5th Planet Games A/S
ANNUAL
REPORT
2023
5th Planet Games A/S - Gothersgade 11, 1123 Copenhagen, Denmark - CVR No.: 3359 7142
Approved on general meeting 30th April 2024
Chairman of the meeting
2
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Index
3
4
5
6
7
8-11
11
12
13-14
14
15-16
17-19
20
21-27
28-31
28
29
30
31
32-60
61-68
61
62
63
64
66-68
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
• Key Figures and Financial Performance
Risk Management in Practice
Corporate Governance
• Remuneration Report
Board of Directors and Executive Management
Shareholder Information
• Statement by The Board of Directors and the Executive Management...
Auditors’ Report
Financial Statements
• Consolidated Statement of Comprehensive Income
• Consolidated Balance Sheet
• Consolidated Statement of Changes in Equity
• Consolidated Cash Flow Statement
Notes to the Financial Statements
Parent Company
• Parent Company Accounting Policies
• Parent Company Income Statement
• Parent Company Balance Sheet
• Parent Company Statement of Change in Equity
• Parent Company Notes
3
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
5th Planet Games is an international, publicly traded company founded in 2011 and focused on financing and publishing
video games entertainment.
We are a small, lean company that is backed by a highly driven executive team from Europe and the USA, each of
whom have decades of experience in video games and entertainment creation, publishing, and distribution.
5th Planet Games enters into strategic partnerships with global IP holders to create unique opportunities for game
content creation by our outstanding development partners worldwide and secures co-publishing status in games
across all platforms, mobile, console and PC.
With a strong and growing portfolio of titles and, since 2021, a partnership with Skybound Entertainment, 5th Planet
Games now has access to compelling, proven, world-famous IP including The Walking Dead and Invincible.
Due to a high-quality back catalogue of games and an exciting release schedule ahead, 5th Planet Games has seen a
significant improvement in financial results over the last couple of years with many more exciting opportunities ahead!
5th Planet Games at-a-glance
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
4
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
It is with immense pleasure and a touch of pride that I am writing this letter to accompany
the 2023 Annual report. Last year marked a turning point in our history when we announced a
profit; this year I have the opportunity to confirm a record level of profitability for the company.
As a direct result of an increased range of products, distribution platforms and strategic
partnerships, combined with our ongoing strict control of costs and expenses, we have achieved
the following financial headlines.
• Revenue and other income increased by 47% to DKK16.6m
• Cash reserves increased by 36% to DKK 49.3m
• EBITDA increased by 347% to DKK7.5m
This EBITDA result is not only a record for 5th Planet Games but falls squarely within the
guidance that we provided at the very start of the year. The headline story of the accounts and
the growth in revenue, other income and profitability is exceptional, but I am equally pleased
with the fact that our costs of operations were strictly controlled and remain within our original
budget.
Whilst we have clearly driven considerable growth in the business over the last year, we have also
taken steps to mitigate the commercial risk that is inherent in the business of publishing video
games. Our catalogue now features a wider range of games, game genres, and platforms than
ever before; and it’s not all about video games as our investment in Sagafilm has shown. Be sure
to read about the highlights of 2023 at Sagafilm in the report, they have been busy in Reykjavik!
2023 saw the successful launch of several games for which 5th Planet Games was a co-
financing or co-publishing partner, these included:
• Invincible Presents: Atom Eve, a visual novel RPG game
• Escape Academy: The Complete Edition for Nintendo Switch
• Hugo Legacy: an online casino game
• Escape Academy: Escape from the Past, it’s second DLC
• Wrestlequest
• Before Your Eyes for PlayStation VR2
One of our primary goals in recent years has been to align ourselves with world-class IP which
has proven success and global reach, and it’s becoming very clear that Invincible is quickly
ticking all of these boxes. Just take a look at some of the data relating to the TV show on
Amazon Prime Video.
• A top 10 show in 111 countries around the world
• Top 3 in 71 countries
• #1 in 7 countries
Invincible is a great example of the kind of IP that we seek to work with, and we have extensive
plans to build our association with the brand in the months and years to come.
Last year saw 5th Planet Games deliver a growing range of products, partnerships with
successful global brands, and record profits; I hope that you enjoy the 2023 report!
Thank you for your continued support,
Mark
CEO Letter: 2023 Annual Report
Mark Stanger - CEO
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
5
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Outlook for 2024
With the increasing contribution of the titles already secured from our partnership with
Skybound, new distribution for those titles and new titles entering our catalogue, combined
with an expanding range of products and services we are extremely optimistic about the
year ahead; especially when combined with our historically low costs of operation. Our current
outlook for the coming year is for an increase in Revenue and EBITDA of 30% above our 2023
results.
In general terms the Outlook for 2024 is guided by the following elements
• the ongoing and stable contribution from our back catalogue of mobile games
• the back catalogue of console games, many of which are subject to ongoing discussions
on extending distribution to new platforms
• new games, scheduled for release in 2024.
• new product categories being introduced for the first time in 2024.
Business Development
Our partnership with Skybound is still strategically significant for 5th Planet Games; we meet
with the Skybound leadership on a weekly basis and continue to look at a wide range of co-
publishing and co-financing opportunities. Skybound have also given us access to world-class
entertainment IP such as Invincible.
There is no doubt that the turnaround we are seeing at 5th Planet Games would simply not
have been possible without the input of Skybound.
Whilst the relationship with Skybound remains significant for 5th Planet, from a buisness
development perspective 2023 was really important as we took steps to extend our reach
beyond video games, as demonstrated with our investment in Sagafilm which we completed
in September of last year; you will see below a short overview of 2023 at Sagafilm. We are
looking at similar, strategic partnerships that will further widen 5th Planet’s range of products
and services, provide opportunities for ongoing growth and mitigate some of the commercial
risk which is inherent to publishing video games.
So our approach to Business Development moving forward can be summarised as managing
our growing back catalogue of games in the most efficient way possible, looking for new
opportunities to publish great games from proven and talented teams and being open to new
partnership opportunities in which we can leverage our skills and experience to provide fresh
opportunities for growth.
2023 at Sagafilm
In 2023 there were changes in ownership of Sagafilm, as Skybound Entertainment and 5th
Planet Games purchased 75% of the company. This had a positive impact on Sagafilm’s
operational basis as debt was decreased while access to a more favourable project financing
increased. The new partnership also boosted the outlook for Sagafilm, as it allows the company
to expand on its services, invest in infrastructure and start developing more content aimed at
the international market.
Outlook & Business Development
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
6
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
The first original Invincible video game, co-financed by 5th Planet Games, celebrated one
of its most popular heroes: Atom Eve.
The title was released on PC platforms alongside the start of the highly anticipated Season
2 of the Invincible animated series, which had tripled its opening weekend viewership from
Season 1.
The game release benefited from the special partnership with Amazon and was free to
claim for subscribers of Amazon Prime via the Prime Gaming platform for the first week
of release. A second free weekend in partnership with Prime Gaming started on March 14
alongside the launch of the second part of Invincible Season 2.
INVINCIBLE PRESENTS: ATOM EVE
Developer:
Terrible Posture Games
Release Date:
November 14, 2023
Platforms:
PC
2023 Game Releases
Other releases
ESCAPE ACADEMY:
ESCAPE FROM THE PAST
BEFORE YOUR EYES WRESTLEQUEST
GLITCH BUSTERS:
STUCK ON YOU
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
7
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
In February 2023, Sagafilm released the feature film Operation Napoleon. The budget for
the film was appr. EUR 6.5 million. The film was a box-office hit in Iceland and was released
globally in 2023. In spring 2023, Sagafilm closed financing on the EUR 5 million TV series the
Minister 2. Shooting commenced in late July and wrapped in early December 2023. The
series will be released all over the world in the fall of 2024.
In the fall of 2023, the TV series Vaka was greenlit by Amazon Prime Nordics. The budget
for Vaka is appr. EUR 10 million. The shooting of the Swedish language series will start in
March 2024 in Stockholm. In addition to developing the series, Sagafilm will also handle
parts of the production and most of the post-production. At the end of 2023, the company
was waiting to greenlit two big TV series for 2024 in addition to several documentaries and
entertainment programs.
Sagafilm 2023 Achievements
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
8
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
It has been a year with focus on new investments made possible by the investment
agreement entered with Skybound in 2021.
In 2023 there has also been termination of 2 titles, Walking Dead Clementine and Vice
NDRCVR. Walking Dead Clementines booked value was 0 and therefore has no impact
on our net income. The disposal of Vice NDRCVR has resulteted in a loss of DKK 2.9m. We
have also recognised a loss of DKK 2.3m on Atom Eve and Wrestlequest.
Other income DKK 6.8m consists of a partly sale of an intellectual asset
It was also in 2023 Skybound Entertainment and 5th Planet Games purchased 75% of the
Icelandic filmproduction company Sagafilm.
Sagafilm investment agreement
Part of the financing of the co-investment deal in Sagafilm ehf, is completed by issuing
9,537,655 shares in exchange for a contribution in kind of nominally ISK 4,800,000 shares
in Sagafilm ehf, valued at USD 1,600,000.
Skybound investment agreement:
The investment agreement with Skybound Games Studios is described in more detail in
the annual report for 2021.
The annual report for 2023 is affected by the investment agreement with Skybound, all
tranches have been executed according to the agreement and has secured the capital
structure. Tranche 4 was executed in 2023 and supports the strategy and long-term value
creation for the company.
Additional Warrants and Other Significant Items
Milestone Warrants
In addition to the Tranche described above, Skybound Games has the right to subscribe
for 31,103,882 warrants, each warrant entitling Skybound Games to subscribe for one share
of nominal DKK 0.05 at an exercise price of NOK 0.90, total NOK 27,993,494 (equivalent to
USD 3,177,107) when certain milestones are met (the “Milestone Warrants”):
• 13.6% of the Milestone Warrants upon 5th Planet Games having a market value of
USD 60,000,000 or more.
• 13.6% of the Milestone Warrants upon 5th Planet Games having a market value of
Financial Review
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
9
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
USD 75,000,000 or more.
• 13.6% of the Milestone Warrants upon 5th Planet Games having a market value of
USD 100,000,000 or more.
• 13.6% of the Milestone Warrants upon 5th Planet Games having a market value of
USD 125,000,000 or more.
• 45.6% of the Milestone Warrants upon 5th Planet Games having a consolidated revenue
of at least DKK 62,756,000 in any of the financial years 2022, 2023, or 2024.
Indemnification Warrants
As part of the investment agreement, 5th Planet Games has provided certain representations
and warranties to Skybound Games. Should Skybound Games suffer a loss due to certain
specific warranties not being true, accurate and not misleading, Skybound Games will, at
its own discretion, have the option of being indemnified from its loss by exercising up to
2,200,000 warrants (depending on the loss), each warrant entitling Skybound Games to
subscribe for 1 share of nominal DKK 0.05 at par value (the “Indemnification Warrants”).
Accounting impact FY 2023 of the Skybound investment agreement:
Principal Investment Structure:
Tranche 4 was qualified as a derivative financial assets/liability that was calculated on
basis of the actual currency rate NOK/DKK and the share price for companies shares until
the amount is received. The derivate was in 2023 a liability with a value of DKK 25.1m, this
liability was reversed on the 7th September when Tranche 4 was executed with a positive
effect on the P/L.
Indemnification Warrants
The indemnifications warrants are not considered to be a significant risk for the company
and are therefore not recognized as an obligation in the report.
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
10
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Comments to the result of the year:
The results from 2023 have been extremely positive
5th Planet Games was involved in publishing, co-publishing or co-financing several new games
that all released in 2023. Hugo: Up & Away in conjunction with Funfair Games, the mobile
versions of Before Your Eyes in partnership with Netflix, and Escape Academy developed by
Coin Crew Games. In addition to these titles, 5th Planet Games was also able to announce new
agreements for Wrestlequest from Mega Cat Studios, Glitch Busters: Stuck on You from Toylogic,
and Invincible Presents: Atom Eve, the first original game in the Invincible franchise developed
by Terrible Posture Games. It was an impressive year of releases and announcements.
Financial performance affected positive by increase in revenue and other income
EBITDA shows a gain of DKK 7.5m in 2023 (2022: DKK 1.7m). The positive result is due to the
increased revenue from new publishing agreements and continuous cost control. Amortization
for 2023 was DKK 7.6m (2022: DKK 2.4m). Net financials were a gain of DKK 23.5m, the gain is
mainly caused by the recognition of the derivate as financial income DKK 25.3m. For further
explanation reference, please see note 15.
Total assets increased in 2023
Total assets amounted to DKK 91.3m as of 31 December 2023, a DKK 32.4m increase compared
to 31 December 2022 due to increase of cash position by DKK 13m, and DKK 21.3m from
investments.
Cash flow positive due to execution of investment agreement
In 2023, the cash flow from operating activities shows a gain of DKK 7.1m (2022: gain of DKK
3.7m). The total cash flow was also positively affected by the execution of Tranche 4 in the
investment agreement with DKK 20.2m. Investing activities affects cash flow negatively with
DKK 21m. In total cash flow was positive in 2023 with DKK 17.9m (2022: gain DKK 22.7m). The
cash position as of 31 December 2023 amounted to DKK 49.3m (2022: DKK 36.3m).
Equity
The group’s equity as of 31 December 2023 was DKK 85.4m (2022: DKK 28.9m). The equity ratio
at year-end was 93.6% (2022: 49.1%).
Capital increases issued in 2023
In September 2023, Skybound Games Studios Inc, executed Tranche 4 of the investor
agreement from 2021, as described in the annual report for 2021. They invested DKK 20.2m (NOK
30.8m) in the company and 50.581.452 new shares were issued to Skybound. In September
2023 the company issued 9,537,655 shares in exchange for a contribution in kind of nominally
ISK 4,800,000 shares in Sagafilm ehf, valued at USD 1,600,000.
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
11
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
DKK ‘000
IFRS
2023
IFRS
2022
IFRS
2021
IFRS
2020
IFRS
2019
*Revenue and other income 16 586 11 300 4 809 2 848 2 180
*Gross profit 16 324 11 143 4 688 2 663 2 044
*Profit / loss before special items (EBITDA) 7 499 1 677 -9 465 -5 580 -17 814
*Operating profit/loss (EBIT) -136 -736 -15 066 -5 580 -18 391
*Net Financials exclusive change in derivative instruments -1 590 -179 656 -713 -126
Change in derivative financials instruments, fair value 25 065 -32 793 7 729 0 0
*Net Financials 23 475 -32 972 8 385 -713 -126
Loss from discontinued operations 0 0 -9 651 -8 248 -15 866
Net profit/loss for the year 23 285 -33 708 -16 254 -14 249 -32 223
Net loss for the year exclusive fair value of
derivative financials instruments
-1 780 -915 -23 983 -14 249 -32 223
Total assets 91 304 58 845 28 359 27 380 13 267
Investments other equipment 0 0 0 34 149
Capitalized and expensed development costs 3 280 17 278 11 142 18 381 18 381
Equity 85 421 28 886 23 461 20 889 6 972
Cash 49 305 36 261 13 607 23 666 6 272
Key figures and financial performance
*Figures for 2021, 2020 and 2019 are only for continued operations.
5th Planet Games At-A-Glance
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Sagafilm
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Shareholder Information
Auditors’ Report
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
12
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Risk management is a high priority at 5th Planet Games. The Board of Directors and the
management monitor the company’s risk factors closely to minimize risk exposure. This ensures
quick reaction time if conditions change. A risk assessment is made prior to every major decision.
Risks and uncertainties
The most important risks facing 5th Planet Games are related to market/commercial risk and
development risk. However, where the conventional game development is associated with
large risks due to long development periods with substantial associated costs and a high risk of
failure, 5th Planet Games is focused on developing and utilizing modular code bases in order to
reduce the development time and risk of failure significantly.
• Financial risk
The games market is volatile and despite all the due diligence undertaken by 5th Planet
Games and its publishing partners, the performance of any individual game cannot be
guaranteed. This is main financial risk that 5th Planet Games faces.
• Product development risk
Product development is a creative process and regularly subject to delays, which
invariably means additional costs. Whilst 5th Planet Games looks to mitigate this risk, by
increasingly working with experienced development teams, the risk remains of delays
and additional expense.
• Foreign currency risk
5th Planet Games’ revenue, costs and cash position is for a significant part related to
USD and a significant change in the DKK/USD exchange rate could result in loss related
hereto. In 2023 there has also been a significant risk on NOK/USD related to the payment
for Tranche 4. The financial impact from currency fluctuations can be significant since
management is not hedging the currency risk.
• Disputes
The company may from time to time be involved in disputes, including disputes
regarding intellectual property rights, all with ensuing risks and costs, which could have a
material adverse effect on 5th Planet Games’ business, financial condition, and results of
operations.
• Partnership risk
In the short term, 5th Planet Games is heavily reliant on Skybound as a source of new
games; whilst in general terms this is a positive thing it also carries a certain risk; in order
to mitigate this risk 5th Planet Games continues to proactively manage its own catalogue
of titles and maintains a business development function to find new games, new financing
and new publishing opportunities.
For further information on risk, see the section “Risk factors” on pp. 8-9 and 14-16 of the
prospectus dated 11 November 2021.
Risk Management in Practice
5th Planet Games At-A-Glance
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Sagafilm
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Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
13
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
The Board of Directors serves as a qualified dialogue partner for the daily management. The Board
of Directors combines key industry insights, important business- and financial skills as well as many
years of management experience.
Environment impact
5th Planet Games products and co-production products are mostly nonphysical.
We aim to minimize the negative environmental impact caused by our operations. Currently, the
most significant environmental impact is caused by the consumption of electricity associated with
IT equipment, servers and gaming. Awareness of gaming’s oversized environmental impact has
grown, prompting major manufacturers to promise reductions in environmental footprint over the
next two decades. 5PG recognizes the Companies need to strike a balance between innovation
and sustainability to maintain its financial performance
Currently, we actively consider and regularly review the environmental impact of our ongoing
business operations and take all reasonable steps to mitigate the negative impact.
Going forward, we will make an ‘environmental review’ part of our formal board meetings on a
regular basis and make public the conclusions of this review. We also have plans to ‘benchmark’
our performance in this area with other companies operating in the same sector as part of our
growing participation in the Danish Video Games industry.
Social responsibility
As a globally operating company, 5PG values diversity and treats all employees equally. All staff
members are treated fairly and equally regardless of their ethnic origin, nationality, political views,
gender, sexual orientation, disability, family situation or age. 5PG adheres to the principle of equal
opportunity. We expect all 5PG’s employees to treat each other, all our subcontractors, service
providers and other partners fairly and equally. 5PG aims to develop the company in a sustainable
manner and to achieve shared benefits for the company, the shareholders and employees alike. All
employees are entitled to good management and a chance to grow as professionals.
Currently, 5th Planet Games makes every reasonable effort to maintain and optimize the well-
being of its employees and contractors. We invest time and enregy to ensure that our employees
and contractors are valued, respected and motivated in their work.
Going forward, we will extend this duty of care to include all customers, suppliers and service
providers to the company, and make every reasonable effort to maintain the highest professional
and ethical standards.
Corporate Governance
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
14
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Diversity policy
The Board of Directors has set a goal to have at least one female elected
In 2023, the Board of Directors (first-tier management level) consists only of 4 male members,
whereby the female share is of 0% (2022 4 members 0%). In its search for new board candidates,
gender distribution is considered, together with other relevant competencies for election at the
annual general meeting in 2024. It is the Company’s goal to achieve equal gender representation in
the Board of Directors by 2026 at the latest.
By the end of 2023, the Executive Board consists of 1 male person (end 2022 female share: 0%).
The Company has no other employees than the CEO. At group level, in addition to the CEO of the
parent company, other key management persons consist of 1 female person. As long as the parent
company only has one employee, policy for gender allocation is not applicable for the second-tier
management level. If the parent company expands its organization and more people is employed
by the parent company, and depending on the management structure that will be implemented, the
Board of Directors expects that the target for gender allocation for the second-tier management will
be based on equal gender representation. Based on the current legal and management structure
for the Company and the Group, the actual gender allocation and the targets can be summarized
as follows:
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
2023 allocation (male/female) Target (male/female)
5th Planet Games A/S
Board of Directors
4/0
Equal representation by 2026 at
the latest
5th Planet Games A/S
Executive Board and other key
management personnel
1/0
Equal representation to the extent
that more than one person is
employed by the company
The Group Executive Board and
other key management personnel
1/1 To continue equal representation
Data policy
As a general rule and in its normal business operations, 5th Planet Games does not collect end user
data; however as a statement of policy in this area; 5th Planet Games recognize every individual’s
right to privacy and acknowledge our obligation to preserve the confidentiality of all personal
information. The Company takes steps to protect and maintain the confidentiality of all data
and personal information of those persons with whom it deals, including users of its products and
services, and prior and prospective customers (collectively “Users” and individually a “User”, as
appropriate), and the Company is responsible for the personal information it has in its possession
or under its control.
15
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
2023
2022 2021 2020 2019
DKK´000 Joined Resigned
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
*Jon Edward Goldman 07.09.2021 395 0 395 395 0 395 12 0 12 0 0 0 0 0 0
Henrik Nielsen 27.11.2019 395 426 821 395 687 1 082 38 389 427 0 0 0 0 0 0
David Alpert 07.09.2021 395 0 395 395 0 395 12 0 12 0 0 0 0 0 0
Søren Kokbøl 27.04.2021 50 22 72 50 57 107 38 32 70 0 0 0 0 0 0
Kim Friland 27.04.2021 07.09.2021 0 0 0 0 0 0 50 48 98 0 0 0 0 0 0
Bjarke Ingemann Finlov 27.04.2021 07.09.2021 0 0 0 0 0 0 25 0 25 0 0 0 0 0 0
Peter Ekman 27.11.2019 07.09.2021 0 0 0 0 0 0 25 0 25 0 0 0 0 0 0
Caspar Rose 06.02.2015 27.04.2021
0 0 0 0 0 0 0 15 15 30 107 137 15 163 178
Total 1 235 448 1 683 1 235 744 1 979 200 484 684 30 107 137 45 279 324
Remuneration – Executive Management
The remuneration of the Executive Management teams is following the recommendation by the
Chairman of the Board of Directors. The current remuneration program for the Executive Management
team is comprised of both a monetary remuneration as well as a pool of warrants.
2023 2022 2021 2020 2019
DKK´000 Joined Resigned
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Fixed
base
fee
Share-
based
payments
Total
Mark Stanger, CEO 07.09.2021 602 0 602 962 0 962 372 0 372 0 0 0 0 0 0
Henrik Nielsen, CEO
1
29.09.2017 22.01.2021 0 0 0 0 0 0 40 113 153 480 2 119 2 599 482 4 220 4 702
Caspar Rose, CEO
2
22.01.2021 07.09.2021
0 0 0 0 0 0 350 224 574 0 0 0 0 0 0
Total 602 0 602 962 0 962 762 337 1 099 480 2 119 2 599 1 234 4 480 5 714
*Chairman of the Board
1. As of 22/1 2021 Henrik Nielsen retired as CEO from 5th Planet Games A/S. The remuneration until January 2021 is included in the above table whereas the severance payment 1.965 TDKK
(Fixed base fee 213 TDKK and Share based Payments 982 TDKK) is not included.
2. As of 7/9 2021 Caspar Rose retired as CEO from 5th Planet Games A/S. The remuneration until September 2021 is included in the above table, whereas the severance payment 337 TDKK
(Fixed base fee 150 TDKK and Share based Payments 187 TDKK) is not included.
Corporate governance report
5th Planet Games’ Board of Directors and Management continually work with corporate
governance principles to ensure that the management structure and control systems are
appropriate and satisfactory. 5th Planet Games 2023 statutory report on corporate governance,
cf. the Danish Financial Statements Act, Section 107b, is available on 5th Planet Games website at
https://www.5thplanetgames.com/investors/documents/.
The Company complies with 23 of the 40 Danish recommendations on corporate governance
https://corporategovernance.dk/
Remuneration Report
On 27th April 2023 the remuneration policy was approved at the Company’s general meeting
with the required majority
https://www.5thplanetgames.com/investors/documents/
Remuneration – Board of Directors
The remuneration of members of the Board of Directors is, due to the current size and structure of
the company, comprised of direct payments and warrants.
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
16
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Jon Goldman (m)
(1965)
Chairman of the Board
Position:
Chairman of the Board
Skybound Group
Educational background:
Harvard University
Kyoto University
UCLA Anderson School of
Management
Competencies:
Financial strategy
Capital Markets
Current Directorships:
none
Member of the boards of:
Skybound Games Studios and
Group companies
LiveLike
Free Range
WAVEXR, INC.
FLAVOURWORKS
Shares in 5th Planet Games A/S:
135,000 shares
Warrants in 5th Planet Games A/S:
0 warrants
Independent Board Member:
No
Election Term:
1 year
Board member since:
7 September 2021
Henrik Nielsen (m)
(1967)
Board Member
Position:
CEO of HNI Trading ApS
Educational background:
M.Sc. in Marketing and Strategy
from the Copenhagen Business
School
Competencies:
Strategy and Finance
Current Directorships:
HNI TRADING ApS
Member of the boards of:
NIL TECHNOLOGY ApS
Ejendomsselskabet Green ApS and
Holdingselskabet RED ApS
Shares in 5th Planet Games A/S:
4,844.262 shares
Warrants in 5th Planet Games A/S:
30,633,100 warrants
Independent Board Member:
Yes
Election Term:
1 year
Board member since:
27 November 2019
David Alpert (m)
(1975)
Board Member
Position:
CEO of Skybound Group
Educational background:
Havard University
New York University Law School
Competencies:
Digital Entertainment
Strategic Partnerships
Company Management
Current Directorships:
Skybound Games Studios and
certain of its subsidiaries
Member of the boards of:
Skybound Games Studios and
Group companies
Sagafilm ehf.
Shares in 5th Planet Games A/S:
135,000 shares
Warrants in 5th Planet Games A/S:
0 warrants
Independent Board Member:
No
Election Term:
1 year
Board member since:
7 September 2021
Søren Kokbøl Jensen (m)
(1966)
Board Member
Position:
CEO of BOOTIDE ApS
CEO of ECLIPSE HOLDING ApS
CEO Level up Garage ApS
Educational background:
N/A
Competencies:
Entrepreneurship
Digital Media
Business strategy
Current Directorships:
BOOTIDE ApS
ECLIPSE HOLDING ApS
Member of the boards of:
Level UP Garage ApS
Shares in 5th Planet Games A/S:
0 shares
Warrants in 5th Planet Games A/S:
240,000 warrants
Independent Board Member:
Yes
Election Term:
1 year
Board member since:
27 April 2021
Management
Board of Directors and Executive Management
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
17
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Mark Stanger (m)
(1967)
CEO
Employed since September 2021
Educational background:
Economics and Business – Wyggeston
and Queen Elizabeth College,
Leicester.
Chairman of the board of:
n/a
Member of the boards of:
Skybound Games UK Limited
Skybound Games Europe BV
Sagafilm Ehf.
Shares in 5th Planet Games A/S:
282,563 shares
Warrants in 5th Planet Games A/S:
0 warrants
Executive Management
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
18
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
An investment in 5th Planet Games is an investment in games - a market in continuous
strong growth.
5th Planet Games shares
The official share price as of 31 December 2023 was NOK 2,03 with a market capitalization
of NOK 544,199m (DKK 360,804m). Total turnover of shares in 2023 was 90 million with a
total transaction value of NOK 201m.
MASTER DATA
Stock Exchange:
Sector:
ISIN Code:
Symbol:
LEI Code:
EURONEXT EXPAND SOLO
Communication
DK00609455467
5PG
213800MC2SGVSIBN7J53
Share capital DKK:
Denomination:
No. of Shares:
Negotiable instruments:
Voting restrictions:
13,403,930.00
DK 0.05
268,078,600
Yes
No
Share Capital
The nominal share capital of 5th Planet Games as of 31 December 2023 was DKK 13,403,930,
consisting of 268,078,600 shares of DKK 0.05 each. 5th Planet Games has only one share
class. The Board of Directors and the Executive Management regularly assess whether the
share capital and share structures are aligned with the interests of the shareholders and
the company.
Shareholding structure
5th Planet Games shareholders are primarily residents of Denmark, Iceland, Norway, and
the United States of America. As of 31 December 2023, only Skybound Game Studios Inc.
holds with their 151,786,111 shares (56,6%) more than 5% of the share capital or the votes.
As of 31 December 2023, members of the Board of Directors and their related parties held
5,396,825 shares (nominal value DKK 269,841.25), corresponding to 2,01% of the share capital
and a market value of DKK 7,2m. As per 31 December 2023 members of management held
282,563 shares.
Annual general meeting
The Annual General Meeting will be held on 30 April 2024 at 10.00 am at Gothersgade 11,
1123 København K.
Shareholder information
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
19
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Dividend and allocation of profit
The Board of Directors recommends to the annual general meeting that no dividend be
declared in respect of the 2023 financial year. The Board of Directors recommends to the
shareholders that the profit for the year of DKK 23,285m, to be transferred to retained
earnings.
Investor queries
Any questions or comments from shareholders, analysts, and other stakeholders should be
addressed to CEO Mark Stanger via the investor e-mail: ir@5thplanetgames.com
Information in accordance with the Danish Financial Statements
Act, Section 107 a
Adoption of amendments to the Articles of Association, dissolution of the company, merger,
or demerger requires a resolution adopted by at least a two-thirds majority of the votes
cast as well as of the share capital represented at the general meeting.
The Board of Directors consists of from three to seven members elected each year at
the annual general meeting of the company for the period until the next annual general
meeting. Board members are eligible for re-election.
The Board of Directors appoints its own chairman and vice chairman.
The present 5th Planet Games’ Board of Directors consists of four members headed by
Jon Goldman as chairman. The present members of the Board of Directors are presented
on page 14.
Going forward, two of the Members of the Board of Directors are independent of the
company.
At the general meeting on the 27. april 2023 it was decided that the Board of Directors shall
receive a fixed remuneration of DKK 50,000 for all board members for the year 2023 and
that Jon Goldman, David Alpert, and Henrik Nielsen shall receive an additional fee of DKK
345,000 due to significant extra work to develop the business.
Furthermore, it was decided, that the Board of Directors in the future may be granted
warrants, exercisable at market value in the Company in combination with the above-
mentioned fixed remuneration.
Until 3 April 2034 (AOA 2.2 – Warrants for employed etc.), the Board of Directors is authorized
to increase the company’s share capital in one or more issues without pre-emptive rights
for the existing shareholders of the company by up to a total nominal amount of DKK
1,300,000 against cash. The current authorization amount is DKK 1,235,000.
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
20
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Without any time, limitation (AOA 2.4 – milestone warrants Skybound), the Board of
Directors is authorized to increase the company’s share capital in one issue without pre-
emptive rights for the existing shareholders of the company with DKK 1,555,194.10 against
issue of 31,103,882 shares to an exercise price of NOK 0.90 against cash payment if certain
milestones have been achieved.
Without any time limitation (AOA 2.5 – indemnification warrants Skybound), the Board of
Directors is authorized to increase the company’s share capital in one issue without pre-
emptive rights for the existing share-holders of the company with DKK 110,000 against
issue of 2,200,000 shares to an exercise price of DKK 0.05.
Until 1 July 2036 (AOA 2.6 – Warrants for employed etc.), the Board of Directors is authorized
to increase the company’s share capital in one or more issues without pre-emptive rights
for the existing shareholders of the company by up to a total nominal amount of DKK
1,131,050.25 against cash.
Until 3 April 2024 (AOA 2.6), the Board of Directors is authorized to increase the company’s
share capital in one or more issues without pre-emptive rights for the existing shareholders
of the company by up to a total nominal amount of DKK 3,500,000 against cash or non-
cash consideration or by conversion of debt. Such capital increase shall take place at
market price. The current authorization amount is DKK 2,525,288.
Until 1 June 2025 (AOA 2.11), the Board of Directors is authorized to increase the company’s
share capital in one or more issues with pre-emptive rights for the existing shareholders
of the company by up to a total nominal amount of DKK 10,000,000 against cash. Such
capital increase can take place under market price. The current authorization amount is
DKK 7,750,000.
The group has not entered into contracts with change of control clauses.
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
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Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
21
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Statement by the Board of Directors and the
Executive Management on the Annual Report
The Board of Directors and the Executive Management have today considered and
approved the annual report of 5th Planet Games A/S for the financial year 1 January 2023
– 31 December 2023
The consolidated financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the EU. The financial
statements of the parent company, 5th Planet Games A/S, are prepared in accordance
with the Danish Financial Statements Act (Årsregnskabsloven). Furthermore, the annual
report has been prepared in accordance with the additional Danish disclosure requirements
for annual reports of listed companies.
In our opinion, the accounting policies applied are appropriate, thus ensuring that the
consolidated financial statements and the financial statements provide a fair presentation
of the group’s and the parent company’s assets, liabilities, and financial position as of 31
December 2023 and of the results of the group’s and the parent company’s operations
and the consolidated cash flows for the financial year 1 January 2023 - 31 December 2023.
We believe that the management review contains a true and fair review of the development
and performance of the group’s and the parent company’s business activities and financial
situation, the earnings for the year and the financial position of the parent company and
the financial position as a whole of the entities comprised by the consolidated financial
statements, together with a description of the principal risks and uncertainties that the
group and the parent company face.
The annual report is submitted for adoption by the general meeting.
Copenhagen, 5th April 2024
Executive Management
Mark Stanger
Søren Kokbøl Jensen
Board of Directors:
Jon Goldman
Chairman
David Albert
5th Planet Games At-A-Glance
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Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Henrik Nielsen
22
ANNUAL REPORT 2023
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CEO Letter
Outlook & Business Development
Video Games
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Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
To the shareholders of 5th Planet Games A/S
Our opinion
We have audited the consolidated financial statements and the parent financial state-
ments of 5th Planet Games A/S for the financial year January 1 – December 31, 2023, which
comprise the income statement, statement of financial position, statement of changes in
equity and notes, including a summary of significant accounting policies, for the Group as
well as the Parent, and the statement of comprehensive income and the cash flow state-
ment of the Group. The consolidated financial statements are prepared in accordance
with International Financial Reporting Standards as adopted by the EU and additional re-
quirements of the Danish Financial Statements Act, and the parent financial statements
are prepared in accordance with the Danish Financial Statements Act.
In our opinion, the consolidated financial statements give a true and fair view of the Group’s
financial position at December 31, 2023 and of the results of its operations and cash flows
for the financial year January 1 – December 31, 2023 in accordance with International Fi-
nancial Reporting Standards as adopted by the EU and additional requirements under the
Danish Financial Statements Act.
Further, in our opinion, the parent financial statements give a true and fair view of the
Parent’s financial position at December 31, 2023 and of the results of its operations for
the financial year January 1 – December 31, 2023 in accordance with the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and
the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and
the additional requirements applicable in Denmark. Our responsibilities under those stand-
ards and requirements are further described in the Auditor’s responsibilities for the audit of
the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to pro-
vide a basis for our opinion.
Auditors’ Report
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
23
ANNUAL REPORT 2023
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CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Independence
We are independent of the Group and parent company in accordance with the Interna-
tional Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
(IESBA Code) and the additional requirements applicable in Denmark. We have also ful-
filled our other ethical responsibilities in accordance with the IESBA Code.
To the best of our knowledge, we have not provided any prohibited non-audit services as
described in article 5(1) of Regulation (EU) no.537/2014.
Appointment
We were first appointed auditors of 5th Planet Games A/S in January 2016 for the financial
year 2015. We have been reappointed annually by shareholder resolution for a total period
of uninterrupted engagement of 9 years including the financial year 2023.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most sig-
nificance in our audit of the financial statements for 2022. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opin-
ion thereon, and we do not provide a separate opinion on these matters.
Recognition, measurement and presentation of the investment agreement with Skybound
Games Studios Inc. Reference is made to note 2, 15, 22 and 23 of the consolidated financial
statements regarding the Skybound investment agreement.
On the general meeting 7th September 2021, the shareholders of 5th Planet Games A/S
approved the investment agreement with Skybound Games Studios Inc. The investment
agreement included three fixed future capital increases to be conducted in financial year
2022 and 2023 cf. tranches 2-4 of the agreement, and agreements regarding issuing of
warrants vesting if certain market cap milestones are reached and agreements regarding
issuing of warrants vesting if certain future revenue milestones are reached.
The tranches 2 and 3 was completed in 2022 and trance 4 were conducted in 2023.
The management engaged upon entering into the investment agreement an external val-
uation expert (management expert) to advise the management in the valuation, recogni-
tion, measurement and classification of the future fixed capital increases cf. tranches 2-4.
When performing the valuations of the fixed future capital increases to be conducted, the
management applied a traditional valuation techniques in order to assess the fair value of
tranches 2-4 of the investment agreement.
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We focused on the accounting treatment of the investment agreement with Skybound.
We focused on the recognition, measurement and classification of the derivate financial
instruments deriving from the investment agreement. We also assessed an inherent risk
related to the classification due to the complexity of certain provisions of the investment
agreement that determined the appropriate classification.
How our audit addressed the Key Audit Matter
We obtained an understanding of the terms and conditions of the elements of the Sky-
bound investment agreement affecting the consolidated financial statements. In relation
to the classification of the warrants and derivate financial instruments deriving from the
investment agreement, we evaluated the appropriateness of the management’s expert
interpretation on how to apply the relevant accounting guidance for the classification, in-
cluding whether the instruments were classified as being an equity instrument or a finan-
cial assets/debt instrument.
Impairment assessment
The value of 5th Planet Games A/S’ intangible assets, of which relates to development
projects, is supported by the value-in-use calculations, which are based on future cash
flow forecasts (i.e. ‘recoverable amount’). We focused on this area because the impairment
assessments of these assets are dependent on complex and subjective judgements by
Management. Refer to note 12 in the consolidated financial statements.
How our audit addressed the Key Audit Matter
We considered the overall impairment assessments prepared by the Management, and
we tested the underlying calculations and reviewed the relevant internal procedures in
place to check that the impairment assessments are prepared appropriately. We consid-
ered the assumptions and estimates used by Management to determine the value-in-use
of the intangible assets. This includes those relating to the Managements key assumptions
such as revenue, development cost and operating cost forecasts. The input for the calcula-
tions is provided by the collaboration partner Skybound Games Studios Inc. We performed
a sensitivity analysis around the key drivers and assumptions used by management.
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover Management’s Review, and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read Man-
agement’s Review and, in doing so, consider whether Management’s Review is materially
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
inconsistent with the Financial Statements, or our knowledge obtained in the audit, or oth-
erwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the Management’s review provides
the information required under the Danish Financial Statements Act.
Based on the work we have performed, in our view, Management’s Review is in accord-
ance with the Consolidated Financial Statements and the Parent Company Financial State-
ments and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement in Management’s Review.
Management’s responsibilities for the financial statements
Management is responsible for the preparation of consolidated financial statements that
give a true and fair view in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board and in accordance with Inter-
national Financial Reporting Standards as endorsed by the EU and further requirements
in the Danish Financial Statements Act and for the preparation of the parent company
financial statements that give a true and fair view in accordance with the Danish Financial
Statements Act, and for such internal control as Management determines is necessary to
enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the
Group’s and the parent company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of ac-
counting unless Management either intends to liquidate the Group or the parent company
or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the Financial State-
ments as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
and the additional requirements applicable in Denmark will always detect a material mis-
statement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these Financial Statements. As part
of an audit in accordance with ISAs and the additional requirements applicable in Den-
mark, we exercise professional judgement and maintain professional skepticism through-
out the audit.
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
We also:
• Identify and assess the risks of material misstatement of the Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Obtain an
understanding of internal control relevant to the audit in order to design audit proce-
dures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s and the Company’s internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s and the Parent Company’s
internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s
and the Parent Company’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s re-
port to the related disclosures in the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group or the Parent Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements,
including the disclosures, and whether the Financial Statements represent the under-
lying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the Consolidat-
ed Financial Statements. We are responsible for the direction, supervision and perfor-
mance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance (the Board of Directors) regarding,
among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our
audit.
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the Financial Statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be com-
municated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on compliance with the ESEF Regulation
As part of our audit of the Consolidated Financial Statements and Parent Company Finan-
cial Statements of 5th Planet Games A/S we performed procedures to express an opinion
on whether the annual report of 5th Planet Games A/S for the financial year 1 January
to 31 December 2023 with the file name 213800MC2SGVSIBN7J53-2022-12-31-en is pre-
pared, in all material respects, in compliance with the Commission Delegated Regulation
(EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes
requirements related to the preparation of the annual report in XHTML format and iXBRL
tagging of the Consolidated Financial Statements.
Management is responsible for preparing an annual report that complies with the ESEF
Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the
ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial
information required to be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial
Statements resented in human readable format; and
• For such internal control as Management determines necessary to enable the prepa-
ration of an annual report that is compliant with the ESEF Regulation.
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Parent Company Income Statement
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Parent Company Statement of Change in Equity
Parent Company Notes
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Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Our responsibility is to obtain reasonable assurance on whether the annual report is pre-
pared, in all material respects, in compliance with the ESEF Regulation based on the evi-
dence we have obtained, and to issue a report that includes our opinion. The nature, tim-
ing and extent of procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material departures from the requirements set out in the ESEF
Regulation, whether due to fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging process and of internal
control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial State-
ments;
• Evaluating the appropriateness of the company’s use of iXBRL elements selected from
the ESEF taxonomy and the creation of extension elements where no suitable element
in the ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements in the
ESEF taxonomy;
and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial
Statements.
In our opinion, the annual report of 5th Planet Games A/S for the financial year 1 January
to 31 December 2023 with the file name 213800MC2SGVSIBN7J53-2022-12-31-en
is prepared, in all material respects, in compliance with the ESEF Regulation.
Copenhagen, 7th April 2023
Grant Thornton
Statsautoriseret Revisionspartnerselskab
CVR-nr. 34 20 99 36
Michael Winther Rasmussen
State-Authorized Public Accountant
MNE-nr. 28708
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DKK´000 Note 2023 2022
Revenue 4 9 764 11 300
Costs of sales 262 157
Gross Profit 9 502 11 143
Other income 5 6 822 0
Research and development costs 183 164
Other expenses 6 8 642 9 302
Profit/Loss before special items, deprecation and amortisation (EBITDA) 7 499 1 677
Depreciation and amortisation 12 7 635 2 414
Operating profit/loss (EBIT) -136 -737
Financial income 8 28 295 286
Financial expenses 9 4 820 33 258
Profit/Loss before tax 23 339 -33 709
Tax on Gain for the year 10 54 0
Profit/Loss for the year from continuing operations 23 285 -33 709
Other comprehensive income 0 0
Comprehensive income 23 285 -33 709
Distribution of comprehensive income:
Parent company´s shareholders 23 285 -33 709
Non-controlling interests 0 0
Total 23 285 -33 709
Basic earnings per share (DKK) 11 0,103 -0,201
Diluted earnings per share (DKK) 11 0,074 -0,201
Consolidated income statement and statement of other comprehensive income
Financial Statements
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Parent Company Income Statement
Parent Company Balance Sheet
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Parent Company Notes
DKK´000 Note 2023 2022
Non-current assets
Acquired rights 12 0 737
Completed development projects 12 9 396 2 988
Development projects in progress 12 0 12 953
Other investments 13 21 329 0
Other receivables 14 4 084 0
Total non-current assets 34 809 16 678
Current Assets:
Trade receivables 14 2 747 5 694
Income tax receivable 10 0 107
Other receivables 14 4 418 105
Accrual expenses 25 0
Cash 49 305 36 261
Total current assets 56 495 42 167
Total assets 91 304 58 845
EQUITY AND LIABILITIES
DKK´000 Note 2023 2022
Equity:
Share capital 13 404 10 398
Reserves 0 0
Retained earnings 72 017 18 488
Total Equity 16 85 421 28 886
Non-current liabilities
Other payables 17 0 372
Total non-current liabilities 0 372
Current liabilities
Derivative financial instruments 15 0 25 065
Trade payables 17 5 055 2 721
Other payables 17 828 1 801
Total current liabilities 5 883 29 587
Total Liabilities 5 883 29 959
Total equity and liabilities 91 304 58 845
Consolidated Balance Sheet
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Reserves
DKK´000 Share capital Share premium Retained earnings Total equity
Equity as at 01.01.2023 10 398 0 18 488 28 886
Net Profit 0 0 23 285 23 285
Comprehensive income 0 0 23 285 23 285
Capital increase 3 006 29 310 0 32 316
Costs related to capital increase 0 -165 0 -165
Share-based payments 0 0 1 099 1 099
Transfer of reserves 0 -29 145 29 145 0
Transactions with owners 3 006 0 30 244 33 250
Equity as at 31.12.2023 13 404 0 72 017 85 421
Equity as at 01.01.2022 6 400 0 17 061 23 461
Net Loss 0 0 -33 709 -33 709
Other comprehensive income 0 0 0 0
Comprehensive income 0 0 -33 709 -33 709
Capital increase 3 998 33 328 0 37 326
Costs related to capital increase 0 -518 0 -518
Share-based payments 0 0 2 326 2 326
Transfer of reserves 0 -32 810 32 810 0
Transactions with owners 3 998 0 35 136 39 134
Equity as at 31.12.2022 10 398 0 18 488 28 886
Statement of changes in equity
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DKK´000 Note 2023 2022
Loss before tax 23 285 -33 708
Depreciation, amortisation and impairment losses 2 893 2 413
Share-based payments 1 099 2 325
Financial income, reversed -28 295 -286
Financial expenses, reversed 4 820 33 258
Change in working capital -30 -552
Operating cash flow 3 772 3 450
Financial income, received 3 225 286
Financial expenses, paid 0 -54
Income tax received 107 0
Cash flow generated from operations 7 104 3 682
Sale of right of use assets -4 084 0
Long term receivable 7 668 0
Investments in projects -3 280 -17 278
Cash flow from investing activities 304 -17 278
Proceeds from cash capital increase 32 151 36 808
Repayment convertible loan -372 -558
Investment in financial assets -21 329 0
Cash flow from financing activities 10 450 36 250
Total cash flow for the period 17 858 22 654
Cash, beginning of period 36 261 13 607
Net foreign exchange difference -4 814 0
Cash, end of period 49 305 36 261
Consolidated cash flow statement
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Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
1. Accounting policies
5th Planet Games A/S is a limited liability company domiciled in Denmark. The consoli-
dated financial statements for 2023 have been prepared in accordance with International
Financial Reporting Standards (IFRS) as approved by the EU and additional Danish disclo-
sure requirements.
Danish kroner (DKK) is the group’s presentation currency and the functional currency of the
parent company. The consolidated financial statements are presented in Danish kroner
(DKK) rounded off to the nearest DKK 1,000.
Implementation of new and revised standards and interpretations
The IASB has not issued new standards or revisions to existing standards and new inter-
pretations that are mandatory for accounting periods commencing on or after 1 January
2024 that have a significant impact on the accounts.
Principal accounting policies set out below have been consistently applied in the prepa-
ration of the consolidated financial statements for all the years presented.
Earnings per share
Basic earnings per share are calculated as the net result for the period that accrues to the
parent company´s shares divided by the weighted average number of ordinary shares
outstanding.
Diluted earnings per share are calculated as the net result for the period that accrues to
the parent company´s shares divided by the weighted average number of ordinary shares
outstanding adjusted by the dilutive effect of potential shares.
Segment reporting
No separate business areas or separate business units have been identified in connection
with single games or geographical markets. As a consequence, no segment reporting is
made concerning business areas or geographical areas. Assets located outside Denmark
amounts to less than 10% of the group assets. Due to materiality no segment reporting is
made on geographical criteria.
Consolidated financial statements
The consolidated financial statements comprise 5th Planet Games A/S (parent company)
and the companies (subsidiaries) controlled by the parent company. A company is regard-
ed as controlled by the parent company when the parent company is exposed or entitled
to variable returns on its involvement in the company and has the ability to affect those
returns through its power over the company.
Notes to the Financial Statements
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Parent Company Statement of Change in Equity
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The consolidated financial statements are prepared based on the financial statements of
5th Planet Games A/S and its subsidiaries. The consolidated financial statements are pre-
pared by combining items of a uniform nature calculated in accordance with the group’s
accounting policies, eliminating intercompany income and expenditure, intercompany bal-
ances, and dividends as well as gains and losses on transactions between the consolidated
companies.
Business combinations
Newly acquired or newly-founded companies are recognized in the consolidated financial
statements as from the time of acquisition and the time of foundation, respectively. The
time of acquisition is the time at which control of the company is actually obtained. Divest-
ed or discontinued companies are recognized in the consolidated statement of compre-
hensive income up until the time when control ceases.
When new companies are acquired and the group obtains control of an acquired com-
pany, it is recognized in accordance with the acquisition method, according to which the
newly acquired company’s identifiable assets, liabilities and contingent liabilities are meas-
ured at fair value at the date of acquisition.
The acquisition price of a company is the fair value of the price paid for the acquired com-
pany. Costs relating to the acquisition are recognized in the income statement when paid.
Positive differences (goodwill) between the acquisition price of the acquired company on
the one hand and the fair value of the assets, liabilities and contingent liabilities acquired
on the other are recognized as goodwill and tested for impairment at least once a year.
Foreign currency translation
On initial recognition, transactions in currencies other than the functional currency of the
individual company are recognized at the exchange rate applicable at the transaction
date. Receivables, payables, and other monetary items denominated in foreign currency
not settled at the balance sheet date are translated using the exchange rate applicable at
the balance sheet date.
Exchange rate differences between the exchange rate applicable at the transaction date
and the exchange rate at the date of payment and the balance sheet date, respectively,
are recognized in the income statement as financial income or financial expenses. Proper-
ty, plant and equipment and intangible assets, inventories, and other non-monetary assets
purchased in foreign currency and measured based on historical cost are translated at the
exchange rate applicable at the transaction date.
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Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Tax
Tax for the year, consisting of current tax and changes in deferred tax, is recognized in the
income statement at the portion attributable to tax on the profit or loss for the year, and
directly in equity or in other comprehensive income at the portion attributable to amounts
recognized directly in equity or in other comprehensive income, respectively.
Current tax payables and receivables are recognized in the balance sheet as tax comput-
ed on the basis of the taxable income for the year and taxes paid or refunded.
Current tax for the year is computed based on the tax rules and tax rates applicable at
the balance sheet date.
Deferred tax is recognized using the balance sheet liability method on the basis of all tem-
porary differences between the carrying amounts and tax bases of assets and liabilities,
except for deferred tax on temporary differences due to either initial recognition of good-
will or initial recognition of a transaction that is not a business combination, and where the
temporary difference ascertained at the time of initial recognition does not affect either
the tax result or the taxable income. The deferred tax is calculated based on the planned
use of the individual asset or settlement of the individual liability.
Deferred tax is measured by applying the tax rules and tax rates expected to be applica-
ble when the deferred tax is expected to crystallize as current tax. Any change in deferred
tax as a result of changes in tax rules or rates is recognized in the income statement unless
the deferred tax is attributable to transactions that have previously been recognized di-
rectly in equity or in other comprehensive income. In the latter case, the change is recog-
nized directly in equity or in other comprehensive income, respectively.
Deferred tax assets, including the tax base of tax losses allowed for carry forward, are
recognized in the balance sheet at the expected realizable value, either through offsetting
against deferred tax liabilities or as a net tax asset for offsetting against future positive
taxable incomes to the extent that there is convincing evidence that sufficient taxable
profit will be available against which the unused tax losses can be utilized. An assessment
is made at each balance sheet date of whether it is probable that sufficient taxable in-
come will be generated in future to enable utilization of the deferred tax asset.
The group is subject to joint taxation. The current Danish income tax is allocated between
the jointly taxed companies in proportion to their taxable incomes.
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Parent Company Income Statement
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Statement of comprehensive income
Revenue
Revenue from the sale is recognized in the income statement when delivery has taken
place which is considered the time when risk has passed to the purchaser before the bal-
ance sheet date, and if the revenue can be determined reliably and is expected to be
received.
5th planet games have three types of revenue:
• Sales of games and in-app purchases
• License and royalty.
• Other revenue
Revenue related to the sale of games and in-app purchase is recognized at a point in time.
This is usually when the end customer has received the game or in-app purchase. For sales
of games and in-app purchases where delivery takes place via third parties (platform
distribution partners), 5th planet games are not involved in the delivery nor pricing and will
therefore measure the revenue from theses contract at net basis which is considered to be
the contractual revenue between 5th planet games and their counterpart.
Revenue related to license and royalties is recognized at a point in time. This is usually when
the end user has received their purchases. License and royalties’ revenue are recognized
on a net basis as it is based on number of user purchases and measured as 5th Planet
Games part of the revenue generated per user.
Other revenue consists of consulting services. The services are recognized over time as the
purchaser receives and use the services simultaneous. Revenue is recognised with the use
of an output method based on number of hours provided. Revenue is measured based on
hours provided to the purchaser.
Revenue is measured at the fair value of the fee received or receivable and is stated ex-
clusive of VAT and discounts.
Cost of sales
Cost of sales comprises commission paid to stores handling app sales, such as iTunes,
Google Play, etc.
Other income
Other income comprise items of a secondary nature to the main activities, including gains
and losses on the sale of intangible assets and equipment.
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Parent Company Income Statement
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Gross profit
Gross profit comprises revenue deducted with commissions to stores, such as iTunes,
Google Play, etc.
Research and development costs
Research and development costs comprise external research and development costs and
internal staff costs related to research and development activities that are not capitalized
in the balance sheet.
Marketing expenses
Marketing expenses comprise expenses relating to marketing expenses and royalty ex-
penses.
Other expenses
Other external expenses comprise expenses relating to administrative staff and other ad-
ministrative expenses, costs of premises, bad debts, operating leases, etc.
Special items
Special items comprise material non-recurring expenses. These items are presented sep-
arately because they are treated as one-off occurrences.
Net financials
Net financials comprise interest income and interest expenses as well as realized and un-
realized gains and losses on transactions in foreign currency.
Amortization of capital losses and borrowing costs relating to financial liabilities is recog-
nized on an ongoing basis as part of interest expenses.
Share-based payments
Share-based payments of the group are equity-settled warrants granted to employees,
for which an option pricing model is used to estimate the fair value at grant date. That fair
value is charged on a straight-line basis as an expense in the consolidated statement of
profit or loss over the period that the employee becomes unconditionally entitled to the
options (vesting period), with a corresponding increase in equity.
Equity is also increased by the proceeds received, as and when employees choose to ex-
ercise their options.
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Balance sheet
Fair value
Fair values are categorized into different levels in a fair value hierarchy based on the de-
gree to which the inputs to the measurement are observable and the significance of the
inputs to the fair value measurement in its entirety:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in
active markets for identical assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted pric-
es included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
• Level 3 fair value measurements are those derived from valuation techniques that in-
clude inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Acquired rights
On initial recognition, acquired rights is recognized and measured in the balance sheet at
cost less accumulated amortization and impairment losses. The amortization period is the
expected useful lives for the IP rights normally 2 years.
Development projects
Development costs comprise staff costs and fees for sub-suppliers directly attributable
to the development of new games. Development projects which are clearly defined and
whose technical feasibility and sufficiency of resources have been demonstrated and
which the company intends to complete, and market are recognized as development
projects in the balance sheet if the costs can be determined reliably and there is sufficient
certainty that future earnings will cover the development costs. Recognized development
projects are measured at cost less accumulated amortization and impairment losses.
Other development costs are recognized in the income statement under other external
expenses or staff costs when paid.
Once completed, development projects are amortized according to the straight-line
method over their estimated useful lives from the time when the asset is ready for use.
Development projects relating to a game are regarded as being ready for use at the
time when the game is launched and made available to the users at the latest. The first
launch may be either a soft launch whose main purpose is to gain experience about user
preferences and behavior in the game with a view to making improvements, or a hard
launch where the main purpose is to generate commercial income. The amortization pe-
riod is two years from launch. Amortization methods, useful lives and residual values are
reviewed every year.
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Parent Company Income Statement
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Other investments
Other investments comprise of non-con-trolling interests. Other investments are meas-
ured at fair value with value adjustments recognized in Profit or loss (FVTPL) as other
income. If there is no active market unquoted equity investments are measured at cost.
Financial instruments
Financial assets and financial liabilities are recognized when the group becomes a party
to the contractual provisions of the financial instrument. Financial assets are derecognized
when the contractual rights to the cash flows from the financial asset expire, or when the
financial asset and substantially all the risks and rewards are transferred. A financial liabil-
ity is derecognised when it is extinguished, discharged, cancelled, or expires.
All financial assets and liabilities are initially measured at fair value adjusted for transaction
costs (where applicable). Financial assets and liabilities, other than those designated and
effective as hedging instruments, are classified into the following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive income (FVOCI).
Derivative financial instruments are accounted for at fair value through profit and loss
(FVTPL) except for derivatives designated as hedging instruments in cash flow hedge re-
lationships. The group only has financial instruments classified as FVTPL. Derivative finan-
cial instruments in this category are measured at fair value with gains or losses recognised
in profit or loss. All income and expenses recognised in profit or loss are presented within
finance costs or finance. The fair values of financial assets and liabilities in this category
are determined by reference to active market transactions or using a valuation technique
where no active market exists.
Non-current financial assets
Other receivables recognized under non-current assets comprise deposits and are meas-
ured at the lower of accumulated cost and the recoverable amount.
Impairment of assets (impairment test)
The carrying amount of intangible assets and other investments with determinable useful
lives is evaluated for impairment every year. If indications of impairment are identified, the
recoverable amount of the asset is calculated to determine the amount of any impairment
loss.
The recoverable amount of development projects in progress are determined every year,
regardless of whether any indications of impairment exist.
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If an asset does not produce inflows independently of other assets, the recoverable amount
is determined for the smallest cash-generating unit of which the asset forms part.
The higher of fair value less selling costs and value in use is used as the recoverable amount
of the asset. The value in use is determined as the present value of the expected net cash
flows from use of the asset. If the recoverable amount of the asset is lower than the carry-
ing amount, the carrying amount is written down to the recoverable amount.
Where cash-generating units are concerned, the impairment loss is distributed in such a
way that goodwill is written down for impairment first, and subsequently any remaining
impairment loss is distributed on the other assets in the unit. However, individual assets
cannot be written down to a value lower than their fair value less expected selling costs.
Impairment losses are recognized in the income statement.
Receivables
Receivables comprise trade receivables and other receivables. Receivables are included in
the category loans and receivables, which are financial assets with fixed or determinable
payments that are not listed in an active market and are not derivative financial instru-
ments.
On initial recognition, receivables are measured at fair value and subsequently at amor-
tized cost, which usually corresponds to the nominal value, less write-downs for bad debts.
Any write-downs for bad debts are determined on the basis of an individual assessment
of the individual receivable.
Prepayments
Prepayments recognized under assets comprise costs incurred in respect of the subse-
quent financial year. Prepayments are measured at cost.
Dividend
Dividend is recognized as a liability at the time of adoption by the general meeting.
Treasury shares
Acquisition costs and consideration for treasury shares and dividend from such are recog-
nized directly in equity under retained earnings.
Liabilities
Non-current liabilities comprise other credit institutions. Payables to credit institutions are
measured at cost at the time of contracting such payables (raising of loans). Subsequently,
the liabilities are measured at amortized cost, meaning that the difference between the
proceeds from the loan and the repayable amount is recognized in the income statement
over the period of the loan as a financial expense according to the effective interest meth-
od.
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Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
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Other financial liabilities comprise bank debt, trade payables, other payables to public
authorities, and other liabilities. On initial recognition, other financial liabilities are meas-
ured at fair value less any transaction costs. Subsequently, the liabilities are measured at
amortized cost according to the effective interest method, so that the difference between
the proceeds and the nominal value is recognized in the income statement as a financial
expense over the period of the loan.
Provisions
Provisions are recognized when the following criteria are fulfilled:
• we have a legal or constructive obligation as a result of an earlier event
• the settlement of the obligation is expected to result in an outflow of resources
• the obligation can be measured reliably
For onerous contracts, a provision is made when the expected income to be derived from a
contract is lower than the unavoidable cost of meeting our obligations under the contract.
Mandatory subscription and investment shares and warrants
Generally, contracts on own shares that require physical settlement of a fixed number of
own shares for a fixed consideration are classified as equity and added to or deducted
from equity. This is referred to as the fixed-for-fixed criterion.
Rights to mandatory subscription of shares and investment warrants are financial instru-
ments issued to an investor to subscribe shares of the parent company. These financial
instruments are classified as derivative assets / liabilities when either the subscription or
settlement amount is not fixed amount of a currency similar to the functional currency of
the group or the number of shares is not fixed. When issued pro rata to all existing share-
holders of the parent company the financial instruments are exempted from this account-
ing treatment and are classified as equity in the consolidated financial statements.
These financial instruments are initially recognized and measured at fair value. Subse-
quently, these are measured at fair value with changes recognized through profit or loss.
Cash flow statement
The cash flow statement shows cash flows from operating, investing, and financing activ-
ities as well as cash at the beginning and end of the year.
Cash flows from operating activities are presented in accordance with the indirect method
and are determined as the operating profit or loss adjusted for non-cash operating items,
changes in working capital and paid financial income, financial expenses, and income tax.
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Cash flows from investing activities comprise payments in connection with the acquisition
and sale of companies and financial assets as well as the purchase, development, im-
provement, and sale of property, plant and equipment, and intangible assets.
Cash flows from financing activities comprise changes in the parent company’s share cap-
ital and associated costs as well as the raising and repayment of loans, the repayment
of interest-bearing debt, the purchase and sale of treasury shares and the payment of
dividends.
Cash flows in currencies other than the functional currency are recognized in the cash flow
statement using average exchange rates unless they deviate significantly from the actual
exchange rates at the transaction dates.
Cash and cash equivalents comprise cash less overdraft facilities that are an integrated
part of the cash management.
2. Significant accounting estimates and judgments
In connection with the preparation of the consolidated financial statements, management
makes a number of accounting estimates and judgments that affect the recognized val-
ues of assets, liabilities, income, expenses, and cash flows as well as their presentation.
Accounting estimates reflect management’s best estimates in terms of amounts where
the measurement is subject to uncertainty, typically because the estimate is based on
assumptions concerning future events. The accounting estimates are based on historical
experience and other assumptions deemed relevant, but the actual results may, naturally,
deviate from the estimates made. The estimates are regularly reassessed, and the effect
of changes is recognized in the consolidated financial statements.
Accounting judgments reflect decisions made by management as to how the account-
ing policies are applied in specific situations where the accounting treatment depends on
qualitative assessments. Examples could be when the risk passes or how a certain trans-
action or item is best presented to provide reliable and relevant information.
The following accounting estimates and judgments have had significant impact on the
consolidated financial statements for 2023:
Impairment test
The carrying amount of intangible assets and other investments with determinable useful
lives is evaluated for indications of impairment. If indications of impairment are identified,
the recoverable amount of the asset is calculated to determine the amount of any impair-
ment loss.
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The recoverable amount of development projects in progress are determined every year,
regardless of whether any indications of impairment exist. Cash-generating units compris-
ing development projects in progress are tested for impairment at least once a year and
more frequently in case of indications of impairment.
Valuation of warrants
The fair value of the initial warrants based on the Black & Scholes model. The fair value of
issued warrants vesting if certain market cap milestones are reached and the fair value
of issued warrants vesting if certain future revenue milestones are reached, are based on
Monte Carlo Simulations and the Black & Scholes model.
The fair value valuations based on the Black & Scholes model were based on the following
parameters:
• Underlying share price
• Exercise price
• Time to maturity
• Volatility
• Risk-free rate
The fair value valuations based on Monte Carlo simulations were based on the following
parameters:
• Starting-point share price
• Exercise price
• Terms regarding timing of exercise
• Volatility
• Risk-free interest rate
The starting-point share price is estimated based on a ten-days weighted average up to
the last trading day prior to the issue day. The exercise price for the warrants is stated in
the individual warrant agreements and in the investment agreement between the compa-
ny and Skybound. The initial warrants have a time to maturity of ten years. The milestone
warrants have varying terms regarding the time to maturity. The volatility of 5th Planet
Games has been estimated based on a peer group analysis of publicly listed comparable
companies in Europe. The peer group consists of companies with diversified portfolios of
free-to play/low-cost games. The volatility has been estimated based on two-year rolling
weekly volatilities of the peer group companies. As risk-free rate the yield-to-maturity on
ten years Norwegian Government bonds has been applied.
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The investment contract with Skybound of fixed future capital increase were conducted in
financial year 2023, cf. Tranches 4 of the agreement. At inception the fair value of the con-
tract is zero or minimal. At subsequent measurement the fair value is assessed applying
similar valuation model as for forward sale of shares. Consequently, the fair value change
in response to the change in the underlying parameters, NOK and the share price.
Classification of mandatory subscription and investment shares and warrants
On 7 September 2021, the parent company of the group entered into an investment
agreement with Skybound Games Studios (the investor). The investor receives right to
subscribe mandatorily and investment shares and warrants (collectively “rights”) which
can be exercised on different dates depending on the tranches. Each right can be exer-
cised for one share (i.e., 1:1 conversion ratio) and the number of shares that will be issued is
fixed for all these tranches. Upon settlement, the fixed exercise amount in Norwegian kro-
ner (NOK) is settled by the investor by paying its US dollar (USD) equivalent. The functional
and presentation currency of the parent company and the Group is Danish kroner (DKK).
Hence, although the exercise amount is fixed in NOK, the equivalent amount in DKK is varia-
ble depending on the prevailing exchange rate between DKK and USD at settlement date.
This variable amount does not qualify the definition of equity instrument and therefore,
these rights are classified as derivative financial assets / liabilities.
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DKK´000 2023 2022
Sales of games and in-app purchases 1 202 1 448License and royalty income 7 994 9 692Other revenue 568 160Total 9 764 11 300
3. Capital resources
DKK´000 31.12.2023 31.12.2022
Short term capital assetsTrade receivables 2 747 5 694Other receivables 4 418 105Cash 49 305 36 261Total short term capital assets 56 470 42 060
Short term capital liabilities:Trade liabilities 5 055 2 721Other payables 828 1 801Total short capital liabilities 5 883 4 522
Total net capital recourses 50 587 37 538Other capital recourses on a longer term but within one year:Estimated net proceeds from Tranche 4 from Skybound investment 0 20 950Total other capital recourses on a longer term but within one year 0 20 950Total net capital resources for the year 50 587 58 488
4. Revenue
According to the most recent budgets approved by management, the existing capital
resources are sufficient to continue the full operation of the group as planned for 2024.
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6. Staff costs
DKK´000 2023 2022 Wages and salaries 4 393 3 832Pensions 229 127Other social security costs 12 18Share-based payment 1 099 2 308Total 5 733 6 285
Total Staff costs are recognized as follows:
Administrative expenses 5 733 6 285Total 5 733 6 285
Average number of employees during the year
3 3
Number of employees end of year
3 3
Remuneration of board of directors and executive management:
DKK´000 2023 2022 Board of directors:Cash remuneration 1 235 1 269Share-based payment 448 744Total 1 683 2 013
Executive management
Gross Salary 602 962Share-based payment 0 0Total 602 962
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5. Other income
DKK´000 2023 2022 Other income 6 822 0Total 6 822 0
Other income is a partly sale of the intellectual asset Hugo.
47
ANNUAL REPORT 2023
5th Planet Games At-A-Glance
CEO Letter
Outlook & Business Development
Video Games
Sagafilm
Financial Review
Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
DKK´000 2023 2022 Share-based payments board of directors 447 744Share-based payments employee 22 164Share-based payments / reservation holiday payment adjustments 0 -17Total share-based payments expensed 469 891Total share-based payments 469 891
7. Share-based payment
5th Planet Games has established a warrant program for executive management (CEO),
board members, employees, and others.
Specification of share-based payments in 2023 and 2022:
Warrant plans.
The plans provide board members, executive management, employees and other with the option
to purchase ordinary shares of 5th Planet Games A/S at a fixed price. There are no cash settlement
alternatives. Warrants has been granted with monthly vesting over 24-48 months subject to contin-
ued employment. The exercise price of the share options is, in general, equal to the market price less
25% at the date of grant.
The table below summarizes the number of options that were outstanding, their weighted average
exercise price (WAEP) as of 31 December 2023, as well as the movements during the period.
The weighted average exercise priceNumber Number Number Number Number(VEAP)Board TOTAL CEOEmployee Other WAEP (NOK)MemberOutstanding, beginning of the period 70,360,923 13,101,821 19,307,314 5,724,005 32,209,784 0.91Granted 0 0 0 0 0 -Forfeited 5,702 0 0 5,702 0 1.64Expired 0 0 0 0 0 0Outstanding, end of the period 70,366,625 13,101,821 19,307,314 5,747,707 32,209,783 0.91Exercisable at end of the period 54,670.663 13,101,821 13,979,310 5,747,709 21,841,822 0.91min: 0.4 0.6 0.4 0.6 1.0The range of exercise prices for optionsoutstanding (NOK)max: 2.9 0.9 2.9 1.9 2.3The weighted average remaining contractual life for the share options 9.1 7.8 9.5 7.0 9.7outstanding (year)The weighted average share price at the date of exercise of exercised NAoptions
The estimate of the grant date fair value of each option issued is based on a Black & Scholes model,
taking into account the terms and conditions on which the share options were granted. However,
the performance conditions are only considered in determining the number of instruments that will
ultimately vest.
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Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
Inputs to the model included the following factors
Expected volatility was determined taking into consideration the volatility of the company’s share
price over a 12-month period. No warrants have been issued since 2021.
DKK´000 2023 2022 Other financial income 3 225 286 Change in derivative financials instruments, fair value 25 065 0 Foreign exchange gains, net 5 0 Total 28 295 286
8. Financial income
For change in derivative financials instruments reference is made to note 15.
Foreign exchange gains are due to increase in exchange rate of NOK and USD during the year.
November June September Oktober November January Warrant Plan201720182018201820182019Grant date 16/11 2017 1/6 2018 1/9 2018 1/10 2018 17/11 2018 1/1 2019Weighted average share price (NOK) 2.5 2.9 2.4 0.76 1.3 0.94Exercise price (NOK) 1.5-5.8 2.9 1.8 1.32 1.3 0.71Historical and expected volatility 69.6 80 80 80 80 80Option life (Years) 2 - 10 2 - 10 3 - 10 4 - 10 3 - 10 1 - 10Expected dividends 0 0 0 0 0 0Risk-free interest rate (%) -0.62 - 0.17 0.64 0.31 0.41 0.34 0.39
May June JanuaryNovember September September Warrant Plan201920192020202020212021Grant date 23/5 2019 3/6 2019 1/2 2020 1/2 2020 7/9 2021 7/9 2021Weighted average share price (NOK) 0.76 0.9 0.41 0.88 0.91 0.94Exercise price (NOK) 0.57 0.68 0.41 0.7 0.91 0.94Historical and expected volatility 131 131 87 137 65 65Option life (Years) 0 - 10 1 - 10 0 - 10 0 - 10 0 - 10 0 - 10Expected dividends 0 0 0 0 0 0Risk-free interest rate (%) 0.07 0.07 -0.4 -0.5 1.3 1.3
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ANNUAL REPORT 2023
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Financial Review
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Corporate Governance
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Shareholder Information
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
DKK´000 2023 2022 Interest income on liabilities measured at amortized cost 0 411Change in derivative financials instruments, fair value 0 32 793Foreign exchange loss, net 4 820 0Other financial costs 0 54Total 4 820 33 258
9. Financial expenses
For change in derivative financials instruments reference is made to note 15.
DKK´000 2023 2022 Tax on profit for the year:Net result for the year before tax 20 413 -33 709Tax rate 22% 22%Expected tax expenses 4 491 -7 416Adjustment for non-deductible expenses -5 514 7 214Prior-year adjustments 54 0Change in tax assets (not recognized) 969 202Total tax on loss for the year 0 0
10. Tax
Specification of tax on profit for the year:
Current tax 0 0 Tax credit scheme/joint taxation contributions 0 0 Prior-year adjustments 54 0 Total tax on profit for the year 54 0
Breakdown on unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely) 78 866 84 784Intangible assets 19 001 36 431Basis at year end 97 867 121 215Tax rate 22% 22%Calculated Potential deferred tax assets 21 531 26 667Write-down of deferred tax assets -21 531 -26 667Recognized deferred tax assets 0 0
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No deferred taxes are recognised in the balance sheet. The Group has substantial deferred tax as-
sets which are not recognised as the future utilisation is subject to uncertainty.
50
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11. Earnings per share
DKK´000 2023 2022 Net profit/loss for the period 23 285 -33 709 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share (in thousands) 226 901 167 315 Adjustments for calculation of diluted earnings per share: Warrants 87 920 0 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share (in thousands) 314 821 167 315 Earnings per share of DKK 0,05 each (in DKK) 0,103 -0,201 Diluted earnings per share of DKK 0,05 each (in DKK) 0,074 -0,201
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Further information concerning warrants is disclosed in note 7
51
ANNUAL REPORT 2023
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Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
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12. Intangible assetsCompleted Development development projects DKK´000projects in progress Acquired rights TotalFinancial Year 2023Costs as at 01.01.2023 17 372 12 953 6 895 37 220Additions 2 757 0 0 2 757Transfer 10 027 -10 027 0 0Disposals 0 -2 926 -4 742 -7 668Costs as at 31.12.2023 30 156 0 2 153 32 309Amortisation and impairment losses as at 01.01.2023 13 862 0 6 158 20 020Impairment losses 2 300 0 0 0Amortisation 4 598 0 737 7 635Disposals 0 0 -4 742 -4 742Amortisation and impairment losses as at 31.12.2023 20 760 0 2 153 22 913Carrying amount as at 31.12.2023 9 396 0 0 9 396Financial Year 2022 Costs as at 01.01.2022 13 047 0 6 895 19 942Additions 0 17 278 0 17 278Transfer 4 325 -4 325 0 0Disposals 0 0 0 0Costs as at 31.12.2022 17 372 12 953 6 895 37 220Amortisation and impairment losses as at 01.01.2022 13 047 0 5 081 18 128Impairment losses 0 0 0 0Amortisation 1 337 0 1 077 2 414Disposals 0 0 0 0Amortisation and impairment losses as at 31.12.2022 14 384 0 6 158 20 542Carrying amount as at 31.12.2022 2 988 12 953 737 16 678
In 2023 an impairment of DKK 2.3m has been recognised in Depreciation and amortisation in the
statement of comprehensive income. The impairment is related to the completed development pro-
jects, Wrestle Quest and Atom Eve which has been partly impaired. The impairment test was carried
out due to deviations between the expected cash flow and the realised cash flow from the games.
The recoverable amount of the games is DKK 7.9m. The value in use has been calculated based on a
projecting of the remaining expected cashflow over the expected lifetime.
The expected remaining cash flows consist of two main components, sales through third-party plat-
forms and sales of game pass deals through third-party platforms. The initial lifetime of games is 24
months, as this is where the majority of the sales occur. The expected remaining cash flow up to the
24 months have been adjusted based on the historical sales of the games and historical data from
similar games. The remaining lifetime of the games is between 12 to 20 months. The expected cash
flow has not been discounted as the effect is deemed immaterial.
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Parent Company Income Statement
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13. Other Investments
DKK´000 2023 2022 Costs as at 01.01.2023 0 0 Additions 21 329 0 Transfer 0 0 Cost as at 31.12.2023 21 329 0 Value adjustment at 01.01.2023 0 0 Value adjustment during the year, unrealised 0 0 Value adjustment at 31.12.2023 0 0 Carrying amount as at 31.12.2023 21 329 0 The investments relates to: Skybound Holding LLC 3 500 0 Sagafilm ehf. 17 829 0 Value adjustment at 31.12.2023 21 329 0
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Impairment test
Cash-generating units comprising development projects in progress are tested for impairment
at least once a year and more frequently in case of indications of impairment. The recoverable
amount is determined at a calculated value in use based on budgets and prognoses for the coming 2
financial years approved by the Board of Directors. Key assumptions for the determination of the
recoverable amount of the cash-generating units are based on historical data and experience with
comparable projects provided by Skybound Game Studios, Inc.
The group’s budgets and prognoses for the coming 2 years and thus the determination of the
recoverable amount of the cash-generating units are substantially impacted by the management’s
expectations for growth in connection with the launch of new games.
53
ANNUAL REPORT 2023
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Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
DKK´000 2023 2022 Trade and other receivables (gross), beginning of year 5 694 1 924 Provision for bad debt 0 0Change of provision in the year 0 0Realised losses in the year 0 0Provision for bad debt, end of year 0 0Trade and other receivables (net), end of year 11 249 5 694 Trade and other receivables not due (due 0-3 months after the balance sheet date) 2 877 5 694 Trade and other receivables not due (due 3-12 months after the balance sheet date) 4 288 0 Trade and other receivables not due (due 12 months after the balance sheet date) 4 084 0 Trade receivables (net), end of year 11 249 5 694 Trade receivables 587 5 694 Trade receivables from related party 2 160 0 Other receivables 130 0 Other receivables from related parties - current 4 288 0 Other receivables from related parties - non-current 4 084 0 Trade and other receivables 11 249 5 694
14. Trade and other receivables
Specificaton of trade receivables from related parties is disclosed in note 23.
With the implementation of IFRS 9 “Financial Instruments”, the company has applied the simplified
approach to measure the expected credit loss and a lifetime expected loss allowance for all trade
receivables. Historically the company hasn’t recognized losses on receivables. The Group´s custom-
ers are predominantly app-stores and companies like these and therefore the credit risk is very low.
There are no overdue receivables as of December 31, 2023. No losses are expected on trade receiv-
ables and therefore no loss allowance for trade receivables has been recognized as of December
31, 2023. No loss allowance was recognized as of January 1, 2022 or January 1, 2023. Management
continues to assess the credit risks in order to ensure the credit risk never exceeds the loss allowance
on trade receivables.
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15. Derivative financial instruments
On 7 September 2021, the parent company of the group entered into an investment agreement
with Skybound Games Studios (the investor). The investor receives right to subscribe mandatorily
and investment shares and warrants (collectively “rights”) which can be exercised on different dates
depending on the tranches. Each right can be exercised for one share (i.e., 1:1 conversion ratio) and
the number of shares that will be issued are fixed for all these tranches. Upon settlement, the fixed
exercise amount in Norwegian kroner (NOK) is settled by the investor by paying its US dollar (USD)
equivalent. The functional and presentation currency of the parent company and the Group is Danish
kroner (DKK). Hence, although the exercise amount is fixed in NOK, the equivalent amount in DKK is
variable depending on the prevailing exchange rate between DKK and USD at settlement date. This
variable amount does not qualify the definition of equity instrument and therefore, these rights were
classified as derivative financial assets / liabilities.
As the last Tranche was executed in September 2023 there is no longer a liability and the liability
amount of DKK 25.1m is recognized as financial income in 2023.
16. Equity
Share capital
As of 31.12.2023 the company’s share capital consists of 268,078,600 shares of DKK 0.05 each. The
shares are fully paid up. The shares are not divided into classes, and no shares enjoy special rights.
Treasury shares
The group held no treasury shares at the end of the 2023 or 2022 reporting periods.
Capital management
The group aims to ensure structural and financial flexibility as well as competitive strength. For that
purpose, the group regularly assesses the appropriate capital structure for the group. Reference is
made to the paragraph “Capital resources” in note 3 and significant accounting estimates and judg-
ments in note 2.
Dividend
It is proposed that no dividend be paid.
Share capital development during 2021-2023
Change in Share Total share capital Number of new Total number of Date Type of changeCapital DKK Per value DKKDKKsharesshares07.09.2021 Share capital increase 1 083 888 0,05 6 399 799 21 677 765 127 995 97531.12.2021 Share capital increase 0 0,05 6 399 799 0 127 995 97526.04.2022 Share capital increase 1 806 480 0,05 8 206 279 36 129 608 164 125 58330.08.2022 Share capital increase 2 167 777 0,05 10 374 056 43 355 530 207 481 11314.11.2022 Share capital increase 23 919 0,05 10 397 975 478 380 207 959 49307.09.2023 Share capital increase 476 883 0,05 10 874 857 9 537 655 217 497 14807.09.2023 Share capital increase 2 529 073 0,05 13 403 930 50 581 452 268 078 600
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Shareholder Information
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Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
DKK´000 2023 2022Non-current:Payable for use of IP rights 0 372Total non-current other payables 0 372
Current:
Trade payables 1 308 2 721Trade payables from related parties 3 747 0Payable for use of IP rights 371 558Holiday pay liability 66 195Discontinued operations 0 587Other 391 461Total current other payables 5 883 4 522
17. Trade and other Payables
Specificaton of trade payables from related parties is disclosed in note 23.
18. Contingent liabilities
Based on management’s assessment the group is not involved in any lawsuits, arbitration cases or
other matters which could have a material impact on the group’s financial position or results of op-
erations.
As part of the investment agreement, 5th Planet Games has provided certain representations and
warranties to Skybound Games. Should Skybound Games suffer a loss due to certain specific war-
ranties not being true, accurate and not misleading, Skybound Games will, at its own discretion, have
the option of being indemnified from its loss by exercising up to 2,200,000 warrants (depending on
the loss), each warrant entitling Skybound Games to subscribe for 1 share of nominal DKK 0.05 at
par value (the “Indemnification Warrants”). The potential loss from this warranty is estimated to be
unsignificant.
19. Security provided
None.
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20. Financial risks and financial instruments
Risk management policy
The group’s financial risks are managed by the Executive Management. The group has not prepared
particular policies for the identification and handling of risks. Managing the group’s risks forms part
of the Executive Management’s day-to-day monitoring of the group.
Interest rate risk
The group has no interest-bearing debt. The group is not subject to material credit risks
Credit risk
The maximum credit risk relating to receivables corresponds to the carrying amount. Information
about trade receivables due appears from note 14. The group is not subject to material credit risks.
Currency risk
The group’s exposure to the risk of changes in foreign exchange rates relates primarily to the group’s
monetary assets and liabilities denominated in foreign currencies.
The following tables demonstrate the sensitivity to a reasonably possible change in NOK and USD
exchange rates, with all other variables held constant. The group’s exposure to foreign currency
changes for all other currencies is not material.
Effect on Effect on Amounts in DKK '000loss before taxpre-tax equityYear end 31/12 2023Change in NOK rate + 5% +0 +0Change in NOK rate - 5% -0 -0Change in USD rate +5% +2,571 +2,571Change in USD rate -5% -2,571 -2,571
Effect on Effect on Amounts in DKK '000loss before taxpre-tax equityYear end 31/12 2022Change in NOK rate + 5% +21 +21Change in NOK rate - 5% -21 -21Change in USD rate +5% +1,780 +1,780Change in USD rate -5% -1,780 -1,780
Foreign currency risks are managed as part of the Executive Management’s day-to-day monitoring
of the group.
Currently, the management is not hedging any currency risks.
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Liquidity risk
The group’s liquidity risk covers the risk that the group is not able to meet its liabilities as they fall due.
The maturities of financial liabilities appear from the tables below. All amounts are contractual cash
flows, i.e. inclusive of interest. Reference is made to the paragraph “Capital resources” in note 3 and
significant accounting estimates and judgments in note 2.
DKK´000 Within 1 year 1-2 year(s) 2-5 years Over 5 years TotalAs at 31/12 2022Trade payables 5 055 0 0 0 5 055Other payables 828 0 0 0 828Total as at 31/12 2022 5 883 0 0 0 5 883As at 31/12 2022Trade payables 2 721 0 0 0 2 721Other payables 1 801 372 0 0 2 173Total as at 31/12 2022 4 522 372 0 0 4 894
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21. Financial assets and liabilities
31 December 2023
Amortised DKK´000costs FVTPL TotalFinancial assets - short-term:Trade receivables 2 747 0 2 747Other receivables 4 418 0 4 418Cash 49 305 0 49 305Total financial assets 56 470 0 56 470Financial Liabilities:Trade payables 5 055 0 5 055Other payables 828 0 828Total financial liabilities 5 883 0 5 883
31 December 2022
Amortised DKK´000costs FVTPL TotalFinancial assets - short-term:Trade receivables 5 694 0 5 694Other receivables 212 0 212cash 36 261 0 36 261Total financial assets 42 167 0 42 167
Financial Liabilities:
Derivative financial instruments 0 25 065 25 065Non-current other payables 372 0 372Trade payables 2 721 0 2 721Other payables 1 801 0 1 801Total financial liabilities 4 894 25 065 29 959
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31 December 2023
DKK´000 Level 1 Level 2 Level 3 TotalFinancial liabilitiesDerivative financial instruments 0 0 0 0Net fair value 0 0 0 0
31 December 2022
DKK´000 Level 1 Level 2 Level 3 TotalFinancial liabilitiesDerivative financial instruments 25 065 0 0 25 065Net fair value 25 065 0 0 25 065
22. Fair value measurement of financial instruments
Financial assets and financial liabilities measured at fair value in the consolidated statement of
financial position are grouped into three levels of a fair value hierarchy. The three levels are defined
based on the observability of significant inputs to the measurement, as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly
• Level 3: unobservable inputs for the asset or liability.
The following table shows the levels within the hierarchy of financial assets and liabilities measured
at fair value on a recurring basis:
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Risk Management in Practice
Corporate Governance
Board of Directors and Executive Management
Shareholder Information
Auditors’ Report
Financial Statements
Notes to the Financial Statements
Parent Company Accounting Policies
Parent Company Income Statement
Parent Company Balance Sheet
Parent Company Statement of Change in Equity
Parent Company Notes
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23. Consolidated companies and related parties
Ownership
The following shareholders are registered in 5th Planet Games’ register as being the owners of 5% or
more of the voting rights or 5% or more of the share capital (1 share equals 1 vote) as of 31 December
2023:
Skybound Game Studios, Inc, 9570 W Pico Blvd. Los Angeles CA 90035, USA
Remuneration for management is disclosed in note 6. The group has not entered into contracts with
change of control clauses.
Transactions with other related parties
The Group’s related parties includes members of the board and Skybound. Since September 2021,
board Member Henrik Nielsen has worked as Strategic Advisor. In 2023, Henrik Nielsen received a
payment of DKK 192t (2022: DKK 192t) and share based payment of DKK 630t (2022: DKK 1651t).
Transactions with Skybound consists of co-production agreement, all transactions are on arm-
length terms.
DKK´000 Type Place of incorporation Ownership 2023 Skybound Game Studios, Inc. Immediate parent entity Delaware 56,6% Skybound Holdings LLC Ultimate parent entity and controlling party Delaware 56.6% *
*Skybound Holdings LLC holds 100% of the issued ordinary shares of Skybound Games Studios, Inc.
DKK´000 2023 2022
Sales and purchases of services and investments
Royalty from co-productions with related parties 6 193 0Sale of IP 6 810 0Investment in development projects 2 757 0Purchase of management services from related party 758 0
Trade and other receivables
Trade receivables, Skybound Game Studios, Inc (Parent entity) 2 160 0Current receivables, Skybound Game Studios, Inc. (Parent entity) 2 926 0Current receivables, Skybound LLC (Parent entity) 1 362 0Non current receivables, Skybound LLC (Parent entity) 4 084 0
Trade and other payables
Trade payables, Skybound Game Studios, Inc (Parent entity) 2 306 0Trade payables, Skybound LLC (Parent entity) 67 0Trade payables, Bumbio LLC (Parent entity) 684 0Trade payables, Skybound Games Europe BV (Related entity) 690 0
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25. Events occurring after the balance sheet date
No important events have occurred after the end of the financial year.
26. Adoption of the annual report for publication
At the board meeting on 30. April 2024, the Board of Directors approved this annual report for publi-
cation. The shareholders of 5th Planet Games A/S have the power to amend the annual report. The
annual report will be presented to the shareholders for approval at the annual general meeting on
30 April 2023.
24. Fee to parent company auditors appointed at the general
meeting
DKK´000 2023 2022Grant ThorntonStatutory audit 345 225 Other assurance engagements 183 114 Tax Consultancy 0 0 Other services 291 0 Total fees for the year 819 339
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Municipality of DKK´000 Owner-shipregistred office Equity 31.12. 2023 Result 20235th Planet Games Development ApS 100,0% København K 22 044 -871Ivanoff Interactive A/S * 100,0% København K 0 -185th Planet Games GmbH ** 100,0% Berlin -340 -60
* Liquidated
** Under liquidation
Equity investments in other companies
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Parent Company Accounting Policies
The financial statements of the parent company 5th Planet Games A/S have been prepared in ac-
cordance with the provisions of the Danish Financial Statements Act on listed companies category D.
The financial statements are presented in Danish kroner (DKK).
The parent company’s accounting policies have been applied consistently with last year.
Differences in relation to the group’s accounting policies
The parent company applies the same accounting policies for recognition and measurement as
the group with the exceptions and additions set out below. For a complete description of the parent
company’s accounting policies, see note 1 to the consolidated financial statements. The difference
between the parent company equity and the groups equity is due to share-based payments that is
not expensed in parent company.
Income statement and balance sheet
Equity investments in subsidiaries
Equity investments in subsidiaries are recognized in the balance sheet at the proportionate share
of the companies owned adjusted for any residual value of positive or negative goodwill as well as
unrealized intercompany profits and losses.
Profits or losses in subsidiaries are recognized in the income statement in proportion to the shares
equivalent to the equity investments. Newly acquired or newly founded enterprises are recognized
in the financial statements as from the time of acquisition. Companies divested or discontinued are
recognized until the date of divestment.
Newly-acquired companies are recognized in accordance with the acquisition method, according to
which the identifiable assets and liabilities of newly-acquired companies are recognized at fair value
at the date of ¬acquisition.
The goodwill (positive difference) determined at the date of acquisition is recognized under equity
investments in subsidiaries and amortized according to the straight-line method based on an indi-
vidual assessment of the useful life of the asset, the maximum period, however, being 20 years.
Cash flow statement
No cash flow statement is prepared for the parent company, as the parent company is included
in the consolidated cash flow statement in accordance with the Danish Financial Statements Act,
Section 86(4).
Parent Company
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Parent Company Income Statement
DKK´000 Note 2023 2022
Other income 1 6 822 0
Other external expenses -2 864 -1 369
Staff costs 2 -2 285 -2 232
Operating profit (EBIT) 1 673 -3 601
Share of gain from equity investments in group companies 3 -950 5 281
Other financial income 4 28 062 540
Other financial expenses 4 -5 500 -33 621
Total net financials 21 612 -27 800
Profit before tax 23 285 -31 401
Tax on profit 6 0 0
Nett Profit 23 285 -31 401
Proposed distribution of net profit:
Retained earnings 23 285 -31 401
Total 23 285 -31 401
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ASSETS
DKK´000 Note 2023 2022
Equity investments in group companies 3 22 045 23 758
Other investments 7 21 329 0
Other receivables 8 4 084 0
Total non-current assets 47 458 23 758
Current Assets:
Other receivables 8 1 443 30
Total receivables 1 443 30
Cash 40 908 32 901
Total current assets 42 351 32 931
Total assets 89 809 56 689
EQUITY AND LIABILITIES
DKK´000 Note 2023 2022
Equity:
Share Capital 13 404 10 398
Reserves 0 0
Retained earnings 72 017 18 488
Total equity 85 421 28 886
Current Assets:
Other provisions 3 340 279
Total provisions 340 279
Current liabilities:
Payable to group companies 1 431 1 014
Trade payables 2 409 1 040
Derivative financials instruments 0 25 065
Other payables 208 405
Total current liabilities 4 048 27 524
Total Liabilities 4 048 27 524
Total equity and liabilities 89 809 56 689
Contingent liabilities 8
Security provided 9
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Parent Company Statement of change in equity
DKK´000
Share
capital Share premium Retained Earnings
Proposed
dividend
5th Planet Games
shareholder’s share
of equity
Equity as at 01.01.2022 10 398 0 18 488 0 28 886
Capital increase 3 006 29 310 0 0 32 316
Costs related to capital increase 0 -165 0 0 -165
Transfer of reserves 0 -29 145 29 145 0 0
Share-based payments 0 0 1 099 0 1 099
Proposed distribution of net profit 0 0 24 384 0 24 384
Equity as at 31.12.2022 13 404 0 72 017 0 85 421
Equity as at 01.01.2022 6 400 0 17 034 0 23 434
Capital increase 3 998 33 328 0 0 37 326
Costs related to capital increase 0 -473 0 0 -473
Transfer of reserves 0 -32 855 32 855 0 0
Proposed distribution of net loss 0 0 -31 401 0 -31 401
Equity as at 31.12.2022 10 398 0 18 488 0 28 886
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History of share capital development since incorporation
Date Type of change
Change in Share
Capital DKK
Per value
DKK
Total share capital
DKK
Number of new
shares
Total number
of shares
13.04.2011 Formation 80 000 1,00 80 000 80 000 80 000
09.09.2014 Share capital increase 28 917 1,00 108 917 28 917 108 917
30.12.3025 Conversion to A/S 9 891 083 1,00 10 000 000 9 891 083 10 000 000
06.02.2016 Share split 0 0,50 10 000 000 10 000 000 20 000 000
26.06.2015 Share capital increase 2 500 000 0,50 12 500 000 5 000 000 25 000 000
27.01.2016 Share capital increase 137 074 0,50 12 637 074 274 148 25 274 148
03.08.2016 Share capital increase 10 000 000 0,50 22 637 074 20 000 000 45 274 148
12.04.2017 Share capital increase 2 239 948 0,50 24 877 022 4 479 895 49 754 043
12.06.2017 Share capital increase 31 948 835 0,50 56 825 857 63 897 670 113 651 713
31.10.2017 Share split -22 460 686 0,50 34 365 171 -44 921 371 68 730 342
29.11.2017 Share split -23 000 000 0,50 11 365 171 -46 000 000 22 730 342
01.12-2017 Share capital increase 9 261 680 0,50 20 626 851 18 523 361 41 253 703
01.01.2018 Share capital increase 650 000 0,50 21 276 851 1 300 000 42 553 703
24.01.2018 Share capital increase 485 434 0,50 21 762 285 970 868 43 524 571
23.05.2019 Share capital increase 1 963 865 0,50 23 726 150 3 927 729 47 452 300
24.05.2019 Share capital increase 1 802 451 0,50 25 528 601 3 604 902 51 057 202
27.11.2019 Share size reduction -22 975 741 0,05 2 552 860 0 51 057 202
12.12.2019 Share capital increase 133 940 0,05 2 686 800 2 678 808 53 736 010
25.05.2020 Share capital increase 379 110 0,05 3 065 910 7 582 200 61 318 210
03.08.2020 Share capital increase 2 250 000 0,05 5 315 910 45 000 000 106 318 210
07.09.2021 Share capital increase 1 083 888 0,05 6 399 799 21 677 765 127 995 975
26.04.2022 Share capital increase 1 806 480 0,05 8 206 279 36 129 608 164 125 583
30.08.2022 Share capital increase 2 167 777 0,05 10 374 056 43 355 530 207 481 113
14.11.2022 Share capital increase 23 919 0,05 10 397 975 478 380 207 959 493
07.09.2023 Share capital increase 476 883 0,05 10 874 857 9 537 655 217 497 148
07.09.2023 Share capital increase 2 529 073 0,05 13 403 930 50 581 452 268 078 600
Date Type of change
Change in Share
Capital DKK Per value DKK
Total share capital
DKK
Number of new
shares
Total number of
shares
07.09.2021 Share capital increase 1 083 888 0,05 6 399 799 21 677 765 127 995 975
31.12.2021 Share capital increase 0 0,05 6 399 799 0 127 995 975
26.04.2022 Share capital increase 1 806 480 0,05 8 206 279 36 129 608 164 125 583
30.08.2022 Share capital increase 2 167 777 0,05 10 374 056 43 355 530 207 481 113
14.11.2022 Share capital increase 23 919 0,05 10 397 975 478 380 207 959 493
07.09.2023 Share capital increase 476 883 0,05 10 874 857 9 537 655 217 497 148
07.09.2023 Share capital increase 2 529 073 0,05 13 403 930 50 581 452 268 078 600
Share capital development during 2021-2023
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2. Staff Costs
DKK´000 2023 2022
Wages and salaries 1 837 2 232
Pensions 0 0
Other social security costs 0 0
Share-based payment 448 0
Total 2 285 2 232
Average number of employees during the year 1 1
Remuneration of board of directors and executive management:
Board of directors:
Cash remuneration 1 235 1 270
Share-based payment 448 744
Total 1 683 2 014
Executive management:
Gross Salary 602 962
Pension Contribution 0 0
Total 602 962
Parent Company Notes
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DKK´000 2023 2022
Other income 6 822 0
Total 6 822 0
1. Other income
Other income is a partly sale of the intellectual asset Hugo.
The board of directors’ invoices the 5th Planet Games on an ongoing basis in accordance with the approved
remuneration. The executive management receive remuneration through 5th planet games Development ApS.
5th Planet Games reimburse its subsidiary for the remuneration.
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The group companies are:
DKK´000 Owner-ship
Municipality of
registred office
Equity
31.12. 2023
Result
2023
5th Planet Games Development ApS 100% København K 22 044 -871
Ivanoff Interactive A/S - liquidated 100% København K 0 -18
*5th Planet Games GmbH 100% Berlin -340 -60
*Under Liquidation
DKK´000 2023 2022
Financial income includes interest from group companies 0 271
Financial expenses includes interest from group companies 53 0
Total 53 271
4. Financial Items
5. Derivative financial instruments
On 7 September 2021, the parent company of the group entered into an investment agreement
with Skybound Games Studios (the investor). The investor receives right to subscribe mandatorily
and investment shares and warrants (collectively “rights”) which can be exercised on different dates
depending on the tranches. Each right can be exercised for one share (i.e., 1:1 conversion ratio) and
the number of shares that will be issued are fixed for all these tranches. Upon settlement, the fixed
exercise amount in Norwegian kroner (NOK) is settled by the investor by paying its US dollar (USD)
equivalent. The functional and presentation currency of the parent company and the Group is Danish
kroner (DKK). Hence, although the exercise amount is fixed in NOK, the equivalent amount in DKK is
variable depending on the prevailing exchange rate between DKK and USD at settlement date. This
variable amount does not qualify the definition of equity instrument and therefore, these rights were
classified as derivative financial assets / liabilities.
As the last Tranche was executed in September 2023 there is no longer a liability and the liability
amount of DKK 25.1m is recognized as financial income in 2023
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DKK´000 2023 2022
Costs at 01/01 2023 122 053 88 153
Additions during the year 0 33 900
Subsidy to Group company 0 0
Disposals during the year -824 0
Costs at 31/12 2023 121 229 122 053
Value adjustments as at 01/01 2023 -98 574 -103 900
Share of profit before amortisation of goodwill during the year -932 5 281
Foreign exchange loss investments group companies 0 45
Disposals during the year -18 0
Value adjusted as at 31/12 2023 -99 524 -98 574
Carrying amount as at 31/12 2023 21 705 23 479
Group companies with negative equity 340 279
Group companies with positive equity 22 045 23 758
3. Investments in group companies
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DKK´000 2023 2022
Current tax for the year -922 0
Prior year adjustments 0 0
Tax credit scheme/joint taxation contributions 0 0
Change in deferred tax 922 0
Total tax for the year 0 0
Tax comprises:
Tax on profit for the year 0 0
Tax on changes in equity 0 0
Total 0 0
6. Tax
DKK´000 2023 2022
Costs as at 01.01.2023 0 0
Additions 21 329 0
Transfer 0 0
Cost as at 31.12.2023 21 329 0
Value adjustment at 01.01.2023 0 0
Value adjustment during the year, unrealised 0 0
Value adjustment at 31.12.2023 0 0
Carrying amount as at 31.12.2023 21 329 0
The investments relates to:
Skybound LLC 3 500 0
Sagafilm ehf. 17 829 0
Value adjustment at 31.12.2023 21 329 0
7. Other Investments
No deferred taxes are recognised in the balance sheet. The company has deferred tax assets which
are not recognised as the future utilisation is subject to uncertainty.
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9. Contingent liabilities
Based on management’s assessment the company is not involved in any lawsuits, arbitration cases
or other matters which could have a material impact on the company’s financial position or results
of operations.
As part of the investment agreement, 5th Planet Games has provided certain representations and
warranties to Skybound Games. Should Skybound Games suffer a loss due to certain specific war-
ranties not being true, accurate and not misleading, Skybound Games will, at its own discretion, have
the option of being indemnified from its loss by exercising up to 2,200,000 warrants (depending on
the loss), each warrant entitling Skybound Games to subscribe for 1 share of nominal DKK 0.05 at
par value (the “Indemnification Warrants”). The potential loss from this warranty is estimated to be
unsignificant.
10. Security provided
None.
11. Events occurring after the balance sheet date
No events occurred after balance sheet date.
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DKK´000 2023 2022
Trade and other receivables (gross), beginning of year
30 307
Provision for bad debt 0 0
Change of provision in the year 0 0
Realised losses in the year
0 0
Provision for bad debt, end of year
0 0
Trade and other receivables (net), end of year
5 527 30
Trade and other receivables not due (due 0-3 months after the balance sheet date) 81 30
Trade and other receivables not due (due 12 months after the balance sheet date)
5 446 0
Trade receivables (net), end of year
5 527 30
Other receivables 81 30
Current receivables, Skybound LLC (Parent entity) 1 362 0
Non current receivables, Skybound LLC (Parent entity) 4 084 0
Trade and other receivables
5 527 30
8. Other receivables
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Contact details
Mark Stanger, CEO
mstanger@5thplanetgames.com
Investor Relations
ir@5thplanetgames.com
5th Planet Games A/S
Gothersgade 11
1123 Copenhagen
Denmark
CVR No.: 3359 7142
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