Document:

Exhibit 4.5

 

QYOU Media Inc. 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

For the three months ended March 31, 2022 and 2021 

[unaudited] [expressed in Canadian dollars]

 

     

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		1.	BUSINESS AND ORGANIZATION

 

QYOU Media Inc. (“QYOU” or the “Company”) was
incorporated pursuant to the Business Corporations Act (Alberta) on July 30, 1993 under the name “575161 Alberta Inc.”.
The registered and head office of the Company is 154 University Avenue, Suite 601, Toronto, ON M5H 3Y9. The Company is a global media
company that, through its subsidiaries, curate, produce and distributes content created by social media stars and digital content creators.

 

The Company has the following subsidiaries:

 

	 	 	 	 	Ownership
    percentage	 	 	Ownership percentage	 
		 		 	March 31, 2022	 	 	December 31, 2021	 
	Entity name	 	Country	 	%	 	 	%	 
	QYOU Media Inc.	 	Canada	 	 	100	 	 	 	100	 
	QYOU Productions Inc.	 	Canada	 	 	100	 	 	 	100	 
	QYOU Limited	 	Ireland	 	 	100	 	 	 	100	 
	QYOUTV International Limited	 	Ireland	 	 	100	 	 	 	100	 
	QYOU USA Inc.	 	USA	 	 	100	 	 	 	100	 
	QYOU Media India Private Ltd.	 	India	 	 	88	 	 	 	88	 
	Chatterbox Technologies Private Ltd.	 	India	 	 	97	 	 	 	97	 

 

Effective July 1, 2021, the Company amalgamated
QYOU Media Inc. and a wholly-owned subsidiary QYOU Media Holdings Inc. into QYOU Media Inc.

 

Impact of COVID-19

 

During the three months ended March 31, 2022
and 2021, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19,” has resulted in governments
worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans,
self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic
slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with
significant monetary and fiscal interventions designed to stabilize economic conditions. The extent to which COVID-19 and any other pandemic
or public health crisis impacts the Company’s business, affairs, operations, financial condition, liquidity, availability of credit
and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision,
including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to contain the COVID-19
virus or remedy its impact, among others.

 

Change of Fiscal Year-end

 

Effective in 2021, the Company changed its fiscal
year end from June 30 to December 31 in order to align the Company’s year-end with that of comparative media companies.
Accordingly, the condensed consolidated interim financial statements present the statements of financial position as at March 31,
2022 and December 31, 2021, and the results of operations for the three months ended March 31, 2022 and 2021.

 

		2.	BASIS OF PRESENTATION

 

		[a]	Statement of Compliance

 

These unaudited condensed consolidated interim
financial statements (“financial statements”) were prepared using the same accounting policies and methods as those used in
the Company’s audited consolidated financial statements for the six months ended December 31, 2021. These financial statements
have been prepared in compliance with IAS 34 – Interim Financial Reporting, as issued by the International Accounting Standards
Board (“IASB”). Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with
International Financial Reporting Standards (“IFRS”) have been omitted or condensed. These financial statements should be
read in conjunction with the Company’s audited consolidated financial statements for the six months ended December 31, 2021.

 

    - 1 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

The timely preparation of the financial statements
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies,
if any, as at the date of the financial statements, and the reported amounts of revenue and expenses during the three months ended March 31,
2022. By their nature, estimates are subject to measurement uncertainty and changes in such estimates in future periods could require
a material change in the financial statements.

 

These financial statements were approved and authorized
for issuance by the Board of Directors of the Company on May 30, 2022.

 

		[b]	Functional Currency and Presentation Currency

 

These financial statements are presented in Canadian
dollars, which is the functional currency of QYOU Media Inc.

 

The functional currencies of the Company’s
subsidiaries are as follows:

 

	Name of Subsidiary	 	 	Jurisdiction of incorporation	 	 	Functional currency
	QYOU Media Inc.	 	 	Canada	 	 	Canadian dollar
	QYOU Productions Inc.	 	 	Canada	 	 	Canadian dollar
	QYOU Limited	 	 	Ireland	 	 	Euro
	QYOUTV International Limited	 	 	Ireland	 	 	Euro
	QYOU USA Inc.	 	 	USA	 	 	US dollar
	QYOU Media India Private Ltd.	 	 	India	 	 	Indian rupee
	Chatterbox Technologies Private Ltd.	 	 	India	 	 	Indian rupee

 

		[c]	Basis of Consolidation

 

The interim financial statements incorporate the
financial information of the Company and the subsidiaries over which the Company has control. An entity is controlled when the Company
has the ability to direct the relevant activities of the entity, has exposure or rights to variable returns from its involvement with
the entity and is able to use its power over the entity to affect its returns from the entity.

 

The Company reassesses whether or not it
controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control as
prescribed by IFRS 10 – Consolidated Financial Statements. Consolidation of a subsidiary begins when the Company obtains
control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a
subsidiary acquired or disposed of during the year are included in the unaudited consolidated interim statements of operations and
comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. When
necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the
Company’s accounting policies.

 

All intercompany assets and liabilities, equity,
income, expenses and cash flows are eliminated in full on consolidation.

 

		[d]	Use of Estimates and Judgments

 

The preparation of these financial statements
in conformity with IFRS requires management to make estimates and judgements that affect the application of accounting policies and the
reported amounts of assets and liabilities, consistent with those disclosed in the audited consolidated financial statements for the six
months ended December 31, 2021 and described in these financial statements. Actual results could differ from these estimates.

 

Estimates are based on management’s best
knowledge of current events and actions that the Company may undertake in the future. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

    - 2 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		3.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The significant accounting policies used in preparing these financial
statements are unchanged from those disclosed in the Company’s audited consolidated financial statements for the six months ended
December 31, 2021, and have been applied consistently to all periods presented in these financial statements.

 

New standards, amendments and interpretations
not yet adopted by the Company

 

The following new accounting standards have been
issued but not yet adopted by the Company as at March 31, 2022:

 

IAS 1, Presentation of Financial Statements
(“IAS 1”)

 

In January 2020, the IASB issued Classification
of Liabilities as Current or Non-current (Amendments to IAS 1). The amendments aim to promote consistency in applying the requirements
by helping companies determine whether, in the consolidated statements of financial position, debt and other liabilities with an uncertain
settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments
include clarifying the classification requirements for debt a company might settle by converting it into equity.

 

The amendments are effective for annual reporting
periods beginning on or after January 1, 2022, with earlier application permitted. In July 2020, the effective date was deferred
to January 1, 2023. The Company is still assessing the impact of adopting these amendments on its financial statements.

 

In February 2021, the IASB issued amendments
to IAS 1 and IFRS Practice Statements 2, Making Materiality Judgements, to help entities provide accounting policy disclosures that are
more useful by replacing the requirement to disclose "significant" accounting policies with a requirement to disclose "material"
accounting policies. The amendments are effective for annual periods beginning on or after January 1, 2023, with earlier application
permitted. The Company is currently evaluating the impact of these amendments on its financial statements and will apply the amendments
from the effective date.

 

IAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors (“IAS 8”)

 

In February 2021, the IASB issued Definition
of Accounting Estimates, which amends IAS 8. The amendment replaces the definition of a change in accounting estimates with a definition
of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject
to measurement uncertainty”. The amendment provides clarification to help entities to distinguish between accounting policies and
accounting estimates.

 

The amendments are effective for annual periods
beginning on or after January 1, 2023. The Company is still assessing the impact of adopting these amendments on its financial statements.

 

IAS 12, Income Taxes (“IAS 12”)

 

In May 2021, the IASB issued Deferred Tax
related to Assets and Liabilities arising from a single transaction (Amendments to IAS 12). The amendment narrows the scope of the initial
recognition exemption so that it does not apply to transactions that give rise to equal and offset temporary differences. As a result,
companies will need to recognize a deferred tax asset and deferred tax liability for temporary differences arising on initial recognition
of transactions such as leases and decommissioning obligations.

 

The amendments are effective for annual reporting
periods beginning on or after January 1, 2023 and are to be applied retrospectively. The Company is still assessing the impact of
adopting these amendments on its financial statements.

 

    - 3 - 

     

    

  

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		4.	BUSINESS COMBINATION

 

Chatterbox

 

On June 14, 2021, the Company acquired 97%
of the outstanding common shares of Chatterbox, an influencer marketing company based in India for total consideration of $4,711,063,
as part of the Company’s international distribution and strategic partnerships growth strategy. The purchase consideration consisted
of cash consideration of $2,630,345, working capital adjustment of $106,837, 2021 earnings before income tax, depreciation and amortization
(“EBITDA”) adjustments of ($68,103) and $2,552,135 of contingent consideration.

 

The share acquisition of Chatterbox qualified
as a business combination and was accounted for using the acquisition method of accounting. Accordingly, the results of Chatterbox have
been included in the condensed consolidated interim financial statements of the Company from the date of acquisition, which is the date
the Company obtained control.

 

Due to the complexity associated with the valuation
process, the identification and measurement of the assets acquired, and liabilities assumed, as well as the measurement contingent consideration
is provisional and subject to adjustment on completion of the valuation process and analysis of resulting tax effects. Management will
finalize the accounting for the acquisition, specifically the intangible assets, contingent consideration, and the related tax effects,
no later than one year from the date of the acquisition and will reflect these adjustments retrospectively as required under IFRS 3. Differences
between these provisional estimates and the final acquisition accounting may occur and these differences could have a material impact
on the Company’s future financial position and results of operations.

 

The allocation of the total consideration to the
fair value of the identifiable assets acquired and liabilities assumed as at the date of the acquisition was as follows:

 

	 	 	$	 
	Cash and cash equivalents	 	 	747,785	 
	Trade receivables	 	 	256,259	 
	Other receivables	 	 	50,718	 
	Customer relationships	 	 	298,438	 
	Brand name	 	 	619,802	 
	Goodwill	 	 	3,231,125	 
	Trade and other payables	 	 	(260,919	)
	Deferred tax
    liabilities	 	 	(232,145	)
	 	 	 	4,711,063	 

 

Goodwill arising from the acquisition reflects
the benefits attributable to synergies, revenue growth and future market development. These benefits were not recognized separately from
goodwill because they did not meet the recognition criteria for identifiable intangible assets. Goodwill is not deductible for income
tax purposes.

 

During the fiscal period ending December 31,
2021, the Company paid additional consideration related to working capital adjustments of $106,837, with net post acquisition measurement
adjustments of $37,352. Management is continuing to review the acquisition and its accounting and finalizing the accounting for the acquisition
no later than one year from the date of the acquisition.

 

The contingent consideration is classified as
Level 3 in the fair value hierarchy. The contingent consideration fair value is based on the present value of the estimated likely obligation.
During the three months ended December 31, 2021, the Company recorded a loss on the remeasurement of contingent consideration of
$393,950 and as at March 31, 2022, the fair value of the contingent consideration was $2,552,135 (December 31, 2021 of $2,638,912).
The Company uses a scenario-based model to independently assess individual earnouts and calculate the fair value of the earnout based
on probabilities of success attributable to each individual scenario. The significant assumptions used in making the estimates are revenue
growth rate and discount rate. A 10% change in the discount rate used in the valuation of the contingent consideration as at March 31,
2022 would change the valuation of the liability by approximately $145,000.

 

    - 4 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021 

 

The Non-Controlling Interest (“NCI”)
on the transaction meets the definition of a liability as the Company is obligated to purchase the remaining 3% of common shares. The
amount payable is included in contingent consideration and is measured at fair valued through profit or loss.

 

The contingent consideration as at March 31,
2022:

 

	 	 	Earnout	 
	 	 	$	 
	As at December 31, 2020	 	 	—	 
	Acquisition - Chatterbox	 	 	2,186,960	 
	Loss on remeasurement of contingent consideration	 	 	393,950	 
	Effects of foreign exchange	 	 	58,002	 
	Balance – December 31, 2021	 	 	2,638,912	 
	Effects of foreign exchange	 	 	(86,777	)
	Balance – March 31, 2022	 	 	2,552,135	 
	Current	 	 	833,361	 
	Non-current	 	 	1,718,774	 

 

    - 5 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		5.	PROPERTY AND EQUIPMENT

  

The Company’s property and equipment are
as follows:

 

	 	 	Computer hardware	 	 		 	 		 
	 	 	 and
    equipment	 	 	Furniture and fixtures	 	 	Total	 
	Cost	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	228,974	 	 	 	273,291	 	 	 	502,265	 
	Additions	 	 	36,613	 	 	 	31,475	 	 	 	68,088	 
	Foreign exchange	 	 	(1,615	)	 	 	11,823	 	 	 	10,208	 
	As at December 31, 2021	 	 	263,972	 	 	 	316,589	 	 	 	580,561	 
	Additions	 	 	66,942	 	 	 	7,988	 	 	 	74,930	 
	Foreign exchange	 	 	(7,010	)	 	 	(2,338	)	 	 	(9,348	)
	As at March 31, 2022	 	 	323,904	 	 	 	322,239	 	 	 	646,143	 

 

	 	 	Computer hardware	 	 	 	 	 	 	 
	 	 	and equipment	 	 	Furniture and fixtures	 	 	Total	 
	Accumulated depreciation	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	207,475	 	 	 	241,392	 	 	 	448,867	 
	Depreciation	 	 	7,107	 	 	 	9,350	 	 	 	16,457	 
	Foreign exchange	 	 	(1,475	)	 	 	12,014	 	 	 	10,539	 
	As at December 31, 2021	 	 	213,107	 	 	 	262,756	 	 	 	475,863	 
	Depreciation	 	 	9,711	 	 	 	2,305	 	 	 	12,016	 
	Foreign exchange	 	 	(4,235	)	 	 	(765	)	 	 	(5,000	)
	As at March 31, 2022	 	 	218,583	 	 	 	264,296	 	 	 	482,879	 

 

	 	 	Computer hardware	 	 	 	 	 	 	 
	 	 	and equipment	 	 	Furniture and fixtures	 	 	Total	 
	Net book value	 	$	 	 	$	 	 	$	 
	As at December 31, 2021	 	 	50,865	 	 	 	53,833	 	 	 	104,698	 
	As at March 31, 2022	 	 	105,321	 	 	 	57,943	 	 	 	163,264	 

 

    - 6 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		6.	CAPITALIZED PROGRAMMING ASSET

 

The Company’s capitalized programming asset are as follows:  

 

	Cost	 	$	 
	As at December 31, 2020	 	—	 
	Additions	 	 	211,501	 
	Effects of foreign exchange	 	 	2,665	 
	As at December 31, 2021	 	 	214,166	 
	Additions	 	 	169,197	 
	Effects of foreign exchange	 	 	(10,662	)
	As at March 31, 2022	 	 	372,701	 

 

	Accumulated amortization	 	$	 
	As at December 31, 2020	 	—	 
	Amortization	 	 	24,406	 
	Effects of foreign exchange	 	 	307	 
	As at December 31, 2021	 	 	24,713	 
	Amortization	 	 	6,617	 
	Effects of foreign exchange	 	 	(954	)
	As at March 31, 2022	 	 	30,376	 

 

	Net book value	 	$	 
	As at December 31, 2021	 	 	189,453	 
	As at March 31, 2022	 	 	342,325	 

 

    - 7 - 

     

    

  

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS 

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		7.	INTANGIBLE ASSETS

 

A summary of the Company’s intangible assets are as follows:

 

	 	 		 	 	Brand	 	 	Customer	 	 		 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	 	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	92,265	 	 	 	—	 	 	 	—	 	 	 	92,265	 
	Acquisition - Chatterbox	 	 	—	 	 	 	619,802	 	 	 	298,438	 	 	 	918,240	 
	Effects of foreign exchange	 	 	(7,194	)	 	 	16,439	 	 	 	7,915	 	 	 	17,160	 
	As at December 31, 2021	 	 	85,071	 	 	 	636,241	 	 	 	306,353	 	 	 	1,027,665	 
	Effects of foreign exchange	 	 	(3,181	)	 	 	(20,922	)	 	 	(10,074	)	 	 	959,693	 
	As at March 31, 2022	 	 	81,890	 	 	 	615,319	 	 	 	296,279	 	 	 	1,987,358	 

 

	 	 		 	 	Brand	 	 	Customer	 	 		 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	Accumulated amortization	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Amortization	 	 	—	 	 	 	—	 	 	 	27,755	 	 	 	27,755	 
	Effects of foreign exchange	 	 	—	 	 	 	—	 	 	 	1,971	 	 	 	1,971	 
	As at December 31, 2021	 	 	—	 	 	 	—	 	 	 	29,726	 	 	 	29,726	 
	Amortization	 	 	—	 	 	 	—	 	 	 	12,436	 	 	 	12,436	 
	Effects of foreign exchange	 	 	—	 	 	 	—	 	 	 	(2,811	)	 	 	991,059	 
	As at March 31, 2022	 	 	—	 	 	 	—	 	 	 	39,351	 	 	 	1,033,221	 

 

	 	 		 	 	Brand	 	 	Customer	 	 		 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	Net book value	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2021	 	 	85,071	 	 	 	636,241	 	 	 	276,627	 	 	 	997,939	 
	As at March 31, 2022	 	 	81,890	 	 	 	615,319	 	 	 	256,928	 	 	 	954,137	 

 

    - 8 - 

     

    

 

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		8.	GOODWILL

 

A summary of the Company’s goodwill is as
follows:

 

	 	 	Goodwill	 
	 	 	$	 
	As
    at December 31, 2020	 	 	—	 
	Acquisition
    - Chatterbox	 	 	3,231,125	 
	Chatterbox
    - Working capital adjustments	 	 	37,352	 
	Effects
    of foreign exchange	 	 	131,162	 
	Balance
    – December 31, 2021	 	 	3,399,639	 
	Effects
    of foreign exchange	 	 	(111,790	)
	Balance
    – March 31, 2022	 	 	3,287,849	 

 

		9.	RIGHT-OF-USE ASSETS

 

The Company has three office leases with maturities ranging between
1 to 3 years.

 

The Company’s right-of-use assets are as
follows:

 

	 	 	$	 
	Balance – December 31, 2020	 	 	421,531	 
	Additions	 	 	467,462	 
	Depreciation	 	 	(128,517	)
	Effects of foreign exchange	 	 	(7,209	)
	Balance – December 31, 2021	 	 	753,267	 
	Additions	 	 	-	 
	Termination of lease	 	 	(149,707	)
	Depreciation	 	 	(59,783	)
	Effects of foreign exchange	 	 	(20,968	)
	Balance – March 31, 2022	 	 	522,809	 

 

		10.	LEASE LIABILITIES

 

The Company’s lease liabilities are as follows:

 

	 	 	$	 
	Balance – December 31, 2020	 	 	451,429	 
	Additions	 	 	467,462	 
	Add: Interest expense	 	 	40,468	 
	Less: Lease payments	 	 	(151,826	)
	Effects of foreign exchange	 	 	(6,700	)
	Balance – December 31, 2021	 	 	800,833	 
	Additions	 	 	-	 
	Termination of lease	 	 	(162,144	)
	Add: Interest expense	 	 	6,733	 
	Less: Lease payments	 	 	(68,678	)
	Effects of foreign exchange	 	 	(11,999	)
	Balance – March 31, 2022	 	 	564,745	 
	Current	 	 	210,756	 
	Non-current	 	 	353,989	 

 

During the three months ended March 31, 2022,
the Company terminated its lease agreement for office space for the QYOU Media India Private Ltd. and recognized a gain on termination
of $12,437.

 

    - 9 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		11.	SHARE CAPITAL

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Compensation	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	options
    amount	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Compensation	 	 	within
    share-based	 
	 	 	Common
    shares	 	 	Share
    capital	 	 	Warrants	 	 	Warrants	 	 	options	 	 	payment
    reserve	 
	 	 	#	 	 	$	 	 	#	 	 	$	 	 	#	 	 	$	 
	Balance,
    December 31, 2020	 	 	265,733,521	 	 	 	26,862,214	 	 	 	72,037,552	 	 	 	2,215,005	 	 	 	9,219,635	 	 	635,893	 
	Issuance
    of common shares and warrants, net of issuance costs [a] [b]	 	 	48,968,435	 	 	 	8,786,984	 	 	 	20,535,780	 	 	 	1,931,673	 	 	 	3,285,724	 	 	993,666	 
	Compensation
    options and warrants exercised [c] [d]	 	 	69,361,582	 	 	 	6,646,820	 	 	 	(56,898,507	)	 	 	(445,996	)	 	 	(8,174,553	)	 	(186,482)	 
	RSU
    Redeemed [e]	 	 	11,925,007	 	 	 	1,931,333	 	 	 	—	 	 	 	—	 	 	 	—	 	 	—	 
	Share
    options exercised [f]	 	 	5,322,436	 	 	 	492,762	 	 	 	—	 	 	 	—	 	 	 	—	 	 	—	 
	Share-based
    compensation [g]	 	 	83,333	 	 	 	38,750	 	 	 	—	 	 	 	—	 	 	 	—	 	 	—	 
	Compensation
    options and warrants expired	 	 	—	 	 	 	—	 	 	 	(14,250	)	 	 	—	 	 	 	(189,907	)	 	—	 
	Balance,
    December 31, 2021	 	 	401,394,314	 	 	 	44,758,863	 	 	 	35,660,575	 	 	 	3,700,682	 	 	 	4,140,899	 	 	1,443,077	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Compensation
    options and warrants exercised [h]	 	 	2,494,990	 	 	 	218,951	 	 	 	(2,494,990	)	 	 	(26,702	)	 	 	—	 	 	—	 
	RSUs
    redeemed [i]	 	 	4,316,673	 	 	 	1,099,500	 	 	 	—	 	 	 	—	 	 	 	—	 	 	—	 
	Share
    options exercised [j]	 	 	16,664	 	 	 	1,505	 	 	 	—	 	 	 	—	 	 	 	—	 	 	—	 
	Compensation
    options and warrants expired	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(17,500	)	 	—	 
	Balance,
    March 31, 2022	 	 	408,222,641	 	 	 	46,078,819	 	 	 	33,165,585	 	 	 	3,673,980	 	 	 	4,123,399	 	 	1,443,077	 

 

		[a]	During the three months ended March 31, 2021, the Company completed the issuance of 41,071,560 units
of the Company as part of a private placement at a price of $0.28 per unit. The total gross proceeds from the issuance was $11,500,037.
Each unit is comprised of one common share of the Company and one-half of one common share purchase warrant exercisable to purchase one
common share at a price of $0.45 (a “45 Cent Warrant”).

 

Each 45 Cent Warrant is exercisable
to purchase one common share in the capital of the Company at a price of $0.45 per 45 Cent Warrant Share until February 25, 2023.
The fair value of each 45 Cent Warrant is $0.1837 per warrant, calculated using the Black-Scholes options pricing model with a market
price per common share of $0.315 on the date of grant, a risk-free interest rate of 0.32%, an expected annualized volatility of 131% and
expected dividend yield of 0%.

 

Total transaction costs consisted of
$2,942,270 in cash and issuance of 3,285,724 compensation options to the agents in connection with the transaction. Each compensation
option is exercisable into one unit until February 25, 2023 at a price of $0.28. Total fair value of the compensation options was
determined to be $993,666. The fair value of the compensation units was determined using the Black-Scholes options pricing model with
a market price per common share of $0.315, a risk-free interest rate of 0.32%, an expected annualized volatility of 131% and expected
dividend yield of 0%.

 

		[b]	On August 16, 2021 the Company completed the
issuance of 7,896,875 common shares as part of a non-brokered private placement at a price of $0.32 per share.  Total gross proceeds
from the issuance was $2,527,000.  In addition to the issuance of common shares, the Company also granted the investor a right to
subscribe for an additional US $2,000,000 worth of common shares between January 1, 2022 and March 31, 2022 at the greater of
$0.42 per share and a discounted price based on the volume weighted-average price of the common shares on the TSXV.  The
option meets the definition of a derivative liability, and as such was initially recognized at its fair value of $114,532. 
The fair value of the liability was estimated by utilizing a Monte Carlo simulation.  As at December 31, 2021, the Company
revalued the liability relating to the derivative, and determined that the fair value was $nil, due to decreases in the trading price
of the Company’s common shares on the TSXV.  As such, the Company has recognized a gain on revaluation of derivative liability
in the consolidated statements of loss and comprehensive loss of $114,532 in the six months ended December 31, 2021. 
Total transaction costs consisted of $251,577 in cash. On the date of the investment, the Company purchased media credits in the amount
of $2,000,000 USD from the investor. Of this amount, $1,296,685 CAD remains in the prepaid expenses as of March 31, 2022 to be utilized
over the remaining fiscal year.

 

		[c]	During the twelve months ended December 31, 2021, 8,174,553 compensation options were exercised for
proceeds of $413,425. Upon exercise of the compensation options the Company issued 8,174,553 common shares, 2,189,092 5 Cent Warrants,
332,500 8 Cent Warrants, 844,541 10 Cent Warrants, 897,389 12 Cent Warrants and 25,000 45 Cent Warrants.

 

    - 10 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		[d]	During the twelve months ended December 31, 2021, 17,489,913 5 Cent Warrants, 4,152,510 8 Cent Warrants,
19,118,750 10 Cent Warrants and 20,425,856 12 Cent Warrants were exercised for proceeds of $4,702,478. Upon the exercise of the warrants
the Company issued 61,187,029 common shares.

 

		[e]	During the twelve months ended December 31, 2021, 11,925,007 restricted share units were redeemed
for 11,925,007 common shares.

 

		[f]	During the twelve months ended December 31, 2021, 5,322,436 share options were exercised for proceeds
of $298,505. Upon the exercise of the share options 5,322,436 common shares were issued.

 

		[g]	During the twelve months ended December 31, 2021, the Company issued 83,333 common shares to a non-related
party resulting in a recognition of $34,583 share-based compensation expense.

 

		[h]	During the three months ended March 31, 2022, 2,249,990 8 cent warrants and 245,000 5 cent warrants
were exercised for proceeds of $192,249. Upon the exercise of the warrants the Company issued 2,494,990 common shares.

 

		[i]	During the three months ended March 31, 2022, 4,316,673 restricted share units were redeemed for
4,316,673 common shares.

 

		[j]	During the three months ended March 31, 2022, 16,664 share options were exercised for proceeds of
$937. Upon the exercise of the share options, 16,664 common shares were issued.

 

The following is a summary of the Company’s warrants outstanding
as at March 31, 2022:

 

		 	Exercise
    price	 	 	Number
    Outstanding	 
	Expiry
    date	 	$	 	 	#	 
	June
    30, 2022	 	 	0.05	 	 	 	12,604,805	 
	February
    25, 2023	 	 	0.45	 	 	 	20,560,780	 
	 	 	 	0.30	 	 	 	33,165,585	 

 

The following is a summary of the Company’s warrants outstanding
as at December 31, 2021:

 

		 	Exercise price	 	 	Number Outstanding	 
	Expiry date	 	$	 	 	#	 
	February 11, 2022	 	 	0.08	 	 	 	2,249,990	 
	June 30, 2022	 	 	0.05	 	 	 	12,849,805	 
	February 25, 2023	 	 	0.45	 	 	 	20,560,780	 
	 	 	 	0.28	 	 	 	35,660,575	 

 

    - 11 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		12.	SHARE-BASED COMPENSATION

 

The Company has established a share option plan and restricted share
unit (“RSU”) plan for directors, officers, employees and consultants of the Company. The Company’s Board of Directors
determines, among other things, the eligibility of individuals to participate in these plans and the term, vesting periods, and the exercise
price of share options granted to individuals under the share option plan.

 

Each share option converts into one common share
of the Company on exercise and on receipt of exercise price. Each RSU converts into one common share of the Company on the date of vesting
at $nil exercise price. Share options may be exercised at any time from the date of vesting to the date of their expiry.

 

		[i]	Share options

 

Changes in the number of share options during
the three months ended March 31, 2022, and twelve months ended December 31, 2021 were as follows:

 

	 	 	 	 	 	Weighted average	 
	 	 	Number of options	 	 	exercise price	 
	 	 	 	#	 	 	 	$	 
	Outstanding as at December 31, 2020	 	 	22,500,541	 	 	 	0.15	 
	Granted	 	 	19,125,000	 	 	 	0.28	 
	Forfeited	 	 	(260,938	)	 	 	0.36	 
	Expired	 	 	(112,513	)	 	 	0.35	 
	Cancelled	 	 	(150,000	)	 	 	0.30	 
	Exercised	 	 	(5,322,436	)	 	 	0.05	 
	Outstanding as at December 31, 2021	 	 	35,779,654	 	 	 	0.23	 
	Expired	 	 	(4,231,771	)	 	 	0.50	 
	Exercised	 	 	(16,664	)	 	 	0.08	 
	Outstanding as at March 31, 2022	 	 	31,531,219	 	 	 	0.19	 

 

There were nil share options granted for the three
months ended March 31, 2022. The fair value of share options granted during the twelve months ended December 31, 2021 at the
date of grant using the Black Scholes option pricing model using the following inputs:

 

	 	 	 	December
                                            31, 2021	 
	Grant date share price	 	 	$0.18
                                            - $0.38	 
	Exercise price	 	 	$0.18
                                            - $0.37	 
	Expected dividend yield	 	 	--	 
	Risk free interest rate	 	 	0.35%
                                            - 1.56%	 
	Expected life	 	 	5
                                            years	 
	Expected volatility	 	 	100%
                                            - 115%	 

 

Expected volatility was estimated by using the
historical volatility of the Company. The expected option life represents the period of time that options granted are expected to be outstanding.
The risk-free interest rate is based on government bonds with a remaining term equal to the expected life of the options.

 

    - 12 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

The following table is a summary of the Company’s
share options outstanding as at March 31, 2022:

 

	Options outstanding	 	 	 	 	 	Options
    exercisable	 
	 	 	 	 	 	 	Weighted
    average	 	 	 	 	 	 	 
	 	 	 	 	 	 	remaining
    contractual	 	 	 	 	 	 	 
	Exercise
    price	 	 	Number
    outstanding	 	 	life
    [years]	 	 	Exercise
    price	 	 	Number
    exercisable	 
	$	 	 	#	 	 	#	 	 	$	 	 	#	 
	 	0.050	 	 	 	7,622,903	 	 	 	3.27	 	 	 	0.050	 	 	 	3,785,491	 
	 	0.060	 	 	 	2,000,000	 	 	 	2.21	 	 	 	0.060	 	 	 	2,000,000	 
	 	0.075	 	 	 	2,883,315	 	 	 	1.91	 	 	 	0.075	 	 	 	2,370,010	 
	 	0.180	 	 	 	4,350,000	 	 	 	3.82	 	 	 	0.180	 	 	 	1,268,792	 
	 	0.275	 	 	 	3,425,000	 	 	 	4.65	 	 	 	0.275	 	 	 	422,950	 
	 	0.300	 	 	 	8,600,001	 	 	 	3.92	 	 	 	0.300	 	 	 	2,292,550	 
	 	0.360	 	 	 	2,000,000	 	 	 	4.21	 	 	 	0.360	 	 	 	375,012	 
	 	0.370	 	 	 	300,000	 	 	 	4.16	 	 	 	0.370	 	 	 	62,500	 
	 	0.500	 	 	 	350,000	 	 	 	0.57	 	 	 	0.500	 	 	 	350,000	 
	 	0.191	 	 	 	31,531,219	 	 	 	3.52	 	 	 	0.143	 	 	 	12,927,305	 

 

The following table is a summary of the Company’s
share options outstanding as at December 31, 2021:

 

	Options outstanding	 	 	 	 	 	Options exercisable	 
	 	 	 	 	 	 	Weighted average	 	 	 	 	 	 	 
	 	 	 	 	 	 	remaining contractual	 	 	 	 	 	 	 
	Exercise price	 	 	Number outstanding	 	 	life [years]	 	 	Exercise price	 	 	Number exercisable	 
	$	 	 	#	 	 	#	 	 	$	 	 	#	 
	 	0.050	 	 	 	7,622,903	 	 	 	3.51	 	 	 	0.050	 	 	 	3,338,622	 
	 	0.060	 	 	 	2,000,000	 	 	 	2.45	 	 	 	0.060	 	 	 	2,000,000	 
	 	0.075	 	 	 	2,899,979	 	 	 	2.16	 	 	 	0.075	 	 	 	2,242,516	 
	 	0.180	 	 	 	4,350,000	 	 	 	4.07	 	 	 	0.180	 	 	 	996,908	 
	 	0.275	 	 	 	3,425,000	 	 	 	4.90	 	 	 	0.275	 	 	 	65,634	 
	 	0.300	 	 	 	8,600,001	 	 	 	4.17	 	 	 	0.300	 	 	 	1,751,962	 
	 	0.360	 	 	 	2,000,000	 	 	 	4.45	 	 	 	0.360	 	 	 	250,008	 
	 	0.370	 	 	 	300,000	 	 	 	4.41	 	 	 	0.370	 	 	 	43,750	 
	 	0.500	 	 	 	4,581,771	 	 	 	0.29	 	 	 	0.500	 	 	 	4,581,771	 
	 	0.228	 	 	 	35,779,654	 	 	 	3.35	 	 	 	0.234	 	 	 	15,271,171	 

 

During the three months ended March 31, 2022,
the Company recognized $480,018 of share-based compensation expense associated with options issued under the share option plan. During
the three months ended March 31, 2021, the Company recognized $443,923, of share-based compensation expense associated with options
issued under the share option plan.

 

    - 13 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		[ii]	RSUs

 

Changes in the number of RSUs during the three
months ended March 31, 2022 and twelve months ended December 31, 2021 were as follows:

 

	 	 	 	Number of RSUs	 	 	Number exercisable	 
	 	 	 	#	 	 	#	 
	Outstanding as at December 31, 2020	 	 	 	16,224,999	 	 	 	7,575,000	 
	Vested	 	 	 	—	 	 	 	4,350,007	 
	Granted	 	 	 	13,650,000	 	 	 	—	 
	Forfeited	 	 	 	—	 	 	 	—	 
	Redeemed	 	 	 	(11,925,007	)	 	 	(11,925,007	)
	Outstanding as at December 31, 2021	 	 	 	17,949,992	 	 	 	—	 
	Vested	 	 	 	—	 	 	 	4,316,673	 
	Granted	 	 	 	—	 	 	 	—	 
	Forfeited	 	 	 	—	 	 	 	—	 
	Redeemed	 	 	 	(4,316,673	)	 	 	(4,316,673	)
	Outstanding as at March 31, 2022	 	 	 	13,633,319	 	 	 	—	 

 

Nil RSUs were granted during the three months
ended March 31, 2022 (three months March 31, 2021 – 9,900,000). During the three months ended March 31, 2022, the
Company recognized $543,609 (2021 - $433,246) of share-based compensation expense associated with RSUs issued under the RSU plan.

 

		13.	NON-CONTROLLING INTEREST

 

The Company has an 88% (December 31, 2021
 – 88%) ownership interest in QYOU India.

 

Reconciliation of non-controlling interest is as follows:

 

	 	 	$	 
	Balance
    — December 31, 2020	 	 	(296,520	)
	Share of net loss
    for the period	 	 	(146,923	)
	Balance —
    December 31, 2021	 	 	(443,443	)
	Share of net loss
    for the period	 	 	(83,092	)
	Balance — March 31, 2022	 	 	(526,535	)

 

    - 14 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

The following is a summary of QYOU India’s stand-alone financial
results:

 

	 	 	As at and three month months	 	 	As at December 31, 2021 and	 
	 	 	ended	 	 	three months ended	 
	 	 	March 31, 2022	 	 	March 31, 2021	 
	 	 	$	 	 	$	 
	Current assets	 	 	5,026,744	 	 	 	4,638,638	 
	Non-current assets	 	 	605,076	 	 	 	380,458	 
	 	 	 	 	 	 	 	 	 
	Current liabilities	 	 	1,001,507	 	 	 	1,179,431	 
	Non-Current liabilities	 	 	431,583	 	 	 	447,079	 
	 	 	 	 	 	 	 	 	 
	Revenue	 	 	2,228,708	 	 	 	60,963	 
	Net income (loss)	 	 	(692,430	)	 	 	(668,687	)

 

		14.	CONTINGENCIES

 

In the ordinary course of business, from time
to time the Company is involved in various claims related to operations, rights, commercial, employment or other claims. Although such
matters cannot be predicted with certainty, management does not consider the Company’s exposure to these claims to be material to
these financial statements.

 

		15.	RELATED PARTY TRANSACTIONS

 

Key management personnel and directors include
the Company’s CEO, CFO, executives and members of the Board of Directors. The compensation paid or payable to key management and
directors comprised of the following:

 

On June 5, 2017, the Company agreed to loan
Curt Marvis, the Chief Executive Officer of the Company, an aggregate principal amount of USD$150,000, as evidenced by a promissory note
issued by Mr. Marvis to the Company, which bears interest at a rate of 3% per annum (the “Officer Loan”) and was originally
intended to become due on June 5, 2019. The Company extended the term of the promissory note to January 31, 2021. During the
twelve months ended December 31, 2021, the loan was forgiven by the Company and the carrying amount of $214,420 including interest
was recorded as an expense in the statements of loss and comprehensive loss under legal and consulting expenses.

 

Compensation expense for the Company’s key
management personnel for the three months ended March 31, 2022 and 2021 were as follows:

 

		 	2022	 	 	2021	 
	For the three months ended March 31,	 	$	 	 	$	 
	Salaries, benefits and consulting fees	 	 	458,820	 	 	 	457,194	 
	Share-based payments	 	 	466,985	 	 	 	467,829	 
	 	 	 	925,805	 	 	 	925,024	 

 

Included in trade and other payables is $nil (December 31, 2021
- $167,126) owing to executives for expense reimbursement and sales commissions.

 

    - 15 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

		16.	FINANCIAL INSTRUMENTS

 

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 principally from
deposits with banks and outstanding receivables. The Company trades only with recognized, creditworthy third parties. The Company performs
credit checks for all customers who wish to trade on credit terms. As at March 31, 2022, two customers represented 38% (December 31,
2021, two customers represented 37%) of the outstanding trade receivable balance. As at March 31, 2022, the Company recorded a provision
of $68,509 for expected credit loss (December 31, 2021 - $32,238).

 

The Company does not hold any collateral as security
but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not
anticipate significant loss for non-performance.

 

The aging of trade receivables is as follows:

 

	 	 	 	March 31, 2022	 	 	 	December 31, 2021	 
	 	 	 	$	 	 	 	$	 
	Current	 	 	2,832,021	 	 	 	2,336,188	 
	1 to 30 days	 	 	456,713	 	 	 	571,824	 
	31 to 60 days	 	 	359,963	 	 	 	929,652	 
	> 60 days	 	 	530,966	 	 	 	326,033	 
	 	 	 	4,179,663	 	 	 	4,163,697	 
	Less: credit loss impairment	 	 	68,509	 	 	 	32,238	 
	Total trade receivables	 	 	4,111,154	 	 	 	4,131,459	 

 

Liquidity risk

 

Liquidity risk is the risk that the Company will
not be able to meet its financial obligations as they become due. The Company’s exposure to liquidity risk is dependent on the Company’s
ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by management
of working capital, cash flows and the issuance of share capital.

 

The Company is obligated to the following contractual
maturities of undiscounted cash flows:

 

	 	 	 	 	 	 	 	 	Contractual cash
    flows	 
	 	 	 	 	 	Total
    contractual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Carrying
    amount	 	 	cash
    flows	 	 	Year
    1	 	 	Year
    2	 	 	Year
    3	 	 	Year
    4	 	 	Year
    5 and beyond	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Trade
    and other payables	 	 	4,234,095	 	 	 	4,234,095	 	 	 	4,234,095	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Lease liabilities	 	 	564,745	 	 	 	601,194	 	 	 	240,201	 	 	 	233,652	 	 	 	127,341	 	 	 	—	 	 	 	—	 
	Contingent
    consideration	 	 	2,552,135	 	 	 	3,481,696	 	 	 	762,596	 	 	 	1,141,490	 	 	 	1,577,610	 	 	 	—	 	 	 	—	 
	Borrowings	 	 	59,743	 	 	 	312,006	 	 	 	11,176	 	 	 	11,176	 	 	 	11,176	 	 	 	11,176	 	 	 	267,302	 

 

Market risk

 

Market risk is the risk that the fair value or
future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:
foreign currency risk, interest rate risk and other price risk.

 

Foreign Currency risk

 

Foreign currency risk arises on financial instruments
that are denominated in a currency other than the functional currency in which they are measured. The Company’s primary exposure
with respect to foreign currencies is from USD and Indian Rupee denominated cash and other payables. A 1% change in the foreign exchange
rates would not result in any significant impact to the financial statements.

 

    - 16 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

Interest rate risk

 

Interest rate risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed
to cash flow interest rate risk as at March 31, 2022.

 

Other price risk

 

Other price risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest
rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer,
or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risks as at March 31,
2022.

 

Fair values

 

The carrying values of cash and cash equivalents,
trade receivables, other receivables, borrowings and trade and other payables approximate the fair values due to the short-term nature
of these items. The risk of material change in fair value is not considered to be significant due to a relatively short-term nature. The
carrying value of borrowings approximate the fair value and change risk of material change in fair value is not considered to be significant.
The Company does not use derivative financial instruments to manage this risk.

 

Financial instruments recorded at fair value on
the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs
used in making the measurements. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy
prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the
lowest-level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined
as follows:

 

		•	Level 1 – Unadjusted quoted prices as at
the measurement date for identical assets or liabilities in active markets.

 

		•	Level 2 – Observable inputs other than
quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical
or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable
market data.

 

		•	Level 3 – Significant unobservable inputs,
which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.

 

The fair value hierarchy requires the use of observable
market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant
input has been considered in measuring fair value.

 

The contingent consideration is recognized as
Level 3 (Note 4) and recorded at fair value through profit and loss.

 

		17.	CAPITAL MANAGEMENT

 

The Company defines its capital as shareholders’
equity. The Company’s objectives when managing capital are to build liquidity and shareholders’ equity to ensure that strategic
objectives are met. The Company makes every attempt to manage its liquidity to minimize shareholder dilution when possible.

 

The Company policy on dividends is to retain cash
to keep funds available to finance operations and growth.

 

    - 17 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

Capital structure is managed within guidelines
approved by the Board of Directors. The Company makes adjustments to its capital structure based on changes in economic conditions and
planned requirements. The Company has the ability to adjust its capital structure by issuing new equity or debt.

 

		18.	SEGMENT INFORMATION

 

Reportable segments are reported in a manner consistent
with the internal reporting provided to the chief operating decision maker, with appropriate aggregation. The chief operating decision
maker is the CEO who is responsible for allocating resources, assessing performance of the reportable segment and making key strategic
decisions. The Company operates in a single segment, being the distribution of curated media content. Segment performance is evaluated
based on profit or loss and is measured consistently with profit or loss in the financial statements.

 

The Company operates in four geographical areas,
being Canada, United States of America, Ireland and India. Revenue and assets by geography are presented below:

 

As at and for the three
months ended March 31, 2022

	 	 		 	 	 	 	 	 	 
	 	 	Canada	 	 	USA	 	 	Ireland	 	 	India	 	 	Intercompany	 	 	Total	 
	Revenue	 	 	—	 	 	 	1,363,999	 	 	 	11,065	 	 	 	3,859,616	 	 	 	—	 	 	 	5,234,680	 
	Current assets	 	 	3,857,587	 	 	 	1,979,200	 	 	 	25,391	 	 	 	7,266,180	 	 	 	—	 	 	 	13,128,358	 
	Non-current assets	 	 	4,724,148	 	 	 	39,068	 	 	 	81,890	 	 	 	573,154	 	 	 	—	 	 	 	5,418,260	 

 

As at and for the three
months ended March 31, 2021

	 	 		 	 	 	 	 	 	 
	 	 	Canada	 	 	USA	 	 	Ireland	 	 	India	 	 	Intercompany	 	 	Total	 
	Revenue	 	 	—	 	 	 	94,791	 	 	 	52,797	 	 	 	60,963	 	 	 	—	 	 	 	208,551	 
	Current assets	 	 	37,591,014	 	 	 	7,992,509	 	 	 	18,010,259	 	 	 	1,110,105	 	 	 	(50,908,535	)	 	 	13,795,352	 
	Non-current assets	 	 	387,629	 	 	 	44,608	 	 	 	88,058	 	 	 	49,977	 	 	 	—	 	 	 	570,272	 

 

As at March 31, 2022, two customers (2021
 – two) customers represented 10% or more of total revenue.

 

	 	 	 	March 31, 2022	 	 	 	December 31, 2021	 
	 	 	 	%	 	 	 	%	 
	Customer 1	 	 	17	 	 	 	19	 
	Customer 2	 	 	13	 	 	 	11	 
	Percentage of total revenue	 	 	30	 	 	 	30	 

 

		19.	SUBSEQUENT EVENTS

 

From April 1, 2022 to May 30, 2022,
8,332 share options were exercised for total proceeds of $625, resulting in the issuance of 8,332 common shares.

 

From April 1, 2022 to May 30, 2022,
1,407,291 5 Cent warrants were exercised for total proceeds of $70,365, resulting in the issuance of 1,407,291 common shares.

 

In April 2022, the Company entered into a
capital market advisory agreement with The Governance Box Inc. (“GBX”). Upon commencement of the Agreement, 150,000 share
options were granted. The share options are exercisable at a price of $0.20 per share option. 300,000 RSUs were also granted vesting under
the standard 3-year term according to the current RSU plan of the Company. One third of RSUs granted vest on each of the first three anniversaries
of the date of grant. The Company further agreed to issue 100,000 Bonus RSUs if the listing of the Company on NASDAQ or another senior
market occurs on or before October 31, 2022.

 

    - 18 - 

     

    

 

QYOU Media Inc.

 

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS

[unaudited] [expressed in Canadian dollars, unless
otherwise noted]

 

March 31, 2022 and 2021

 

In April 2022, the Company entered into a
consulting agreement with Supercharged Stocks Limited. Upon commencement of the Agreement, 150,000 share options were granted. The share
options are exercisable at a price of $0.22 per share option.

 

On April 8, 2022, 2,185,000 share options were granted to certain
employees, officers and consultants of the Company pursuant to the Company’s share option plan. The share options are exercisable
at a price of $0.21 per share option, vest on a monthly basis for a period of 4 years and expire 5 years from the grant date. Of the
total share options granted, 850,000 were issued to related parties. 550,000 RSUs were granted to certain employees, officers and consultants
of the Company. One third of RSUs granted vest on each of the first three anniversaries of the date of grant. Of the total RSUs, 100,000
were issued to related parties.

 

    - 19 -Exhibit
4.6

 

 

QYOU
MEDIA INC.

 

MANAGEMENT’S
DISCUSSION AND ANALYSIS

 

For
the three months ended March 31, 2022 and 2021

 

May 30th,
2022

 

    

    

    

 

QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

The
purpose of this Management’s Discussion and Analysis (“MD&A”) is to provide the reader with an overview of the
consolidated financial position, operating results, and cash flows of QYOU Media Inc. (“QYOU” or the “Company”)
for the three months ended March 31, 2022 and 2021. This MD&A was prepared as of May 30, 2022 and should be read in conjunction
with the Corporation’s audited consolidated financial statements for the fiscal period ended December 31, 2021 and years ended
June 30, 2021 and 2020, and the notes related thereto (the “Annual Financial Statements”), the unaudited condensed consolidated
interim financial statements for the three months ended March 31, 2022 and 2021 (the “Interim Financial Statements”)
and with the annual MD&A for the fiscal period ended December 31, 2021.

 

The
Interim Financial Statements have been prepared by management in accordance with generally accepted accounting principles in Canada,
as set out in the Chartered Professional Accountant of Canada Handbook – Accounting which incorporates International Financial
Reporting Standards [“IFRS”] as issued by the International Accounting Standards Board, using International Accounting Standard
34 - Interim Financial Reporting [“IAS 34”]. IFRS requires management to make certain judgments, estimates and assumptions
that affect the reported amount of assets and liabilities at the date of the financial statements and the amount of revenue and expenses
incurred during the reporting period. The results of operations for the periods reflected herein are not necessarily indicative of results
that may be expected for future periods

 

All
amounts are expressed in Canadian dollars unless otherwise noted. References in this MD&A to the “Company”, “QYOU”,
 “we”, “us” or “our” means QYOU and its subsidiaries.

 

Change
of Fiscal Year-end

 

During
February 2022, pursuant to Section 4.8(2) of National Instrument 51-102 – Continuous Disclosure Obligations,
the Company provided notice that it decided to change its fiscal year end from June 30 to December 31 to align the Company’s
year-end with that of comparable media companies, allowing investors to more easily compare quarterly and annual financial results. Accordingly,
the consolidated financial statements present the statements of financial position as at March 31, 2022 and December 31, 2021,
and the results of operations for the three months ended March 31, 2022 and 2021.

 

This
MD&A includes forward looking statements and assumptions (see “Forward-looking Statements”). The Company’s continuous
disclosure documents are available on SEDAR at www.sedar.com.

 

Also,
additional information is available in the company’s Annual Information Return (AIF) available on www.sedar.com.

 

Forward-Looking
Statements

 

Certain
statements in this MD&A constitute “forward-looking statements” that involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be
materially different from any future results, performance, objectives, or achievements expressed or implied by such forward-looking statements.
These statements reflect QYOU’s current views regarding future events and operating performance and are based on information currently
available to QYOU, and speak only as of the date of this MD&A. These forward–looking statements involve a number of known and
unknown risks, uncertainties and assumptions and should not be read as guarantees of future performance or results and will not necessarily
be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are
not limited to, the future cost structure, availability of additional financing as and when required, future sales and marketing activities,
increased penetration into certain markets through strategic partnerships, the impact of the introduction of new products, agreements
and partnerships, the ability of management to leverage sales opportunities, increase in the size of certain markets, expected increases
in revenue, expected revenue from certain contracts, third party contractual performance, customer rollout plans for specific products,
expected increase in gross margins, treatment under governmental regulatory regimes, ability to recover certain taxes, general business,
economic, competitive, political and social uncertainties, dependence on key personnel, and fluctuations in foreign currency exchange
rates. There can be no assurance that forward-looking statements will be accurate as many factors could cause the actual results, performance,
or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed
or implied by such forward-looking statements, including factors described in this MD&A and those discussed in QYOU’s publicly
available disclosure documents, as filed by QYOU on SEDAR (www.sedar.com) and updated herein. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from
those described in this MD&A as intended, planned, anticipated, believed, estimated, or expected. Accordingly, readers should not
place undue reliance on forward-looking statements. All subsequent forward-looking statements, whether written or oral, attributable
to QYOU or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Unless required by
applicable securities laws, QYOU does not intend and does not assume any obligation to update these forward-looking statements.

 

    1

    

    

 
QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

Company
Overview

 

The
Company was incorporated pursuant to the Business Corporations Act (Alberta) on July 30, 1993 under the name “575161 Alberta
Inc.” On April 10, 2014, the Company amended its articles to change its name to “Galleria Opportunities Ltd.”
Effective March 13, 2017, the Company completed a reverse takeover transaction (the “Transaction”) pursuant to which
QYOU Media Holdings Inc. became a wholly owned subsidiary of the Company and the security holders of QYOU Media Holdings Inc. became
security holders of the Company. QYOU Media Holdings Inc. is the entity resulting from the amalgamation of QYOU Media Inc. (as it was
then called) and 2561287 Ontario Ltd. (then a wholly owned subsidiary of the Company) on March 13, 2017 as part of the Transaction.
Subsequently, on March 31, 2017, the Company’s common shares (the “Common Shares”) resumed trading on the facilities
of the TSX Venture Exchange (the “TSXV”) under the symbol “QYOU”. Following the Transaction, the Company now
carries on the business of QYOU Media and its subsidiaries.

 

An
additional wholly owned indirect subsidiary of QYOU, QYOU USA Inc. (“QYOU USA”), was established in August 2015 under
the laws of the State of Delaware.

 

On
November 16, 2017, QYOU Productions Inc. (“QYOU Productions”), a corporation established under the federal laws of Canada,
was created as a wholly owned indirect subsidiary of QYOU.

 

On
September 20, 2018, QYOU Media India Private Limited (“QYOU India”) was incorporated to serve the rapidly growing Indian
market focusing on television, over-the-top (OTT) and mobile offerings targeted at the youth of India. Effective June 1, 2020, the
Company increased its ownership interest in QYOU India to 88% (June 30, 2019 – 82%). The Company received the additional interest
in exchange for funding the operations of QYOU India since its inception, resulting in a decrease of the ownership interest held by non-controlling
shareholders to 12% (June 30, 2019 – 18%).

 

On
June 14, 2021, the Company acquired 97% of the outstanding common shares of Chatterbox Technologies Private Limited (“Chatterbox”),
an award-winning influencer marketing company based in India.

 

Effective
July 1, 2021, the Company amalgamated QYOU Media Inc. and a wholly-owned subsidiary QYOU Media Holdings Inc. into QYOU Media Inc.

 

Description
of the Business

 

QYOU
operates in India and the United States producing and distributing content created by social media stars and digital content creators.
In India, via the Company’s flagship brand, The Q, and via additional broadcast and digital channels (The Q Marathi, The Q Kahaniyan,
The Q Comedistaan) we curate, produce and distribute premium content including television networks and video on demand (“VOD”)
for cable and satellite television, OTT, connected TV and mobile platforms. Our India based influencer marketing division, Chatterbox,
is among India’s leading influencer marketing platforms connecting brands and social media influencers. In the United States, we
create and manage influencer marketing campaigns for major film studios, game publishers and other consumer brands and categories. Founded
and created by industry veterans from Lionsgate, MTV, Disney, and Sony, QYOU’s millennial and Gen Z-focused content reaches more
than one billion consumers around the world every month.

 

The
Q India is an advertiser and influencer marketing supported Hindi language content brand, channel and VOD provider delivering hit digital
programming from social media stars and leading digital video creators targeting young Indian audiences. With a growing library of over
1200 programs, the channel reaches an audience of over 800 million via over 125 million television homes with partners including DD Free
Dish, TATA Sky, DISH TV, SitiNetworks, Den Networks, Hathway, d2h and GTPL; and 676 million OTT, mobile, app based and smart TV users
via platforms including MX Player, JioTV, Snap, Chingari, Samsung TV Plus, Xiaomi MiTv and Amazon FireStick TV. The Company’s USA
based influencer marketing division utilizes digital and social media stars to promote third party brands and has primarily been engaged
with major studios to promote their theatrical motion picture releases. Subsequent to the closure of theaters as a result of COVID-19
the company pivoted and expanded its influencer marketing campaigns for the fiscal year commencing July 1, 2020 to include Premium
Video On Demand (PVOD), Subscription Video On Demand (SVOD) and video game publishers.

 

    2

    

    

 
QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

Chatterbox
Acquisition

 

On
June 14, 2021, the Company acquired 97% of the outstanding common shares of Chatterbox, an influencer marketing company based in
India for total consideration of $4,711,063, as part of the Company’s international distribution and strategic partnerships growth
strategy. The purchase consideration consisted of cash consideration of $2,630,345, working capital adjustment of $106,837, 2021 earnings
before income tax, depreciation and amortization (“EBITDA”) adjustments of ($68,103) and $2,552,135 of contingent consideration.

 

The
share acquisition of Chatterbox qualified as a business combination and was accounted for using the acquisition method of accounting.
Accordingly, the results of Chatterbox have been included in the consolidated financial statements of the Company from the date of acquisition,
which is the date the Company obtained control.

 

Due
to the complexity associated with the valuation process, the identification and measurement of the assets acquired, and liabilities assumed,
as well as the measurement contingent consideration is provisional and subject to adjustment on completion of the valuation process and
analysis of resulting tax effects. Management will finalize the accounting for the acquisition, specifically the intangible assets, contingent
consideration, and the related tax effects, no later than one year from the date of the acquisition and will reflect these adjustments
retrospectively as required under IFRS 3. Differences between these provisional estimates and the final acquisition accounting may occur
and these differences could have a material impact on the Company’s future financial position and results of operations.

 

The
allocation of the total consideration to the fair value of the identifiable assets acquired and liabilities assumed as at the date of
the acquisition was as follows:

 

	 	 	$	 
	Cash and cash equivalents	 	 	747,785	 
	Trade receivables	 	 	256,259	 
	Other receivables	 	 	50,718	 
	Customer relationships	 	 	298,438	 
	Brand name	 	 	619,802	 
	Goodwill	 	 	3,231 125	 
	Trade and other payables	 	 	(260,919	)
	Deferred tax liabilities	 	 	(232,145	)
	 	 	 	4,711,063	 

 

Goodwill
arising from the acquisition reflects the benefits attributable to synergies, revenue growth and future market development. These benefits
were not recognized separately from goodwill because they did not meet the recognition criteria for identifiable intangible assets. Goodwill
is not deductible for income tax purposes.

 

All
transaction costs associated with the acquisition have been expensed as incurred, in the amount of $187,148 in the year ended June 30,
2021.

 

During
the fiscal period ending December 31, 2021, the Company paid additional consideration related to working capital adjustments of
$106,837, with net post acquisition measurement adjustments of $37,352. Management is continuing to review the acquisition and its accounting
and finalizing the accounting for the acquisition no later than one year from the date of the acquisition.

 

The
contingent consideration is classified as Level 3 in the fair value hierarchy. The contingent consideration fair value is based on the
present value of the estimated likely obligation. During the fiscal period ended December 31, 2021, the Company recorded a loss
on the remeasurement of contingent consideration of $393,950 and as at March 31, 2022, the fair value of the contingent consideration
was $2,552,135 (December 31, 2021 - $2,638,912). The Company uses a scenario-based model to independently assess individual earnouts
and calculate the fair value of the earnout based on probabilities of success attributable to each individual scenario. The significant
assumptions used in making the estimates are revenue growth rate and discount rate. A 10% change in the discount rate used in the valuation
of the contingent consideration as at March 31, 2022 would change the valuation of the liability by approximately $145,000.

 

    3

    

    

 
QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

The
Non-Controlling Interest (“NCI”) on the transaction meets the definition of a liability as the Company is obligated to purchase
the remaining 3% of common shares. The amount payable is included in contingent consideration and is measured at fair valued through
profit or loss.

 

The
contingent consideration as at March 31, 2022:

 

	 	 	Earnout	 
	 	 	$	 
	As at December 31, 2020	 	 	—	 
	Acquisition - Chatterbox	 	 	2,186,960	 
	Loss on remeasurement of contingent consideration	 	 	393,950	 
	Effects of foreign exchange	 	 	58,002	 
	Balance – December 31, 2021	 	 	2,638,912	 
	Effects of foreign exchange	 	 	(86,777	)
	Balance – March 31, 2022	 	 	2,552,135	 
	Current	 	 	833,361	 
	Non-current	 	 	1,718,774	 

 

Impact
of COVID-19

 

The
outbreak of the novel strain of coronavirus, specifically identified as “COVID-19,” has resulted in governments worldwide
enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed
quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global
equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary
and fiscal interventions designed to stabilize economic conditions. The extent to which COVID-19 and any other pandemic or public health
crisis impacts the Company’s business, affairs, operations, financial condition, liquidity, availability of credit and results
of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including
new information which may emerge concerning the severity of the COVID-19 virus and the actions required to contain the COVID-19 virus
or remedy its impact, among others. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the
government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and
the impact on the financial results and condition of the Company and its operating subsidiaries in future periods.

 

MD&A
 – Quarterly Highlights

 

Significant
Events in the three months ended March 31, 2022

 

		a)	During
                                            the three months ended March 31, 2022, 2,249,990 8 cent warrants and 245,000 5 cent
                                            warrants were exercised for proceeds of $192,249. Upon the exercise of the warrants the Company
                                            issued 2,494,990 common shares.

 

		b)	During
                                            the three months ended March 31, 2022, 4,316,673 restricted share units were redeemed
                                            for 4,316,673 common shares.

 

		c)	During
                                            the three months ended March 31, 2022, 16,664 share options were exercised for proceeds
                                            of $937. Upon the exercise of the share options, 16,664 common shares were issued.

 

		d)	On
                                            March 31, 2022, Brand Capital International (“BCI”), the strategic investment
                                            arm of Bennett, Coleman & Co. Ltd. d/b/a The Times of India Group, selected not
                                            to exercise an additional purchase right under the current terms.

 

    4

    

    

 

QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

Selected
Financial Highlights

 

To
supplement our consolidated interim financial statements, which are prepared and presented in accordance with International Financial
Reporting Standards (“IFRS”), we present Earnings Before Income Tax Depreciation and Amortization (“Adjusted EBITDA”)
which is a non-IFRS financial measure.  The presentation of  non-IFRS financial measurement are not intended to be considered
in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived
in accordance with IFRS or as an alternative to net cash provided by operating activities or any other measures of cash flows or liquidity.

 

We define Adjusted EBITDA as revenue minus operating expenses excluding non-cash operating expenses of stock-based compensation, marketing
credits, depreciation and amortization. Adjusted EBITDA is used as an internal measure to evaluate the performance of our operating
segments. We believe that information about this non-IFRS financial measure assists investors by allowing them to evaluate changes
in operating results of our business separate from non-operational factors that affect operating loss and net loss, thus providing insights
into both operations and other factors that affect reported results. A limitation of the use of Adjusted EBITDA as a performance measure
is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Furthermore,
this measure may vary among companies; thus Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of
other companies.

 

The
following table presents selected interim financial information for the three months ended March 31, 2022 and 2021:

 

		 	2022	 	 	2021	 
	For the three months ended March 31,	 	$	 	 	$	 
	Revenue	 	 	5,234,680	 	 	 	208,551	 
	Content and production costs	 	 	3,252,965	 	 	 	835,460	 
	Other operating expenses	 	 	2,643,985	 	 	 	1,016,435	 
	Total expenses	 	 	5,896,950	 	 	 	1,851,895	 
	Adjusted EBITDA	 	 	(662,270	)	 	 	(1,643,344	)
	Total non-cash items	 	 	1,479,128	 	 	 	909,545	 
	Income tax expense	 	 	166,802	 	 	 	-	 
	Net loss	 	 	(2,308,200	)	 	 	(2,552,889	)
	Loss per share, basic and diluted	 	 	(0.01	)	 	 	(0.01	)

 

	 	 	 	As at March 31, 2022	 	 	 	As at December 31, 2021	 
	 	 	 	$	 	 	 	$	 
	Cash	 	 	5,082,637	 	 	 	6,548,890	 
	Total assets	 	 	18,546,618	 	 	 	20,611,906	 
	Total liabilities	 	 	7,857,205	 	 	 	8,686,177	 

 

Overall
Financial Performance

 

REVENUE

 

For
the three months ended March 31, 2022 revenue increased by $5,026,129 or 2410% compared to same period prior year. The increase
in revenue is primarily due to accelerated growth of all operating business units in both India and the United States (QYOU USA, QYOU
India and Chatterbox).

 

Revenue
for this quarter as compared to the quarter ended December 31, 2021, was lower by $350,961 or 6.3% from $5,585,641 in the quarter
ended December 31, 2021 to $5,234,680 in this quarter ended March 31, 2022.  This reduction was expected due to the seasonality
in advertising revenues during the quarter ended December 31, 2021 as it is in every year during the India festive season and the
North American holiday season.  The quarter ended December 31 is traditionally the largest revenue generating period each
year due to heavier advertising sales and theatrical attendance associated with the seasonal period. Even though the revenue for the
current quarter was lower than the quarter ended December 31, 2021 due to seasonality, the revenue in the quarter ending March 31,
2022 was larger than management's original internal projections and is reflective of the overall continuation of strong positive growth
in the business units.

 

    5

    

    

 

QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

EXPENSES

 

For
the three months ended March 31, 2022, content and production costs increased by $2,417,505 or 289% compared to prior year to help
fuel the revenue growth in India and the US.

 

Other
operating expenses increased by $1,627,550 or 160% associated with the revenue growth and expansion of the business at all operating
business units.

 

ADJUSTED
EBITDA

 

For
the three months ended March 31, 2022 compared to same period prior year, adjusted EBITDA increased by $981,074 or 60% driven by
the revenue growth offset by higher operating expenses related to the growth of the business across all operating business units and
lower sales and marketing costs.

 

NON-CASH
ITEMS

 

Non-cash
items comprise of stock-based compensation, marketing credits, depreciation & amortization and gain on termination of QYOU India’s
lease. For the three months ended March 31, 2022, non-cash items increased by $569,583 or 63% due to higher shared based compensation.

 

INCOME
TAXES

 

For
the three months ended March 31, 2022 income tax increased to $166,802 or 100% when compared to March 31, 2021.

 

NET
LOSS

 

For
the three ended March 31, 2022, net loss decreased by $244,689 or 10%, driven by the revenue growth and expansion of the business
in India.

 

CASH

 

The
Company concluded the three months ended March 31, 2022 with cash of $5,082,637 (December 31, 2021 - $6,548,890).

 

Cash
used in operating activities for the three months ended March 31, 2022 was $1,344,100 compared to the cash used in operating activities
for the three months ended March 31, 2021 of $2,097,791. The decrease in cash used in operating activities is primarily due to the
increase in adjusted EBITDA, collection of other receivables offset by higher cash used on trade payables.

 

Cash
used in investing activities for the three months ended March 31, 2022 was $244,127 compared to cash used in investing activities
of $4,824 for the three months ended March 31, 2021. The increase in the cash used in investing activities was due to the development
of programming assets and equipment to support the business expansion.

 

Cash
provided by financing activities for the three months ended March 31, 2022 was $124,508 compared to $14,131,793 for the three months
ended March 31, 2021. The decrease in cash provided by financing activities is due to the Company raising less funds during the
period ended March 31, 2022 through the issuance of shares along with the proceeds from the exercise of compensation options and
warrants.

 

Operating
Segments

 

Reportable
segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, with appropriate
aggregation. The chief operating decision maker is the Chief Executive Officer who is responsible for allocating resources, assessing
performance of the reportable segment and making key strategic decisions. The Company operates in a single segment, being the production,
marketing and distribution of content across broadcast and digital media. Segment performance is evaluated based on profit or loss and
is measured consistently with profit or loss in the financial statements.

 

    6

    

    

 

QYOU
Media Inc.

Management’s
Discussion and Analysis

As
at March 31, 2022 and 2021

 

 

The
Company operates in four geographical areas, being Canada, United States of America, Ireland and India. Revenue and assets by geography
are presented below:

 

As at and for the three months ended March 31, 2022

 

	 	 	Canada	 	 	USA	 	 	Ireland	 	 	India	 	 	Intercompany	 	 	Total	 
	Revenue	 	 	—	 	 	 	1,363,999	 	 	 	11,065	 	 	 	3,859,616	 	 	 	—	 	 	 	5,234,680	 
	Current assets	 	 	3,857,587	 	 	 	1,979,200	 	 	 	25,391	 	 	 	7,266,180	 	 	 	—	 	 	 	13,128,358	 
	Non-current assets	 	 	4,724,148	 	 	 	39,068	 	 	 	81,890	 	 	 	573,154	 	 	 	—	 	 	 	5,418,260	 

 

As at and for the three months ended March 31, 2021

 

	 	 	Canada	 	 	USA	 	 	Ireland	 	 	India	 	 	Intercompany	 	 	Total	 
	Revenue	 	 	—	 	 	 	94,791	 	 	 	52,797	 	 	 	60,963	 	 	 	—	 	 	 	208,551	 
	Current assets	 	 	37,591,014	 	 	 	7,992,509	 	 	 	18,010,259	 	 	 	1,110,105	 	 	 	(50,908,535	)	 	 	13,795,352	 
	Non-current assets	 	 	387,629	 	 	 	44,608	 	 	 	88,058	 	 	 	49,977	 	 	 	—	 	 	 	570,272	 

 

During
the period ended March 31, 2022, two customers (2021 – two) customers represented 10% or more of total revenue.

 

	 	 	March
    31, 2022	 	 	March
    31, 2021	 
	 	 	%	 	 	%	 
	Customer
    1	 	 	17	 	 	 	32	 
	Customer
    2	 	 	13	 	 	 	20	 
	Percentage
    of total revenue	 	 	30	 	 	 	52	 

 

Review
of Operations for the Three Months Ended March 31, 2022 and 2021

 

		 	2022	 	 	2021	 	 	Change	 	 	Change	 
	For the three months ended March 31,	 	$	 	 	$	 	 	$	 	 	%	 
	Revenue	 	 	5,234,680	 	 	 	208,551	 	 	 	5,026,129	 	 	 	2410	%
	OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Content and productions costs	 	 	3,252,965	 	 	 	835,460	 	 	 	2,417,505	 	 	 	289	%
	Sales and marketing	 	 	699,391	 	 	 	187,571	 	 	 	511,820	 	 	 	273	%
	Legal and consulting	 	 	553,008	 	 	 	516,103	 	 	 	36,905	 	 	 	7	%
	Salaries and benefits	 	 	947,806	 	 	 	99,089	 	 	 	848,717	 	 	 	857	%
	General and administrative	 	 	418,755	 	 	 	183,851	 	 	 	234,904	 	 	 	128	%
	Foreign exchange (gain) loss	 	 	(76,615	)	 	 	(3,238	)	 	 	(73,377	)	 	 	2266	%
	Interest and other expenses	 	 	101,640	 	 	 	33,059	 	 	 	68,581	 	 	 	207	%
	Total operating expenses	 	 	5,896,950	 	 	 	1,851,895	 	 	 	4,045,055	 	 	 	218	%
	Adjusted EBITDA	 	 	(662,270	)	 	 	(1,643,344	)	 	 	981,074	 	 	 	-60	%
	Marketing	 	 	377,086	 	 	 	-	 	 	 	377,086	 	 	 	nmf	 
	Share-based compensation	 	 	1,023,627	 	 	 	877,169	 	 	 	146,458	 	 	 	17	%
	Gain on termination of lease	 	 	(12,437	)	 	 	-	 	 	 	(12,437	)	 	 	nmf	 
	Depreciation and amortization	 	 	90,852	 	 	 	32,376	 	 	 	58,476	 	 	 	181	%
	Loss before income taxes	 	 	(2,141,398	)	 	 	(2,552,889	)	 	 	411,491	 	 	 	-16	%
	Income tax expense	 	 	166,802	 	 	 	-	 	 	 	166,802	 	 	 	nmf	 
	Net loss	 	 	(2,308,200	)	 	 	(2,552,889	)	 	 	244,689	 	 	 	-10	%

 

The
following discussion includes an explanation of the primary factors in changes in operations for the three months ended March 31,
2022 and 2021. Less significant changes are not articulated.

 

    7

    

    

 

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Revenue

 

For the three months ended March 31, 2022,
revenue increased $5,026,129 or 2,410% compared to the three months ended March 31, 2021, driven by significant revenue growth in
all three operating business units.

 

Two customers individually representing greater
than 10% of the Company’s revenue represented 30% of total revenue recognized for the three months ended March 31, 2022, as
compared to 52% for the three months ended March 31, 2021. The decrease from the prior period shows evidence of the company’s
growing customer base.

 

Content and Production
Costs

 

Content and production costs represent the costs
of sales of earning the Company’s revenue and is comprised of content development, production expenses and channel delivery expenses.
In India, the Company has produced over 1,200 hours of programming compared to 400 in the prior year.

 

For the three months ended March 31, 2022,
content and production costs increased by $2,417,505 or 289% as compared to the three months March 31, 2021. As a percentage of total
operating expenses, content and production costs were 55% during the three months ended March 31, 2022, compared to 45% for the three
months ended March 31, 2021. As a percentage of sales, content and production costs were 62% this period versus 401% in the same
period prior year.

 

Operating Costs

 

Selling, general and administrative costs represented
44% of total operating expenses for the three months ended March 31, 2022 compared to 53% for the same period prior year. Selling,
general and administrative costs increased $1,632,346 or 165% mainly contributed to higher salaries and benefits to support the growth
of customer and supplier relationships.

 

During the three months ended March 31, 2022,
sales and marketing costs are $511,820 higher or 273% when compared to the quarter ending March 31, 2021 to support the revenue growth
of 2,410%.

 

Legal and consulting costs increased by $36,905
or 7% for the three months ended March 31, 2022 to $553,008 compared to $516,103 for the three months ended March 31, 2021.
With the success and revenue growth in India, there were legal costs required to support the growth of customer and supplier relationships.
Legal and consulting costs will fluctuate from period to period based on the nature of the transactions the Company undertakes.

 

Salaries and benefits costs increased by $848,717
or 857% to $947,806 for the three months ended March 31, 2022 when compared to $99,089 for the three months ended March 31,
2021. The increase in salaries and benefit costs is primarily due to the growth of operations in all operating business units.

 

General and administrative costs increased by $234,904
or 128% to $418,755 for the three months ended March 31, 2022 compared to $183,851 for the three months ended March 31, 2021
related to growth of business operations as mentioned.

 

Foreign Exchange (Gain) Loss

 

Foreign exchange during
the three months ended March 31, 2022 was a gain of $76,615 compared to the three months ended March 31, 2021 gain of $3,238.
The change in foreign exchange gain is a result of fluctuating exchange rates from transactions incurred in currencies other than the
functional currency of the Company or its subsidiaries.

 

Share-Based Compensation

 

Share-based compensation
increased by $146,458 or 17% for the three months ended March 31, 2022 when compared to the three months ended March 31, 2021
directly related to an increase in employees and consultants as compensation for services provided to the Company.

 

    8

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Depreciation

 

Depreciation increased by $58,476 or 181% for the
three months ended March 31, 2022 to $90,852 compared to $32,376 for the three months ended March 31, 2021 due to lower property
and equipment and right-of use asset balances.

 

Review of Financial Condition as at March 31,
2022

 

The following is a comparison
of the financial position of the Company as at March 31, 2022, to the financial position of the Company as at December 31, 2021.

 

Cash and Cash Equivalents

 

Cash decreased by $1,466,253
or 22% as at March 31, 2022, compared to $6,548,890 as at December 31, 2021. The use of cash is primarily due to prepaying for
channel distribution, investing in original content in India. Refer to “Liquidity and capital resources” section for the detailed
discussion provided. Here again we are comparing it to the previous quarter

 

Trade and Other Receivables

 

Trade and other receivables
decreased by $20,305 or 0.5% as at March 31, 2022, compared to December 31, 2021.

 

Property and Equipment

 

Property and equipment
increased by $58,566 or 56% as at March 31, 2022, over the balance as at December 31, 2021. The increase can be attributed to
depreciation expense, partially offset by additions.

 

Intangible Asset

 

A summary of the Company’s
intangible assets is as follows:

 

	 	 	 	 	 	Brand	 	 	Customer	 	 	 	 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	 	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	92,265	 	 	 	—	 	 	 	—	 	 	 	92,265	 
	Acquisition - Chatterbox	 	 	—	 	 	 	619,802	 	 	 	298,438	 	 	 	918,240	 
	Effects of foreign exchange	 	 	(7,194	)	 	 	16,439	 	 	 	7,915	 	 	 	17,160	 
	As at December 31, 2021	 	 	85,071	 	 	 	636,241	 	 	 	306,353	 	 	 	1,027,665	 
	Effects of foreign exchange	 	 	(3,181	)	 	 	(20,922	)	 	 	(10,074	)	 	 	959,693	 
	As at March 31, 2022	 	 	81,890	 	 	 	615,319	 	 	 	296,279	 	 	 	1,987,358	 

 

	 	 	 	 	 	Brand	 	 	Customer	 	 	 	 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	Accumulated amortization	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2020	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Amortization	 	 	—	 	 	 	—	 	 	 	27,755	 	 	 	27,755	 
	Effects of foreign exchange	 	 	—	 	 	 	—	 	 	 	1,971	 	 	 	1,971	 
	As at December 31, 2021	 	 	—	 	 	 	—	 	 	 	29,726	 	 	 	29,726	 
	Amortization	 	 	—	 	 	 	—	 	 	 	12,436	 	 	 	12,436	 
	Effects of foreign exchange	 	 	—	 	 	 	—	 	 	 	(2,811	)	 	 	991,059	 
	As at March 31, 2022	 	 	—	 	 	 	—	 	 	 	39,351	 	 	 	1,033,221	 

 

	 	 	 	 	 	Brand	 	 	Customer	 	 	 	 
	 	 	Brand QYOU	 	 	Chatterbox	 	 	relationships	 	 	Total	 
	Net book value	 	$	 	 	$	 	 	$	 	 	$	 
	As at December 31, 2021	 	 	85,071	 	 	 	636,241	 	 	 	276,627	 	 	 	997,939	 
	As at March 31, 2022	 	 	81,890	 	 	 	615,319	 	 	 	256,928	 	 	 	954,137	 

 

    9

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Right of Use Assets

 

Right of use assets decreased
by $230,458 or 31% as at March 31, 2022, over the balance as at December 31, 2021. The decrease is due to termination of the
lease for QYOU India’s previous office space in January 2022. The lease for the space that the business currently occupies
in India was recorded during the quarter ended December 31, 2021.

 

Goodwill

 

The Company recognized
goodwill on the acquisition of Chatterbox. Goodwill as at March 31, 2022 was $3,287,849 compared to $3,399,639 as at December 31,
2021.

 

Trade and Other Payables

 

Trade and other payables
decreased by $466,144 or 10% as at March 31, 2022, compared to December 31, 2021.

 

Contingent Consideration

 

The Company recognized
a contingent consideration on the acquisition of Chatterbox that represents the potential of future earn out payments that were negotiated
as part of the share purchase agreement. The current and non-current portion of the contingent liability as at March 31, 2022 was
$833,361 and $1,718,774 respectively.

 

Lease Liabilities

 

Current portion of lease
liabilities decreased by $31,733 or 13% and the non-current portion of lease liabilities decreased by $204,355 or 36% over the balance
as at December 31, 2021. The decrease is due to termination of lease for QYOU India’s old office space in January 2022.

 

Share Capital and Warrants

 

		[a]	During the three months ended March 31, 2021, the Company completed the issuance of 41,071,560 units
of the Company as part of a private placement at a price of $0.28 per unit. The total gross proceeds from the issuance was $11,500,037.
Each unit is comprised of one common share of the Company and one-half of one common share purchase warrant exercisable to purchase one
common share at a price of $0.45 (a “45 Cent Warrant”).

 

Each 45 Cent Warrant is exercisable to
purchase one common share in the capital of the Company at a price of $0.45 per 45 Cent Warrant Share until February 25, 2023. The
fair value of each 45 Cent Warrant is $0.1837 per warrant; calculated using the Black-Scholes options pricing model with a market price
per common share of $0.315 on the date of grant, a risk-free interest rate of 0.32%, an expected annualized volatility of 131% and expected
dividend yield of 0%.

 

Total transaction costs consisted of
$2,942,270 in cash and issuance of 3,285,724 compensation options to the agents in connection with the transaction. Each compensation
option is exercisable into one unit until February 25, 2023 at a price of $0.28. Total fair value of the compensation options was
determined to be $993,666. The fair value of the compensation units was determined using the Black-Scholes options pricing model with
a market price per common share of $0.315, a risk-free interest rate of 0.32%, an expected annualized volatility of 131% and expected
dividend yield of 0%.

 

		[b]	During the three months ended March 31, 2022, 2,249,990 8 cent warrants and 245,000 5 cent warrants
were exercised for proceeds of $192,249. Upon the exercise of the warrants the Company issued 2,494,990 common shares.

 

		[c]	During the three months ended March 31, 2022, 4,316,673 restricted share units were redeemed for
4,316,673 common shares.

 

		[d]	During the three months ended March 31, 2022, 16,664 share options were exercised for proceeds of
$937. Upon the exercise of the share options, 16,664 common shares were issued.

 

    10

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Selected Unaudited Consolidated Quarterly Financial Information

 

The following table presents selected unaudited
consolidated quarterly financial information for each of the eight quarters indicated, as prepared in accordance with IFRS.

 

	 	 	 	 	 	 	 	 	Sept. 30, 2021	 	 	Jun. 30, 2021	 	 	Mar. 31, 2021	 	 	Dec. 31, 2020	 	 	Sept. 30, 2020	 	 	Jun. 30, 2020	 
	 	 	Mar. 31, 2022	 	 	Dec. 31, 2021	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Total Revenue	 	 	5,234,680	 	 	 	5,585,641	 	 	 	4,725,463	 	 	 	2,614,899	 	 	 	208,551	 	 	 	968,139	 	 	 	390,950	 	 	 	364,280	 
	Operating Expenses	 	 	7,376,078	 	 	 	7,967,062	 	 	 	7,077,760	 	 	 	5,656,311	 	 	 	2,761,440	 	 	 	1,486,717	 	 	 	1,540,283	 	 	 	2,195,034	 
	Net loss attributable to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equity owners of the Company	 	 	(2,225,108	)	 	 	(2,634,586	)	 	 	(2,253,284	)	 	 	(2,911,609	)	 	 	(2,472,646	)	 	 	(483,523	)	 	 	(1,097,955	)	 	 	(1,728,663	)
	Non-controlling interest	 	 	(83,092	)	 	 	207,376	 	 	 	(99,013	)	 	 	(175,043	)	 	 	(80,243	)	 	 	(35,055	)	 	 	(51,378	)	 	 	(102,091	)
	Net loss per share - basic and diluted	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.00	)	 	 	(0.00	)	 	 	(0.01	)

 

Liquidity and capital
resources

	 	 	As at March 31, 2022	 	 	As at December 31, 2021	 
	 	 	$	 	 	$	 
	Current assets	 	 	13,128,358	 	 	 	15,027,092	 
	Current liabilities	 	 	5,508,281	 	 	 	6,070,102	 
	Working capital	 	 	7,620,077	 	 	 	8,956,990	 
	Total assets	 	 	18,546,618	 	 	 	20,611,906	 
	Total liabilities	 	 	7,857,205	 	 	 	8,686,177	 
	Total shareholders' equity	 	 	10,689,413	 	 	 	11,925,729	 

 

Working capital is defined
as current assets less current liabilities.

 

QYOU’s capital requirements consist primarily
of working capital necessary to fund operations and support a growing business. Sources of funds available to meet these requirements
include existing cash balances, cash flow from operations and capital raised through equity financings. QYOU must generate sufficient
revenue from operations to attract additional investment from the capital markets; failure to do so would adversely impact QYOU’s
ability to pay current liabilities.

 

As of March 31, 2022, the Company had working
capital of $7,620,077 compared to $8,956,990 as at December 31, 2021. The decrease is primarily due to the loss of Adjusted EBITDA
and a decline in trade payables.

 

Cash Flow Activity

 

Cash used in operating activities for the three
months ended March 31, 2022 was $1,344,100 compared to the cash used in operating activities for the three months ended March 31,
2021 of $2,097,791. The decrease in cash used in operating activities is primarily due to the increase in adjusted EBITDA, collection
of other receivables offset by higher cash used on trade payables. All operating business units are on track to meet the Adjusted EBITDA
expectation and to reduce cash requirement set out on the Company’s business plan.

 

Cash used in investing activities for the three
months ended March 31, 2022 was $244,127 compared to cash used in investing activities of $4,824 for the three months ended March 31,
2021. The increase in the cash used in investing activities was due to the development of programming assets and equipment to support
the business expansion.

 

Cash provided by financing activities for the three
months ended March 31, 2022 was $124,508 compared to $14,131,793 for the three months ended March 31, 2021. The decrease in
cash provided by financing activities is due to the Company raising less funds during the period ended March 31, 2022 through the
issuance of shares along with the proceeds from the exercise of compensation options and warrants.

 

Liquidity and Cash Resource Requirements

 

The Financial Statements have been prepared on the
basis of accounting principles applicable going concern, which assumes that the Company will continue in operation for the foreseeable
future and will be able to realize its assets and discharge its liabilities in the normal course of operations. The Financial Statements
do not include any adjustments to the amounts and classification of assets and liabilities that would be necessary should the Company
be unable to continue as a going concern.

 

    11

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Commitments

 

As at March 31, 2022, the Company did not have
any commitments other than those reported in the financial statements.

 

Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements other than those described
under commitments above.

 

Significant Accounting Policies and Critical Accounting Estimates

 

We describe our significant accounting policies
and critical accounting estimates in Note 2 and Note 3 of the Company’s audited consolidated financial statements for the six months
ended December 31, 2021.

 

Financial Instruments and Risk Management

 

The Company’s financial instruments consist
of cash and cash equivalents, trade receivables, other receivables, borrowings and trade and other payables. The carrying value of the
Company’s financial instruments approximates fair value due to their immediate or short-term maturity. The Company does not use
derivative financial instruments to manage existing exposures.

 

In the three months ended March 31, 2022, there
was no material change to the nature of risks arising from or classification of financial instruments, or related risk management objectives.

 

Risks and Uncertainties

 

The results of operations and financial condition
of the Company are subject to a number of risks and uncertainties, and are affected by a number of factors outside of the control of management.
An investment in the Company’s securities involves risks. Before making an investment decision with respect to our securities, you
should carefully consider the risks and uncertainties described elsewhere in this MD&A and those described under the heading “Risk
Factors” in the Company’s annual information form and in other publicly available disclosure documents filed by the Company
on SEDAR (www.sedar.com). The risks and uncertainties described in the documents referred to in the preceding sentence and in other documents
filed by us with Canadian securities regulatory authorities are not the only ones we may face. Those risks and uncertainties, together
with additional risks and uncertainties not currently known to us or that we may deem immaterial, could impair our business, financial
condition and results of operations. The market price of our securities could decline if one or more of these risks and uncertainties
develop into actual events, and you may lose all or part of your investment.

 

Currency Risk

 

Foreign currency risk arises on financial instruments
that are denominated in a currency other than the functional currency in which they are measured. The Company’s primary exposure
with respect to foreign currencies is from USD and Indian Rupee denominated cash and other payables. A 1% change in the foreign exchange
rates would not result in any significant impact to the financial statements. The Company mitigates the risk via currency hedging if deemed
required.

 

Interest Rate Risk

 

Interest rate risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed
to a material interest rate risk as at March 31, 2022.

 

Other Price Risk

 

Other price risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest
rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer,
or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risks as at March 31,
2022.

 

    12

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

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 principally from
deposits with banks and outstanding receivables. The Company trades only with recognized, creditworthy third parties. The Company performs
credit checks for all customers who wish to trade on credit terms. As at March 31, 2022, two customers represented 38% (December 31,
2021, two customers represented 37%) of the outstanding trade receivable balance. As at March 31, 2022, the Company recorded a provision
of $68,509 for expected credit loss (December 31, 2021 - $32,238).

 

The Company does not hold any collateral as security
but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not
anticipate significant loss for non-performance.

 

The aging of trade receivables is as follows:

 

	 	 	March 31, 2022	 	 	December 31, 2021	 
	 	 	$	 	 	$	 
	Current	 	 	2,832,021	 	 	 	2,336,188	 
	1 to 30 days	 	 	456,713	 	 	 	571,824	 
	31 to 60 days	 	 	359,963	 	 	 	929,652	 
	> 60 days	 	 	530,966	 	 	 	326,033	 
	 	 	 	4,179,663	 	 	 	4,163,697	 
	Less: credit loss impairment	 	 	68,509	 	 	 	32,238	 
	Total trade receivables	 	 	4,111,154	 	 	 	4,131,459	 

 

Liquidity risk

 

Liquidity risk is the risk that the Company will
not be able to meet its financial obligations as they become due. The Company’s exposure to liquidity risk is dependent on the Company’s
ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by management
of working capital, cash flows and the issuance of share capital.

 

The Company is obligated to the following contractual
maturities of undiscounted cash flows:

 

	 	 	 	 	 	 	 	 	Contractual
    cash flows	 
	 	 	Carrying amount	 	 	Total contractual 
 cash flows	 	 	Year 1	 	 	Year 2	 	 	Year 3	 	 	Year 4	 	 	Year 5 and beyond	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Trade and other payables	 	 	4,234,095	 	 	 	4,234,095	 	 	 	4,234,095	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Lease liabilities	 	 	564,745	 	 	 	601,194	 	 	 	240,201	 	 	 	233,652	 	 	 	127,341	 	 	 	—	 	 	 	—	 
	Contingent consideration	 	 	2,552,135	 	 	 	3,481,696	 	 	 	762,596	 	 	 	1,141,490	 	 	 	1,577,610	 	 	 	—	 	 	 	—	 
	Borrowings	 	 	59,743	 	 	 	312,006	 	 	 	11,176	 	 	 	11,176	 	 	 	11,176	 	 	 	11,176	 	 	 	267,302	 

 

Fair values

 

The carrying values of cash and cash equivalents,
trade receivables, other receivables, borrowings and trade and other payables approximate the fair values due to the short-term nature
of these items. The risk of material change in fair value is not considered to be significant due to a relatively short-term nature. The
carrying value of borrowings approximate the fair value and change risk of material change in fair value is not considered to be significant.
The Company does not use derivative financial instruments to manage this risk.

 

    13

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Financial instruments recorded at fair value on
the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs
used in making the measurements. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy
prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the
lowest-level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined
as follows:

 

		●	Level 1 – Unadjusted quoted
prices as at the measurement date for identical assets or liabilities in active markets.

 

		●	Level 2 – Observable inputs
other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices
for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated
by observable market data.

 

		●	Level 3 – Significant unobservable
inputs, which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.

 

The fair value hierarchy requires the use of
observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which
a significant input has been considered in measuring fair value. The contingent consideration is recognized as Level 3.

 

Disclosure of Equity and Outstanding Share Data

 

The Company’s authorized share capital currently
consists of an unlimited number of First Preferred Shares, Second Preferred Shares and Common Shares. As of the date hereof, there are
409,584,098 Common Shares, nil First Preferred Shares and nil Second Preferred Shares issued and outstanding. As of the date hereof, the
Company also has issued and outstanding:

 

	Share
    options	 	 	34,012,053	 
	Compensation
    options	 	 	4,123,399	 
	RSUs	 	 	14,483,320	 
	Warrants	 	 	31,758,294	 

 

Subsequent Events

 

From April 1, 2022 to May 30, 2022, 8,332
share options were exercised for total proceeds of $625, resulting in the issuance of 8,332 common shares.

 

From April 1, 2022 to May 30, 2022, 1,407,291
5 Cent warrants were exercised for total proceeds of $70,365, resulting in the issuance of 1,407,291 common shares.

 

In April 2022, the Company entered into a capital
market advisory agreement with The Governance Box Inc. (“GBX”). Upon commencement of the Agreement, 150,000 share options
were granted. The share options are exercisable at a price of $0.20 per share option. 300,000 RSUs were also granted vesting under the
standard 3-year term according to the current RSU plan of the Company. One third of RSUs granted vest on each of the first three anniversaries
of the date of grant. The Company further agreed to issue 100,000 Bonus RSUs if the listing of the Company on NASDAQ or another senior
market occurs on or before October 31, 2022.

 

In April 2022, the Company entered into a consulting
agreement with Supercharged Stocks Limited. Upon commencement of the Agreement, 150,000 share options were granted. The share options
are exercisable at a price of $0.22 per share option.

 

On April 8, 2022, 2,185,000 share options were
granted to certain employees, officers and consultants of the Company pursuant to the Company’s share option plan. The share options
are exercisable at a price of $0.21 per share option, vest on a monthly basis for a period of 4 years and expire 5 years from the grant
date. Of the total share options granted, 850,000 were issued to related parties. 550,000 RSUs were granted to certain employees, officers
and consultants of the Company. One third of RSUs granted vest on each of the first three anniversaries of the date of grant. Of the total
RSUs, 100,000 were issued to related parties.

 

    14

     

    

 

QYOU Media Inc.

Management’s Discussion and Analysis

As at March 31, 2022 and 2021

 

 

Investor Information

 

Stock Exchange Listing

 

The Common Shares of the Company are listed on the
TSXV under the symbol “QYOU”.

 

Transfer Agent and Registrar

 

Computershare Investor Services Inc.

 

Auditors

 

MNP LLP

 

Investor Relations

 

If you have inquiries, please visit our website
at www.theqyou.com or contact: shareholder@qyoutv.com

 

    15

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