One Platform,
Every Fan Connection
Powering fan growth and engagement for artists, podcasters and their teams
Linkfire A/S • Rentemestervej 80 • 2400 København • CVR no. 35 83 54 31
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Annual Report 2024
Table of contents
Introduction
About Linkfire 4
Building A Sustainable Business 5
Key Events And Highlights In 2024 6
Letter From The CEO 7
Letter From The Chairman 8
Management’s Review
Financial Performance And Key Figures 10
Outlook For 2025 13
Financial Review 14
Corporate Governance
Risk Management 18
Board Of Directors 20
Leadership Team 21
Corporate Governance 22
Consolidated Statement Of Comprehensive Income 25
Consolidated Statement Of Financial Position 26
Consolidated Statement Of Changes In Equity 27
Cash Flow Statement 28
Notes - Consolidated 29
Parent Company Income Statement 52
Parent Company Statement Of Financial Position 53
Parent Company Statement Of Changes In Equity 55
Notes - Parent Company 56
Statement By Management 64
Independent Auditor’s Report 65
Glossary And Company Information 67
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Introduction
⇢ ABOUT LINKFIRE
⇢ BUILDING A SUSTAINABLE BUSINESS
⇢ KEY EVENTS AND HIGHLIGHTS IN 2023
⇢ LETTER FROM THE CEO
⇢ LETTER FROM THE CHAIRMAN
⇢
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
About Linkfire
One Platform, Every Fan Connection
Linkfire is the leading platform powering fan growth and engagement for
artists, podcasters, and their teams.
From the first click to lasting loyalty, Linkfire connects billions of fans with the
content they love, driving streams, subscriptions, and sales through smart
links, personalized experiences, and AI-powered campaign tools.
With deep insights and automation tailored to each release, creators and
marketers can launch faster, optimize performance, and build stronger,
longer-lasting fan relationships.
Trusted by the world’s leading entertainment brands: Apple, Amazon, Sony
Music, Universal Music, Warner Music, and thousands of independent
creators, Linkfire is the all-in-one platform built for every fan connection.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Building a Sustainable Business
2014 - 2015 Linkfire was founded, and the first version of the marketing platform was developed in collaboration with Danish record labels.
2016 - 2017 Going international. The platform became widely used throughout Denmark and Europe. All three major music labels - Universal Music Group, Sony Music Group,
and Warner Music Group – joined Linkfire.
2018 Conquering the US. Linkfire opened its first US offices, followed by a quick adoption increase by the big US record labels.
2019 Building a market leader. Linkfire secures its position as the global market leader by connecting more fans with music than any other competitor.
2020 Scaling up. Independent record labels, competitors, podcasters, and the first large US film studio started using Linkfire.
2021 Linkfire is listed and becomes a publicly listed company on Nasdaq First North Premier Growth Market in Sweden.
2022 Linkfire further solidifies its position in the market and closes 2022 with historical performance taking a significant step towards breakeven as reported in Q4 2022.
2023 Linkfire expands into the multibillion-dollar podcast industry with Linkfire for Podcasts.
2024 After delisting from Nasdaq First Premier Growth Market, Linkfire achieves profitability and reports positive EBITDA for the year.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Key Milestones in 2024
Q1
Linkfire successfully delisted from Nasdaq First North Growth Market and re-shaped the organisation towards cash break-even. Co-founder and former Chief Commercial Officer,
Jeppe Faurfelt, assumed the position as CEO of the Company.
Q2
Linkfire reached an EBITDA break even, including a 178% improvement in earnings compared to previous year.
Linkfire renewed its agreement to provide its Saas Marketing Platform to Alternative Distribution Alliance (ADA), the independent distribution and label services arm of
Warner Music Group.
Q3
In August, Linkfire held an Extraordinary General Meeting to approve a Warrant Agreement with New Venture Securitization Company SCS. The agreement involved the
issuance of a warrant to purchase 7,838,000 shares for an upfront payment of USD 1,500,000, supporting operational runway and growth initiatives..
Linkfire achieved another quarter of EBITDA break-even and reached operational cash break-even, reinforcing the company’s position as a financially sustainable business.
Q4
Linkfire renewed long-term agreements to provide its SaaS Marketing Platform to Warner Music Group and Universal Music Group globally, extending decade-long partnerships with two
of the world’s largest music companies.
Linkfire continued to grow its subscription revenue by acquiring new enterprise clients across the music (Digital Service Providers) and podcast verticals, while also tightening
churn and executing a successful pricing update.
,
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Letter from the CEO
Jeppe Faurfelt
CEO & Co-founder
In 2024 we turned a corner.
After years of growth, experimentation, and scaling, this was
the year we paused to realign. We made the deliberate
decision to sharpen our focus, reduce complexity, and reset
our foundation. That journey wasn’t always easy, but it was
necessary. And it worked.
We reached EBITDA breakeven and achieved operational
cash flow break-even, a huge milestone in Linkfire’s
evolution. These results were not incidental. They were the
product of focused execution, a more disciplined cost
structure, and a team that showed up with clarity and
conviction, even when the road and runway got narrower.
Reshaping to Scale Smarter
To support this shift, we made the strategic decision to delist
from Nasdaq First North Growth Market and reshape our
organization around sustainable value creation. Going private
gives us the space and flexibility to invest for the long term
without the constraints of quarterly public market expectations.
At the same time, we streamlined our operations to become
more agile and product-focused. We’re now a leaner company
with a clearer sense of purpose and it shows across our
customer relationships and performance metrics.
Trust from the World’s Biggest Names
In an industry where consistency matters, 2024 was a year of
renewed trust.
We extended long-term agreements with the most influential
players in global music, including Sony Music Entertainment,
Warner Music Group, Universal Music Group, BMG and ADA.
We also maintained our exclusive relationship with Apple
Podcasts, further cementing Linkfire’s position in the
fast-growing podcast space.
Our platform and API powered over 1.2M releases for 200k
artists, generating 1.5 billion fan connections over the year. In a
time of shifting consumption patterns, those numbers speak to
our relevance, reliability, and reach.
Building the infrastructure for Fan Marketing
Linkfire is no longer just a smart link platform. We’re becoming
the infrastructure layer for fan marketing and evolving into a true
Fan Data Platform. A place where creators and marketers can
manage campaigns, gain deeper audience insights, and collect,
organize and activate fan data and drive measurable results
across platforms. All of this while ensuring enterprise level
compliance and delivering transparent, privacy respecting
experiences to fans.
Positioned for what’s next
2024 was the year we stabilized. 2025 is the year we launch
what we’ve been building behind the scenes. Artist
Workspaces will lay the foundation for long-term growth,
expanding our platform beyond smart links and unlocking
new opportunities for artists and their teams. With a renewed
clarity of purpose, sharper focus, and a strengthened
platform foundation, we are ready to meet the demands of a
constantly evolving industry and begin the next chapter of
Linkfire’s journey.
Looking ahead, we remain optimistic about the music and
podcast industries and our role within them. In many ways, it
feels like we’re back at the starting line, but with experience,
vision and platform to go much further
Thank you to our partners, customers, team and
shareholders for your continued trust and support.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Letter from the Chairman
Jesper Møller
Chairman of the Board
During 2024 the new management team led by
CEO Jeppe Faurfelt delivered a successful
turnaround leading to strongly improved financial
performance and a lean and focused company
poised for new growth.
The delisting of the company from the stock exchange
contributed to lowering the cost base and strongly
reduced the governance requirements. This has allowed
the management team to focus on improving day to day
operations whilst maintaining a frequent dialogue with the
board of directors. Whilst we do not interfere in
operational matters we follow the financial and
operational development of the company on a weekly
basis.
We have been impressed with the team’s ability to be
ambidextrous in managing the time available. There has
been a keen focus on the actions which would lead to
improved financials and ensure delivery of budgeted
numbers. Simultaneously the team has managed to
maintain a positive and forward looking dialogue with our
customers, shareholders, lenders and important industry
players. As a result, Linkfire has a refreshed strategíc
position broadening our offering to be a full service
platform for artists and their teams. The board of directors
agree that this will lead to renewed growth through
addressing a broader market. than before.
Although it has regrettably been necessary to reduce the
number of employees in several rounds, it is very
satisfactory that we still have extremely skilled
engineering resources who have been able to maintain
and harness our advanced software platform. Our
dedicated people and this advanced engine remain the
key strategic assets in the company.
Looking ahead the board is focused on strengthening the
capital position of Linkfire, which hopefully will facilitate a
refinancing of the debt stack and lower financing costs.
Operationally we look forward to following the roll out of
the enhanced artist platform and the ongoing
improvement of the financial performance towards being
a self supporting company.
Current priority is to ensure enough cash to secure
operations towards long-term sustainability, targeting
financing in the range of USD 5 - 6.5 million and unlocking
a debt refinancing transaction. Management remains
confident in securing both new financing and refinancing
of current debt and expects to conclude both operations
by end of September 2025.
I would like to thank all our shareholders for your patience
and continued support and all the employees of Linkfire
for your dedication and hard work during challenging
times.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Financial Performance and Key Metrics
2024
2023
2022
2021
2020
Income Statement (DKK thousand)
Recognized Revenue
46,755
50,084
52,590
33,697
24,699
Operating profit / (loss) before interest, taxes, depreciation & amortization (EBITDA)
8,321
(8,572)
(39,875)
(30,512)
(8,371)
Operating profit / (loss) before interest & taxes (EBIT)
(11,849)
(28,052)
(74,288)
(39,425)
(14,193)
Operating profit / (loss) before interest & taxes (EBIT) excl. IPO Cost
(11,849)
(28,052)
(74,288)
(32,558)
(14,193)
Result of financial items
(9,333)
(5,943)
(1,273)
(1,652)
(3,796)
Profit after tax
(21,516)
(49,574)
(70,085)
(35,578)
(9,371)
Balance Sheet (DKK thousand)
Intangible assets
67,649
74,978
74,372
69,876
51,503
Cash and cash equivalents
4,021
4,669
7,027
45,946
783
Total assets
86,119
91,486
101,349
140,200
63,786
Equity
(16,642)
(4,903)
43,962
87,125
4,909
Financial ratios
Operating profit before interest, depreciation & amortizations (EBITDA) margin (%)
18%
(17)%
(76)%
(91)%
(34)%
Operating profit margin (EBIT) (%)
(25)%
(56)%
(141)%
(117)%
(57)%
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Financial Performance and Key Metrics (continued)
2024
2023
2022
2021
2020
Key Metrics
Consumer connections (Traffic)
1,550,113,110
1,545,661,431
2,083,437,002
1,603,957,986
1,475,350,156
y/y Growth
0%
(26)%
30%
9%
77%
Revenue, on constant currency basis (DKK thousand)
44,274
46,906
48,778
34,521
24,348
Revenue Growth
(6)%
(4)%
41%
42%
43%
Subscription Revenue, on constant currency basis (DKK thousand)
28,544
30,181
30,122
22,853
18,745
y/y Growth
(5)%
0.20%
32%
22%
23%
Commission Revenue, on constant currency basis (DKK thousand)
15,730
16,725
18,656
11,667
5,603
y/y Growth
(6)%
(10)%
60%
108%
223%
Commission Revenue per Mille (RPM)*,
on constant currency basis (DKK)
10.15
10.82
8.95
7.27
3.80
y/y Growth
(6)%
21%
23%
92%
83%
Gross Margin, on constant currency basis
81%
83%
74%
72%
76%
* Commission Revenue per thousand consumer connections
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Outlook for 2025
“Running a streamlined, strategically
aligned and even more growth-focused
organization towards full cash break-even,
combined with current Debt Refinancing, will
be the key to long-term sustainability and
growth.”
Revenue guidance
In 2025, Linkfire expects to continue its transition towards
sustained profitability by stabilizing cost levels and laying the
foundation for ARR expansion. Revenue is guided within the
range of DKK 40-50 million for the full financial year. This
corresponds to a yearly growth of (14)-7%.
In order to achieve our guidance, performance on the following
key drivers is required:
● Continued strong RPM performance
● Sustained traffic levels on a year-on-year basis
● Continued inflow of new platform users
● Continued ability to retain and expand existing
subscription contracts
● Continued product innovation and development
EBITDA guidance
Linkfire has achieved EBITDA breakeven for 12 consecutive
months starting in April 2024. and guides EBITDA in the range
of DKK 15-20 million for the full financial year 2025.
Furthermore, Linkfire is committed and confident about
reaching operating cash break even for the year, while a long
term solution to refinance current debt with better terms
remains essential and top priority.
Continued investments into innovation and development of our
offering are expected throughout the year, and are the basis for
expecting continued growth in the coming years. Possible
deviations from the guided ranges depend on investments into
new strategic opportunities supporting our announced revenue
and long-term growth and profitability strategy.
Strategy execution
Throughout 2024, the company has continued taking several
initiatives to eliminate risk in the break even plan. We have
narrowed even more our operating focus to short-term return
initiatives and the least capital-intensive deployment of cash. In
2025, Linkfire expects to utilize the lighter operating setup to
achieve operating cash break even for the year.
To reach operating cash break even based on the projected
cost base for 2025, Linkfire’s revenue must remain at levels
comparable to 2024, supported by a significantly lighter cost
base. We expect consistent performance in both recurring
subscription revenue and commission revenue, while focusing
our efforts on developing our core profit driver, and
transforming from a link manager into a scalable vertical SaaS
business through our vision of Artist Workspaces, unlocking
higher Annual Contract Value, new revenue streams, and
massive market expansion.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Financial Review
Revenue
Revenue decreased by DKK 3.330 thousand, or 7 per cent, from
DKK 50.084 thousand in 2023 to DKK 46.755 thousand in 2024.
Commission revenue increased by DKK 626 thousand, or 3,59
per cent, compared to 2023 while Subscription revenue
decreased by DKK (3.958) thousand or 12,77 per cent. This is on
pace with the performance seen in all other areas of the
business, as we have scaled down to be a significantly smaller
organization across the board in 2024 as compared to 2023.
Costs
Cost of sales decreased by DKK 218 thousand, or 2 per cent,
from DKK 9.139 thousand in 2023 to DKK 8.921 thousand in 2024.
The decrease is centered around server and hosting costs,
improved baseline and scalability as well as ensuring compliant
and premium service delivery.
In 2024, external expenses decreased by DKK 4.994 thousand,
or 30 per cent, from DKK 16.573 thousand in the comparable
period in 2023 to DKK 11.579 thousand in 2024. The decrease is
mainly due to a strong focus on cost optimization through the
entire company, including cost savings in connection with the
delisting.
Staff costs decreased by DKK 13.304 thousand, or 43 per cent,
from DKK 31.237 thousand in 2023 to DKK 17.933 thousand in
2024. As a percentage of revenue, staff costs decreased from 62
per cent to 38 per cent. During 2024, Linkfire continued cost
optimization measures aimed at delivering on the plan to show
EBITDA and operating cash profitability. Efforts included a
significant headcount reduction which explains the decrease,
Other staff costs dropped to DKK 0 in 2024 and comprised
severance agreements costs related to contractions in FTEs
carried out at the end of 2023.
Earnings
Depreciation, amortization and impairment slightly increased by
DKK 690 thousand, or 4 per cent, from DKK 19.480 thousand in
2023 to DKK 20.170 thousand in 2024..
EBIT increased by DKK 16.204 thousand, or 58 per cent, from
negative DKK 28.052 thousand in 2023 to negative DKK 11.849
thousand in 2024. This is an improvement in relation to revenue
from (56) per cent in 2023 to (25) per cent in 2024.
Net financial items
Financial income increased by 53 DKK thousand or 4 per cent,
from DKK 1.385 thousand in 2023 to DKK 1.438 thousand in 2024.
Financial expenses increased by DKK 3,443 thousand, or 47 per
cent, from DKK 7,328 thousand in 2023 to DKK 10,771 thousand
in 2024, mainly due to interest expenses from the main loan of
EUR 5 million, and short-term loans to maintain operations until
reaching the cash break-even point.
Income tax
The tax for the year decreased by DKK 15,245 thousand, or 98
per cent, from DKK (15,579) thousand in 2023 to DKK (334)
thousand in 2024. The decrease is due to the adjustment in FY
2023 related to the Tax Credit Scheme. The Danish Tax
Authorities (Skattestyrelsen) has rejected the company's request
for tax credit for the income years 2020-2022. Management,
however, still considers the conditions for using the scheme to
be fulfilled and has appealed the decision.
As a result of the uncertainty associated with the outcome of the
final decision, the recognized receivable from expected use of
the tax credit scheme related to 2022 (DKK 5,500 thousand has
been reversed in the accounting item "tax for the year" in the
income statement for 2023. Furthermore, a reversal for the
received tax credit for 2020 and 2021 has been recognised for a
total of DKK 10,029 thousand. In total, the recognised reversal in
2023 is DKK 15,529 thousand in tax expense and 1,883 thousand
in estimated interest expense related to the tax repayment. If
Management succeeds in the appeal, subsequent financial
years will be positively affected by DKK 23,700 thousand.
Net Profit/(loss)
Loss for the period decreased by DKK 28,059 thousand or 57
per cent, from DKK 49,574 thousand in 2023 to DKK 21,516
thousand during 2024. This represents a decrease in relation to
revenue from (99) per cent in 2023 to (46) per cent in 2024. This
is reflective of the fact that cost cutting measures were carried
out throughout the entire 2024 in connection with the delisting,
improving profitability and moving the company in the direction
of an operational break-even in 2025.
Cash flow and financing
Cash flow from operations for 2024 was DKK (119) thousand)
(2023: DKK 12.379 thousand). Investment activities reduced cash
flows by DKK 11.478 thousand in 2024 (2023: DKK 15,662
thousand). Cash flow from financing activities for 2024 was DKK
10.878 thousand (2023: DKK 26.064 thousand).
Parent company
Linkfire A/S, Denmark, is the parent company of the Group,
which consists of one further subsidiary in the US. The
development of revenue and costs in parent company activities
is in all material aspects covered in the financial review of the
Group figures and follows the Group explanations.
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Financial Review (continued)
Uncertainties of recognition and measurement
At each reporting date, it is required to assess whether there is
any indication that an asset may be impaired. The current
uncertainties in the market and the share price from the last
capital increase, among others, indicate that an impairment
assessment needs to be performed, with main focus on the
carrying amount of the intangible assets.
Development projects have a net value of DKK 67.6M (2023: DKK
75.0 million) in the annual report. Development projects are
measured at cost price reduced with amortization and
write-downs. The measurement of development projects is
dependable on future earnings, which there is a natural
uncertainty related to. Growth in 2024 and outlook corresponds
to a lower growth than mid-term financial targets. If future
growth continues to be lower than mid-term financial targets
this could entail an impairment loss of the value of capitalized
Development projects. Due to these circumstances, there is
material uncertainty related to the value of capitalised
development projects.
Going concern
Linkfire A/S’s continued operations depend on refinancing
(capital injection from investors or new loans) of interest-bearing
liabilities in the range of DKK 40 million. Furthermore,
postponement of repayment of the current portion of the
interest-bearing liabilities in the range of DKK 18 million is
required for the company to continue operations. Management
expects that both the refinancing and postponement of
repayments due in 2025 in the range of DKK 18 million will be
concluded before the end of September 2025. The refinancing
may be conducted in one or more steps, and the company’s
management has constructive dialogues regarding potential
capital injections and dialogues with both current and potential
new debt providers, Management has, on this background,
decided to prepare the financial statements on a going concern
basis.
However, due to uncertainty related to both refinancing and
terms and conditions related to postponement, there is material
uncertainty related to going concern.
Tax Credit Scheme
Last year, the Danish Tax Authorities requested Linkfire to share
its calculations for received payouts under the Tax Credit
Scheme for FY 2020 and 2021. Under this program, the Tax
Authorities encourage innovation in Denmark, supporting Danish
loss-making, innovative companies with paying out the tax value
of qualified research and development costs. The program is a
great driver for keeping innovation in Denmark and for global
exposure to Denmark as an accommodating and innovative
business market. This is a regular procedure conducted by the
Tax Authorities. The event prompted management to reiterate
the implicit uncertainty in receiving payouts under the Tax Credit
Scheme since calculations and assumptions can be challenged.
Linkfire received DKK 4.5 million in 2021 (for FY 2020) and DKK
5.5 million in 2022 (for FY 2021), and expected to receive DKK 5.5
million in November 2023 (for FY 2022) and DKK 5.2 million in
November 2024 (for FY 2023)..
Linkfire’s management believes in having solid documentation
for its innovative development in the global audio entertainment
market and welcomes the control as an important part of such a
supportive arrangement for innovation in Denmark. Linkfire
delivered its first batch of documentation to the Tax Authorities,
who had an initial proposal to change Linkfire’s taxable income,
and needed to see further documentation. Therefore, the Tax
Authorities were invited to Linkfire’s office for a walkthrough of
our product and developments during the challenged years,
and asked Linkfire to prepare additional documentation to prove
the innovative element of the developments, which was
delivered in March 2024.
In April 2024, Linkfire received the decision by The Danish Tax
Authorities, who deemed Linkfire ineligible, demanding
repayment of DKK 12.3M including interest as of April 2024 for
FY 2020 and 2021, and rejecting payment of the expected funds
corresponding to FY 2022, which was recognized as tax
receivable of DKK 5.5 million. In addition, in April 2025 Linkfire
received the decision by The Danish Tax Authorities rejecting
payment of the expected funds corresponding to FY 2023.
Many Danish software companies are facing the same decision
from The Danish Tax Authorities regarding R&D under the Tax
Credit Scheme. Based on the advice from tax specialists, Linkfire
appealed the decision to the Danish Tax Tribunal, including a
deferred payment request, meaning no payments need to be
made until the Tax Tribunal makes a final ruling .
Throughout the second half of 2024 and into early 2025, Linkfire
has supported the preparation of a technical expert review to
substantiate the innovative nature of its R&D activities in the
relevant fiscal years. This included providing supplementary
documentation, clarifying technical product advancements, and
referencing benchmarks of comparable innovation cases across
the Danish software sector.
While the Danish Tax Tribunal has not yet appointed an expert or
confirmed the precise process, it is expected that the case will
progress in the second half of 2025, beginning with the expert’s
assessment as a preliminary step ahead of district court
evaluation.
As a result of the uncertainty associated with the outcome of the
final decision, in FY 2024, no tax receivable has been recognised
and accrued interest has been provisioned for the year. As per 31
December 2024, the total provisioned liability amounts to DKK
13.3M.
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Financial Review (continued)
If Management succeeds in the appeal, subsequent financial
years will be positively affected by DKK 23.7 M.
Equity
As per 31. December 2024 equity is negative by DKK (16,642)
thousand. As described under Going concern, Linkfire is in the
process of securing additional equity financing in order to
re-establish positive equity.
Subsequent Events
As of the reporting date, current borrowings due in 2025 have
not been settled upon maturity. The Company is engaged in
ongoing discussions with credit institutions to renegotiate the
terms of the debt. For further details, please refer to Note 2 of
the consolidated financial statements.
There have not been any other significant subsequent events
after the reporting period
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Risk Management
Uncertainties about future events can potentially have a
negative impact in any business operations, and it is important
to carefully analyze such risk factors that might affect the future
development of the Linkfire share.
Linkfire is on an ongoing basis assessing and evaluating the
potential risk factors. Critical risks in the business environment
are strategically managed and operationally handled in the
daily processes. The significant risk factors are described
below.
Industry
Linkfire is a technology company providing marketing and
promotional services for artists and record labels. The music,
entertainment and Podcast industries are young industries
characterized by innovation and rapid technological
development, evolving industry standards and practices as well
as changing customer and consumer needs and preferences.
In order to remain successful and execute its growth strategy,
Linkfire must continuously effectively adapt to, respond to, and
also anticipate such changes, and develop its technology and
service offering on a timely and cost-effective basis.
Commission revenue
Linkfire is striving to let commissions be a growing part of the
business and if Linkfire does not succeed in retaining and
building new affiliate partnerships with Digital Service Providers
(such as Spotify, YouTube, Apple Music and Podcast, Amazon
and Ticketmaster) that ambition may fail. However, it is Linkfire’s
opinion that the market for monetization of music and podcast
related internet traffic is growing.
Data Partnerships
A key part of Linkfire’s strategy is to integrate the Linkfire
marketing platform with third-party application providers and
Social Media Platforms. The integration provides Linkfire with
valuable data and insights on consumer patterns on digital
service platforms to be shared with Linkfire’s subscription
customers. Any changes or restrictions on the APIs (application
programming interfaces) may limit the functionality and
accessibility of Linkfire’s services, but Linkfire evaluates the risk
of this materializing as low.
Subscription revenue
The core of the Linkfire business is the subscriptions to
Linkfire’s link generator and a major part of its subscription
revenues are generated from contracts with major music
labels, such as Universal Music Group, Sony Music
Entertainment and Warner Music Group. Some of these major
agreements are up for re-negotiation in 2025.
Management and key employees
Linkfire is highly dependent on our management team and
employees, with people being our biggest asset. It is crucial to
Linkfire to be able to attract, retain, develop and motivate
diverse and thriving management and staff to ensure the right
competencies and skills to succeed as a business.
Competition
The industry in which the Company operates is rapidly evolving
and highly competitive, with relatively low barriers to entry.
The Company mainly faces competition from one other
marketing platform, Feature.fm, targeting music labels and
artists, as well as a long tail of small, local market players.
Thereto, there are providers of Smart Links that operate both in
the Smart Linking Market for music as well as the general
Smart Linking market, such as Linktree and Bit.ly.
The Company may in the future also face competition from
other SaaS companies or players within the online marketing
industry that decide to innovate or invest in similar, or superior,
services and technologies that may compete with the
Company’s platform and services, for example by delivering
solutions at lower prices, more conveniently or more securely.
Technical errors and disruptions to the Company’s IT
infrastructure
The Company is dependent on maintaining a secure and
well-functioning IT environment for all aspects of its operations.
There is a risk that the Company’s IT environment, as well as its
partners’ IT environment, is affected by problems with software,
hardware, computer viruses, improper or negligent operation of
the Company’s IT systems by the Company’s employees or
contractors, attacks or physical damages as well as other
unforeseen events. Such failures and interruptions can lead to
delays, increased costs and could negatively impact the very
basis of the Company’s digital operations.
Privacy regulation
Linkfire maintains a high focus on privacy compliance as well as
other regulatory issues. As the emphasis on privacy security is
an increasing success factor, Linkfire will maintain this focus in
order to stay both compliant and an attractive provider of
services and partners.
18 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Risks related to taxation
The company is subject to a number of tax regulations in
Denmark and in other jurisdictions, which involve for example
corporate income tax including the Danish tax credit regime for
R&D activities, VAT, social security taxes and transfer pricing
regulations. The tax considerations made by the company are
based on interpretations of current tax laws, tax treaties and
other tax regulations and the requirements of the relevant tax
authorities.
Risks related to foreign currency exposure, credit and
interest rate
Risk related to foreign currency exposure, credit and interest
rate are described in note 22 of the financial statements. Please
be referred to this section of the annual report for a full review.
Financial risks
The company may not show profitability when expected and
may experience uneven cash flows impacting cash position.
The company has historically incurred significant costs for the
development of its current operations and expects that such
costs will continue to incur in the future to a certain extent.
Following a significant reduction and continued expectation of
firm cost control, the company may risk costs varying above
the expected levels despite its intention to manage cost
reductions. There is a risk that the company will not earn
sufficient revenues or reach and maintain profitability to
conduct its operations in accordance with set goals and
strategies, which could impair the Company’s ability to sustain
operations or to obtain any required additional funding.
In addition, the company may experience uneven cash flows,
including due to seasonality in user traffic, for example, due to
the occurrence of big music releases or shows. Moreover,
upfront payments from contracts with major labels, which
make up for a large part of the company’s revenues, normally
occur three times per year, which also contributes to uneven
cash flows.
Risks related to future financing needs
As part of its business strategy, the company wants to increase
its subscription user base and expand its market position
further through scaling and expanding its operations
organically. The company is also exploring opportunities of
expanding into new geographical markets as well as into
adjacent verticals within the entertainment industries. In light of
the above-mentioned growth plans, the company believes it is
not unlikely that it may have to turn to the capital market to
finance its business further in the future. If additional financing
cannot be raised when needed, if financing cannot be raised on
terms favorable to the company, or if such financing should
prove insufficient to fund the company’s future operations, this
could have a material adverse effect on the company’s ability to
conduct business operations as planned, pursue its sustainable
growth strategy and ultimately its financial position
19 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Board of Directors
Jesper Møller
Chairman of the board (since 2021)
Ole Larsen
Board member (since 2022)
Peter Balint
Board member (since 2023)
Professional
background
Seasoned Danish CEO level executive with a current focus on
non-executive board positions and advisory roles in Northern Europe. Key
experiences from food and service industries. The latest operational
experience was 9 years as CEO of a confectionery manufacturer with full
value chain responsibility. Previous job experiences from Coca-Cola,
Carlsberg, ISS, Nestlé, Q8, BP and more. Solid experience with strategy
processes, product development/ innovation, category management,
concept development, financial reporting, governance, CSR, Sports
Management.
Experienced CFO and finance professional with a demonstrated history of
working in various industries in both listed and unlisted companies. Skilled
in restructuring, turn-arounds, growth/start-ups, Mergers & Acquisitions
and Corporate Finance.
Peter Balint has a strong financial and operating background. From
2001-2010, he worked at Erste Bank Group in various positions within the
investment banking division. From 2010-2018, he was the managing director
of Infinity Capital Group, a Slovakia-based boutique private equity firm,
leading investments into portfolio companies in energy, real estate, and
technology. He currently holds various board positions and acts as an
advisor at Twin Capital, including Barreson Limited, which is a part of one of
the largest family offices in the Central European region.
Education
Master’s degree in Administration and Management at Copenhagen
Business School, Denmark.
Master of Science, Copenhagen Business School
Master in Business Administration, University of Economics, Bratislava,
Slovakia
Other ongoing
assignments
Chairman of the board of Thornæs Destilleri A/S. Board member at KFI
Erhvervsdrivende Fond. Chairman at TechBBQ. Chairman at The Great Belt
Committee.
2018 - Chairman of the Board at Rikke Gravengaard – Copenhagen A/S
2022 - Founder & CEO at nuso ApS
2023 - CFO at FluoGuide A/S
2019- Advisor at Twin Capital (including Barreson Limited)
2018- Managing director at ICS Investment Management LLC
Previous
positions
Chairman at Konsolidator A/S. Deputy Chairman of Industriens Fond and
Brøndbyernes IF Fodbold A/S. Chairman at Mangaard & Partners. Advisory
Board member at Lakrids by Johan Bülow. Director of Executive Services at
AS3 Executive. CEO at Toms Gruppen A/S.
2018 – 2021 Member of the Board of Directors in various subsidiaries in the
BioPorto Group;
2011 – 2018 CFO and Member of the Board of Directors in various
subsidiaries in the Bavarian Nordic Group; 2005 – 2008 Member of the
Board of Directors at Søndagsavisen A/S (now North Media);
2004 – 2008 Chairman and member of various Boards of Directors in the
Nordisk Film Group;
2001 – 2004 CFO at Berlingske Tidende;
2010-2018 Infinity Capital Group, Managing Director
2001-2010 Erste Bank, various positions
Position of
dependency
Independent in relation to the company and the management and in
relation to Major Shareholders.
Independent in relation to the Company and the management and in
relation to Major Shareholders.
Independent in relation to the company and the management, but not
independent in relation to Major Shareholders.
Shareholding
142,304 shares.
N/A
N/A
20 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Leadership team
Jeppe Faurfelt
Co-founder & CEO (since 2024)
Jannik Jepsen
CTO (since 2016)
Professional
background
As co-founder and CCO of Linkfire, Jeppe Faurfelt has
gained a vast experience within commercial strategy,
operations, and developing the client-facing
organization to drive overall business growth. Before
joining Linkfire, Faurfelt served as a project manager
for the MeWe Group, a full-service ad agency
specializing in business development, branding, and
unique digital solutions. In addition, Faurfelt worked as
a marketing project manager for Downtown.dk, where
focusing on brand management and website tracking.
Jannik Jepsen has a M.Sc. in Interaction Design, and
extensive experience from various projects on
consumer connectivity within in-car infotainment
systems in collaboration with brands such as Volvo
and Continental. Jepsen has had various student
jobs related to Web and graphical design for
eCommerce and marketing purposes, and has more
than 5 years of experience of managing and
developing Linkfire’s infrastructure, technology and
product.
Education
B.Sc. in Social Science and Business Studies from
Roskilde Universitetscenter.
M.Sc. in Interaction from Aalborg University.
Other ongoing
assignments
-
Director of JJepsen Holding ApS.
Shareholding
3,728,198 shares.
503,923 shares.
21 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
22 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Corporate governance (continued)
23 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Financial statements
⇢ CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
⇢ CONSOLIDATED STATEMENT OF FINANCIAL POSITION
⇢ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
⇢ CASH FLOW STATEMENT
⇢ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
24 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Consolidated statement of comprehensive income
DKK thousand
Note
2024
2023
DKK thousand
2024
2023
Attributable to:
Revenue
6
Earnings per share (DKK)
(0.2 )
(0.4 )
Cost of Sales
(8,921 )
(9,139 )
Earnings per share, diluted (DKK)
(0.2 )
(0.4 )
Gross Profit
Other comprehensive income
External Expenses
(11,580 )
(16,573 )
Other comprehensive income that may be reclassified to
profit or loss in subsequent periods (net of tax):
Staff Costs
7
(17,933 )
(31,237 )
Exchange differences on translation
of foreign operations
Other staff Costs
7
(1,707 )
(376 )
EBITDA
(8,572 )
Other comprehensive income for the year, net of tax
(376 )
Depreciation, amortization and impairment losses
9
(20,170 )
(19,480 )
Total comprehensive income for the year
(21,892 )
(48,865 )
EBIT
(11,849 )
(28,052 )
Financial Income
10
Financial Expenses
11
(10,771 )
(7,328 )
Profit/(loss) before tax
(21,181 )
(33,995 )
Tax for the year
12
(334 )
(15,579 )
Profit/(loss) for the year
(21,516 )
(49,574 )
25 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Consolidated statement of financial position
DKK thousand
Note
2024
2023
DKK thousand
Note
2024
2023
Assets
Equity and liabilities
Non-current assets
Equity
Intangible assets
13
Share capital
19
Property, plant and equipment
14
Retained Earnings
(17,726 )
(8,526 )
Right-of-use assets
15
Translation reserve
(66 )
Deposits
16
Other capital reserve
21
Total non-current assets
Total Equity
(16,642 )
(4,903 )
Current assets
Non-current liabilities
Trade Receivables
17
Interest bearing liabilities
20
Right-of-use assets
15
Lease liabilities
23
Other receivables
Other payables
Prepayments
Total non-current liabilities
Cash
Total Current Assets
Current liabilities
Interest-bearing liabilities
20
Total assets
Contract liabilities
Lease liabilities
23
Trade payables
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
26 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Consolidated statement of changes in equity
DKK thousand
Share
capital
Retained
earnings
Translation
reserve
Other capital
reserve
Total
DKK thousand
Share
capital
Retained
earnings
Translation
reserve
Other
capital
reserve
Total
Balance at 1 January, 2024
(8,526 )
(4,903 )
Balance at 1 January, 2023
(399 )
Net profit/(loss) for the period
(21,516 )
(21,516 )
Net profit/(loss) for the period
(49,574 )
(49,574 )
Other comprehensive income
(376 )
(376 )
Other comprehensive income
Total Comprehensive income
(30,041 )
(66 )
(26,794 )
Total Comprehensive income
(7,583 )
(4,903 )
Payment for the right to subscribe shares
Capital increase
Transaction cost
(175 )
(175 )
Transaction cost
Share-based payments
(2,163 )
Share-based payments
(943 )
Balance at 31 December, 2024
(17,726 )
(66 )
(16,642 )
Balance at 31 December, 2023
(8,526 )
(4,903 )
During the period no dividend was paid
During the period no dividend was paid
Payment for the right to subscribe for shares has not been fully settled at the balance sheet date, and a receivable amounting to
DKK 6,676 thousand has been recognised as Other receivables on the balance sheet date.
27 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
Cash flow statement
DKK thousand
Note
2024
2023
DKK thousand
Note
2024
2023
Operating Loss
(11,849 )
(28,052 )
Proceeds from borrowings
Depreciation, amortization and impairment losses
9
Repayment of borrowings
(1,000 )
(19,042 )
Change in working capital
18
(832 )
(3,964 )
Payment of principal portion of lease liabilities
15
(1,214 )
(4,044 )
Share-based payment expense
8
Transaction cost
(175 )
Cash flow from ordinary operating activities
(11,592 )
Payment for the right to subscribe shares
Cash flow financing activities
Interest paid
(7,609 )
(787 )
Cash flow from operating activities
(119 )
(12,379 )
Change in cash and cash equivalents
Net cash flow
(719 )
(1,976 )
Development expenditures
13
(11,478 )
(16,178 )
Net foreign exchange difference
(382 )
Change in deposits
16
Cash, Begin
Cash flow from investing activities
(11,478 )
(15,662 )
Cash, End
28 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
1
Accounting policies
14
Property, plant and equipment
2
Going concern
15
Right-of-use assets
3
Adoption of new and amended standards
16
Deposits
4
Critical accounting judgements and key sources of estimation
uncertainty
17
Trade receivables
5
Segment information
18
Working capital changes
6
Revenue
19
Share capital and earnings per share
7
Staff costs
20
Interest-bearing liabilities
8
Share-based payments
21
Other capital reserve
9
Depreciation, amortization and impairment losses
22
Financial risks
10
Financial income
23
Liabilities arising from financing activities
11
Financial expenses
24
Related parties
12
Tax for the year
25
Events after the reporting period
13
Intangible assets
26
Guarantees, contingent liabilities and collateral
29 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
1. Accounting policies
General information
Linkfire A/S is a limited liability company and is incorporated in
Denmark. The parent company and its subsidiaries (referred to as
the “Group” or “Linkfire”) are on a mission to frictionlessly connect
fans to the world of entertainment. Linkfire is a technology
company providing marketing and promotional services within the
music and entertainment industries.
Basis of preparation
The financial statements are presented in Danish kroner (DKK). All
amounts have been rounded to the nearest DKK thousand, unless
otherwise indicated. The financial statements have been prepared
on a going concern basis and in accordance with the historical cost
convention, except where IFRS explicitly requires use of other
values.
For the purpose of clarity, the financial statements and the notes to
the financial statements are prepared using the concepts of
materiality and relevance. This means that line items not
considered material in terms of quantitative and qualitative
measures or relevant to financial statement users are aggregated
and presented together with other items in the financial
statements. Similarly, information not considered material is not
presented in the notes.
The accounting policies, except as described below, have been
applied consistently during the financial year and for the
comparative figures.
Basis of consolidation
The consolidated financial statements comprise the financial
statements of Linkfire A/S (the Parent) and subsidiaries which are
entities controlled by Linkfire A/S. The Group controls an entity
when it directly or indirectly owns more than 50% of the voting
rights or may otherwise exercise a controlling influence.
Name
Country
Ownership
Linkfire Inc.
USA
100%
Principles of consolidation
The consolidated financial statements are prepared on the basis of
the financial statements of the Parent and its subsidiaries.
The consolidated financial statements are prepared by combining
items of a uniform nature and subsequently eliminating
intercompany transactions, internal shareholdings and balances
and unrealised intercompany gains or losses. The financial
statements used for consolidation are prepared in accordance with
the Group’s accounting policies.
The accounting items of subsidiaries are recognized 100% in the
consolidated financial statements. Investments in subsidiaries are
offset by the interest’s share of subsidiaries’ net assets at the
acquisition date at fair value.
Accounting policies are described in full in this note below.
Foreign currency translation
Transactions denominated in currencies other than the functional
currency are considered transactions in foreign currency.
On initial recognition, transactions denominated in foreign
currencies are translated to the functional currency applying the
exchange rates at the transaction date. Foreign exchange rate
adjustments arising between the transaction date and the date of
payment are recognised in the income statement under financial
income or financial expenses.
Monetary assets and liabilities denominated in foreign currencies
are translated at the exchange rates at the reporting date. The
difference between the exchange rates at the reporting date and at
the date of transaction or the exchange rate in the latest financial
statements is recognised in the income statement under financial
income or financial expenses.
Cash flow statement
The cash flow statement is presented using the indirect method
and shows cash flows from operating, investing, and financing
activities for the year as well as the Group’s cash and cash
equivalents at the beginning and end of the financial year.
Cash flows from operating activities are calculated based on
operating profit/loss, adjusted for the cash flow effect of non-cash
operating items, working capital changes, financial expenses paid
and income tax paid.
Cash flows from investing activities comprise payments in
connection with the acquisition and sale of non-current intangible
assets, property, plant, and equipment as well as financial assets.
Cash flows from financing activities comprise payments arising
from changes in the size or composition of the Group’s share
capital and dividend paid. Cash and cash equivalents comprise
cash at bank and in hand.
30 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
1. Accounting policies (continued)
Income statement
Revenue
The Group recognizes revenue from the following major sources
being subscriptions and commissions. Revenue mainly derives
from subscription fees charged for customers’ access to the
Group’s marketing platform software. For software contracts, the
total contract sum is allocated to the separate performance
obligations for the purpose of revenue recognition.
Revenue recognition requires an agreement with the customer,
which creates enforceable rights and obligations between the
parties, has commercial substance, and identifies payment terms.
In addition, it must be probable that the consideration determined
in the contract will be collected.
Revenue is measured based on the consideration to which the
Group expects to be entitled in a contract with a customer and
exclude amounts collected on behalf of third parties. The Group
recognizes revenue when it transfers control of the license or
service to a customer. All revenue is derived from contracts with
customers.
Subscription fees
Subscription fees cover license, hosting and maintenance, as is
standard in the software as a service subscription offering. The
license is not distinct from the hosting service, revenue is therefore
recognized over time, as the customers are receiving and
consuming the benefits of the Group‘s performance while
performing. The hosting service and maintenance are therefore
bundled into one performance obligation together with the license.
Revenue is recognized over the duration of the contract on a
straight line basis.
Non-recurring subscription fees comprise material contracts that
are recognized over time as production of each project is carried
out. Revenue from fixed price projects is recognized based on the
value corresponding to the stage of completion method.
Revenue is recognized when value to the customer of the services
is transferred and completion at the balance sheet date can be
measured reliably as Linkfire satisfies its performance obligations
and it is probable that the economic benefits including payments
will flow to the Group. Linkfire considers this output method to be
an appropriate measure of the progress towards complete
satisfaction of these performance obligations under IFRS 15. The
timing of revenue recognition often differs from contract payment
schedules. Amounts billed in accordance with customer contracts,
but not yet earned, are recorded and presented as part of “Contract
liabilities”.
Commissions
Affiliate partners are creating tokens and supplying these to
Linkfire, which allows the affiliate partners to track referrals from
Linkfire. Linkfire is implementing the tokens in their infrastructure,
and in return the affiliate partners are paying commissions based
on the result of approved transactions and qualifying purchases.
Commissions are treated as one performance obligation, as they
constitute a series of services. Revenue is recognized on a running
basis because the affiliate partner receives and consumes the
benefits of the Group‘s performance while performing.
The recognition point in time is when the revenue generating
conversion, according to the individual contract, is earned by the
affiliate partner.
Cost to obtain a contract
The Group pays sales commission to its employees based on the
contracts that they obtain for sales of licenses. The commissions
are expensed when incurred as the underlying customer contracts
have a duration of less than a year. These are one-off payments
directly related to specific sales, and are as such to be recognized
as incremental costs.
Cost of sales
Cost of sales comprise costs incurred to achieve the year’s revenue
including hosting and transaction costs.
External expenses
External expenses comprise sales and marketing costs, external
consultancy costs, other employee-related costs, IT and software
costs, investor relations costs, loss allowances for doubtful trade
receivables and other administrative expenses.
Staff costs
Staff costs consist of salaries, sales commissions, bonuses,
pensions and social costs, share-based payments, vacation pay,
and other benefits. Salaries, bonuses, pensions and social costs,
share-based payments, vacation pay, and other benefits are
recognised in the year in which the associated services are
rendered by the employees.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
1. Accounting policies (continued)
Share-based payments
The Board of Directors, the Board of Management and other
employees have been granted warrants. The warrants are
measured at fair value at the grant date and are recognized as an
expense in staff costs over the vesting period. Expenses are set off
against equity (equity-settled share-based payments). The fair
value of the warrants is measured using the Black & Scholes
valuation method or other generally accepted valuation techniques.
The calculation takes into account the terms and conditions under
which the warrants are granted. Fair value is not subsequently
remeasured. If subsequent modifications to a warrant program
increase the value of the warrants granted, measured before and
after the modification, the increase is recognized as an expense. If
the modification occurs before the vesting period, the increase in
value is recognized as an expense over the period for services to
be received. If the modification occurs after the vesting date, the
increase in value is recognized as an expense immediately.
Consideration received for warrants sold is recognized directly in
equity.
Financial income and financial expenses
Financial income and expenses include interest income, interest
expense, lease interest and amortization, amortization of
borrowing issue costs and realized and unrealised exchange gains
and losses.
Tax
Tax on the profit/loss for the year comprises the year’s current tax
and changes in deferred tax. The tax expense relating to the
profit/loss for the year is recognised in the income statement, and
the tax expense relating to items recognized in other
comprehensive income and directly in equity, respectively, is
recognised in other comprehensive income or directly in equity.
Exchange rate adjustments of deferred tax are recognised as part
of the adjustment of deferred tax for the year.
Current tax payable and receivable is recognised in the balance
sheet as the expected tax on the taxable income for the year,
adjusted for tax paid on account. The current tax charge for the
year is calculated based on the tax rates and rules enacted at the
balance sheet date.
Deferred tax is calculated using the liability method on all
temporary differences between the accounting and taxable values
of assets and liabilities.
Deferred tax assets are assessed yearly and only recognized to the
extent that it is more likely than not that they can be utilized.
Deferred tax assets, including the tax value of tax losses carried
forward, are recognised as other non-current assets and measured
at the amount at which they are expected to be realized, either by
setting off deferred tax liabilities or by setting off tax on future
earnings within the same legal entity or a jointly taxed entity.
Deferred tax is measured based on the tax legislation and statutory
tax rates in the respective countries that will apply under the
legislation in force on the balance sheet date when the deferred tax
asset is expected to crystallize as current tax. Changes in deferred
tax resulting from changes in tax rates are recognised in the
income statement.
The Group recognizes deferred tax assets relating to losses carried
forward when Management finds that these can be offset against
taxable income in the foreseeable future. An assessment is made
taking into consideration the effect of restrictions in utilization in
local tax legislation. Future taxable income is assessed based on
budgets as well as Management’s expectations regarding growth
and operating margin in the coming years.
Balance sheet
Intangible assets
Intangible assets with determinable useful lives comprise
completed and in progress development projects and are
measured at cost less accumulated amortization and impairment
losses. Completed development projects by the Group are
recognized as an asset if the cost of development is reliably
measurable and an analysis shows that future economic benefits
from using the software exceed the cost. Cost is defined as
development costs incurred to make the software ready for use
and consists primarily of direct salaries and other directly
attributable development costs.
Once a software application has been developed, the cost is
amortized over the expected useful life on a straight-line basis. If
the useful life cannot be estimated, it is tested for impairment
yearly or if indications of impairment arise.
Amortization and impairment charges are recognised in the
income statement.
The amortization periods used are 5 -10 years.
Expected useful lives are reassessed regularly. The Group regularly
reviews the carrying amounts of its finite-lived intangible assets to
determine whether there is an indication of an impairment loss.
Intangible assets, including development projects in progress, are
tested for impairment at least on a yearly basis, or if indications of
impairment exist. Intangible assets are written down to their
recoverable amount if the carrying amount exceeds the higher of
the fair value less costs to sell and the value in use. Depreciation
and impairment charges are recognized in the income statement.
Property, plant and equipment
Property, plant and equipment comprises other fixtures and fittings,
tools and equipment and are measured at cost less accumulated
32 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
1. Accounting policies (continued)
depreciation and accumulated impairment. Other fixtures and
fittings, tools and equipment are depreciated on a straight-line
basis over the expected useful lives of the finite-lived assets, which
are as follows:
Other fixtures and fittings, tools and equipment – 3-5 years
Property, plant and equipment is tested for impairment if
indications of impairment exist. Property, plant and equipment is
written down to its recoverable amount if the carrying amount
exceeds the higher of the fair value less costs to sell and the value
in use. Depreciation and impairment charges are recognised in the
income statement.
Leases
When entering into an agreement, the Group assesses whether an
agreement is a lease agreement or contains a lease element.
The right-of-use asset is measured at cost, which is calculated as
the present value of the lease obligation plus any direct costs
related to the entering into of the lease and prepaid lease
payments.
The right-of-use asset is depreciated on a straight-line basis over
the shorter of the lease term and the useful life of the asset.
The Group leases properties which include a service element in the
payments to the lessor. This service is deducted from the lease
payment when measuring the lease obligation. Where the Group
cannot reliably separate lease and non-lease items, it is considered
a single lease payment.
Short leases with a maximum lease term of 12 months and leases
where the underlying asset has a low value are not recognised in
the statement of financial position. The lease term is defined as
the non-cancellable period of a lease together with periods covered
by options to extend the lease if it is reasonably certain that the
options will be exercised and periods covered by options to
terminate the lease if it is reasonably certain that the options will
not be exercised. A number of leases contain extension and
termination options in order to guarantee operational flexibility in
managing the leases.
The lease obligation, which is recognised under “Lease liabilities”, is
measured at the present value of the remaining lease payments,
discounted by the Group’s incremental loan interest rate, if the
implicit interest rate is not stated in the lease agreement or cannot
reasonably be determined. The lease obligation is subsequently
adjusted if:
● The value of the index or interest rate on which the lease
payments are based changes.
● There is a change in the exercise of options to extend or
shorten the lease period due to a material event or a
material change in circumstances which is within the
control of the lessee.
● The lease term is changed as a result of exercising an
option to extend or shorten the lease term.
Subsequent adjustments of the lease obligation are recognized as
a correction to the right-of-use asset. However, if the right-of-use
asset has a value of DKK 0, a negative reassessment of the
right-of-use asset is recognized in the income statement.
Deposits
On initial recognition, deposits are measured at fair value and
subsequently at amortized cost less impairment losses, if any.
Trade receivables
For trade receivables, the Group applies a simplified approach in
calculating expected credit losses (ECLs). Therefore, the Group
does not track changes in credit risk, but instead recognizes a loss
allowance based on lifetime ECLs at each reporting date.
Provisions for bad debts are determined on the basis of an
individual assessment of each receivable, and, in respect of trade
receivables, a general provision is also made based on its historical
credit loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment.
However, in certain cases, the Group may also consider a financial
asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding
contractual amounts in full before taking any credit enhancements
held by the Group into account. Trade receivables are written off
when all possible options have been exhausted and there is no
reasonable expectation of recovery.
The cost of allowances for expected credit losses and write-offs
for trade receivables are recognised in the income statement under
other external expenses.
The maximum exposure to credit risk at the reporting date is the
carrying value of trade receivables in note 17. The Group does not
hold collateral as security.
Prepayments
Prepayments comprise incurred costs relating to subsequent
financial years. Prepayments are measured at cost.
Interest-bearing liabilities
Debt to credit institutions and other interest-bearing liabilities.
Interest-bearing liabilities are measured at amortized cost.
Trade payables and other payables
Other payables include bonus and commission accruals, vacation
pay obligations, payroll taxes and VAT. Payables are measured at
amortized cost.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
2. Going concern
Linkfire A/S’s continued operations depend on refinancing (capital
injection from investors or new loans) of interest-bearing liabilities
in the range of DKK 40 million. Furthermore, postponement of
repayment of the current portion of the interest-bearing liabilities in
the range of DKK 18 million is required for the company to continue
operations. Management expects that both the refinancing and
postponement of repayments due in 2025 in the range of DKK 18
million will be concluded before the end of September 2025. The
refinancing may be conducted in one or more steps, and the
company’s management has constructive dialogues regarding
potential capital injections and dialogues with both current and
potential new debt providers, Management has, on this
background, decided to prepare the financial statements on a
going concern basis.
However, due to uncertainty related to both refinancing and terms
and conditions related to postponement, there is material
uncertainty related to going concern.
3. Adoption of new and amended standards
Management has assessed the impact of new or amended
accounting standards and interpretations (IFRSs) issued by the
IASB and IFRSs endorsed by the European Union effective on or
after 1 January 2025. Management assessed that application of
these has not had a material impact on the financial statements for
2024.
Furthermore, Management has assessed the impact of new or
amended accounting standards and interpretations (IFRSs) issued
by the IASB that have not yet become effective. Management does
not anticipate any significant impact on future periods from the
adoption of these amendments.
4. Critical accounting judgments and key
sources of estimation uncertainty
As part of the preparation of the financial statements,
Management makes a number of accounting estimates and
assumptions as a basis for recognising and measuring the Group’s
assets, liabilities, income and expenses as well as judgments made
in applying the entity’s accounting policies. The estimates,
judgments and assumptions made are based on experience gained
and other factors that are considered prudent by Management in
the circumstances, but which are inherently subject to uncertainty
and volatility.
The assumptions may be incomplete or inaccurate, and
unforeseen events or circumstances may occur, for which reason
the actual results may differ from the estimates and judgements
made. The accounting policies are described in detail in note 1 to
the financial statements to which we refer.
Management considers the following accounting estimates and
judgments to be significant in the preparation of the financial
statements.
Development costs
The Group capitalizes costs for software development projects.
Initial capitalization of costs is based on management’s judgment
that technological and economic feasibility is confirmed, usually
when a product development project has reached a defined
milestone according to an established project management model.
In determining the amounts to be capitalized, management makes
assumptions regarding the expected future cash generation of the
project and the expected period of benefits. The measurement of
development projects is dependable on future earnings, which
there is a natural uncertainty related to. If future growth continues
to be lower than mid-term financial targets this could entail an
impairment loss of the value of capitalized Development projects.
Due to these circumstances, there is material uncertainty related to
the value of capitalised development projects.
At 31 December 2024, the carrying amount of capitalized
development costs was DKK 67,649 thousand (2023: DKK 74,978
thousand). In 2024, DKK 11,478 thousand were capitalized (2023:
DKK 16,178 thousand)..
Determining the lease term of contracts with renewal and
termination options – Group as lessee
The Group determines the lease term as the non-cancellable term
of the lease, together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Group applies
judgment in evaluating whether it is reasonably certain whether or
not to exercise the option to renew or terminate the lease.
Impairment of non-financial items
At each reporting date, it is required to assess whether there is any
indication that an asset may be impaired, and an impairment test is
conducted by Management in relevant cases. Impairment is
recognized when the carrying amount of an asset exceeds its
recoverable amount.
As a result of Management's impairment assessment, Linkfire did
not recognize any impairment loss in 2024 (2023: DKK 0). For
34 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
4. Critical accounting judgments and key
sources of estimation uncertainty (continued)
further description please refer to note 13 of the financial
statements. Growth in 2024 and outlook corresponds to a lower
growth than mid-term financial targets. If future growth continues
to be lower than mid-term financial targets this could entail an
impairment loss of the value of capitalized Development projects.
Share-based payments
Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation model,
which depends on the terms and conditions of the grant. This
estimate also requires determination of the most appropriate
inputs to the valuation model, including the expected life of the
share option or appreciation right, volatility and dividend yield and
making assumptions about them. The assumptions and models
used for estimating fair value for share-based payment
transactions are disclosed in note 8.
The assumptions may be incomplete or inaccurate, and
unforeseen events or circumstances may occur, for which reason
the actual results may differ from the estimates and judgments
made. On 18 January 2024, in connection with the Delisting, all
warrant holders were entitled to exercise the warrants allocated
under the warrant programs adopted by the previous general
meetings. As a result of this event, no warrants have been
exercised and causing all previously allocated warrants to lapse.
In 2024, no cost of share-based payments was recognised due to
the lapse of the program following the delisting in January 2024
(2023: DKK 943 thousand).
Deferred tax
Linkfire has not accounted for deferred tax assets related to tax
losses carried forward. Linkfire’s tax losses can be carried forward
indefinitely. The deferred tax assets shall be recognized based on
expected earnings for the next 3-5 years and the possibility to
utilize the deferred tax assets to be offset against positive taxable
income in each jurisdiction. The Group has concluded that the
deferred tax assets will not be fully recoverable using the estimated
future taxable income based on business plans and budgets for
the Group. Deferred tax assets not recognized have a total value of
DKK 35,504 thousand (2023: 32,374 thousand).
5. Segment information
For management purposes and based on internal reporting
information, Linkfire is organized in only one operating segment, as
the information reported includes operating results at a
consolidated level only. The company setup and costs related to
the main nature of the business are not attributable to any specific
revenue stream or customer type and are therefore borne centrally.
The results of the single reporting segment are shown in the
statement of comprehensive income.
For the split of revenue, please refer to note 6.
35 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
6. Revenue
Geographic Information
As an online platform,the Group generates revenue from customers located worldwide. For this purpose,
internal reporting divides revenue according to the NAM (Northern America),the EMEA region (Europe,
Middle East and Africa) as well as APAC (Asia and Oceania) and LATAM (Latin America and the
Caribbean).
2024
2023
2024
2023
DKK thousand
Revenue
NAM
25,065
31,231
EMEA
10,365
12,710
DKK thousand
APAC
10,227
5,218
Subscriptions*
28,994
32,950
LATAM
1,098
925
Commissions
17,761
17,135
Total
46,755
50,084
Total
46,755
50,084
%-split
%-split
NAM
54
62
Subscriptions
62
61
EMEA
22
25
Commissions
38
39
APAC
22
10
Total
100
100
LATAM
2
2
Total
100
100
* A total of DKK 0 corresponds to non-recurring subscription revenue recognized in
2024 (2023: DKK 2,658 thousand).
In 2024, two customers exceeded 10% of total revenue and accounted for 43%.
In 2023, two customers exceeded 10% of total revenue and accounted for 44%.
36 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
6 Revenue (continued)
2024
2023
Contract balances (liability)
DKK thousand
Cost at 1 January
6,008
9,927
Recognised during the year
(28,994)
(32,950)
Additions
30,330
29,031
Cost at 31 December
7,344
6,008
Management expects that 100.0% of the transaction price allocated to the unsatisfied contracts as of the
year ended 2024 will be recognised as revenue during the next reporting period (DKK 7.3 million).
37 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
7. Staff Costs
2024
2023
2024
2023
DKK thousand
DKK thousand
Gross salaries
22,752
39,861
Key Management Personnel
Share-based payments
0
943
Salaries
4,357
10,189
Other social security costs
600
1,052
Share-based payments
0
69
Other staff costs
2,302
7,265
Total
4,357
10,258
Total
25,654
49,121
Decrease in Key Management Personnel costs is related to operating with a more
streamlined organisation, including less Management FTEs than previous years.
Capitalized Salaries
(7,721)
(16,177)
Total
17,933
32,944
Number of employees at year end
39
60
Employment contracts for members of the Key Management Personnel contain terms and
conditions that are common to those of their peers in similar companies, including terms
of notice and non-competitive clauses.
Average numbers of employees during the year
Board of Directors
Salaries
500
925
Share-based payments
0
682
Total
500
1,607
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
8. Share-based payments
DKK thousand
2024
2023
Specification of outstanding warrants:
Cost of share-based payments
0
943
Number of warrants
Weighted average
exercise price
DKK
Boards of
Directors
Key Management
Personnel
Employees &
Advisors
Total
Total
0
943
Costs of share-based payments are recognized as staff costs with a corresponding effect in equity.
Consideration received for warrants sold is recognized directly in equity. The share based incentive programs
will only be settled in shares and no cash
Corporate conversion
6.53
972
-
53
1,025
On 18 January 2024, in connection with the Delisting, all warrant holders were entitled to exercise the
warrants allocated under the warrant programs adopted by the previous general meetings.
As a result of this event, no warrants have been exercised and causing all previously allocated warrants to
lapse.
Granted
0.71
936
1,740
2,676
Transferred
-
-
-
-
-
Exercised
-
-
-
-
-
The board of directors was authorized on:
Canceled
2.90
128
-
-
128
28 June 2024, to issue up to 7,158,154 warrants in one or more rounds to the Company’s key employees,
consultants and members of the executive management granting them a right to subscribe for shares of up to
a total nominal amount DKK 0.01 each.
The warrants are to be vested linearly over 36 months after the grant date.
As of the reporting date, no warrants have been allocated.
Outstanding at 31 December 2023
2.28
1,100
936
1,793
3,829
Granted
-
-
-
-
-
Transferred
-
-
-
-
-
Exercised
-
-
-
-
-
Canceled
(2.28)
(1,100)
(936)
(1,793)
(3,829)
Outstanding at 31 December 2024
-
-
-
-
-
39 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
8. Share-based payments (continued)
Outstanding warrants have the following characteristics:
The fair value of the warrants issued is measured at calculated market price at the
grant date based on the Black & Scholes valuation method. The calculation is
based on the following assumptions at the grant date:
Warrants outstanding
Weighted average
exercise price DKK
Vesting period
Exercise
period
2024
2023
Number of warrants
Warrants granted
in 2024
Warrants granted
in 2023
Warrants outstanding
Average share price (DKK)
-
0.64
Warrants granted in 2022
3.01
May 22 - Jun
25
Apr 25 - Apr 27
1,100
Warrants granted in 2023
0.71
Mar 23 - Apr
26
Feb 26 - Feb
28
3,776
2,676
Expected volatility rate (% p.a.)
-
0.54
Warrants lapsed in 2024
-
(3,776)
-
Risk-free interest rate (% p.a.)
-
0.04
Outstanding at 31 December
-
3,776
Expected warrant life (no. years)
-
5.00
Exercise price (DKK)
-
0.71
DKK thousand
2024
2023
Average remaining life of outstanding warrants at
31 December (years)
-
4.50
Fair value per granted warrant (DKK)
-
0.46
Exercise price for outstanding warrants at 31
December (DKK)
-
0.71-8.77
Fair value all granted warrants, after
dilution (DKK thousand)
-
253
Volatility rate was applied based on the annualized volatility on Linkfire's stock and
relevant peer groups derived from the standard deviation of daily observations
over 12 months ending December 2023.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
9. Depreciation, amortization and impairment losses
12. Tax for the year
DKK thousand
2024
2023
DKK thousand
2024
2023
Amortization of intangible assets
18,807
15,572
Current tax for the year income
(334)
(50)
Depreciation of property plant and equipment
65
189
Adjustments to previous years tax
-
(15,529)
Depreciation of right-of-use assets
1,913
3,719
Total
(334)
(15,579)
Reversal of impairment loss
(615)
-
Total
20,170
19,480
Adjustment to previous years are related to the ongoing Tax Credit case, where the recognized receivables for FY
2020, 2021 and 2022 have been fully reversed.
For further information on the impairment loss of intangible assets, please refer to note 13 of
the consolidated financial statements.
DKK thousand
2024
2023
Tax calculated as 22% of profit/loss before tax
4,660
7,479
10. Financial income
Non-capitalised tax assets
(4,594)
(1,436)
DKK thousand
2024
2023
Non-deductible expenses
(400)
(400)
Foreign exchange income and other adjustments
1,438
1,385
Effective tax
(334)
5,643
Total
1,438
1,385
Tax rate for the year (%)
-1.6%
15.3%
11. Financial expenses
Due to uncertainty of utilization of the tax loss carry-forward, the Group has not recognised any deferred tax assets.
Deferred tax assets not recognized have a total value of DKK 35,504 thousand (2023: 32,374 thousand).
DKK thousand
2024
2023
Interest expenses
10,142
6,158
Foreign exchange losses and other adjustments
468
380
Interest on lease liabilities
161
790
Total
10,771
7,328
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
13. Intangible assets
DKK thousand
Completed
development
projects
Development
projects in
progress
Total
2024
Completed development projects comprise software development costs related to development of the
existing software. The software is under continuous development for the use of customers and partners and
is sold as i) a license to use the software for a given period, and ii) as an integration component on websites
and in applications. Users have access to upgrades and new functionalities during the contract period.
Development costs for the year cover both development of the front-end and the back-end part of the software
solution. Both parts are to increase the user experience, functionalities within the software as well as expand
upon the technical applications of the software in order to increase the Group’s revenue by maintaining
existing customers and partners and acquire new customers and partners.
It is Management’s assessment that the expected useful lives of the finite-lived assets, as well as the
expected future revenue streams from the assets, are sufficient to cover the value of recognised developed
software at the reporting date.
In 2024, Linkfire expensed DKK 5,104 thousand (2023: 3,408 thousand) for development projects not meeting
the recognition criteria applicable to internally generated intangible assets.
Sub-projects together (the platform) constitute one single cash-generating unit.
As a result of the impairment test made by Management, Linkfire did not recognise any impairment loss in
2024.
Cost at 1 January
134,186
-
134,186
Transfers
11,478
(11,478)
-
Additions
-
11,478
11,478
Cost at 31 December
145,664
-
145,664
Amortization and impairment at 1 January
(59,208)
-
(59,208)
Amortization during the year
(18,807)
-
(18,807)
Amortization and impairment at 31 December
(78,015)
-
(78,015)
Carrying amount at 31 December
67,649
-
67,649
2023
Cost at 1 January
118,008
-
118,008
Transfers
16,178
(16,178)
-
Additions
-
16,178
16,178
Cost at 31 December
134,186
-
134,186
Amortization and impairment at 1 January
(43,636)
-
(43,636)
Amortization during the year
(15,572)
-
(15,572)
Amortization and impairment at 31 December
(59,208)
-
(59,208)
Carrying amount at 31 December
74,978
-
74,978
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
14. Property, plant and equipment
15. Right-of-use assets
DKK thousand
Other fixtures and fittings,
tools and equipment
Leasehold
improvements
Total
DKK thousand
Offices
Vehicles
Equipment
Total
2024
2024
Cost at 1 January
906
-
906
Cost at 1 January
13,950
81
2,128
16,159
Disposals
(86)
(86)
Disposals
(173)
-
-
(173)
Cost at 31 December
820
-
820
Cost at 31 December
13,777
81
2,128
15,986
Depreciation at 1 January
(880)
-
(880)
Depreciation at 1 January
(11,410)
(81)
(1,340)
(12,831)
Depreciation during the year
65
-
65
Depreciation during the year
(1,609)
-
(304)
(1,913)
Depreciation at 31 December
(815)
-
(815)
Depreciation at 31 December
(13,019)
(81)
(1,644)
(14,744)
Carrying amount at 31 December
5
-
5
Carrying amount at 31 December
758
-
484
1,242
2023
Cost at 1 January
1,097
121
1,218
2023
Disposals
(191)
(121)
(312)
Cost at 1 January
12,608
81
1,771
14,460
Cost at 31 December
906
-
906
Additions
1,342
-
357
1,699
Depreciation at 1 January
(816)
(121)
(937)
Cost at 31 December
13,950
81
2,128
16,159
Disposals
125
121
246
Depreciation during the year
(189)
-
(189)
Depreciation at 1 January
(8,174)
(81)
(1,048)
(9,303)
Depreciation at 31 December
(880)
-
(880)
Depreciation during the year
(3,236)
-
(292)
(3,528)
Carrying amount at 31 December
26
-
26
Depreciation at 31 December
(11,410)
(81)
(1,340)
(12,831)
Carrying amount at 31 December
2,540
-
788
3,328
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
15. Right-of-use assets (continued)
16. Deposits
Carrying amounts of lease liabilities and movements during the period:
DKK thousand
2024
2023
DKK thousand
2024
2023
At 1 January
3,333
5,701
Cost at 1 January
690
1,206
Additions
73
1,699
Disposals
-
(516)
Disposals/Terminations
(744)
-
Additions
52
-
Accrual of interest
88
213
Cost at 31 December
742
690
Payments
(1,214)
(4,044)
Sub-lease Income
(771)
-
Exchange rate adjustments
422
(236)
17. Trade Receivables
At 31 December
1,187
3,333
Non-Current
0
2,489
DKK thousand
2024
2023
Current
1,187
844
Trade receivables
5,781
4,588
The following amounts have been recognised in the income statement:
Write-downs
(88)
-
DKK thousand
2024
2023
Total
5,693
4,588
Depreciation expense of right-of-use assets
1,913
3,528
Expected credit loss
The following table details the maturity of trade receivables. The Group has
assessed their expected credit losses on an individual level, and has
recognised an expected loss on debtors of DKK 88 thousand (2023: DKK 0
thousand) related mainly to debtors with more than 12 months due.
Interest expense on lease liabilities
88
213
Total amount recognised in the income statement
2,001
3,741
The Group had total net outflow for leases of DKK 1,214 thousand (2023: DKK 4,044 thousand).
The Group leases offices, and lease terms are negotiated on an individual basis and contain different
terms and conditions.
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Notes to the consolidated financial statements
17. Trade Receivables (continued)
19. Share capital and earnings per share
DKK thousand
Not Past due
Overdue by
0-15 days
Overdue by
16-30 days
Overdue by
>30 days
Write-downs
Carrying
amount of
receivables
At 31 December 2024, the share capital consisted of 114,798,548 (2023:
114,989,051) shares with a nominal value of DKK 0.01 each.
The shares are not divided into classes and carry no right to fixed income
31 December 2024
DKK thousand
2024
Trade receivables
4,555
822
171
233
(88)
5,693
31 December 2023
Issued and fully paid shares:
Trade receivables
2,916
1,080
178
414
-
4,588
At 1 January 2023, 114,989,051 shares of DKK 0.01 each
1,150
18. Working capital changes
At 31 December 2023
1,150
DKK thousand
2024
2023
Capital increase
-
Change in receivables and prepayments
2,017
10
Share capital at 31 December 2024
1,150
Change in trade payables and other debt etc
(2,849)
(3,974)
Total
(832)
(3,964)
As per 31. December 2024 equity is negative by DKK (15,563) thousand. As
described under Going concern, Linkfire is in the process of securing
additional equity financing in order to re-establish positive equity.
45 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
19. Share capital and earnings per share
20. Interest-bearing liabilities
DKK thousand
2024
2023
DKK thousand
2024
2023
Earnings per share
Non-current borrowings
The calculation of earnings per share is based on the following:
Debt to credit institutions
8,178
23,272
Profit/(loss) for the year
(21,516)
(49,574)
Other
52,607
35,101
Total
60,785
58,373
Average number of ordinary shares for calculation of earnings per share:
114,798,548
114,989,051
Average diluted effect of outstanding share options
-
-
Current borrowings
Average number of shares for calculation of diluted earnings per share:
114,798,548
114,989,051
Debt to credit institutions
17,871
1,701
Other
5,510
11,911
Earnings per share (EPS)
(0.19)
(0.43)
Total
23,381
13,612
Earnings per share, diluted (DEPS)
(0.19)
(0.43)
As of the reporting date, current borrowings due in 2025 have not been settled upon maturity. The Company
is engaged in ongoing discussions with credit institutions to renegotiate the terms of the debt. For further
details, please refer to Note 2 of the consolidated financial statements.
Other non-current borrowings include a provision for the ongoing Tax Credit Scheme case. As a result of the
uncertainty associated with the outcome of the final decision, the total provisioned liability amounts to DKK
13,263 thousand including principal repayment and accrued interest as of 31 December 2024. For more
information please refer to the 'Financial Review' section.
21. Other capital reserve
Other capital reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including Key Management Personnel, as part of their remuneration. Refer to note 8 for further
details of these plans.
46 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
22. Financial risks
Capital Management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to
shareholders through the optimisation of the debt and equity balances. The capital structure of the Group consists of net
debt and equity. Management reviews the capital structure continually to consider if the current capital structure is in
accordance with the Group’s and shareholders’ interests.
Financial risk management
Due to the nature of its operations, investments, and financing, the Group is exposed to a number of financial risks. It is
Group policy to operate with a low risk profile so that currency risk, interest rate risk and credit risk only occur in commercial
relations. The scope and nature of the Group’s financial instruments appear from the income statement and statement of
financial position in accordance with the accounting policies applied. Provided below is information about factors that may
influence amounts, time of payment, or the reliability of future payments, where such information is not provided directly in
the financial statements. This note addresses only financial risks directly related to the Group’s financial instruments.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations towards the Group, resulting in a financial loss. The
Group is exposed to credit risk primarily related to its trade and other receivables, receivables from group enterprises,
contract assets and cash held at financial institutions. The Group considers accounts receivables in default when they are
due more than 90 days, and the outstanding amount is written off when there is a court order of bankruptcy from the
counterparty. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets.
Foreign currency risk
Currency risk is the risk that arises from changes in exchange rates and affects the Group’s result.
The general objective of the Group’s currency risk management is to limit and delay any adverse impact of exchange rate
fluctuations on earnings and cash flows and thus increase the predictability of the financial results. The Group also aims at
balancing incoming and outgoing payments in local currency as much as possible as well as monitoring the development in
exchange rates and adjust price lists when required.
The greatest exposure in foreign currency is to USD, and in 2024, 93% (2023: 96%) of the Group’s revenue was denominated
in USD. In order to minimize the currency risk related to transactions in USD, the Company’s revenues are mainly invoiced in
USD, while the majority of the Group’s expenses, such as employee costs, are denominated in DKK. The Group is thus
offering as much as possible revenue in EUR to match the main cost driver, as DKK is tied to EUR. Meanwhile optimizing
cost placements in USD to utilize incoming USD payments. However, currency fluctuations could cause currency
transaction losses or gains which the Company cannot predict, and if the currency fluctuations are detrimental to the Group,
it could have a material adverse effect on the Group’s business, results of operations and financial position. Furthermore,
fluctuations in the value of USD and other foreign currencies may make the Group’s subscriptions more expensive for
international customers, which could harm its business.
47 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
22. Financial risks (continued)
DKK thousand
2024
2023
Sensitivity to a 10% increase in USD exchange rate
Effect on profit before tax
2,670
5,826
Effect on pre-tax equity
2,670
5,826
Assets
Liabilities
Net assets
DKK thousand
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
Currency
USD
12,758
8,875
5,299
3,147
7,459
5,727
EUR
357
355
227
86
130
269
Other
140
141
55
369
85
(228)
Liquidity risk
The Group ensures sufficient liquidity resources by liquidity management. In order to limit the Group’s counterparty risk, deposits are only made in well-reputed
banks.
At 31 December 2024, the Group’s cash and cash equivalents amounted to DKK 4,021 thousand (2023: DKK 4,669 thousand).
As of the reporting date, current borrowings due in 2025 have not been settled upon maturity. The Company is engaged in ongoing discussions with credit
institutions to renegotiate the terms of the debt. For further details, please refer to Note 2 of the consolidated financial statements.
Assuming successful renegotiations of previously mentioned current borrowings, the cash reserve and expected cash flow for 2025 are considered to be adequate
to meet the obligations of the Group as they fall due.
48 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
22. Financial risks (continued)
The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:
Financial instruments
DKK thousand
Less than 3
months
3 to 12 months
1 to 5 years
> 5 years
Total
DKK thousand
2024
2023
Year ended on 31 December 2024
Financial assets measured at amortized cost
Interest-bearing liabilities
10,753
13,882
57,679
2,320
84,634
Deposits
742
690
Lease liabilities
297
890
-
-
1,187
Trade receivables
5,693
4,588
Trade and other payables
9,364
465
235
-
10,064
Other receivables
6,678
697
Total
20,414
15,237
57,914
2,320
95,885
Cash
4,021
4,669
Total
17,134
10,643
Year ended on 31 December 2023
Interest-bearing liabilities
250
750
69,601
-
70,601
Financial liabilities measured at amortized cost
Lease liabilities
211
633
2,489
-
3,333
Interest-bearing loan
84,166
71,985
Trade and other payables
9,427
4,266
814
-
14,507
Trade payables
6,285
5,925
Total
9,888
5,649
72,904
-
88,441
Other payables
3,779
9,139
Total
94,230
87,048
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities.
Classification of financial assets measured at amortized cost
Since the Group’s financial instruments measured at amortized cost are either short-term and/or
exposed to floating interest rates, Management has assessed that the carrying amount is a
reasonable approximation of fair value.
The Group’s interest-bearing debt to credit institutions of DKK 13,157 thousand (2023: DKK 13,718 thousand) at 31 December 2024 is
subject to a variable rate of interest based on a 3-month CIBOR plus a premium, whereas DKK 12,110 thousand (2023: DKK 11,255
thousand) has a fixed interest rate of 8%.
The Group’s interest-bearing debt to public institutions of DKK 13,263 thousand (2023: DKK 11,228) at 31 December 2024 is subject to a
fixed interest rate of 10.8%.
The Group’s interest-bearing debt to private companies of DKK 37,491 thousand (2023: DKK 32,716) at 31 December 2024 is subject to a
fixed interest rate of 17%.
If market interest rates increased by one percentage point, the interest rate sensitivity as calculated based on the loan balance to credit
institutions as per the end of 2024 would result in a yearly increase in interest expenses of DKK 834 thousand (2023: DKK 713 thousand).
A corresponding decrease in market interest rates would have the opposite impact.
49 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the consolidated financial statements
23. Liabilities arising from financing activities
24. Related Parties
DKK thousand
Other borrowings
Lease liabilities
Total
Shareholders
Registered office
Basis of influence
Egor Romanyuk
Dubai
28%
2024
Rocket Group ApS
Copenhagen
11%
Liabilities at 1 January
71,985
3,333
75,318
Faurfelt Invest ApS
Copenhagen
3%
Loans raised
9,285
73
9,358
Repayments
(1,000)
(1,214)
(2,214)
There is no ultimate Parent, as no owner holds the majority of the voting rights.
Other
3,896
(1,005)
2,891
Liabilities at 31 December
84,166
1,187
85,353
Other related parties
Other related parties of the Group with significant influence comprise the Board of Directors and the
Executive Board and their related parties. The transactions with the Board of Directors and the Executive
Board only consist of normal remuneration as disclosed in note 7.
All agreements relating to these transactions are based on market price (arm’s length).
2023
Liabilities at 1 January
26,456
5,701
32,157
Loans raised
49,150
1,699
50,849
25. Events after the Reporting Period
Repayments
(19,042)
(4,044)
(23,086)
Other
15,421
(23)
15,398
As of the reporting date, current borrowings due in 2025 have not been settled upon maturity. The Company
is engaged in ongoing discussions with credit institutions to renegotiate the terms of the debt. For further
details, please refer to Note 2 of the consolidated financial statements.
There have not been any other significant subsequent events after the reporting period.
Liabilities at 31 December
71,985
3,333
75,318
26. Guarantees, contingent liabilities and collateral
The group has provided a bank guarantee to Euroclear of DKK 130 thousand.
In order to secure the Company’s balance with Danske Bank, a mortgage has been granted with mortgages
in simple receivables, operating inventories and equipment and intellectual property rights at a total book
value of DKK 79,365 thousand (2023: DKK 80,567 thousand).
50 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Parent Company
⇢ PARENT COMPANY INCOME STATEMENT
⇢ PARENT COMPANY STATEMENT OF FINANCIAL POSITION
⇢ PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
⇢ NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
51 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Parent company income statement
DKK thousand
Note
2024
2023
Revenue
46,755
50,084
Cost of Sales
(8,921)
(9,139)
Gross Profit
37,834
40,945
External Expenses
(19,630)
(30,892)
Staff Costs
3
(12,327)
(21,130)
Other staff Costs
3
-
(1,707)
EBITDA
5,877
(12,783)
Depreciation, amortization and impairment losses
4
(18,257)
(15,760)
EBIT
(12,380)
(28,543)
Financial Income
5
843
479
Financial Expenses
6
(10,929)
(6,513)
Profit/(loss) before tax
(22,466)
(34,577)
Tax for the year
7
-
(15,528)
Profit/(loss) for the year
(22,466)
(50,105)
52 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Parent company statement of financial position
DKK thousand
Note
2024
2023
DKK thousand
Note
2024
2023
Assets
Assets
Completed development projects
8
67,649
74,978
Trade receivables
5,693
4,588
Total intangible assets
67,649
74,978
Other receivables
6,715
500
Other fixtures and fittings, tools and equipment
9
-
65
Prepayments
378
2,510
Total property, plant and equipment
-
65
Total receivables
12,786
7,598
Deposits
742
511
Cash
1,058
4,493
Total financial assets
742
511
Total current assets
13,844
12,091
Total fixed assets
68,391
75,554
Total assets
82,235
87,646
53 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Parent company statement of financial position
DKK thousand
Note
2024
2023
Equity and liabilities
Share capital
1,150
1,150
Reserve for development costs
67,649
77,728
Retained earnings
(89,536)
(87,173)
Total equity
(20,737)
(8,295)
Interest bearing liabilities
11
60,785
58,373
Other payables
-
814
Total non-current liabilities
60,785
59,187
Interest bearing liabilities
11
23,380
13,612
Prepayments from customers
7,344
6,008
Trade payables
6,258
5,837
Payables to group enterprises
1,701
3,128
Other payables
3,206
8,169
Total current liabilities
41,889
36,754
Total liabilities
102,674
95,941
Total equity and liabilities
81,937
87,646
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Parent company statement of changes in equity
DKK thousand
Share capital
Share premium
Reserve for
development
costs
Retained
earnings
Total
DKK thousand
Share capital
Share premium
Reserve for
development
costs
Retained
earnings
Total
2024
2023
Equity beginning of period
1,150
-
74,978
(84,423)
(8,295)
Equity beginning of period
1,150
-
74,372
(33,712)
41,810
Payment for the right to subscribe
shares
10,199
-
-
10,199
Increase of capital
-
-
-
-
-
Transfer to reserves
-
-
(7,329)
7,329
-
Transfer to reserves
-
-
606
(606)
-
Transaction cost
-
(175)
-
-
(175)
Transfer to reserves
-
-
-
-
-
Profit/(loss) for the period
(22,466)
(22,466)
Profit/(loss) for the period
(50,105)
(50,105)
Equity end of period
1,150
10,024
67,649
(99,560)
(20,737)
Equity end of period
1,150
-
74,978
(84,423)
(8,295)
Payment for the right to subscribe for shares has not been fully settled at the balance sheet date, and a receivable amounting to DKK 6,676
thousand has been recognised as Other receivables on the balance sheet date.
55 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
1
Accounting policies
2
Going concern
3
Staff costs
4
Depreciation, amortization and impairment losses
5
Other financial income
6
Other financial expenses
7
Tax on profit/loss for the year
8
Intangible assets
9
Property, plant and equipment
10
Financial assets
11
Interest-bearing liabilities
12
Unrecognized rental and lease commitments
13
Guarantees, contingent liabilities and collateral
14
Subsequent events
56 / 68 L I N K F I R E A / S A N N U A L R E P O R T 2 0 2 4
CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
1. Accounting policies
The separate parent financial statements have been incorporated in the
annual report because a separate set of financial statements is required
for the Parent under the Danish Financial Statements Act requirements for
annual reports of reporting class B enterprises with additions of certain
provisions for reporting class C.
The accounting policies applied for these financial statements are
consistent with those applied last year.
Recognition and measurement
Assets are recognized in the balance sheet when it is probable as a result
of a prior event that future economic benefits will flow to the Entity, and
the value of the asset can be measured reliably. Liabilities are recognized
in the balance sheet when the Entity has a legal or constructive obligation
as a result of a prior event, and it is probable that future economic benefits
will flow out of the Entity, and the value of the liability can be measured
reliably. On initial recognition, assets and liabilities are measured at cost.
Measurement subsequent to initial recognition is effected as described
below for each financial statement item. Anticipated risks and losses that
arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are
considered at recognition and measurement. Income is recognized in the
income statement when earned, whereas costs are recognised by the
amounts attributable to this financial year.
Cash flow statement
Referring to section 86(4) of the Danish Financial Statements Act, no cash
flow statement has been prepared.
Income statement
Gross profit or loss
Gross profit or loss comprises revenue, own work capitalized, other
operating income, cost of sales and external expenses with reference to
section 32 of the Danish Financial Statements Act.
Revenue
Revenue from the sale of services is recognized in the income statement
when delivery is made to the buyer. Revenue is recognized net of VAT,
duties and sales discounts and is measured at the fair value of the
consideration fixed.
Cost of sales
Cost of sales comprises goods consumed in the financial year measured
at cost, adjusted for ordinary inventory write-downs.
External expenses
Other external expenses comprise sales and marketing costs, external
consultancy costs, other employee-related costs, IT and software costs,
investor relations costs, loss allowances for doubtful trade receivables
and other administrative expenses.
Staff costs
Staff costs comprise salaries and wages, and social security
contributions, pension contributions, etc for entity staff.
Depreciation and amortization
Depreciation and amortization relating to property, plant and equipment
and intangible assets comprise Depreciation and amortization for the
financial year, and gains and losses from the sale of intangible assets and
property, plant and equipment.
Other financial income
Other financial income comprises dividends etc received on other
investments, interest income, including interest income on receivables
from group enterprises, net capital or exchange gains on securities,
payables and transactions in foreign currencies, amortization of financial
assets, and tax relief under the Danish Tax Prepayment Scheme etc.
Other financial expenses
Other financial expenses comprise interest expenses, including interest
expenses on payables to group enterprises, net capital or exchange losses
on securities, payables and transactions in foreign currencies,
amortization of financial liabilities, and tax surcharge under the Danish Tax
Prepayment Scheme etc.
Tax on profit/loss for the year
Tax for the year, which consists of current tax for the year and changes in
deferred tax, is recognized in the income statement by the portion
attributable to the profit for the year and recognized directly in equity by
the portion attributable to entries directly in equity.
Balance sheet
Intellectual property rights etc.
Intellectual property rights etc comprise development projects completed
and in progress with related intellectual property rights, acquired
intellectual property rights and prepayments for intangible assets.
Development projects on clearly defined and identifiable products and
processes, for which the technical rate of utilization, adequate resources
and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or
apply the product or process in question, are recognised as intangible
assets. Other development costs are recognized as costs in the income
statement as incurred. When recognizing development projects as
intangible assets, an amount equaling the costs incurred less deferred tax
is taken to equity under reserve for development costs that are reduced as
the development projects are amortized and written down.
The cost of development projects comprises costs such as salaries and
amortization that are directly and indirectly attributable to the
development projects. Completed development projects are amortized on
a straight-line basis using their estimated useful lives which are
determined based on a specific assessment of each development project.
If the useful life cannot be estimated it is impairment tested yearly.
For development projects protected by intellectual property rights, the
maximum period of amortization is the remaining duration of the relevant
rights. The amortization periods used are 5 -10 years. Intellectual property
rights etc are written down to the lower of recoverable amount and
carrying amount.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
1. Accounting policies (continued)
Property, plant and equipment
Other fixtures and fittings, tools and equipment are measured at cost less
accumulated depreciation and impairment losses. Land is not
depreciated. Cost comprises the acquisition price, costs directly
attributable to the acquisition and preparation costs of the asset until the
time when it is ready to be put into operation. The basis of depreciation is
the cost less estimated residual value after the end of useful life.
Straight-line depreciation is made on the basis of the following estimated
useful lives of the assets:
Other fixtures and fittings, tools and equipment 3 years
Leasehold improvements 5 years
For leasehold improvements and assets subject to finance leases, the
depreciation period cannot exceed the contract period. Estimated useful
lives and residual values are reassessed annually. Items of property, plant
and equipment are written down to the lower of recoverable amount and
carrying amount.
Investments in group enterprises
Investments in group enterprises are measured at cost. Investments are
written down to the lower of the recoverable amount and carrying amount.
Receivables
Receivables are measured at amortized cost, usually equalling nominal
value less write-downs for bad and doubtful debts.
Income tax payable or receivable
Current tax payable or receivable is recognised in the balance sheet,
stated as tax computed on this year’s taxable income, adjusted for prepaid
tax.
Prepayments
Prepayments comprise incurred costs relating to subsequent financial
years. Prepayments are measured at cost. Cash comprises cash in hand
and bank deposits.
Other financial liabilities
Other financial liabilities are measured at amortized cost, which usually
corresponds to nominal value.
2. Going concern
Linkfire A/S’s continued operations depend on refinancing (capital
injection from investors or new loans) of interest-bearing liabilities in the
range of DKK 40 million. Furthermore, postponement of repayment of the
current portion of the interest-bearing liabilities in the range of DKK 18
million is required for the company to continue operations. Management
expects that both the refinancing and postponement of repayments due in
2025 in the range of DKK 18 million will be concluded before the end of
September 2025. The refinancing may be conducted in one or more steps,
and the company’s management has constructive dialogues regarding
potential capital injections and dialogues with both current and potential
new debt providers, Management has, on this background, decided to
prepare the financial statements on a going concern basis.
However, due to uncertainty related to both refinancing and terms and
conditions related to postponement, there is material uncertainty related
to going concern.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
3. Staff Costs
5. Other financial income
DKK thousand
2024
2023
DKK thousand
2024
2023
Wages and salaries
17,701
31,127
Foreign exchange gains
843
479
Other social security costs
249
338
Total
843
479
Other staff costs
2,098
6,886
20,048
38,351
Staff costs classified as assets
(7,721)
(15,514)
6. Other financial expenses
Total
12,327
22,837
DKK thousand
2024
2023
Other interest expenses
(10,141)
5,970
Average number of employees at balance sheet date
28
45
Foreign exchange losses and other adjustments
(751)
501
For information about remuneration to Board of Directors and Key Management Personnel and Share-based
payments please refer to note 7 and 8 in the notes to the consolidated financial statements
Other financial expenses
(37)
42
Total
(10,929)
6,513
4. Depreciation, amortization and impairment
losses
DKK thousand
2024
2023
7. Tax on profit/loss for the year
Depreciation and amortization of intangible assets
18,807
15,572
DKK thousand
2024
2023
Reversal of Impairment loss
(615)
-
Adjustments to previous years tax
-
(15,528)
Depreciation of property plant and equipment
65
188
Total
-
(15,528)
Total
18,257
15,760
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Notes to the parent financial statements
8. Intangible assets
DKK thousand
Prepaid
Intellectual
Property
Rights
Completed
development
projects
Development
projects in
progress
Total
DKK thousand
Prepaid
Intellectual
Property
Rights
Completed
development
projects
Development
projects in
progress
Total
2024
2023
Cost at 1 January
-
134,186
-
134,186
Cost at 1 January
-
118,008
-
118,008
Transfers
-
11,478
(11,478)
-
Transfers
-
16,178
(16,178)
-
Additions
-
-
11,478
11,478
Additions
-
-
16,178
16,178
Cost at 31 December
-
145,664
-
145,664
Cost at 31 December
-
134,186
-
134,186
Amortization and impairment at 1 January
-
(59,208)
-
(59,208)
Amortization and impairment at 1 January
-
(43,636)
-
(43,636)
Amortization during the year
-
-
-
-
Amortization during the year
-
(15,572)
-
(15,572)
Amortization and impairment at 31 December
-
(59,208)
-
(59,208)
Amortization and impairment at 31 December
-
(59,208)
-
(59,208)
Carrying amount at 31 December
-
86,456
-
86,456
Carrying amount at 31 December
-
74,978
-
74,978
Completed development projects comprise software development costs related to development of the existing software. The software is under continuous development for the use of customers and partners and is sold as i) a license to use the software for a given period, and
ii) as an integration component on websites and in applications. Users have access to upgrades and new functionalities during the contract period.
Development costs for the year cover both development of the front-end and the back-end part of the software solution. Both parts are to increase the user experience, functionalities within the software as well as expand upon the technical applications of the software in order
to increase the Group’s revenue by maintaining existing customers and partners and acquire new customers and partners.
It is Management’s assessment that the expected useful lives of the finite-lived assets, as well as the expected future revenue streams from the assets, are sufficient to cover the value of recognised developed software at the reporting date.
In 2024, Linkfire expensed DKK 5,104 thousand (2023: 3,408 thousand) for development projects not meeting the recognition criteria applicable to internally generated intangible assets.
Sub-projects together (the platform) constitute one single cash-generating unit.
As a result of the impairment test made by Management, Linkfire did not recognise any impairment loss in 2024.
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Notes to the parent financial statements
9. Property, plant and equipment
DKK thousand
Other fixtures and
fittings, tools and
equipment
Total
DKK thousand
Other fixtures and
fittings, tools and
equipment
Leasehold
improvements
Total
2024
2023
Cost at 1 January
689
689
Cost at 1 January
878
121
999
Cost at 31 December
689
689
Disposals
(189)
(121)
(310)
Cost at 31 December
689
-
689
Depreciation at 1 January
(624)
(624)
Depreciation during the year
(65)
(65)
Depreciation at 1 January
(560)
(121)
(681)
Depreciation at 31 December
(689)
(689)
Disposals
125
121
246
Carrying amount at 31 December
-
-
Depreciation during the year
(189)
-
(189)
Depreciation at 31 December
(624)
-
(624)
Carrying amount at 31 December
65
-
65
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
10. Financial assets
11. interest-bearing liabilities
DKK thousand
Investments in
group enterprises
Deposits
DKK thousand
2024
2023
2024
Non-current borrowings
Cost at 1 January
-
511
Debt to credit institutions
8,178
23,272
Additions
-
231
Other
52,607
35,101
Cost at 31 December
-
742
Total
60,785
58,373
2023
Current borrowings
Cost at 1 January
-
521
Debt to credit institutions
17,871
1,701
Additions
-
(10)
Other
5,510
11,911
Cost at 31 December
-
511
Total
23,381
13,612
For a specification of the debt that is due after 5 years please refer to note 22 of the notes to the
consolidated financial statements.
Name
Country
Ownership
Linkfire Inc.
USA
100%
As of the reporting date, current borrowings due in 2025 have not been settled upon maturity. The
Company is engaged in ongoing discussions with credit institutions to renegotiate the terms of the debt.
For further details, please refer to Note 2 of the consolidated financial statements.
Other non-current borrowings include a provision for the ongoing Tax Credit Scheme case. As a result of
the uncertainty associated with the outcome of the final decision, the total provisioned liability amounts to
DKK 13,263 thousand including principal repayment and accrued interest as of 31 December 2024. For
more information please refer to the 'Financial Review' section.
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Notes to the parent financial statements
12. Unrecognized rental and lease commitments
14. Subsequent events
DKK thousand
2024
2023
Liabilities under rental or lease agreements until maturity
725
-
As of the reporting date, current borrowings due in 2025 have not been settled upon
maturity. The Company is engaged in ongoing discussions with credit institutions to
renegotiate the terms of the debt. For further details, please refer to Note 2 of the
consolidated financial statements.
Total
725
-
13. Guarantees, contingent liabilities and collateral
There have not been any other significant subsequent events after the reporting period.
The group has provided a bank guarantee to Euroclear of DKK 130 thousand.
In order to secure the Company’s balance with Danske Bank, a mortgage has been granted with
mortgages in simple receivables, operating inventories and equipment and intellectual property rights at
a total book value of DKK 79,365 thousand (2023: DKK 80,567 thousand).
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Executive Management
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Independent auditor’s report
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Independent auditor’s report
CVR No. 33963556
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CONTENTS INTRO MANAGEMENT’S REVIEW SUSTAINABILITY CORPORATE GOVERNANCE FINANCIAL STATEMENTS STATEMENTS
Glossary
Subscription Revenue
Subscription revenue is generated from recurring subscription fees which
customers pay to use the Company’s platform.
Commission Revenue
When consumers discover music and are funneled from the Linkfir
e discovery
layer to various Digital Service Providers, Linkfire in some cases generates
commission revenue through affiliate partnerships.
Digital Service Providers
Stores and/or services where consumers play music, purchase other related
content, or sign up for subscriptions, e.g. Apple Music, Amazon, Ticketmaster, etc.
Consumer Connections
Represent the number of unique visitors on Linkfir
e’s smart links and are a key
driver for Commission revenue in conjunction with the ability to monetize traffic,
reflected in the RPM.
Commission Revenue per Mille (RPM)
RPM is an important metric to Linkfir
e. It represents the commission revenue
generated per thousand consumer connections for the period.
Constant Currency
Figures on a constant currency basis are an important measure to Linkfir
e as the
majority of revenue is made in USD. This measure highlights the clean growth,
adjusted for exchange rate impact in period-to-period comparison.
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