5th Planet Games A/S
ANNUAL
REPORT
2024
5th Planet Games A/S - Gothersgade 11, 1123 Copenhagen, Denmark - CVR No.: 3359 7142
Approved on general meeting 29th April 2025
Chairman of the meeting
2
ANNUAL REPORT 2024
Index
3
4
5
6
9
10-12
13
14
15-16
17
18-19
20-22
23
24-28
29-32
29
30
31
32
33-59
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
• Statement of Comprehensive Income
• Balance Sheet
• Statement of Changes in Equity
• Cash Flow Statement
Notes to the Financial Statements
3
ANNUAL REPORT 2024
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
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4
ANNUAL REPORT 2024
During our recent investor call, I focused on 3 areas as being key to the ongoing growth
and development of 5th Planet Games as we navigate a challenging global market.
1. That we continue to operate profitably
2. That we continue to take steps to sensibly diversify our business
3. That we continue to align ourselves with the biggest and most proven IP that we can find
Now, as I look back on the year ending in December 2024, I can assess our performance in
relation to these priorities.
IN terms of profitability, once again, we can report a profitable year with Revenue in 2024
increased to DKK 12.5m from 10.5m in 2023 whilst EBITDA shows a gain of DKK 2.5m in 2024
compared to 2023 where EBITDA without other income was DKK 0.7m.
In relation to diversifying, whilst we continued to actively manage our (mobile) back catalogue
of games, we took further steps into console and PC, and through our partnership agreement
with Nordisk Interactive A/S launched our first game for Physical distribution across the Nordic
region.
With regard to aligning ourselves with the biggest IP, I was delighted to announce last year our
investments in both the next game in the Invincible Universe which is undoubtedly one of the
hottest IP’s in global entertainment right now and the co-financing of the new game in The
Walking Dead universe which was last year recognized by Owl & Co as the “most successful
non-kids entertainment franchise wholly created this century”. We will be talking much more
about both projects in 2025!
We really need to keep in mind as we assess this progress just how challenging the global video
games market has been in recent times; many analysts quoted a figure of net 2% year on year
growth in 2024 with only the mobile games sector showing growth in real terms.
For a small team, 5tH Planet Games achieved a lot in 2024, and all of this supports the goals
listed at the start of this letter, in chronological order;
We continue to operate the business profitably despite the challenges we face in the short to
medium term, whilst taking every opportunity to secure dynamic growth in the medium to
longer term.
Thanks for the continued support.
Mark
CEO Letter: 2024 Annual Report
Mark Stanger - CEO
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VAKA, a co-production between 5Th Planet Games, Skybound Entertainment,
Amazon MGM Studios, Unlimited Stories, and Sagafilm ehf
Signing of our Physical distribution partnership with Nordisk Interactive A/S
Confirmed our founder member status of Games Denmark
Announced the release of Closer The Distance on all platforms, PC and console.
Confirmed our co-investment in the new game from the Invincible universe.
Signed the financing agreement for the new game from The Walking Dead
universe. Stray for Nintendo Switch released for Physical distribution with Nordisk.
Mar 2024
April 2024
June 2024
July 2024
Sept 2024
Nov 2024
5
ANNUAL REPORT 2024
Outlook for 2025
Over the course of last year, the Company made several large investments in the new Invincible
and The Walking Dead games; these games are based on enduring and commercially proven
IP and give huge commercial potential to 5
th
Planet. Invincible is now the #1 revenue generating
tv show globally on Amazon Prime and The Walking Dead continues to be a top 10 tv show on
Netflix.
We continue to actively maintain our entire back catalogue and are looking at new distribution
opportunities for that catalogue. We will also expand our physical distribution capability during
the course of the year and will make a further announcement on that in due course.
A combination of all the above results in guidance for the year of achieving a c.70% increase
in revenue, and EBITDA for the year within the range of 0.5m – 2m DKK. We fully expect to see
even more significant growth in revenue and profit in 2026 driven by the new games and will
provide further guidance on that in due course.
Business Development
Our partnership with Skybound is still strategically significant for 5th Planet Games; we meet
with Skybound leadership on a bi-weekly basis and continue to look at a wide range of publishing
and financing opportunities. Skybound have also given us access to world-class entertainment
IP such as Invincible and The Walking Dead and we continue to assess a wide range of new
opportunities both with Skybound and Independently. Our 2023 investment in Sagafilm ehf was
a pivotal moment for 5th Planet Games and below you can read a brief summary of things to
look forward to from our Icelandic partner.
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6
ANNUAL REPORT 2024
2024 Game Releases
Lost, alone and separated from family, a stray cat must untangle an ancient mystery to
escape a long-forgotten city.
Stray is a third-person cat adventure game set amidst the detailed, neon-lit alleys
of a decaying cybercity and the murky environments of its seedy underbelly. Roam
surroundings high and low, defend against unforeseen threats and solve the mysteries of
this unwelcoming place inhabited by curious droids and dangerous creatures.
See the world through the eyes of a cat and interact with the environment in playful
ways. Be stealthy, nimble, silly, and sometimes as annoying as possible with the strange
inhabitants of this mysterious world.
Along the way, the cat befriends a small flying drone, known only as B-12. With the help of
this newfound companion, the duo must find a way out..
STRAY
Developer:
BlueTwelve Studio
Release Date:
November 19, 2024
Platforms:
NSW
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Darkest Dungeon II is a roguelike road trip of the damned. Form a party, equip your
stagecoach, and set off across the decaying landscape on a last gasp quest to avert the
apocalypse. The greatest dangers you face, however, may come from within...
• Deeper Battles, Darker Enemies.
• Amazing New Locations.
• The Story Continues, Be Ready for Anything!
DARKEST DUNGEON 2
Developer:
Red Hook Studios
Release Date:
October 22, 2024
Platforms:
NSW, PS5, XB X/S
7
ANNUAL REPORT 2024
Hunt or be hunted in this asymmetrical multiplayer shooter that pits man against Predator.
As part of a Fireteam, complete missions before the Predator finds you. Or be the Predator
and hunt your prey.
• Be the Predator – hunt down the opposing Fireteam, using deadly alien weaponry to
stalk your prey.
• Get to the chopper – complete challenging missions as part of a four-person
Fireteam to escape.
• Wield human and alien weaponry – fight with a state-of-the-art arsenal as the
Fireteam, and deadly tech like the shoulder-mounted Plasma Caster, Combistick and
more as the Predator.
PREDATOR: HUNTING GROUNDS
Developer:
Illfonic
Release Date:
October 1, 2024
Platforms:
PS5, XB X/S
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Plan your own alien invasion and harvest humans as the iconic Killer Klowns, or gather a
team of survivors to fight the extraterrestrial threat, in a game based on the ‘80s cult classic
movie. Welcome to a new, craazzy take on the asymmetrical multiplayer horror experience!
Take on the role of the iconic Killer Klowns – cooperate in a team of three players, utilize
unworldly abilities, hunt humans with zany weapons, and plan your alien invasion to harvest
the population of Crescent Cove successfully.
Fight back as a team of seven brave citizens of Crescent Cove – explore the city for valuable
loot and weapons, avoid getting captured by Klowns, and try to survive the alien invasion.
Crescent Cove is a sprawling arena for these unique multiplier fights between Klowns and
humans – boasting various locations, and various tactical opportunities for both teams.
Killer Klowns from Outer Space: The Game provides a unique approach to hide-and-seek
gameplay, customization, PvPvE, and dynamic objectives leading to multiple match results.
This game evolves the online horror formula in new ways.
KILLER KLOWNS FROM OUTER SPACE
Developer:
IllFonic, Teravision Games
Release Date:
June 4, 2024
Platforms:
PC, PS5, XB X/S
8
ANNUAL REPORT 2024
Funko Fusion is a third-person action game that’s all about celebrating fandom. Play with
some of your favorite characters from across TV, movies, games, and comics, and explore
handcrafted worlds inspired by Jurassic World, Back to the Future, JAWS, The Thing, Chucky,
Battlestar Galactica, Hot Fuzz, The Umbrella Academy, Five Nights at Freddy’s, Masters of
the Universe, Invincible, and many more!
• Select, unlock, and play with 60+ unique playable characters from more than 20 fan-favorite
franchises, all lovingly recreated in Funko Pop! form.
• Each character has their own weapons and special moves, and some characters have unique
skills for solving puzzles and finding secrets.
• Explore your favorite franchises in video game form, relive memorable moments, and play
through a unique story that ties them all together!
• Shoot, blast, and whack enemies in ranged and melee combat. Craft gadgets and items to give
yourself an advantage or to unlock hidden areas.
FUNKO FUSION
Developer:
10:10 Games
Release Date:
September 13, 2024
Platforms:
PC, XB X/S, PS4, PS5, NSW
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Closer the Distance is a deeply moving, slice-of-life sim that tells a story about the
connections between family and friends in the face of tragedy. Following a fatal car
accident, players take on the role of Angela, a young girl from the town of Yesterby, who
finds herself watching over her loved ones as they navigate the grieving process. Using her
ethereal ability to influence the townspeople she once knew, Angela’s choices will ultimately
determine the fate of Yesterby.
Closer the Distance combines several key gameplay features for an immersive playthrough.
The game’s compelling narrative is emotionally charged and highlights themes of empathy,
community, friendship, grief, and closure. Choices-matter gameplay allows players to make
decisions that affect the outcome of the story, making each playthrough unique. Closer the
Distance offers something for everyone, and its emotional depth and engaging gameplay
will leave players wanting more.
CLOSER THE DISTANCE
Developer:
Osmotic Studios
Release Date:
August 2, 2024
Platforms:
PC, PS4, PS5, XB X/S
9
ANNUAL REPORT 2024
2024 was an incredibly busy year at Sagafilm and that momentum carries forward into
2025 with several projects being finalized in post-production, these include VAKA (Amazon
Prime, co-production) and 112 Reykjavík (Síminn Iceland & ARTE, service project), Above
Iceland (aerial documentary for ZDF/ARTE and TerraX), Weekend Dads (TV comedy for
Síminn), and Videoson (docuseries for RÚV).
Principal photography on Hildur, based on the best-selling novel, begins in February 2025.
This co-production with Finland’s Take Two Studios has IPR.VC as the equity partner, with
Cineflix handling distribution.
Finally, production on two new projects is due to start in 2025; Remote, a feature film co-
produced between Iceland and Canada, with K5 managing sales, and Signals, an Icelandic
eight-part TV thriller.
A business update from the Sagafilm leadership will form the basis of an upcoming 5th
Planet investor call, early in 2025.
Sagafilm 2024 Achievements
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112 Reykjavík
VAKA
10
ANNUAL REPORT 2024
For 2024 we can again announce a profit, and we have now been able to report routine
and increasing profits for every financial quarter since Q3 2022; this is made possible by
expanding our product portfolio from mobile games into console games and in 2024 into
physical distribution.
Diversity ensures ongoing growth in a challenging market, and we continue to review all
new opportunities, both short and long term.
In 2023 we invested in Sagafilm ehf and in 2024 we made two strategic and very significant
investments in co-financing the new games in the Invincible and The Walking Dead
universes with a total investment of 41m DKK. Both investments were possible because of
the investment agreement entered into with the Skybound Group in 2021 and both support
our strategy of investing in the biggest and most commercially successful IP in the world
of entertainment.
We have in 2024 impaired the game Atom Eve and recognized a loss of 2.5m DKK, so the
book value is now DKK 0. In spite of the ongoing growth, we continue to strive for a lean and
agile organization, and we have therefore performed a group internal merger between
5th Planet Games A/S and 5th Planet Games Development ApS as the dissolving entity.
The proposed merger is between 5th Planet Games A/S and its wholly owned subsidiary
5th Planet Games Development ApS. 5th Planet Games A/S will be the continuing
company, while 5th Planet Games Development ApS will be dissolved without liquidation
by transferring its assets and liabilities as a whole to 5th Planet Games A/S. The purpose
of the merger is to simplify the group structure and eliminate unnecessary administrative
burdens and costs. As the merger is an internal group merger, the merger will have no
effect on the value of 5th Planet Games A/S.
The merger will have accounting effect from 1 January 2024. No new shares will be issued
as part of the merger.
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ANNUAL REPORT 2024
Additional Warrants and Other Significant Items
Milestone Warrants
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
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.
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 2024 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.
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ANNUAL REPORT 2024
Comments to the result of the year:
The results for 2024 demonstrated resiliency in a difficult market. Revenue growth in physical
distribution came in 13% below forecast as the performance of a specific physical game title
underdelivered expectations. The unfavorable impact to EBITDA was only DKK 0.4m, it was
moderated by careful management of costs of goods.
Financial performance was affected positively by an increase in revenue and a reduction in
cost.
Revenue in 2024 increased to DKK 12.5m from 10.5m in 2023. The increase in revenue comes
from a continued strong base and our new physical distribution agreement.
EBITDA shows a gain of DKK 2.5m in 2024 compared to 2023 where EBITDA without other
income was DKK 0.7m. Increase in revenue and strict cost control are the main factors for this
positive result.
Amortization for 2024 was DKK 6.9m (2023: DKK 5.3m) and impairment DKK 2.5m (2023: DKK
2.3m). Net financials were a gain of DKK 2.1m and loss from equity investments is caused by the
issuance of a waiver on internal group debt in connection with the closure of 5th Planet Games
Gmbh.
Total assets are affected by two significant investments
Total assets amounted to DKK 82.1m as of 31 December 2024 compared with DKK 91.3m in 2023,
consisting of an increase in Development projects to DKK 41.2m and a decrease in cash to DKK
9.7m.
Cash flow due to significant investments in development projects is negative with DKK -40.5m
compared to 2023 where cash flow was DKK 12.7m mainly because of execution of tranche 4 of
the 2021 investment agreement with Skybound.
Equity
The company’s equity as of 31 December 2024 was DKK 80.7m (2023: DKK 85.4m). The equity
ratio at year-end was 98% (2023: 94%).
Capital increases issued in 2024
In January 2024 the share capital was increased with 300,000 new shares as a result of the
exercise of warrants.
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ANNUAL REPORT 2024
DKK ‘000
IFRS
2024
IFRS
2023
IFRS
2022
IFRS
2021
IFRS
2020
Income statement*
1
Revenue and other income 12 577 17 301 11 300 4 809 2 848
Gross profit and other income 9 693 16 324 11 143 4 688 2 663
Profit / loss before special items (EBITDA) 2 472 7 499 1 677 -9 465 -5 580
Operating loss (EBIT) -6 924 -136 -736 -15 066 -5 580
Net Financials exclusive change in derivative instruments 2 053 -332 -179 656 -713
Change in derivative financials instruments, fair value 0 25 065 -32 793 7 729 0
Net Financials 2 053 24 733 -32 972 8 385 -713
Loss from discontinued operations 0 0 0 -9 651 -8 248
Net loss for the year -4 940 24 543 -33 708 -16 254 -14 249
Net loss for the year exclusive fair value of derivative financials instruments -4 940 -522 -915 -23 983 -14 249
Statement of financial positision*
1
Total assets 82 144 91 304 58 845 28 359 27 380
Investments in fixed assets 0 0 0 0 34
Capitalized and expensed development costs 41 221 3 279 17 278 11 142 18 381
Equity 80 723 85 421 28 886 23 461 20 889
Cash 9 694 49 305 36 261 13 607 23 666
Financial ratios*
2
Gross Margin % 77,1% 94,4% 98,6% 97,5% 93,5%
EBITDA margin % 19,7% 43,3% 14,8% -196,8% -195,9%
Return of investment % (ROI) -8,0% -0,2% -1,7% -54,1% -27,5%
Solvency ratio % 98,3% 93,6% 49,1% 82,7% 76,3%
Return on equity (ROE) -5,9% 42,9% -128,8% -73,3% -68,2%
Basic earnings per share -0,018 0,108 -0,201 -0,058 -0,078
Key figures and financial performance
*
1
Figures for 2021 and 2020 are only for continued operations.
*
2
Please refer to definition and calculation for key figures and key ratios from the Danish Finance Society.
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ANNUAL REPORT 2024
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.
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. For further information see note 18. Contingent liabilities.
• 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.
Risk Management in Practice
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ANNUAL REPORT 2024
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
We continue to be mindful of our obligations and use best efforts to reduce our environmental
impact. The simplification of our corporate entity structure, move to the predominant holding
of online meetings, and entry into physical distribution game sales without incurring a net, new
incremental warehousing footprint are evidence of our goal to grow responsibly with respect to
our environment.
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 energy to ensure that our employees
and contractors are valued, respected and motivated in their work. As there is very few employees
in the company, no concrete measures have been taken, but we monitor our efforts closely by
one to one conversations with our employees and support and encourage work life balance and
career goals.
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.
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ANNUAL REPORT 2024
Diversity policy
The Board of Directors has set a goal to have at least one female elected
In 2024, the Board of Directors (first-tier management level) consists only of 4 male members,
whereby the female share is of 0% (2023 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 2025. It is the Company’s goal to achieve equal gender representation in
the Board of Directors by 2026.
By the end of 2024, the Executive Board consists of 1 male person (2023 female share: 0%).
The Company has only one other employee apart from the CEO. The employee is a female. As
long as the company only has two employees, policy for gender allocation is not applicable for
the second-tier management level. If the company expands its organization and more people is
employed, 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, the actual gender allocation and the targets can be summarized as follows:
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2024 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
1/1 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.
17
ANNUAL REPORT 2024
2024 2023
2022 2021 2020
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 0 395 395 0 395 12 0 12 0 0 0
Henrik Nielsen 27.11.2019 395 0 395 395 426 821 395 687 1 082 38 389 427 0 0 0
David Alpert 07.09.2021 395 0 395 395 0 395 395 0 395 12 0 12 0 0 0
Søren Kokbøl 27.04.2021 50 4 54 50 22 72 50 57 107 38 32 70 0 0 0
Kim Friland 27.04.2021 07.09.2021 0 0 0 0 0 0 0 0 0 50 48 98 0 0 0
Bjarke Ingemann Finlov 27.04.2021 07.09.2021 0 0 0 0 0 0 0 0 0 25 0 25 0 0 0
Peter Ekman 27.11.2019 07.09.2021 0 0 0 0 0 0 0 0 0 25 0 25 0 0 0
Caspar Rose 06.02.2015 27.04.2021
0 0 0 0 0 0 0 0 0 0 15 15 30 107 137
Total 1 235 4 1 239 1 235 448 1 683 1 235 744 1 979 200 484 684 30 107 137
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.
2024 2023 2022 2021 2020
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 740 0 740 602 0 602 962 0 962 372 0 372 0 0 0
Henrik Nielsen, CEO
1
29.09.2017 22.01.2021 0 0 0 0 0 0 0 0 0 40 113 153 480 2 119 2 599
Caspar Rose, CEO
2
22.01.2021 07.09.2021
0 0 0 0 0 0 0 0 0 350 224 574 0 0 0
Total 740 0 740 602 0 602 962 0 962 762 337 1 099 480 2 119 2 599
*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 2024 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 30th April 2024 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.
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ANNUAL REPORT 2024
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
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
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19
ANNUAL REPORT 2024
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:
490,536 shares
Warrants in 5th Planet Games A/S:
0 warrants
Executive Management
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20
ANNUAL REPORT 2024
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 2024 was NOK 1,19 with a market capitalization
of NOK 319,371m (DKK 202,039m). Total turnover of shares in 2024 was 42 million with a
total transaction value of NOK 66m.
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:
13,418,930
DK 0.05
268,378,600
Yes
No
Share Capital
The nominal share capital of 5th Planet Games as of 31 December 2024 was DKK 13,418,930,
consisting of 268,378,600 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 2024, 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 2024, members of the Board of Directors and their related parties held
5,114,262 shares (nominal value DKK 255,713), corresponding to 1,91% of the share capital
and a market value of DKK 3,9m. As per 31 December 2024 members of management held
255,713 shares.
Annual general meeting
The Annual General Meeting will be held on 29th April 2025 at noon at Gothersgade 11, 1123
København K.
Shareholder information
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21
ANNUAL REPORT 2024
Dividend and allocation of profit
The Board of Directors recommends to the annual general meeting that no dividend be
declared in respect of the 2024 financial year. The Board of Directors recommends to the
shareholders that the loss for the year of DKK 4,9m 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 18.
Going forward, two of the Members of the Board of Directors are independent of the
company.
At the general meeting on the 30. April 2024 it was decided that the Board of Directors
shall receive a fixed remuneration of DKK 50,000 for all board members for the year 2024.
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
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.
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ANNUAL REPORT 2024
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 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 company has not entered into contracts with change of control clauses.
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23
ANNUAL REPORT 2024
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 2024
– 31 December 2024.
The financial statements have been prepared in accordance with the International
Financial Reporting Standards (IFRS) as adopted by the EU. 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
financial statements and the financial statements provide a fair presentation of the
company’s assets, liabilities, and financial position as of 31 December 2024 and of the
results of the company’s operations and cash flows for the financial year 1 January 2024 -
31 December 2024.
We believe that the management review contains a true and fair review of the development
and performance of the company’s business activities and financial situation, the earnings
for the year and the financial position of the company, together with a description of the
principal risks and uncertainties that the company face.
The annual report is submitted for adoption by the general meeting.
Copenhagen, 26th March 2025
Executive Management
Mark Stanger
Søren Kokbøl Jensen
Board of Directors:
Jon Goldman
Chairman
David Albert
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Henrik Nielsen
24
ANNUAL REPORT 2024
To the shareholders of 5th Planet Games A/S
Our opinion
We have audited the financial statements of 5th Planet Games A/S for the financial
year January 1 – December 31, 2024, which comprise the income statement, statement
of financial position, statement of changes in equity and notes, including a summary of
significant accounting policies, and the statement of comprehensive income and the cash
flow statement of the company. The financial statements are prepared in accordance
with International Financial Reporting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the company’s financial
position at December 31, 2024 and of the results of its operations and cash flows for the
financial year January 1 – December 31, 2024 in accordance with International Financial
Reporting Standards as adopted by the EU and additional requirements under 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
standards 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
provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements for 2024. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, we do not provide a separate opinion on these matters.
Impairment assessment
The value of 5th Planet Games A/S’ intangible assets, of which relates to development
projects in progress, 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 notes 2 and 12 in the financial statements.
Independent Auditors’ Report
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25
ANNUAL REPORT 2024
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 considered 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 calculations
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
Management’s Review and, in doing so, consider whether Management’s Review is
materially inconsistent with the Financial Statements, or our knowledge obtained in the
audit, or otherwise 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 accordance
with the Financial Statements 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 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 International
Financial Reporting Standards as endorsed by the EU and further requirements in 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
company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless Management
either intends to liquidate the company or to cease operations, or has no realistic alternative
but to do so.
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26
ANNUAL REPORT 2024
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements
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 misstatement
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 Denmark,
we exercise professional judgement and maintain professional skepticism throughout the
audit.
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 procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the 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 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 report 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 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.
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.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with
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27
ANNUAL REPORT 2024
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 communicated 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 Financial 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 2024 with the file name 213800MC2SGVSIBN7J53-
2024-12-31-0-en is prepared, 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 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 Financial Statements
presented in human readable format; and
• For such internal control as Management determines necessary to enable the
preparation of an annual report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual report is
prepared, in all material respects, in compliance with the ESEF Regulation based on the
evidence we have obtained, and to issue a report that includes our opinion. The nature,
timing 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 Financial Statements;
• 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;
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28
ANNUAL REPORT 2024
• Evaluating the use of anchoring of extension elements to elements in the ESEF
taxonomy; and
• Reconciling the iXBRL tagged data with the audited Financial Statements.
In our opinion, the annual report of 5th Planet Games A/S for the financial year 1 January
to 31 December 2024 with the file name 213800MC2SGVSIBN7J53-2024-12-31-0-en is
prepared, in all material respects, in compliance with the ESEF Regulation.
Additional information in compliance with article 5(1) of Regulation (EU) no.537/2014
Our opinion is consistent with our reporting to the audit committee and the board of
directors.
Independence
We are independent of the company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and the
additional requirements applicable in Denmark. We have also fulfilled 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 until now been reappointed annually by shareholder resolution for a
total period of uninterrupted engagement of 10 years including the financial year 2024.
Based on rotation rules we have informed management to do a public tender for the
statutory audit of the financial statements 2025.
Copenhagen, 26th March 2025
Grant Thornton
Godkendt Revisionspartnerselskab
CVR-nr. 34 20 99 36
Michael Winther Rasmussen
State-Authorized Public Accountant
mne28708
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29
ANNUAL REPORT 2024
DKK´000 Note 2024 2023
Revenue 4 12 577 10 479
Cost of sales 2 884 977
Gross Profit 9 693 9 502
Other income 5 0 6 822
Research and development expences 6 553 183
General and administrative expenses 6 6 668 8 642
Profit before special items, deprecation and amortisation (EBITDA) 2 472 7 499
Depreciation and amortisation 12 9 396 7 635
Operating profit/loss (EBIT) -6 924 -136
Share of loss from equity investments in group companies 69 0
Financial income 8 2 182 26 181
Financial expenses 9 129 1 448
Profit before tax -4 940 24 597
Income tax 10 0 54
Profit/Loss for the year from continuing operations -4 940 24 543
Other comprehensive income 0 0
Comprehensive income -4 940 24 543
Distribution of comprehensive income:
Parent company´s shareholders -4 940 24 543
Non-controlling interests 0 0
Total -4 940 24 543
Basic earnings per share (DKK) 11 -0,018 0,108
Diluted earnings per share (DKK) 11 -0,014 0,078
Income statement and statement of other comprehensive income
Financial Statements
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ANNUAL REPORT 2024
DKK´000 Note 2024 2023
Non-current assets
Acquired rights 12 0 0
Completed development projects 12 0 9 396
Development projects in progress 12 41 221 0
Other investments 13 21 379 21 329
Other receivables 14 2 724 4 084
Total non-current assets 65 324 34 809
Current Assets:
Trade receivables 14 4 060 2 747
Other receivables 14 2 895 4 418
Accrual expenses 171 25
Cash 9 694 49 305
Total current assets 16 820 56 495
Total assets 82 144 91 304
EQUITY AND LIABILITIES
DKK´000 Note 2024 2023
Equity:
Share capital 13 419 13 404
Reserves 32 152 7.329
Retained earnings 35 152 64 688
Total Equity 16 80 723 85 421
Current liabilities
Trade payables 17 978 5 055
Other payables 17 443 828
Total current liabilities 1 421 5 883
Total Liabilities 1 421 5 883
Total equity and liabilities 82 144 91 304
Balance Sheet
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Reserves
DKK´000
Share
capital
Share
premium
Reserve for capitalised
development costs
Retained
earnings
Total
equity
Equity as at 01.01.2024 13 404 0 7 329 64 688 85 421
Net Profit 0 0 0 -4 940 -4 940
Other comprehensive income 0 0 0 0 0
Comprehensive income 0 0 0 -4 940 -4 940
Capital increase 15 97 0 0 112
Costs related to capital increase 0 0 0 0 0
Share-based payments 0 0 0 130 130
Transfer of reserves 0 -97 24 823 -24 726 0
Transactions with owners 15 0 24 823 -24 596 242
Equity as at 31.12.2024 13 419 0 32 152 35 152 80 723
Equity as at 01.01.2023 10 398 0 12 012 6 476 28 886
Net Loss 0 0 0 24 543 24 543
Other comprehensive income 0 0 0 0 0
Comprehensive income 0 0 0 24 543 24 543
Capital increase 3 006 28 051 0 0 31 057
Costs related to capital increase 0 -164 0 0 -164
Share-based payments 0 0 0 1 099 1 099
Transfer of reserves 0 -27 887 -4 683 32 570 0
Transactions with owners 3 006 0 -4 683 33 669 31 992
Equity as at 31.12.2023 13 404 0 7 329 64 688 85 421
Statement of changes in equity
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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
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DKK´000 Note 2024 2023
Profit before tax -4 940 24 543
Depreciation, amortisation and impairment losses 12 9 396 7 635
Share-based payments 130 1 099
Financial income, reversed -2 182 -26 181
Financial expenses, reversed 129 1 448
Change in working capital -4 398 -30
Operating cash flow -1 865 8 514
Financial income, received 711 1 111
Financial expenses, paid -5 0
Income tax received 0 107
Net foreign exchange difference 220 74
Cash flow generated from operations -939 9 806
Sale of right of use assests 0 -4 084
Long term receivable 1 360 2 926
Investments in projects 12 -41 221 -3 279
Net foreign exchange difference 284 0
Cash flow from investing activities -39 577 -4 437
Proceeds from cash capital increase 112 30 893
Repayment convertible loan 0 -372
Investment in financial assets 13 -50 -21 329
Net foreign exchange difference 0 -1 832
Cash flow from financing activities 62 7 360
Total cash flow for the period -40 454 12 729
Cash, beginning of period 49 305 36 261
Net foreign exchange difference 843 315
Cash, end of period 9 694 49 305
Cash flow statement
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Parent Company Statement of Change in Equity
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ANNUAL REPORT 2024
1. Accounting policies
5th Planet Games A/S is a limited liability company domiciled in Denmark. The financial
statements for 2024 have been prepared in accordance with International Financial
Reporting Standards (IFRS) as approved by the EU and additional Danish disclosure
requirements.
Danish kroner (DKK) is the company’s presentation currency and the functional currency of
the company. The financial statements are presented in Danish kroner (DKK) rounded off
to the nearest DKK 1,000.
Implementation of new and revised standards and interpretations
Certain new accounting standards and amendments to accounting standards have been
published that are not mandatory for 31 December 2024 reporting periods and have not
been early adopted by 5th planet Games A/S. 5th Planet Games’ assessment of the
impact of these new standards and amendments is set out below:
IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual
periods beginning on or after 1 January 2027)
IFRS 18 will replace IAS 1 Presentation of financial statements, and will impact the
presentation and disclosures of 5th Planet Games. 5th Planet Games will on continuing
basis assess the impact.
Change in assessment of accounting policy
5th Planet Games has historically recognized all revenue as net but after revisiting this
method, management has assessed that for some contracts it is more correct to recog-
nize revenue at gross. For these contracts we have changed comparative figures for 2023.
In 2023 revenue for sale of games and in-app purchases has been increased with DKK
0.7m and cost of sales has been increased with the same amount. The change has no
effect on the result or equity.
Group internal merger
In 2024 there has been a group internal merger between 5th Planet Games A/S as the
continuing company and 5th Planet Games Development ApS as the dissolving entity. 5th
Planet Games A/S will be the continuing company, while 5th Planet Games Development
ApS will be dissolved without liquidation by transferring its assets and liabilities as a whole
to 5th Planet Games A/S. As the merger is an internal group merger between 5th Plan-
et Games A/S and its only material subsidiary, the group was considered dissolved and
therefore no consolidated financial statement has been prepared.
Notes to the Financial Statements
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The merger was completed with the group method and has accounting effect from 1 Jan-
uary 2024. Consistently, comparative figures of 5th Planet Games have been adjusted to
reflect the financial statement as if the 5th Planet Games A/S and 5th Planet Games De-
velopment ApS were one company since acquisition.
Prior to the merger, 5th Planet Games A/S has prepared its stand-alone financial state-
ment in accordance with the Danish Financial Statement act. As 5th Planet Games subse-
quently will prepare it Financial Statement after IFRS, it is considered a first-time adoption
of IFRS. IFRS 1 paragraph D17 have been used whereby the comparative figures from con-
solidated financial statement have adopted.
No new shares will be issued as part of the merger.
Principal accounting policies set out below have been consistently applied in the prepa-
ration of the 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
company´s shares divided by the weighted average number of ordinary shares outstand-
ing.
Diluted earnings per share are calculated as the net result for the period that accrues to
the company´s shares divided by the weighted average number of ordinary shares out-
standing 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 company assets. Due to materiality no segment reporting
is made on geographical criteria.
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
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ANNUAL REPORT 2024
purchased in foreign currency and measured based on historical cost are translated at the
exchange rate applicable at the transaction date.
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.
Statement of comprehensive income
Revenue
Revenue from the sale of games and in-app purchases is recognized in the income state-
ment when control is transferred to the purchaser which is when the purchaser is able to
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ANNUAL REPORT 2024
download the games or use the in-app purchases. For sales of games and in-app pur-
chases where control is transferred through third parties (platform distribution partners),
5th Planet Games is the primary contractual party for the users and are responsible for
establishing the selling prices. Sales of games and in-app purchases are consequently rec-
ognized as 5th Planet Games being the principal, where the full sales prices are recog-
nized as revenue, while costs for the third party are recognized under cost of sales.
Revenue from license and royalties occurs from Co-development arrangements where 5th
Planets Games are entitled to part of the sale which the Co-developer receives through
the sales and distribution of the games. 5th Planet Games recognized the license and roy-
alties at a point in time when control are transferred to the purchaser, which is when the
purchaser is able to download the games or use the in-app purchases. License and royal-
ties are consequently recognized as 5th Planet Games being an agent, where revenue is
recognized on a net basis.
Revenue from physical distribution occurs when delivery has taken place, which is consid-
ered the time when risk has passed to the purchaser before the balance sheet date, and if
the revenue can be determined reliably and is expected to be received.
Other revenue consists of consulting services. The services are recognized over time as
the purchaser receives and use the services simultaneous. Revenue is recognized with the
use of an output method based on number of hours provided. Revenue is measured based
on hours provided to the purchaser; This description has been updated and also cover
previous years.
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.
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.
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General and administrative expenses
Other external expenses comprise expenses relating to administrative staff and other ad-
ministrative expenses, costs of premises, bad debts, operating leases, etc.
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 company are equity-settled warrants granted to employ-
ees, 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 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.
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.
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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 ressources 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 prefer-
ences 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 period is 2
years from launch. Amortization methods, useful lives and residual values are reviewed
every year.
Other investments
Other investments comprise of non-con-trolling interests. Other investments are measured
at fair value on a recurring basis, where 5th Planet Games on each reporting date revised
the valuation of the investments. The selected valuation approach are based on the infor-
mation available to 5th Planet Games at the reporting date. As 5th Planet Games receive
limited reporting and insight into the other investments financial performance, there is not
a reliable basis to carry out a valuation with the use of cash flow models. Consequently, it
is management’s assessment that the initial investment in the other investments reflects
the fair value.
Financial instruments
Financial assets and financial liabilities are recognized when the company becomes a par-
ty to the contractual provisions of the financial instrument. Financial assets are derecog-
nized 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
liability 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
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• 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 company only has financial instruments classified as FVTPL. Derivative
financial instruments in this category are measured at fair value with gains or losses rec-
ognised in profit or loss. All income and expenses recognised in profit or loss are present-
ed 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.
Current financial assets
Long term other receivable financial assets are measured at amortised cost if the assets
meet the following conditions: (a) they are held within a business model whose objective
is to hold the financial assets and collect its contractual cash flows, and (b) the contractual
terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding. After initial recognition, these are meas-
ured at amortised cost using the effective interest method. Discounting is omitted where
the effect of discounting is immaterial.
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 with indefinite useful lives is evaluated for impair-
ment 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.
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.
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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.
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.
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.
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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 company. These financial instru-
ments are classified as derivative assets / liabilities when either the subscription or set-
tlement amount is not fixed amount of a currency similar to the functional currency of
the company or the number of shares is not fixed. When issued pro rata to all existing
shareholders of the company the financial instruments are exempted from this accounting
treatment and are classified as equity in the 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.
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 company’s share capital and
associated costs as well as the raising and repayment of loans, the repayment of inter-
est-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.
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2. Significant accounting estimates and judgments
In connection with the preparation of the financial statements, management makes
a number of accounting estimates and judgments that affect the recognized value
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 financial statements. Accounting judgments reflect
decisions made by management as to how the accounting 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 transaction or item is best presented to
provide reliable and relevant information.
The following accounting estimates and judgments have had significant impact on the
financial statements for 2024:
Uncertainties concerning recognition and measurement
Impairment test
In the 2024 financial statements Development Projects in Progress amount to DKK 41.2m
and comprise investment in the development and co-publishing of new games, for which
the future economic benefits are uncertain.
An impairment test has been performed for the development projects in progress.
Management’s estimates are based on projected performance of the development
project (game) using comparable title performance from Skybound and publicly available
data from unrelated third party publishers. The physical and digital game market is rapidly
changing due to technology innovations (artificial intelligence), business model evolutions
(free to play games), consumer preferences (new games versus legacy franchises). Video
games, historically, are a hit driven business. The best performing games will exceed
average or above average benchmark performance data and poorly performing games
will come in under those averages.
Management has assessed the projections used in arriving at the carrying value of the
capitalized balances of the games in development. On the basis of its best judgement,
Management believes that those projections reflect the most reasonable outcome based
on the information and business knowledge at this time. Management continues to monitor
the development milestones for the games and pre-launch market developments and will
update its judgement as circumstances require.
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ANNUAL REPORT 2024
As the future economic benefit of the games, until such time as they are published and
brought to market, remains inherently uncertain, the financial statements are subject
to risk typically common in the game development industry including the risk of future
impairment of balances residing on the 2024 financial statements.
Other Investments
Other investments are measured at fair value on a recurring basis, where 5th Planet Games
on each reporting date revised the valuation of the investments. The selected valuation
approach are based on the information available to 5th Planet Games at the reporting
date. As 5th Planet Games receive limited reporting and insight into the other investments
financial performance, there is not a reliable basis to carry out a valuation with the use of
cash flow models. Consequently, it is management’s assessment that the initial investment
in the other investments reflects the fair value.
Skybound who is the majority shareholder in Sagafilm has issued a letter of financial
support to Sagafilm ehf. for 2025, confirming the Skybound group’s continuous support
to ensure Sagafilm can continue to operate as a going concern and settle its liabilities as
they fall due.
Estimates and judgements with significant impact on the financial statement
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
onMonte 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
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ANNUAL REPORT 2024
DKK´000 2024 2023 Sales of games and in-app purchases 950 1 525Physical product sales 2 894 0License and royalty income 8 670 8 386Other revenue 63 568Total 12 577 10 479
3. Net working capital ressources
DKK´000 2024 2023 Short term capital assetsTrade receivables 4 060 2 747Other receivables 2 895 4 418Cash 9 694 49 305Total short term capital assets 16 649 56 470
Short term capital liabilities:Trade liabilities 978 5 055Other payables 443 828Total short capital liabilities 1 421 5 883Total net working capital ressources for the year 15 228 50 587
4. Revenue
The company’s cash ressources have been reduced significantly as they have invested in
several new co-funding projects, but according to our most recent budgets approved by
management, the existing capital ressources are sufficient to continue the full operation of
the company as planned for the following 3 years.
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Specification of revenue and trade receivables from related parties is disclosed in note 23.
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 company
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.
45
ANNUAL REPORT 2024
6. Nature of cost
Salary and wages
DKK´000 2024 2023 Wages and salaries 3 019 4 393Pensions 68 229Other social security costs 9 12Share-based payment 130 1 099Total 3 226 5 733
Total Staff costs are recognized as follows:
Administrative expenses 3 226 5 733Total 3 226 5 733
Average number of employees during the year
2 3
Number of employees end of year
2 3
Remuneration of board of directors and executive management
DKK´000 2024 2023 Board of directors:Cash remuneration 1 235 1 235Share-based payment 4 448Total 1 239 1 683Executive managementGross Salary 740 602Share-based payment 0 0Total 740 602
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5. Other income
DKK´000 2024 2023 Other income 0 6 822Total 0 6 822
Specification of revenue and trade receivables from related parties is disclosed in note 22.
Other expenses
DKK´000 2024 2023 Research and development cost 553 183Other administrative expenses 3 442 2 909
Total 3 995 3 092
46
ANNUAL REPORT 2024
DKK´000 2024 2023 Share-based payments management 0 0Share-based payments board of directors 4 447Share-based payments employee 0 22Share-based payments development, discontinued operations 0 0Share-based payments / reservation holiday payment adjustments 0 0Total share-based payments expensed 4 469Share-based payments capital increase cost 0 0Share-based payments IP rights 0 0Total share-based payments 4 469
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 2024 and 2023:
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 2024, 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 70.366.625 13.101.821 19.307.314 5.747.707 32,209,783 0.91Granted 0 0 0 0 0 -Forfeited 0 0 0 0 0 -Forfeited -300.000 0 0 -300.000 0 0.57Expired 0 0 0 0 0 -Outstanding, end of the period 70.366.625 13.101.821 19.307.314 5.447.707 32.209.783 0.91Exercisable at end of the period 70.066.628 13.101.821 19.307.315 5.447.709 32.209.783 0,91min: 0,4 0,6 0,4 0,6 0,9The 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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ANNUAL REPORT 2024
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 2024 2023 Other financial income 711 1 111 Change in derivative financials instruments, fair value 0 25 065 Foreign exchange gains, net 1 471 5 Total 2 182 26 181
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 2024
DKK´000 2024 2023 Other financial costs 5 0Foreign exchange loss, net 124 1 448Total 129 1 448
9. Financial expenses
DKK´000 2024 2023 Tax on profit for the year:Net result for the year before tax -4 940 24 597Tax rate 22% 22%Expected tax expenses -1 087 5 411Adjustment for non-deductible expenses 0 -5 514Prior-year adjustments 0 54Change in tax assets (not recognized) 1 087 49Total 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 0 54 Total tax on profit for the year 0 54
Breakdown on unrecognized deferred tax assets:
Tax losses carried forward (available indefinitely) 101 082 80 124Other -1 121 19 001Basis at year end 99 961 99 125Tax rate 22% 22%Calculated Potential deferred tax assets 21 991 21 808Write-down of deferred tax assets -21 991 -21 808Recognized deferred tax assets 0 0
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No deferred taxes are recognised in the balance sheet. The Company has substantial deferred tax
assets which are not recognised as the future utilisation is subject to uncertainty as the company
does not expect a positive tax result for the next 3-5 years.
49
ANNUAL REPORT 2024
11. Earnings per share
DKK´000 2024 2023 Net profit/loss for the period -4 940 24 543 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share (in thousands) 268 369 226 901 Adjustments for calculation of diluted earnings per share: Warrants 87 620 87 920 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share (in thousands) 355 989 314 821 Earnings per share of DKK 0,05 each (in DKK) -0,018 0,108Diluted earnings per share of DKK 0,05 each (in DKK) -0,014 0,078
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Further information concerning warrants is disclosed in note 7
50
ANNUAL REPORT 2024
12. Intangible assets
Completed Development development projects DKK´000projects in progress Acquired rights Total Financial Year 2024 Costs as at 01.01.2024 30 678 0 2 153 32 831 Additions 0 41 221 0 41 221 Transfer 0 0 0 0 Disposals 0 0 0 0 Costs as at 31.12.2024 30 678 41 221 2 153 74 052Amortisation and impairment losses as at 01.01.2024 21 282 0 2 153 23 435 Impairment losses 2 463 0 0 2 463 Amortisation 6 933 0 0 6 933 Disposals 0 0 0 0Amortisation and impairment losses as at 31.12.2024 30 678 0 2 153 32 831Carrying amount as at 31.12.2024 0 41 221 0 41 221 Financial Year 2023 Costs as at 01.01.2023 17 372 12 953 6 895 37 220 Additions 3 279 0 0 3 279 Transfer 10 027 -10 027 0 0 Disposals 0 -2 926 -4 742 -7 668 Costs as at 31.12.2023 30 678 0 2 153 32 831Amortisation and impairment losses as at 01.01.2023 14 384 0 6 158 20 542 Impairment losses 2 300 0 0 2 300 Amortisation 4 598 0 737 5 335 Disposals 0 0 -4 742 -4 742Amortisation and impairment losses as at 31.12.2023 21 282 0 2 153 23 435Carrying amount as at 31.12.2023 9 396 0 0 9 396
The amortization period for development cost and aquired rights is 2 years. In 2024 an impair-
ment of DKK 2.5m has been recognised in depreciation and amortization in the statement
of comprehensive income. The impairment is related to the completed development project
Atom Eve and the book value after the impairment is DKK 0. The development project would
have been fully amortized in 2025 if it had not been impaired. The impairment test was car-
ried out due to deviations between the expected cash flow and the realised cash flow from
the games. Investment in the game was initially DKK 7.9m. The value in use has been calcu-
lated based on a projecting of the remaining expected cashflow over the expected lifetime.
In 2023 disposals concern two development projects, the Walking Dead Clementine and Vice NDRCVR.
Walking Dead Clementine had a book value of DKK 0 based on a previous impairment reserve in 2021
that was made when the prospect for that specific game was deemed uncertain. The disposal rep-
resents management’s current assessment that there is no near-term game project develop ment
opportunity that would reverse the previous evaluation. Vice NDRCVR had a book value of DKK 2.9m
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ANNUAL REPORT 2024
13. Other InvestmentsDKK´000 2024 2023 Costs as at 01.01.2024 21 329 0 Additions 50 21 329 Transfer 0 0 Cost as at 31.12.2024 21 379 21 329 Value adjustment at 01.01.2024 0 0 Value adjustment during the year, unrealised 0 0 Value adjustment at 31.12.2024 0 0 Carrying amount as at 31.12.2024 21 379 21 329 The investments relates to: Skybound LLC 3 500 3 500 Sagafilm ehf. 17 829 17 829 Games Denmark 50 0 Value adjustment at 31.12.2024 21 379 21 329
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for which the opportunities represented by that development appeared uncertain. The company
reached agreement with Skybound Games Studio to redeploy the funds committed for co-publishing
that title to a new project. Consequently, the balance is now recorded as a receivable with a related
partner. 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 (DKK 1.1m) and Atom Eve (DKK 1.2m) which has been partly impaired. The impair
ment test was carried out due to deviations between the expected cash flow and the realised cash
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 from launch and the fol-
lowing 3 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 and publicly available data from
unrelated third party publishers. The company’s budgets and prognoses for the coming years and
thus the determination of the recoverable amount of the cash-generating units are substantially im-
pacted by the management’s expectations for growth in connection with the launch of new games.
However the sensitivity for estimated future cash flow is low, key assumptions concerning turnover
and cost can be reduced by more than 45% before there are indications of impairment.
Other investments are measured at fair value on a recurring basis, where 5th Planet Games on each
reporting date revised the valuation of the investments. The selected valuation approach are based
on the information available to 5th Planet Games at the reporting date. As 5th Planet Games receive
limited reporting and insight into the other investments financial performance, there is not a reliable
basis to carry out a valuation with the use of cash flow models. Consequently, it is management’s
assessment that the initial investment in the other investments reflects the fair value.
52
ANNUAL REPORT 2024
DKK´000 2024 2023 Trade and other receivables (gross), beginning of year 11 249 5 694 Provision for bad debt 0 0 Change of provision in the year 0 0 Realised losses in the year 0 0Provision for bad debt, end of year 0 0Trade and other receivables (net), end of year 9 679 11 249 Trade and other receivables not due (due 0-3 months after the balance sheet date) 4 763 2 877 Trade and other receivables not due (due 3-12 months after the balance sheet date) 2 192 4 288 Trade and other receivables not due (due 12 months after the balance sheet date) 2 724 4 084 Trade receivables (net), end of year 9 679 11 249 Trade receivables 669 587 Trade receivables from related party 3 391 2 160 Other receivables 173 130 Receivables from related parties - current 2 722 4 288 Receivables from related parties - non-current 2 724 4 084 Trade and other receivables 9 679 11 249
14. Trade and other receivables
Specificaton of trade receivables from related parties is disclosed in note 23.
In 2023 the sale agreement for the non-gaming intellectual property rights associated with the Hugo
character to Skybound Entertainment did not include an explicit interest element regarding future
payments. Management notes that internal group financing components use an average interest
rate of 4% which if applied would have resulted in interest income of DKK 379K over the remaining 4
year payment term and would not materially have impacted the revenues recorded on the sale at
the end of 2023.
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Skybound who is the majority shareholder in Sagafilm has issued a letter of financial support to
Sagafilm ehf. for 2025, confirming the Skybound group’s continuous support to ensure Sagafilm can
continue to operate as a going concern and settle its liabilities as they fall due.
53
ANNUAL REPORT 2024
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 company 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 was recognized as financial income in 2023.
16. Equity
Share capital
As of 31.12.2024 the company’s share capital consists of 268,378,600 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 company held no treasury shares at the end of the 2024 or 2023 reporting periods.
Capital management
The company aims to ensure structural and financial flexibility as well as competitive strength. For
that purpose, the company regularly assesses the appropriate capital structure for the company.
Reference is made to the paragraph “Capital resources” in note 3 and significant accounting esti-
mates and judgments in note 2.
Dividend
It is proposed that no dividend be paid.
Reserve for capitalised development costs
The Reserve for capitalised development costs are a restricted reserved required by the Danish
Financial Statement Act, that restrict the distribution of dividend. The reserve is determined as cap-
italised costs on development projects less depreciations and deferred tax.
Share capital development during 2021-2024
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 60012.01.2024 Share capital increase 15 000 0,05 13 418 930 300 000 268 378 600
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ANNUAL REPORT 2024
DKK´000 2024 2023 Current:Trade payables 835 1 308Trade payables from related parties 143 3 747Payable for use of IP rights 0 371Holiday pay liability 66 66Discontinued operations 0 0Other 377 391Total current other payables 1 421 5 883
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 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 or 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 un-
significant.
19. Security provided
None.
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ANNUAL REPORT 2024
20. Financial risks and financial instruments
Risk management policy
The company’s financial risks are managed by the Executive Management. The company has not
prepared particular policies for the identification and handling of risks. Managing the company’s risks
forms part of the Executive Management’s day-to-day monitoring of the company.
Interest rate risk
The company has no interest-bearing debt.
Credit risk
The maximum credit risk relating to receivables corresponds to the carrying amount. Information
about trade receivables due appears from note 14. The company is not subject to material credit
risks.
Currency risk
The company’s exposure to the risk of changes in foreign exchange rates relates primarily to the
company’s monetary assets and liabilities denominated in foreign currencies.
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange
rate, with all other variables held constant. The company’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 2024Change in USD rate +5% 2 731 2 731Change in USD rate -5% -2 731 -2 731Effect on Effect on Amounts in DKK '000loss before taxpre-tax equityYear end 31/12 2023Change in USD rate +5% +2,571 +2,571Change in USD rate -5% -2,571 -2,571
Foreign currency risks are managed as part of the Executive Management’s day-to-day monitoring
of the company.
Currently, the management is not hedging any currency risks.
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ANNUAL REPORT 2024
21. Liquidity risk
The company’s liquidity risk covers the risk that the company is not able to meet its liabilities as they
fall due. The maturities of financial liabilities appear from the tables below. All amounts are contrac-
tual 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 31.12.2024Trade payables 978 0 0 0 978Other payables 443 0 0 0 443Total as at 31.12.2024 1 421 0 0 0 1 421
As at 31.12 2023
Trade payables 5 055 0 0 0 5 055Other payables 828 0 0 0 828Total as at 31.12.2023 5 883 0 0 0 5 883
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Fair value of the assets and liabilities corresponds to the carrying amount due to the short term.
57
ANNUAL REPORT 2024
22. Financial assets and liabilities
31 December 2024
Amortised DKK´000costs FVTPL TotalFinancial assets - short-term:Trade receivables 4 060 0 4 060Other receivables 2 895 0 2 895Cash 9 694 0 9 694Total financial assets 16 649 0 16 649Financial Liabilities:Trade payables 978 0 978Other payables 443 0 443Total financial liabilities 1 421 0 1 421
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 56 470
Financial Liabilities:
Trade payables 5 055 0 5 055Other payables 828 0 828Total financial liabilities 5 883 0 5 883
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ANNUAL REPORT 2024
23. Related party transactions
DKK´000 2024 2023 Sales and purchases of services and investmentsRoyalty from co-productions, Skybound Game Studios, Inc. (Parent entity) 7 396 6 193Sale of IP, Skybound LLC (Parent entity) 0 6 810Investment in development projects, Skybound Game Studios, Inc. (Parent entity) 41 221 2 757Purchase of games for distribution, Skybound Games Europe B.V. (Related entity) 2 618 0Purchase of management services from related party, Skybound Games Europe BV (Related entity) 741 690Purchase of management services from related party, Skybound LLC (Parent entity) 36 67Purchase of Saga 0 684Trade and other receivables Trade receivables, Skybound Game Studios, Inc (Parent entity) 2 119 2 160 Current receivables, Skybound Game Studios, Inc. (Parent entity) 0 2 926 Current receivables, Skybound LLC (Parent entity) 2 722 1 362 Non current receivables, Skybound LLC (Parent entity) 2 724 4 084Trade and other payables Trade payables, Skybound Game Studios, Inc (Parent entity) 0 2 306 Trade payables, Skybound LLC (Parent entity) 0 67 Trade payables, Bumbio LLC (Parent entity) 0 684 Trade payables, Skybound Games Europe BV (Related entity) 143 690
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Notes to the Financial Statements
DKK´000 Type Place of incorporation Ownership 2024 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.
Transactions with other related parties
The 5th Planet Games’ related parties includes members of the board and Skybound. Since September
2021, board Member Henrik Nielsen has worked as Strategic Advisor. In 2024, Henrik Nielsen received a
payment of DKK 192t (2023: DKK 192t) (2023: sharebased payments DKK 630t). Transactions with Skybound
consists of co-production agreement, all transactions are on arm length terms.
Key management personnel has been assessed to be board of directors and the CEO Mark Stanger. The
board and the CEO has received DKK 1.9m in salary and board fee.
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ANNUAL REPORT 2024
24. Fee to company auditors appointed
at the general meeting
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
DKK´000 2024 2023 Grant ThorntonStatutory audit 719 345 Other assurance engagements 372 183 Tax Consultancy 0 0 Other services 47 291 Other services 1 138 819
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 26 March 2025, the Board of Directors approved this annual report for
publication. 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 29 April 2025.
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ANNUAL REPORT 2024
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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