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Ian Cassel and Artem Fokin have a conversation with Todd Cravens, CEO of Galaxy Gaming. This MicroCap Business Breakdowns discussion aired on May 2nd on the MicroCapClub Community. Galaxy Gaming is the largest independent provider of proprietary casino table games in the world. Galaxy currently has an installed base of over 6,000 gaming tables located in over 600 casinos. The company also licenses its IP with iGaming sites worldwide. In 2022, more than 2 billion wagers were placed on Galaxy iGames across 1000 iGaming sites, representing 2% of US Gross Gaming Revenue. Galaxy Gaming trades on the OTC markets under the symbol GLXZ. Website: https://www.galaxygaming.com GLXZ Time Stamps: 00:00 – Intro 04:30 – Todd’s Background 09:35 – Business Overview 27:24 –Competition 31:33 –Unit Economics 34:30 – Customer Retention 37:40 – Upselling a Customer 38:28 – Confidence in Land Based Business Rebounding 40:41 – Land based Growth Drivers 43:23 – iGaming Expansion 45:22 – iGaming Customer Concentration 48:22 – Acquisition Criteria 51:45 – Acquisition Considerations 53:50 – Galaxy A-Team 55:23 – OpEx Buckets 57:06 – Balance Sheet Leverage 58:50 – Refinancing Debt 1:00:20 – Capital Allocation 1:01:40 – Recession Resistant 1:03:45 – Covid Impact 1:04:47 – iGaming Synergies with Land Based 1:06:03 – M&A Opportunities 1:06:43 – Omni Channel Leverage 1:07:56 – Where do you see Galaxy in 5 years? MicroCap Business Breakdowns (MCBB), powered by MicroCapClub, is a monthly program where we invite leaders of unique microcap businesses to have in depth conversations with the MicroCapClub member/investor that knows the business best. In each conversation we look to drill down into the history, business, strategy, vision, and bull/bear case. The MicroCapClub community can tune in live and ask questions. We publicize each episode 2-4 weeks after the live discussion. Join MicroCapClub https://microcapclub.com/join-now/ Twitter: https://twitter.com/MicroCapClub About Ian Cassel Ian Cassel is the founder of MicroCapClub and CIO of IFCM. Twitter: https://twitter.com/iancassel LinkedIn: https://www.linkedin.com/in/iancassel/ IFCM: https://if.capital About Artem Fokin Artem Fokin is the founder and portfolio manager of Caro-Kann Capital LLC. Artem has been a MicroCapClub member since 2016. LinkedIn: https://www.linkedin.com/in/artem-fokin-1a5479/ Caro-Kann Capital: http://caro-kann-capital.com About MicroCapClub MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $500m market cap) trading on United States, Canadian, European, and Australian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. Since 2011, our members have profiled 900+ microcap companies. Investors can join our community by applying to become a member or subscribing to gain instant view only access. MicroCapClub’s mission is to foster the highest quality microcap investor Community, produce Educational content for investors, and promote better Leadership in the microcap arena. For more information: https://microcapclub.com Disclaimer: The purpose of this presentation is for informational and educational purposes only and should not be construed as a recommendation to purchase or sell any security. MicroCapClub is not a registered investment advisor. MicroCapClub, its partners, members, subscribers, and affiliates may or may not hold positions in one or more of the securities mentioned on this program and may trade in such securities at any time. Do your own due diligence and seek counsel from a registered investment advisor before trading in any security.

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Analysts from Deutsche Bank predict that Macau's casino industry will remain largely unaffected by U.S.-China relations, forecasting a 5.3% growth in gross gaming revenue by 2025. Despite ongoing geopolitical concerns and the historical impact of trade tariffs, the current market dynamics, particularly the diminished role of the VIP segment, suggest that these issues will not significantly alter Macau's economic fundamentals. Meanwhile, Donald Trump's anticipated foreign policy approach may introduce new tariff threats, but the analysts believe these will have limited repercussions for Macau's gaming sector. U.S-China Relations Under New Trump Administration To Have Little Impact In Macau Asia Gaming Brief | January 8, 2025 In a recent report by Deutsche Bank analysts Carlo Santarelli and Steven Pizzella, the brokerage forecasts Macau’s GGR to grow by 5.3 percent in 2025, slightly below the consensus estimate of 7.4 percent. Geopolitical concerns, including U.S-China relations in the new Trump administration, continue to loom over Macau’s casino sector, but Santarelli and Pizzella argue that these issues will have little direct impact on Macau’s fundamentals, despite heightened sensitivity to such factors affecting investor sentiment. The report draws parallels to 2018, when U.S-China trade tariffs coincided with a challenging year for Macau stocks. However, the reduced importance of the VIP market today makes such correlations less relevant, note the analysts. “One can surmise that the tariff implementations in 2018 had an impact on the VIP market in 2019, though, given the reduced importance of the VIP market today, and the confluence of other factors impacting the VIP market in 2019, we don’t believe this is a rational concern”, the analysts concluded. In Dealing With China, Trump Just Needs To Step Up His First-Term Approach The Strategist | January 8, 2025 As in his first term, Donald Trump should continue a resolute approach toward China in his second term. This approach was and is grounded in the belief that a more assertive posture will deter China’s expansionist ambitions, reinforce U.S credibility among allies and safeguard economic and technological leadership. Trump’s track record and cabinet nominations suggest a consistent approach moving forward, with several initiatives needing only formal adoption or targeted reinforcement of existing policies. The United States should, and under Trump’s leadership again probably will, prioritise four key objectives: counter Chinese advances in the Indo-Pacific, insist on Taiwanese self-defence, oppose Beijing’s predatory economic practices, and compete in economic and technological development. Key priorities of the first administration included promoting U.S interests, economic prosperity and preserving peace through strength. Trump’s proposed foreign policy team for his second administration, including Senator Marco Rubio as secretary of state and Michael Waltz as national security advisor, signals a maintained firm stance on China, reflecting the general trajectory of the first term. How Trump Could Strike A Trade Deal With China Foreign Policy | January 8, 2025 U.S. President-elect Donald Trump has threatened tariff hikes on the United States’ largest trading partners, but China seems to be in the most immediate line of fire as his inauguration approaches. Late last year, Trump announced plans to impose an additional 10 percent tariff on Chinese imports, citing Beijing’s inadequate efforts to curtail the fentanyl trade. Trump has repeatedly argued that China has stolen U.S. jobs and industries and taken advantage of the United States, leading him to threaten increased tariffs of 60 percent or more on the campaign trail. The tariff proposals don’t stop there: There is growing interest within Congress to revoke China’s current “permanent normal trade telations” (PNTR) tariff status—a move supported by Trump’s nominee for U.S. trade representative, Jamieson Greer.

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