 	 	 	-	 	 	 	14,890	 	 	 	65,432	 	 	 	2.75	 	 	May 20,
    2021
	La
    Caixa	 	 	24,305	 	 	 	-	 	 	 	12,987	 	 	 	11,318	 	 	 	1.96	 	 	June 1,
    2020
	Santander	 	 	508,026	 	 	 	-	 	 	 	38,172	 	 	 	469,854	 	 	 	2.53	 	 	May 18,
    2023
	Banco
    Sabadell	 	 	106,025	 	 	 	-	 	 	 	9,415	 	 	 	96,610	 	 	 	4.60	 	 	October 20,
    2021
	Bankinter	 	 	197,310	 	 	 	-	 	 	 	19,226	 	 	 	178,084	 	 	 	2.35	 	 	August 17,
    2022
	Banco
    Sabadell	 	 	21,918	 	 	 	70,128	 	 	 	70,175	 	 	 	21,871	 	 	 	3.25	 	 	October 15,
    2022
	Banco
    Sabadell	 	 	69,193	 	 	 	-	 	 	 	9,826	 	 	 	59,367	 	 	 	3.25	 	 	October 15,
    2022
	CDTI	 	 	159,258	 	 	 	-	 	 	 	-	 	 	 	159,258	 	 	 	3.00	 	 	December 31,
    2020
	Avanza
    2014	 	 	270,409	 	 	 	-	 	 	 	-	 	 	 	270,409	 	 	 	3.00	 	 	December 20,
    2020
	 	 	 	1,436,766	 	 	 	70,128	 	 	 	174,691	 	 	 	1,332,203	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Line
    of credit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bankia	 	 	-	 	 	 	97,001	 	 	 	-	 	 	 	97,001	 	 	 	2.90	 	 	December 10,
    2020
	Banco
    Sabadell	 	 	85,045	 	 	 	386,349	 	 	 	443,823	 	 	 	27,570	 	 	 	2.47	 	 	October 18,
    2020
	Bankinter	 	 	92,177	 	 	 	361,579	 	 	 	313,071	 	 	 	140,685	 	 	 	2.75	 	 	July 23,
    2020
	La
    Caixa	 	 	-	 	 	 	1,502,025	 	 	 	1,530,252	 	 	 	(28,227	)	 	 	2.12	 	 	May 31,
    2020
	Santander	 	 	524,066	 	 	 	-	 	 	 	-	 	 	 	524,066	 	 	 	Euribor
                                            + 1,75	 	 	April 25,
    2020
	Bankinter	 	 	129,794	 	 	 	342,074	 	 	 	221,688	 	 	 	250,180	 	 	 	2.75	 	 	July 23,
    2020
	Santander	 	 	175,571	 	 	 	119,761	 	 	 	214,448	 	 	 	80,884	 	 	 	Euribor
                                            + 1,75	 	 	April 25,
    2020
	 	 	 	1,006,653	 	 	 	2,808,789	 	 	 	2,723,282	 	 	 	1,092,160	 	 	 	 	 	 	 
	Total	 	 	2,443,419	 	 	 	2,878,917	 	 	 	2,897,973	 	 	 	2,424,363	 	 	 	 	 	 	 

 

		18	Income taxes

 

Income tax expense is recognized based on management’s
estimate of the weighted average annual income tax rate expected for the full financial year.

 

    16Exhibit 4.5

 

 

AcuityAds Holdings Inc.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

 

FOR THE THREE MONTHS ENDED MARCH 31, 2021

 

Dated May 11, 2021

 

70
University Ave

Suite 1200

Toronto, ON M5J 2M4

www.acuityads.com

 

     

     

    

 

Management’s discussion & analysis

 

This Management’s Discussion and Analysis
(“MD&A”) explains the variations in the consolidated operating results and financial position and cash flows of AcuityAds
Holdings Inc. (“AcuityAds” or the “Company”) as at and for the three months ended March 31, 2021. This analysis
should be read in conjunction with AcuityAds’ condensed interim consolidated financial statements for the three months ended March 31,
2021 and related notes (the “Condensed Interim Consolidated Financial Statements”). The Condensed Interim Consolidated Financial
Statements and extracts of those Condensed Interim Consolidated Financial Statements provided in this MD&A, were prepared in Canadian
dollars and in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting
Standards Board, using the accounting policies described therein. 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. All amounts are presented in Canadian dollars unless otherwise
indicated. Throughout this MD&A, percentage changes are calculated using numbers rounded as they appear. Readers are cautioned that
this MD&A contains certain forward-looking information. (Please see the “Forward Looking Statements” section below for
a discussion of the use of such information in this MD&A).

 

The Condensed Interim Consolidated Financial Statements
include the accounts of the Company and its wholly-owned subsidiaries AcuityAds Inc., AcuityAds US Inc., 140 Proof Inc., and ADman Interactive
S.L.U. All intercompany balances and transactions have been eliminated on consolidation.

 

The information in this report is dated as of
May 11, 2021.

 

Non-IFRS Financial Measures

 

This MD&A includes certain measures which
are not defined terms in accordance with IFRS such as “Net Revenue”, “Net Revenue margin”, “Adjusted EBITDA”
and “Adjusted Net Income”.

 

The term “Net Revenue” refers to the
net amount of revenue after deducting direct media costs. Net Revenue is used for internal management purposes as an indicator of the
performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s
margin objectives and, accordingly the Company believes it is useful supplemental information to include in this MD&A. The term “Net
Revenue margin” refers to the amount that “Net Revenue” represents as a percentage of total revenue for a given period.

 

“Adjusted EBITDA” refers to net income
after adjusting for finance costs, impairment loss, fair value gain, income taxes, foreign exchange (gain) loss, depreciation and amortization,
share-based compensation, acquisition and related integration costs, severance expenses and adjustments to the carrying value of investment
tax credits receivable. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the
results generated by the Company’s main business activities before taking into consideration how those activities are financed and
taxed and also prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a
key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance,
to prepare annual budgets and to help develop operating plans.

 

    1 

     

    

 

“Adjusted Net Income” refers to net
income after adjusting for non-cash items such as depreciation and amortization, share-based compensation and foreign exchange gain/loss.
The Company believes that Adjusted Net Income is useful supplemental information as it provides an indication of the results generated
by the Company’s main business activities on a cash basis. It is another key measure used by the Company’s management and
board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop
operating plans.

 

“Net Revenue”, “Net Revenue
margin”, “Adjusted EBITDA” and “Adjusted Net Income” are not measures of performance under IFRS and should
not be considered in isolation or as a substitute for comprehensive income (loss) prepared in accordance with IFRS or as a measure of
operating performance or profitability. “Net Revenue”, “Net Revenue margin”, “Adjusted EBITDA” and
 “Adjusted Net Income” do not have a standardized meaning prescribed by IFRS and are not necessarily comparable to similar
measures presented by other companies.

 

FORWARD-LOOKING STATEMENTS

 

Certain statements in this MD&A that are
not current or historical factual information may constitute “forward-looking” statements within the meaning of applicable
securities laws, regarding, among other things, the beliefs, plans, objectives, strategies, estimates, intentions or expectations of the
Company, including as they relate to its financial results and its projected total revenue growth, its ability to execute on its investing
and business strategies, the benefits of the illumin platform, and the effect of the COVID-19 pandemic on the Company’s business
and operations. When used in this MD&A, forward looking statements can be identified by the use of words such as “may”,
or by such words as “will”, “intend”, “believe”, “estimate”, “consider”, “expect”,
 “anticipate”, and “objective” and similar expressions or variations of such words. Forward-looking statements
are, by their nature, not guarantees of the Company’s future operational or financial performance, and are subject to risks and
uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these forward-looking statements. No representation or warranty is intended with respect
to anticipated future results, or that estimates or projections will be sustained. Forward-looking information is provided for the purpose
of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding
of the Company’s operations. Forward-looking information may not be appropriate for other purposes.

 

In developing the forward-looking statements
in this MD&A, the Company has applied several material assumptions, including the availability of financing on reasonable terms, and
general business and economic conditions. The existence of the COVID-19 pandemic creates a unique environment in which to consider the
likelihood of forward-looking statements being accurate, and given the evolving circumstances surrounding the COVID-19 pandemic, it is
difficult to predict how significant the adverse impact of the pandemic will be on the global and domestic economy, the business, operations
and financial position of the Company’s clients and the business, operations and financial position of the Company. Many risks,
uncertainties and other factors could cause the actual results of AcuityAds to differ materially from the results, performance, achievements
or developments expressed or implied by forward-looking statements that are contained in this MD&A. These risks, uncertainties and
other factors include, but are not limited to the following: overall economic conditions, rapid technological changes, use of cookies,
demand for the Company’s products and services, the introduction of competing technologies, competitive pressures, network restrictions,
fluctuations in foreign currency exchange rates, and other factors that may cause the actual results, performance or achievements to differ
materially from those expressed or implied in these forward-looking statements. In addition, the effects of COVID-19, including the duration,
spread and severity of the pandemic, create additional risks and uncertainties for the Company. In particular, the impact of the virus
and government authorities’ and public health officials’ responses thereto may affect the Company’s actual results,
performance, prospects or opportunities; domestic and global credit and capital markets and the Company’s ability to access capital
on favourable terms, or at all; and the health and safety of the Company’s employees.

 

    2 

     

    

 

Any financial outlook and future-oriented financial
information (as defined in applicable securities laws) contained in this MD&A regarding prospective financial performance, financial
position or cash flows, is based on assumptions about future economic conditions or courses of action based on management’s assessment
of the relevant information that is currently available. Future-oriented financial information contains forward-looking information and
is based on a number of material assumptions and factors, as are set out above. The actual results of the Company’s operations for
any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary
from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein
should not be used for purposes other than those for which it is disclosed herein.

 

Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date of the MD&A or as of the date otherwise specifically indicated
herein. Due to risks and uncertainties, including the risks and uncertainties elsewhere in this MD&A, actual events may differ materially
from current expectations. These risks and uncertainties include, among other things, the factors discussed in “Risk Factors”
section of this MD&A and under the “Risk Factors” section of the Annual Information Form of the year ended December 31,
2020 (“2020 AIF”) available on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained
in the MD&A are expressly qualified in their entirety by this cautionary statement.

 

OVERVIEW

 

AcuityAds is a technology company that enables
marketers to connect intelligently with audiences across video, mobile, social and online display advertising campaigns. AcuityAds’
programmatic marketing platform (the “Programmatic Marketing Platform”), powered by proprietary machine learning technology,
is at the core of its business, accompanied by proprietary solutions for analytics-led video and mobile targeting that leverages data.
AcuityAds empowers marketers by offering near real-time reporting and analytics, bringing accountability to programmatic advertising to
deliver business results and help solve some of the key challenges that digital advertisers face. AcuityAds is headquartered in Toronto
and has offices in the U.S., Canada, Spain and throughout Latin America. Its key customers include both advertising agencies and brands,
including large Fortune 500 enterprises and small to mid-sized businesses.

 

    3 

     

    

 

AcuityAds’ technology enables programmatic advertising, which
is the automated buying and selling of advertising inventory electronically. The Programmatic Marketing Platform is based on proprietary
machine learning technology, the branch of artificial intelligence involving systems that learn from data inputs and outputs and can perform
actions without the need for explicit programming. The Programmatic Marketing Platform has the capability to process billions of bid requests
on a daily basis.

 

The Programmatic Marketing Platform allows advertisers
to purchase online advertisements in real-time using an ad-buying method whereby open online ad spots (called impressions) are traded
via auctions on digital exchanges at market clearing prices in milliseconds. AcuityAds purchases impressions on behalf of advertisers
through agreements with publishers directly and through agreements with supply side platforms (SSPs) and exchanges. Its technology platform
benefits advertisers by enabling them to target audience segments based on a variety of first, second, and third-party data as well as
manage their real-time bids for the advertising inventory most relevant for their campaigns. Real-time reporting enables advertisers to
monitor relevant performance metrics and adjust budget allocations to optimize for audience reach and ad frequency and business outcomes
(key performance indicators – KPIs).

 

In October 2020, AcuityAds officially launched
illuminTM, the next generation advertising automation technology, that offers advertisers the ability to plan, buy, optimize and
report on omnichannel advertising programs from a single, intuitive user-interface. Advertisers can now map consumer journey playbooks
across devices and communication channels, and execute in real-time using programmatic technology. illumin enables delivery of custom
creative advertising based on audience receptivity (time, place and context), which has proven to increase both efficiency and overall
return on advertising investments. For the three months ended March 31, 2021 revenue derived from illumin was $3,206,159 compared
to $nil in the three months ended March 31, 2020.

 

RESULTS OF OPERATIONS

 

Significant developments during the three months ended March 31,
2021 and to the date of this report include the following:

 

On March 11, 2020, the World Health Organization
declared the outbreak of COVID-19 a global pandemic, which continues to spread throughout Canada and economies around the world. To date,
the Canadian and US governments as well as businesses have mandated various measures, including: travel restrictions, restrictions on
public gatherings, stay-at-home orders and advisories, and the quarantine of people who may have been exposed to the virus. In response,
AcuityAds has changed its work environment and made arrangements to ensure compliance with all applicable health authority regulations.

 

Despite the COVID-19 pandemic and the Company’s
changes to its work environment, AcuityAds continued to operate its business in the normal course. To date, none of the Company’s
operations have closed down or have otherwise been materially affected by the COVID-19 pandemic. Certain of the Company’s offices
have been subject to government-mandated lockdowns for some periods of time. However, the Company’s staff has been able to perform
their functions remotely without meaningful reductions in the Company’s ability to service its customers.

 

    4 

     

    

 

Based on the most recent trends, the Company does
not expect the COVID-19 pandemic will have a material impact on its future revenues, as more consumers are consuming media digitally as
they work from home resulting in higher demand for digital advertising. The COVID-19 pandemic has not directly restricted the Company’s
growth plans as the Company’s business is all online, the Company’s staff are generally able to work from home and demand
for the Company’s products and services is growing as the Company’s customers increase their digital advertising budgets.

 

However, there are certain specific client segments,
most notably the travel and entertainment industries, that have been more affected by the COVID-19 pandemic than other businesses. COVID19
has affected the amount of revenues that we earn from our clients in these industries, and the continuation of the pandemic does have
an impact on our growth from these clients. See “Risk Factors”.

 

During the twelve months ended December 31,
2020, the Company secured a $3 million commitment from the National Research Council’s Industrial Research Assistance Program (IRAP)
that is expected to be paid between May 2020 and October 2021, subject to the Company meeting certain program requirements.
The Company received $1,386,108 of this commitment during the twelve months ended December 31, 2020. During the three months ended
March 31, 2021, the Company received $815,930 of this commitment, and those amounts were used to reduce technology costs on the Consolidated
Statement of Income (Loss) for the same period. The Company has yet to receive $797,962 of the commitment.

 

On March 22, 2021 the Company’s common
shares were added by Dow Jones Canadian Index Services to the S&P/TSX Composite Index. The Composite Index is the headline index for
Canada, which includes the largest companies on the TSX and is the principal benchmark measure for the Canadian equity markets.

 

Results for the three months ended March 31, 2021 and 2020

 

The following table provides selected financial
information from the consolidated statements of comprehensive income (loss) for the three months ended March 31, 2021 and 2020:

 

	 	 	Three months ended
 March 31,
 2021	 	 	Three months ended
 March 31,
 2020	 
	Revenue	 	 	 	 	 	 	 	 
	By line of service:	 	 	 	 	 	 	 	 
	Managed services	 	 	22,256,217	 	 	 	19,318,275	 
	Self-service	 	 	 	 	 	 	 	 
	By geography:	 	 	5,198,375	 	 	 	4,897,325	 
	US	 	 	21,430,134	 	 	 	17,829,363	 
	Canada	 	 	3,111,483	 	 	 	2,780,381	 
	Other	 	 	2,912,975	 	 	 	3,605,856	 
	Gross Profit (Net Revenue)	 	 	14,364,092	 	 	 	12,188,387	 
	Adjusted EBITDA1	 	 	4,541,454	 	 	 	1,802,567	 
	Income (loss) from operations	 	 	2,237,487	 	 	 	(603,266	)
	Net income	 	 	1,363,881	 	 	 	204,774	 
	Adjusted net income 1	 	 	4,179,782	 	 	 	999,946	 
	Net income  per share (basic and diluted) 2	 	 	0.03	 	 	 	0.00	 

 

	(1)	As defined in “Non-IFRS Financial Measures”.

 

	(2)	Exercisable options to purchase 780,688 (2020 – 1,857,836) common shares and 800 (2020 – 1,785,872)
warrants were outstanding as at March 31, 2021. The weighted average number of options and warrants were excluded from the calculation
of diluted loss per share for the period ended March 31, 2021 and 2020 because their inclusion would have been anti-dilutive.

 

    5 

     

    

 

Three months ended March 31, 2021 and 2020

 

Revenue for the three months ended March 31,
2021 was $27,454,592, an increase of $3,238,992 from $24,215,600 for the three months ended March 31, 2020. Sales of the Company’s
managed services platform for the three months ended March 31, 2021 were $22,256,217, an increase of $2,937,942 from $19,318,275
for the three months ended March 31, 2020. Sales of the Company’s self-service platform for the three months ended March 31,
2021 were $5,198,375, an increase of $301,050 from $4,897,325 for the three months ended March 31, 2020. The increase in total revenue
for the three months ended March 31, 2021 was primarily a result of the new illumin revenue stream, of which a majority was managed
services.

 

Revenue generated in the United States for the
three months ended March 31, 2021 was $21,430,134, an increase of $3,600,771 from $17,829,363 for the three months ended March 31,
2020. Revenue generated in Canada for the three months ended March 31, 2021 was $3,111,483, an increase of $331,102 from $2,780,381
for the three months ended March 31, 2020. Other revenue decreased from $3,605,86 to $2,912,975 during the three months ended March 31,
2021.

 

Adjusted EBITDA for the three months ended March 31,
2021 was $4,541,454, an increase of $2,738,887 from $1,802,567 for the three months ended March 31, 2020. The year-over-year increase
in Adjusted EBITDA was primarily attributable to higher net revenues and management’s focus on cost containment.

 

Net income for the three months ended March 31,
2021 was $1,363,881, an increase of $1,159,107 from $204,774 for the three months ended March 31, 2020. The increase in net income
was primarily due to higher net revenues and management’s focus on cost containment.

 

The Company’s revenues and operating results
may vary from quarter to quarter as a result of a variety of factors, some of which are outside of the Company’s control, including
seasonality and cyclicality, and, in fiscal 2021, to the implications of the current COVID-19 pandemic.

 

Seasonality may be affected by customer mix, such
that retail advertisers may concentrate their advertising spending with AcuityAds in the fourth quarter while entertainment advertisers
may concentrate their spending to coincide with the launch and display of content, such as television shows or movies. The Company’s
rapid growth has led to fluctuating overall operating results due to investments in AcuityAds’ sales and marketing and research
and development from quarter to quarter and increases in employee headcount. As a result of these factors, one quarter’s operating
results are not necessarily indicative of a future quarter’s operating results.

 

    6 

     

    

 

Net Revenue

The following table sets out a reconciliation of Net Revenue to Revenue for each of the periods indicated:

 

	 	 	Three months ended
 March 31,
 2021	 	 	Three months ended
 March 31,
 2020	 
	Revenue	 	 	27,454,592	 	 	$	24,215,600	 
	Media costs	 	 	13,090,500	 	 	 	12,027,213	 
	Net Revenue	 	 	14,364,092	 	 	 	12,188,387	 
	Net Revenue margin	 	 	52	%	 	 	50	%

 

Three months ended March 31, 2021 and 2020

 

Media costs comprise advertising impressions that
the Company purchased from real-time advertising exchanges or through other third parties. For the three months ended March 31, 2021,
media costs were $13,090,500 compared to $12,027,213 for the three months ended March 31, 2020. The increase of $1,063,287 in media
costs was attributable to the increased revenue during the period. Net revenue margin was 52% for the three months ended March 31,
2021 compared to 50% for the three months ended March 31, 2020. The increase in margin was attributable to the Company’s AI
platform.

 

Reconciliation of net income to Adjusted EBITDA for the three months
ended March 31, 2021 and 2020

 

The following table presents a reconciliation
of Net Income to Adjusted EBITDA for the periods indicated:

 

	 	 	Three months
    ended

 March 31,
 2021	 	 	Three months ended
 March 31,
 2020	 
	Net income for the period	 	$	1,363,881	 	 	$	204,774	 
	Adjustments:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Finance costs	 	 	274,880	 	 	 	602,392	 
	Foreign exchange (gain) loss	 	 	568,483	 	 	 	(1,514,296	)
	Depreciation and amortization	 	 	1,383,026	 	 	 	2,166,344	 
	Income taxes	 	 	30,243	 	 	 	103,864	 
	Share-based compensation	 	 	864,392	 	 	 	143,124	 
	Severance expenses	 	 	56,549	 	 	 	96,365	 
	Total adjustments	 	 	3,177,573	 	 	 	1,597,793	 
	Adjusted EBITDA	 	$	4,541,454	 	 	$	1,802,567	 

 

Three months ended March 31, 2021 and 2020

 

Adjusted EBITDA for the three months ended March 31,
2021 was $4,541,454 compared to $1,802,567 for the three months ended March 31, 2020. The year-over-year increase of $2,738,887 in
Adjusted EBITDA was primarily attributable to higher net revenues and management’s focus on cost containment.

 

    7 

     

    

 

Operating Expenses, Finance Costs, and Foreign Exchange

 

The following table summarizes various expenses
for the three months ended March 31, 2021 and 2020:

 

	 	 	Three months ended
 March 31,
 2021	 	 	Three
    months ended

 March 31,
 2020	 
	Sales and marketing	 	$	4,554,024	 	 	$	4,828,925	 
	Technology	 	 	3,793,370	 	 	 	4,053,022	 
	General and administrative	 	 	1,531,793	 	 	 	1,600,238	 
	Share-based compensation	 	 	864,392	 	 	 	143,124	 
	Depreciation and amortization	 	 	1,383,026	 	 	 	2,166,344	 
	Finance costs	 	 	274,880	 	 	 	602,392,	 
	Foreign exchange (gain) loss	 	 	568,483	 	 	 	(1,514,296	)

 

Sales and marketing expenses

 

Sales and marketing expenses consist of all costs
associated with selling and marketing the Company’s services and products. The costs include all salary and benefit costs, personnel
costs, commissions and variable compensation, travel, marketing, payroll taxes and employee health and related benefit expenses, for the
sales, marketing, and account management teams. Sales and marketing expenses for the three months ended March 31, 2021 were $4,554,024,
a decrease of $274,901 compared to the same period of the prior year. The year-over-year decrease was primarily related to management’s
execution of cost optimization initiatives. Sales and marketing expenses represented 17% of revenue for the three months ended March 31,
2021, compared to 20% for the same period of the prior year.

 

Technology

 

Technology expenses consist of all costs associated
with increasing the Programmatic Marketing Platform’s effectiveness and efficiency. The majority of such costs comprise of salary
and benefit costs and costs associated with housing the required computer equipment. Technology expenses for the three months ended March 31,
2021 were $3,793,370, a decrease of $259,652 compared to the same period of the prior year. Excluding government grants, during the three
months ended March 31, 2021, technology expenses increased by $331,278 compared to the same period from the prior year. Excluding
government grants, for the three months ended March 31, 2021, technology expenses represented 17% of revenue compared to 18% for
the same period of the prior year.

 

During the three months ended March 31, 2021,
the Company received $815,930 in government grants related to technology from IRAP.

 

General and administrative

 

General and administrative expenses include salaries
and benefits of the administrative staff, occupancy costs, public company fees, insurance, professional fees, and supplies. General and
administrative expenses for the three months ended March 31, 2021 were $1,531,793, a decrease of $68,445 compared to the same period
of the prior year. For the three months ended March 31, 2021, General and administrative expenses represented 6% of revenue compared
to 7% for the same period of the prior year.

 

    8 

     

    

 

Share-based compensation

 

Share-based compensation expenses for the three
months ended March 31, 2021 were $864,392, an increase of $721,268 from $143,124 for the three months ended March 31, 2020.
The increase in share-based compensation expense was related to an increase in share compensation granted in the period ending March 31,
2021.

 

Depreciation and amortization

 

Depreciation and amortization for the three months
ended March 31, 2021 were $1,383,026, a decrease of $783,318 compared to the same period of the prior year. The year-over-year decrease
was attributable to the lower intangible asset balance as a result of fully amortizing the asset in December 2020.

 

Finance costs

 

Finance costs for the three months ended March 31,
2021 were $274,880, a decrease of $327,512 compared to the same period of the prior year. The decrease in finance costs was primarily
due to the debt repayment during the period, resulting in a lower outstanding debt balance as compared to the same period of the prior
year as well as the term loan interest rate decreasing from 12% to 4.75% as a result of the April 2020 debt refinancing with Silicon
Valley Bank.

 

Foreign exchange (gain) (loss)

 

Foreign exchange gain (loss) consists of the realized
and unrealized exchange differences due to fluctuations between the Canadian dollar, the U.S. dollar and the Euro. The Company recorded
a net foreign exchange loss of $568,483 for the three months ended March 31, 2021 compared to a gain of $1,514,296 for the three
months ended March 31, 2020.

 

To date, the Company does not hedge foreign currency
transactions but may elect to do so in the future if it is determined to be advantageous.

 

OUTLOOK

 

While the impact of the COVID-19 pandemic has
created short-term uncertainty with respect to the Company’s revenues, Adjusted EBITDA and net income, the Company still expects
to continue to grow these measures in the second quarter and the Company anticipates its total year-over-year revenue growth to increase
approximately 50% in the second quarter of 2021.

 

See “Forward-Looking Information”.

 

    9 

     

    

 

Summary of Quarterly Results

 

The following unaudited table sets out selected
financial information for the Company on a consolidated basis for the last eight most recently completed quarters. The unaudited quarterly
information, other than Adjusted EBITDA, has been prepared in accordance with IFRS.

 

	 	 	Quarter
    Ended	 
	 	 	Mar. 31,

    2021	 	 	Dec. 31,

    2020	 	 	Sept.
    30,
 2020	 	 	Jun. 30,

    2020	 	 	Mar. 31,

    2020	 	 	Dec. 31,

    2019	 	 	Sept.
    30,
 2019	 	 	Jun. 30,

    2019	 
	Revenue:	 	$	27,454,592	 	 	$	35,057,316	 	 	$	26,064,322	 	 	$	19,556,810	 	 	$	24,215,600	 	 	$	38,536,725	 	 	$	26,864,507	 	 	$	25,811,114	 
	Adjusted
    EBITDA	 	 	4,541,454	 	 	 	7,819,968	 	 	 	4,034,402	 	 	$	2,141,178	 	 	$	1,802,569	 	 	$	6,012,050	 	 	$	1,613,770	 	 	$	1,072,326	 
	Adjusted
    Net income (loss)	 	$	4,179,782	 	 	$	7,063,270	 	 	$	3,741,924	 	 	$	1,378,528	 	 	$	999,946	 	 	$	5,219,673	 	 	$	738,996	 	 	$	(662,372	)
	Net
    income (loss)	 	$	1,363,881	 	 	$	4,165,399	 	 	$	921,220	 	 	$	(1,600,405	)	 	$	204,774	 	 	$	1,995,245	 	 	$	(1,360,006	)	 	$	(3,461,394	)
	Net
    income (loss) per share:	 	$	0.03	 	 	$	0.07	 	 	$	0.02	 	 	$	(0.03	)	 	$	0.00	 	 	$	0.04	 	 	$	(0.03	)	 	$	(0.07	)
	Weighted
    average number of shares outstanding (000’S)	 	 	54,398,478	 	 	 	52,855,998	 	 	 	50,312,701	 	 	 	49,523,122	 	 	 	48,997,938	 	 	 	47,814,816	 	 	 	47,744,143	 	 	 	46,931,380	 

 

LIQUIDITY AND CAPITAL RESOURCES

 

Selected financial information from the statements
of financial position as at March 31, 2021 and December 31, 2020 are as follows:

 

	 	 	March 31,
 2021	 	 	December 31,
 2020	 
	Cash	 	$	27,010,140	 	 	$	22,638,300	 
	Working capital(1)	 	 	30,420,344	 	 	 	26,763,590	 
	Total assets	 	 	71,164,931	 	 	 	72,433,499	 
	Current liabilities	 	 	26,074,396	 	 	 	29,657,005	 
	Other non-current liabilities	 	 	9,552,787	 	 	 	10,725,906	 
	Shareholders’ equity	 	 	35,537,748	 	 	 	32,050,588	 

 

		(1)	Working capital is defined as current assets less current liabilities.

 

As at March 31, 2021, the Company had cash
and cash equivalents and restricted cash of $27,010,140 compared to $22,638,300 as at December 31, 2020.

 

Cash flows generated from operations were $5,655,243
during the three months ended March 31, 2021 as compared to $3,955,094 during the three months ended March 31, 2020. The increase
in cash flows generated in operations was primarily a result of increased working capital and reduced costs.

 

Cash flows used in investing activities were $40,313
during the three months ended March 31, 2021, compared to $3,228,026 during the three months ended March 31, 2020. The decrease
was primarily due to a reduction in right-of-use assets and capitalized technology costs compared to the prior period.

 

Cash flows used from financing activities were
$1,243,090 during the three months ended March 31, 2021, compared to $329,829 during the three months ended March 31, 2020.
The increase was primarily due to the increase in repayment of international loans and the term loan, and no capital lease additions.

 

    10 

     

    

 

Liquidity risk is the risk the Company will not
be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure, to the extent
possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company’s reputation. The Company manages its liquidity risk by continually
monitoring forecasted and actual revenue and expenditures and cash flows from operations. While the Company currently has sufficient operating
capital to meet its day-to-day operating expenses, it is possible that the Company could experience a working capital deficiency in the
future, which would have a materially adverse effect on the Company’s liquidity.

 

Management is also actively involved in the review
and approval of planned expenditures. The Company’s principal cash requirements are for principal and interest payments on its debt,
capital expenditures and working capital needs. The Company uses its operating cash flows, loans and borrowings and cash balances to maintain
liquidity. In the event future cash flows from operations are lower than expected, the Company may need to seek additional financing,
either by issuing additional equity or by undertaking additional debt. There is no certainty that additional financing, whether debt or
equity, will be available or that it will be available on attractive terms. Additional information can be found in the Company’s
Consolidated Financial Statements which are available on SEDAR at www.sedar.com

 

Common Shares

 

Changes in the number of issued common shares
from December 31, 2020 to March 31, 2021 are as follows:

 

	 	 	Number of Common Shares	 
	Balance December 31, 2020	 	 	53,422,024	 
	Shares issued –Warrants exercised	 	 	39,821,	 
	Shares issued –Options exercised	 	 	611,666	 
	Shares issued – DSU’s exercised	 	 	374,496	 
	Shares issued – RSU’s exercised	 	 	189,834	 
	Balance March 31, 2021	 	 	54,637,841	 

 

Preference Shares

 

While the Company is authorized to issue and unlimited
number of preference shares, the Company has no preference shares issued and outstanding.

 

    11 

     

    

 

Stock Options

 

The Company presently issues stock options, deferred
share units (“DSUs”), performance share units (“PSUs”) and restricted share units (RSUs”) pursuant to its
omnibus long-term incentive plan (the “Omnibus Incentive Plan”). Prior to June 16, 2020, the Company issued stock options
pursuant to its predecessor stock option plan (the “Stock Option Plan”) and DSUs pursuant to its predecessor deferred share
unit plan (the “DSU Plan”). Although the Company no longer issues new stock options or DSUs pursuant to the predecessor Stock
Option Plan and DSU Plan, respectively, previously issued stock options and DSUs remain outstanding and are governed by the existing plans
under which they were initially issued.

 

The maximum number of common shares reserved for
issuance, in the aggregate, under the Omnibus Incentive Plan, the stock option plan, the deferred share unit plan of the Company and any
other security-based compensation arrangement, collectively, is 15% of the aggregate number of common shares issued and outstanding from
time to time. As at March 31, 2021, the Company was entitled to issue a maximum of 8,195,676 equity-based awards collectively under
the Omnibus Incentive Plan, the existing Stock Option Plan, the existing DSU Plan and any other security-based compensation arrangement..

 

The following table summarizes the continuity
of stock options issued by the Company under the Stock Option Plan:

 

	 	 	March 31,
 2021	 	 	March 31,
 2020	 
	 	 	Number of
 options	 	 	Weighted 
 average 
 exercise 
 price
 $	 	 	Number of
 options	 	 	Weighted 
 average 
 exercise 
 price
 $	 
	Options outstanding – Beginning of year	 	 	1,865,519	 	 	 	1.69	 	 	 	3,409,886	 	 	 	1.45	 
	Granted	 	 	3,333	 	 	 	1.06	 	 	 	235,000	 	 	 	1.59	 
	Forfeited or cancelled	 	 	-	 	 	 	-	 	 	 	(703,385	)	 	 	1.03	 
	Exercised	 	 	(611,666	)	 	 	1.40	 	 	 	-	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Options outstanding – End of period	 	 	1,257,186	 	 	 	1.83	 	 	 	2,941,501	 	 	 	1.57	 
	Options exercisable – End of period	 	 	780,688	 	 	 	2.14	 	 	 	1,857,836	 	 	 	1.73	 

 

    12 

     

    

 

The following table summarizes the continuity
of stock options issued by the Company under the Omnibus Incentive Plan:

 

	 	 	March 31,
 2021	 	 	March 31,
 2020	 
	 	 	Number of

 options	 	 	Weighted

average 

exercise

price $	 	 	Number of 

options	 	 	Weighted
    

average 

exercise

price $	 
	Options
    outstanding – Beginning of year	 	 	35,000	 	 	 	2.09	 	 	 	-	 	 	 	-	 
	Granted	 	 	-	 	 	 	 	 	 	 	-	 	 	 	-	 
	Forfeited or cancelled	 	 	-	 	 	 	 	 	 	 	-	 	 	 	-	 
	Exercised	 	 	-	 	 	 	 	 	 	 	-	 	 	 	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Options
    outstanding – End of period	 	 	35,000	 	 	 	2.09	 	 	 	-	 	 	 	-	 
	Options
    exercisable – End of period	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 

 

Deferred Share Units

 

During the three months ended March 31, 2021,
the Company issued nil (2020 – 132,415) DSUs to employees, officers, directors and consultants of the Company. During the three
months ended March 31, 2021, 374,496 (2020 – 593,236) DSUs were exercised. As of March 31, 2021, the Company had 830,123
DSUs outstanding.

 

Restricted Share Units

 

During the three months ended March 31, 2021,
the Company issued 171,693 (2020 – nil) RSUs to employees, officers, directors and consultants of the Company. During the three
months ended March 31, 2021, 189,834 (2020 – nil) RSUs were exercised. As of March 31, 2021, the Company had 1,199,804
RSUs outstanding.

 

Warrants

 

For the three months ended March 31, 2021,
the Company issued nil warrants and during the same period, 39,821 warrants were exercised. As a result, as of March 31, 2021, the
Company had 800 warrants outstanding.

 

    13 

     

    

 

CONTRACTUAL OBLIGATIONS

 

The following are the contractual maturities for
the financial liabilities:

 

	 	March 31,
                                            2021
	 	 	Carrying

 amount
 $	 	 	Total 

contractual 

cash flows
 $	 	 	Less
    

than
 1 year
 $	 	 	1 to 3
 Years
 $	 	 	>3 years
 $	 
	Accounts payable and accrued liabilities	 	 	20,833,225	 	 	 	20,833,225	 	 	 	20,833,225	 	 	 	-	 	 	 	-	 
	International Loans	 	 	1,310,698	 	 	 	1,310,698	 	 	 	528,280	 	 	 	782,418	 	 	 	-	 
	Term loans	 	 	7,539,209	 	 	 	7,942,577	 	 	 	2,436,213	 	 	 	5,506,364	 	 	 	-	 
	Lease Obligations	 	 	5,944,051	 	 	 	6,607,458	 	 	 	2,385,168	 	 	 	4,222,290	 	 	 	-	 
	 	 	 	35,627,183	 	 	 	36,693,958	 	 	 	26,182,886	 	 	 	10,511,072	 	 	 	-	 

 

	 	 	December 31,
 2020	 
	 	 	Carrying

 amount
 $	 	 	Total 

contractual 

cash flows
 $	 	 	Less
    

than
 1 year
 $	 	 	1 to 3
 Years
 $	 	 	>3 years
 $	 
	Accounts payable and accrued liabilities	 	 	23,232,661	 	 	 	23,232,661	 	 	 	23,232,661	 	 	 	 	 	 	 	-	 
	International Loans	 	 	1,980,229	 	 	 	1,980,229	 	 	 	1,092,297	 	 	 	887,932	 	 	 	-	 
	Term loans	 	 	8,278,004	 	 	 	8,710,774	 	 	 	2,481,550	 	 	 	6,229,224	 	 	 	-	 
	Lease Obligations	 	 	6,892,017	 	 	 	7,315,497	 	 	 	3,366,199	 	 	 	3,949,298	 	 	 	-	 
	 	 	 	40,382,911	 	 	 	41,239,161	 	 	 	30,172,707	 	 	 	11,066,454	 	 	 	-	 

 

OFF-BALANCE SHEET ARRANGEMENTS

 

The Company has no off-balance sheet arrangements
that have or are reasonably likely to have a current or future material adverse effect on its financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources.

 

TRANSACTIONS WITH RELATED PARTIES

 

During the three months ended March 31, 2021
there were no transactions with related parties.

 

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

 

The preparation of the Consolidated Financial
Statements and application of IFRS often involve management’s judgment and the use of estimates and assumptions deemed to be reasonable
at the time they are made. Significant assumptions and estimates used in preparing the financial statements include those related to credit
quality of accounts receivable, income tax credits receivable, share-based payments, impairment tests for non-financial assets, as well
as revenue and cost recognition. AcuityAds bases its estimates on historical experience and on various other assumptions that it believes
to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets,
liabilities, equity, revenue and expenses that are not readily apparent from other sources. The Company reviews estimates and underlying
assumptions on an ongoing basis. Revisions are recognized in the period in which estimates are revised and may impact future periods as
well. Other results may be derived with different judgments or using different assumptions or estimates and events may occur that could
require a material adjustment. Significant accounting policies and estimates under IFRS are found in Note 2 of the Company’s Condensed
Interim Consolidated Financial Statements which are available on SEDAR at www.sedar.com.

 

    14 

     

    

 

CHANGES IN ACCOUNTING POLICIES

 

Recently adopted accounting pronouncements

 

For the three months ending March 31, 2021,
the Company has not adopted any new accounting policies.

 

DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL REPORTING

 

Management of AcuityAds is responsible for establishing
and maintaining disclosure controls and procedures for the Company as defined under National Instrument 52-109 - Certification of Disclosure
in Issuers’ Annual and Interim Filings (“NI 52-109”) issued by the Canadian Securities Administrators. Management has
designed such disclosure controls and procedures, or caused them to be designed under its supervision, to provide reasonable assurance
that material information relating to the Company, including its consolidated subsidiaries, is made known to the Chief Executive Officer
(“CEO”) and the Chief Financial Officer (“CFO”) by others within those entities on a timely basis, particularly
during the period in which the annual filings are being prepared, so that appropriate decisions can be made regarding public disclosure.

 

As required by NI 52-109, an evaluation of the
adequacy of the design (quarterly) and effective operation (annually) of the Company’s disclosure controls and procedures was conducted
under the supervision of management, including the CEO and CFO, as at December 31, 2020. Based on that evaluation, the CEO and the
CFO have concluded that the design and operation of the system of disclosure controls and procedures were effective as at December 31,
2020.

 

There have been no changes to AcuityAds’
internal controls over financial reporting during the three-months ended March 31, 2021 that have materially affected, or are reasonably
likely to materially affect, AcuityAds’ internal control over financial reporting.

 

OUTSTANDING SHARE DATA

 

As of May 10, 2021, 54,637,841 common shares
and no preference shares were issued and outstanding. In addition, as of May 10, 2021, there were 1,292,186 stock options outstanding,
each of which represents the right to acquire one Common Share, with exercise prices ranging from $0.96 to $4.60 per share. As at May 10,
2021, there were 830,123 DSUs outstanding under the Company’s DSU Plan, each of which represents the right to acquire one common
share when the participant is no longer rendering service to the Company. As at May 10, 2021, there were 1,199,804 RSUs outstanding
under the Company’s Omnibus Incentive Plan, each of which represents the right to acquire one common share when the participant
is no longer rendering service to the Company. As at May 10, 2021, there were 800 warrants outstanding, each of which represents
the right to acquire one Common Share, with exercise prices of $1.55 per share.

 

    15 

     

    

 

RISK FACTORS

 

AcuityAds is exposed to a variety of business
risks, financial and accounting risks and industry risks in the normal course of operations. A detailed description of risk factors associated
with the Company’s business is given in the “Risk Factors” section of the 2020 AIF dated March 1, 2021 which is
available under the Company’s profile on SEDAR at www.sedar.com.

 

ADDITIONAL INFORMATION

 

Additional information relating to the Company,
including the Company’s AIF, is posted on SEDAR at www.sedar.com. The Company’s shares are listed on the TSX under
the symbol “AT”.

 

    16

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