Share-based payments, the charge for awards granted to senior management during the period, composed of DSOs, RECs and options. During the period, one-off charge of €0.5 million was incurred relating to discounted contractual relationship of an employee. Exceptional costs, mainly associated with the discounted contractor relationship of employee in the total value of €0.6 million. And gain on remeasurement of the first consideration is mainly associated with the acquisition of Spin Games in June 2022 on the total outstanding deferred liability that was adjusted to reflect the change in our current fair value. Moving to Slide 9. As you can see on the slide, we ended the third quarter with cash balance of €7.9 million compared to €11.3 million of December 31, 2022, with outstanding liability of $5.5 million of convertible security.
During the third quarter and post quarter end, the company made cash repayment of $2.5 million, leaving an outstanding balance of $4.5 million as of today’s date. We expect to continue exercising our rights to pay down the existing convertible security, subject to ongoing management assessments. Our net working capital at the end of September 2023 is €6.3 million, which is excluding the first consideration and convertible debt. This compared to €6.6 million at the beginning of the year. From a cash flow perspective, for the 9 months ended September 30, 2023, a total of €6.2 million generated from operating activities with underlying performance reaching €10.2 million, offset by negative movement in working capital and income tax of €4 million.
A total of €6.6 million invested in intangible assets mainly related to the capitalization of software development costs in the period and a total of €2.6 million used in finance activities, which predominantly related to the repayment of loans in relation to the convertible security in the total of €2.3 million. Looking forward, management are projecting a positive free cash flow from operations, while there’s no CapEx or technology debt required in the business. In addition, management is confident that there are no current financing or debt requirement needs for the business. With that, I will hand over back to Matevz to continue our business and operational activities.
Matevz Mazij: Thank you, Ronen. As a recently appointed CEO and with this is my first time leading our earnings call, I want to remind everyone of the great business that we’ve built and on the exciting future we have ahead of us. Bragg is an award-winning supplier in a growing multibillion-dollar iGaming market. We have over 450 employees in 7 offices across North America, Europe and in India. We are licensed or certified to offer iGaming products in over 25 regulated jurisdictions globally, including the largest markets in the U.S. and Europe such as New Jersey, Pennsylvania, Michigan, the UK and Italy. Our customers’ number over 200 and include names such as BetMGM, DraftKings, Fanduel in the U.S. and in Penn SuperBet and Flutter in Europe.
In view of recent M&A activity in the iGaming space, I believe that at Bragg, we have built something very unique in the market. There are very few companies in the space that are able to offer what we can, which includes our full product suite of content, content aggregation, sportsbook delivery, PAM, promotional tools and managed services. With this product suite, we’re uniquely positioned to be able to deliver full turnkey iGaming solution in regulated markets and in a landscape where more and more markets are on the cusp of regulation. With that in mind, I want to take a few minutes to refine and reflect on Bragg strategy, which I haven’t fundamentally changed since coming in as CEO, but which we have refined and expanded, and we now plan to accelerate.
Firstly, our proprietary and exclusive games roadmap has been a renewed focus for us since we integrated in ‘21. Bragg studios or in-house studios, which now include Wild Streak gaming, Spin Games and ORYX Gaming, as well as two new studios we launched last year, Atomic Slot Lab and Indigo Magic. Games from Bragg sudios, which are also built on our own technology and distributed through our own network generate close to 100% gross profit margin for us. So these are an important part of how we will deliver the overall gross profit and adjusted EBITDA margin targets that we have set for ourselves that Ronen mentioned earlier. In a moment, on the next slide, I’ll show you how we are doing in terms of roadmap delivery for our Bragg studio content.
The rest of our exclusive casino games portfolio is made up of games from our power by Bragg partners, such as Blueberi, Incredible Technologies, Gamut, King Show Games and many others. These gains differentiate our games portfolio and include big names from both the land-based and online spaces, games that are in demand and which are available online only to customers of Bragg. So we are leveraging our increasing portfolio of exclusive games to build brand recognition in North America, Europe and Latin America. And the size of our portfolio and our production capabilities mean that we can offer locally adapted games titles in each of these markets. As you saw from the recent game we built for Caesars Digital, Lady Luck Casino Egyptian Magic, we are also in a position of strength when it comes to our ability to deliver in-demand custom and exclusive content for our partners.
We will also continue to grow our content distribution network in regulated markets. This means focusing on our relationship with Tier 1 and Tier 2 operators who offer scale in multiple markets, and we have content for multiple markets to match. We want to continue to grow in large regulated markets where Bragg online casino content is still underrepresented. And these markets offer plenty of scope for growth. We are clearly focused on content rollouts in the United States, but markets such as UK, Switzerland, Italy, Poland and Ontario are also important to our content delivery growth plans. We are closely watching regulatory developments as many markets, which currently have no legal framework for online casino or those which currently have restrictive frameworks are reviewing their laws with a trend towards more jurisdictions opening up to regulate iGaming in the near future as well as watching for the next states to adopt online casino in the United States, we are well positioned to enter or expand in Latin American markets and newly regulated European markets.
As these new markets regulate, we will explore all opportunities not just for our content, but also for our full product suite, including PAM and content aggregation and I’ll talk more about it in a moment. A key differentiated product that we developed is FUZE. This is our multi-award winning promotions platform that allows operators to run promotions such as pre-rounds, tournaments, missions and quest to gamify and reward players and these work across both casino, lottery and sports betting products. All Bragg content customers, whether for Bragg Studios, powered by Bragg, aggregated content or sports betting product that we deliver already have access to FUSE. And FUSE driven campaigns resulted in significantly more traffic, better conversion rates, better retention rates and higher lifetime value, which is beneficial both to our customers and to us.
