One Platform,
Every Fan Connection
Powering fan growth and engagement for artists, podcasters and their teams
Chairman of the meeting - Andreas Nielsen
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Annual Report 2025
Table of contents
Financial Performance and Key Figures 4
Financial Review 5
Consolidated Statement Of Comprehensive Income 10
Consolidated Statement Of Financial Position 11
Consolidated Statement Of Changes In Equity 12
Cash Flow Statement 13
Notes - Consolidated 14
Parent Company Income Statement 34
Parent Company Statement Of Financial Position 35
Parent Company Statement Of Changes In Equity 37
Notes - Parent Company 38
Other Statements 44
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Management’s Review
⇢ FINANCIAL PERFORMANCE AND KEY FIGURES
⇢ FINANCIAL REVIEW
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Financial Review
Primary activities
Linkfire is a technology company providing marketing and
promotional services to the music and entertainment industries.
The Company’s platform enables artists, labels, podcasters and
their teams to create smart links and landing pages, manage
digital marketing campaigns, track fan engagement and
optimize traffic across digital services.
The Group’s revenue is primarily generated from subscription
fees for access to the Linkfire platform and commission revenue
from affiliate and partner arrangements.
Revenue
Revenue decreased by DKK 4,142 thousand, or 9 per cent, from
DKK 46,755 thousand in 2024 to DKK 42,613 thousand in 2025.
Subscription revenue decreased by DKK 1,171 thousand, or 4 per
cent, from DKK 28,994 thousand in 2024 to DKK 27,823 thousand
in 2025. Commission revenue decreased by DKK 2,971
thousand, or 17 per cent, from DKK 17,761 thousand in 2024 to
DKK 14,790 thousand in 2025.
The decrease is mainly explained by continued lower
commercial activity and limited marketing investment during the
year, as the Company remained focused on cost control,
profitability and cash preservation. Overall, the revenue
development reflects the Company’s continued operation with a
smaller and more streamlined organization, with focus on
profitability and operational efficiency rather than short-term
revenue growth.
Costs
Cost of sales decreased by DKK 4,079 thousand, or 46 per cent,
from DKK 8,921 thousand in 2024 to DKK 4,842 thousand in 2025.
The decrease is mainly related to lower server and hosting
costs, infrastructure optimization and lower revenue share costs.
In 2025, external expenses decreased by DKK 2,682 thousand,
or 17 per cent, from DKK 15,335 thousand in 2024 to DKK 12,653
thousand in 2025. The decrease is mainly due to continued cost
control and lower discretionary spending.
Staff costs decreased by DKK 8,484 thousand, or 33 per cent,
from DKK 25,654 thousand in 2024 to DKK 17,170 thousand in
2025. As a percentage of revenue, staff costs decreased from 55
per cent in 2024 to 40 per cent in 2025. During 2025, Linkfire
continued cost optimization measures aimed at delivering on
the plan to show EBITDA and operating cash profitability. Efforts
included a headcount reduction which explains the decrease.
Capitalized development costs decreased by DKK 1,225
thousand, or 11 per cent, from DKK 11,477 thousand in 2024 to
DKK 10,252 thousand in 2025.
Earnings
EBITDA increased by DKK 10,076 thousand, or 121 per cent, from
DKK 8,322 thousand in 2024 to DKK 18,398 thousand in 2025.
This represents an improvement in relation to revenue from 18
per cent in 2024 to 43 per cent in 2025.
Depreciation, amortization and impairment increased by DKK
1,986 thousand, or 10 per cent, from DKK 20,170 thousand in
2024 to DKK 22,156 thousand in 2025.
EBIT improved by DKK 8,091 thousand, or 68 per cent, from
negative DKK 11,849 thousand in 2024 to negative DKK 3,758
thousand in 2025. This represents an improvement in relation to
revenue from negative 25 per cent in 2024 to negative 9 per
cent in 2025.
Net financial items
Financial income decreased by DKK 1,005 thousand, or 70 per
cent, from DKK 1,438 thousand in 2024 to DKK 433 thousand in
2025.
Financial expenses decreased slightly by DKK 225 thousand, or
2 per cent, from DKK 10,771 thousand in 2024 to DKK 10,546
thousand in 2025. The level remained broadly in line with 2024,
as financial expenses mainly relate to interest on the EUR 5
million loan, the EIFO loans and other short-term borrowings
used to support the Company’s liquidity during the year.
Income tax
Tax for the year decreased by DKK 175 thousand, or 53 per cent,
from DKK 334 thousand in 2024 to DKK 159 thousand in 2025.
The tax expense mainly relates to the US subsidiary. The
decrease compared to 2024 is primarily due to the lower level of
activity in the US, including fewer employees, a reduced
infrastructure setup and no remaining office-related activity.
Net Profit/(loss)
Loss for the year decreased by DKK 7,486 thousand, or 35 per
cent, from DKK 21,516 thousand in 2024 to DKK 14,030 thousand
in 2025. This represents an improvement in relation to revenue
from negative 46 per cent in 2024 to negative 33 per cent in
2025. The improvement is mainly driven by the full-year effect of
cost reduction initiatives implemented during 2024 and
continued cost control throughout 2025, which resulted in a
leaner cost base and improved profitability despite lower
revenue.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Financial Review
Cash flow and financing
Cash flow from operating activities improved from negative DKK
119 thousand in 2024 to positive DKK 4,630 thousand in 2025.
The improvement was primarily driven by the significantly
improved operating result before depreciation, amortization and
impairment, reflecting the full-year effect of the cost reduction
initiatives implemented during 2024 and continued cost control
during 2025.
Investment activities reduced cash flows by DKK 10,093
thousand in 2025 compared to DKK 11,478 thousand in 2024. The
cash outflow mainly relates to capitalized development
expenditures, reflecting the continued investment in the
Company’s software platform, although at a slightly lower level
than in the prior year.
Cash flow from financing activities amounted to DKK 3,051
thousand in 2025 compared to DKK 10,878 thousand in 2024.
The decrease is mainly because 2024 included drawdowns from
the HPRY Ventures loan and several short-term loans used to
support liquidity. The improved operating performance enabled
the Company to fund operations for most of the year without
the same level of additional borrowing.
Net cash flow for 2025 was negative DKK 2,412 thousand
compared to negative DKK 719 thousand in 2024. Cash and cash
equivalents amounted to DKK 1,653 thousand at 31 December
2025 compared to DKK 4,022 thousand at 31 December 2024.
The Company’s balance sheet composition remained broadly
similar to the prior year. The main asset is the capitalized
software platform, while liabilities primarily consist of loans and
borrowings, provisions, and other operating liabilities. During
2025, the Company relied on limited external financing at the
beginning of the year, but the improved operating cash flow
allowed the Company to fund its operations for the remainder of
the year without further significant financing.
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.
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 56.8 million as of
31 December 2025 (2024: DKK 67.6 million). Development
projects are measured at cost less accumulated amortization
and impairment losses.
The measurement of development projects depends on
Management’s expectations regarding future earnings and cash
flows from the Group’s platform. These expectations are based
on approved budgets and forecasts, which show positive
income from operations. However, the valuation remains subject
to normal estimation uncertainty, including assumptions
regarding revenue growth, customer retention, margins, cost
development and discount rate.
Management has performed an impairment assessment of the
capitalized development projects. Based on this assessment,
Management has not identified any impairment loss as of 31
December 2025.
Going concern
During 2025 and the first part of 2026, the Company continued
to operate with a strong focus on cost discipline, cash flow
management and the execution of its turnaround plan. While
the underlying operations improved, the Company’s financial
position remained impacted by legacy debt obligations,
including the loan from HPRY Ventures falling due in May 2026
and outstanding debts with EIFO.
On 12 May 2026, the Company completed a change of
ownership whereby CoMade Sthlm AB (“CoMade”) became the
new majority shareholder of Linkfire A/S. In connection with the
transaction, CoMade provided financial support to the Company,
including repayment of the full principal balance of DKK 37.25
million to HPRY Ventures, which was due in May 2026. In
addition, a payment of DKK 13.7 million was made to EIFO,
enabling the Company to agree on a refinancing of the
remaining balance on revised terms.
The amounts paid by CoMade on behalf of the Company are
intended to be converted into equity once the new majority
shareholder reaches 100% ownership following completion of
the squeeze-out process.
These post-balance sheet events have materially strengthened
the Company’s financial position by removing the immediate
refinancing risk related to the HPRY Ventures loan and reducing
the outstanding debt burden. Together with the continued
support from the new majority shareholder, management
assesses that the Company has sufficient liquidity and financial
resources to continue its operations. Management has, on this
background, decided to prepare the financial statements on a
going concern basis.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Financial Review (continued)
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) and DKK 3.3 million in November
2025 (for FY 2024).
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 April 2025, Linkfire also received
the decision from the Danish Tax Authorities rejecting the
expected payout for FY 2023. The appeal for FY 2023 has
subsequently been formally combined with the ongoing case
concerning FY 2020, FY 2021 and FY 2022, in order to ensure a
consolidated assessment of the Company’s R&D activities over
the full period.
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 .
In February 2026, an external expert was appointed as part of
the appeal process. In March 2026, Linkfire received the expert’s
request for documentation, and the requested documentation
was submitted in May 2026. The documentation is currently
under review. The expert review is expected to take a
considerable amount of time, and a final decision is not
expected until at least 2027.
For FY 2024, Linkfire has submitted a response to the Danish Tax
Authorities defending the application submitted, following the
same overall process as for the previous years.
As part of the transaction with CoMade, the outstanding amount
relating to FY 2020 and FY 2021 was repaid to the Danish Tax
Authorities, even though the appeal remains ongoing and
repayment was not required while the case was pending. The
repayment was made to prevent the amount from continuing to
accrue interest during the appeal process.
If the case is ultimately decided in Linkfire’s favour, Linkfire will
be entitled to receive the repaid amount relating to FY 2020 and
FY 2021 back in cash. In addition, Linkfire would be entitled to
receive the amounts claimed for subsequent years, currently
expected to represent a principal amount of approximately DKK
14 million, plus any applicable interest.
If the case is ultimately not decided in Linkfire’s favour, the
principal amount of DKK 10.0 million relating to FY 2020 and FY
2021, together with accrued interest up to the repayment date,
has already been repaid.
As a result of the uncertainty associated with the outcome of the
case, no tax credit receivable has been recognized for FY 2025.
As of 31 December 2025, the total provisioned liability amounts
to DKK 14.7M.
Equity
As of 31 December 2025 equity is negative by DKK (31,270)
thousand. As described under Going concern, Management
expects positive equity to be re-established through the
planned conversion of amounts paid by CoMade on behalf of
the Company into equity.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Financial Review (continued)
Subsequent Events
After the reporting date, CoMade Sthlm AB became the new
majority shareholder of Linkfire A/S. In connection with the
transaction, CoMade provided financial support to the Company,
including repayment of the full principal balance of DKK 37.25
million to HPRY Ventures and a payment of DKK 13.7 million to
EIFO, enabling the Company to agree on a refinancing of the
remaining EIFO balance on revised terms. For further details,
refer to the Going Concern section in Management’s Review.
As part of the transaction with CoMade, the outstanding amount
relating to the Tax Credit Scheme for FY 2020 and FY 2021 was
repaid to the Danish Tax Authorities after the reporting date. The
appeal remains ongoing, and the repayment was made to
prevent further interest from accruing during the appeal
process. For further details, refer to the Tax Credit Scheme
section in Management’s Review.
No other significant events have occurred after the reporting
period.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER 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
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Consolidated statement of comprehensive income
DKK thousand
Note
2025
2024
DKK thousand
2025
2024
Other comprehensive income
Revenue
Other comprehensive income that may be reclassified to profit or
loss in subsequent periods (net of tax):
Cost of Sales
(4,842 )
(8,921 )
Exchange differences on translation
of foreign operations
Gross Profit
(598 )
(376 )
Other comprehensive income for the year, net of tax
(598 )
(376 )
Other Income
External Expenses
(12,653 )
(15,335 )
Total comprehensive income for the year
(14,628 )
(21,892 )
Staff Costs
6
(17,170 )
(25,654 )
Capitalized development costs
6
EBITDA
Depreciation, amortization and impairment losses
7
(22,156 )
(20,170 )
EBIT
(3,758 )
(11,849 )
Financial Income
8
Financial Expenses
9
(10,546 )
(10,771 )
Profit/(loss) before tax
(13,871 )
(21,181 )
Tax for the year
10
(159 )
(334 )
Profit/(loss) for the year
(14,030 )
(21,516 )
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Consolidated statement of financial position
DKK thousand
Note
2025
2024
DKK thousand
Note
2025
2024
Assets
Equity and liabilities
Non-current assets
Equity
Intangible assets
11
Share capital
17
Property, plant and equipment
12
Retained Earnings
(31,756 )
(17,726 )
Right-of-use assets
13
Translation reserve
(664 )
(66 )
Deposits
14
Total Equity
(31,270 )
(16,642 )
Total non-current assets
Non-current liabilities
Current assets
Loans and Borrowings
18
Trade Receivables
15
Provisions
18
Other receivables
Other payables
Prepayments
Total non-current liabilities
Cash and cash equivalents
Total Current Assets
Current liabilities
Loans and Borrowings
18
Total assets
Contract liabilities
Lease liabilities
20
Trade payables
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
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, 2025
(17,726 )
(66 )
(16,642 )
Balance at 1 January, 2024
(8,526 )
(4,903 )
Net profit/(loss) for the period
(14,030 )
(14,030 )
Net profit/(loss) for the period
(21,516 )
(21,516 )
Other comprehensive income
(598 )
(598 )
Other comprehensive income
(376 )
(376 )
Total Comprehensive income
(31,756 )
(664 )
(31,270 )
Total Comprehensive income
(30,042 )
(66 )
(26,794 )
Payment for the right to subscribe shares
Payment for the right to subscribe shares
Transaction cost
Transaction cost
(175 )
(175 )
Share-based payments
Share-based payments
(2,163 )
Balance at 31 December, 2025
(31,756 )
(664 )
(31,270 )
Balance at 31 December, 2024
(17,726 )
(66 )
(16,642 )
During the period no dividend was paid
During the period no dividend was paid
In 2024, the Company entered into a warrant agreement under which the counterparty paid a fixed amount for the right to
subscribe for a fixed number of shares during a 36-month exercise period.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Cash flow statement
DKK thousand
Note
2025
2024
DKK thousand
Note
2025
2024
Operating Loss
(3,758 )
(11,849 )
Proceeds from borrowings
20
Depreciation, amortization and impairment losses
7
Repayment of borrowings
20
(3,085 )
(1,000 )
Change in working capital
16
(4,856 )
(832 )
Payment of principal portion of lease liabilities
20
(1,010 )
(1,214 )
Cash flow from ordinary operating activities
Transaction cost
(175 )
Payment for the right to subscribe shares
Interest paid
(8,911 )
(7,609 )
Cash flow financing activities
Cash flow from operating activities
(119 )
Change in cash and cash equivalents
Development expenditures
11
(10,252 )
(11,478 )
Net cash flow
(2,412 )
(719 )
Change in deposits
14
Net foreign exchange difference
Cash flow from investing activities
(10,093 )
(11,478 )
Cash, Begin
Cash, End
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1
Accounting policies
13
Right-of-use assets
2
Going concern
14
Deposits
3
Adoption of new and amended standards
15
Trade receivables
4
Critical accounting judgements and key sources of estimation uncertainty
16
Working capital changes
5
Revenue
17
Share capital
6
Staff costs
18
Loans, Borrowings and Provisions
7
Depreciation, amortization and impairment losses
19
Financial risks
8
Financial income
20
Liabilities arising from financing activities
9
Financial expenses
21
Contingent Assets
10
Tax for the year
22
Assets charged and collateral
11
Intangible assets
23
Related parties
12
Property, plant and equipment
24
Events after the reporting period
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1. Accounting policies
General information
Linkfire A/S is a limited liability company incorporated and
domiciled in Denmark. The annual report has been prepared in
accordance with IFRS Accounting Standards as adopted by the EU
and additional requirements under the Danish Financial
Statements Act applicable to reporting class B.
The parent company and its subsidiary are collectively referred to
as the “Group” or “Linkfire”. 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 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.
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 and commissions earned
from affiliate and partner arrangements where Linkfire refers traffic
to third-party digital service providers or other partners. For
software contracts, the total contract sum is allocated to the
separate performance obligations for the purpose of revenue
recognition.
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1. Accounting policies (continued)
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. 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.
Subscription fees relate to customers’ access to Linkfire’s software
platform, including license, hosting, maintenance and related
support services. These services are considered one combined
performance obligation, as the customer receives and consumes
the benefits of the platform over the subscription period.
Subscription revenue is recognized over time on a straight-line
basis over the contract period.
Invoices may be issued in advance of the related service period.
Amounts invoiced but not yet recognized as revenue are presented
as contract liabilities and recognized as revenue over the remaining
subscription period.
Commissions
Commission revenue is generated from affiliate and partner
arrangements where Linkfire refers traffic to third-party digital
service providers or other partners through tracking tokens or
similar tracking mechanisms. Commission revenue is calculated
based on the contractual terms agreed with each partner. The
consideration is generally determined by applying agreed
commission rates to approved transactions, qualifying purchases,
conversions or other monetizable events generated through
Linkfire’s platform. The applicable rate and qualifying event may
vary by partner agreement.
The service is considered a series of distinct services that are
substantially the same and have the same pattern of transfer to the
customer. Revenue is recognized over time as the referrals or
qualifying events are generated and approved by the partner, as
this is when Linkfire becomes entitled to the commission under the
relevant agreement.
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.
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.
16 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1. Accounting policies (continued)
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.
Tax credits related to research and development activities are
recognized when the Group has a present right to receive the credit
and it is considered probable that the amount will be approved by
the relevant tax authorities and received. According to the tax credit
scheme the company has the opportunity to apply for a pay-out of
an amount corresponding to the company tax (22 %) of the
company's qualifying research and development costs, against a
reduction of the remaining unused taxable losses.
If there is uncertainty regarding the eligibility of the underlying
costs or the recoverability of the tax credit, no asset is recognized
until the uncertainty has been resolved. Any related liabilities or
repayment obligations are recognized when the Group has a
present obligation and the amount can be measured reliably.
No tax credit receivable has been recognized as of 31 December
2025.
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.
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
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 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.
17 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1. Accounting policies (continued)
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.
Loans and borrowings
Loans and borrowings comprise debt to credit institutions and
other external lenders. Loans and borrowings are initially
recognized at fair value less directly attributable transaction costs
and are subsequently measured at amortized cost using the
effective interest method.
Interest expenses are recognized in the income statement over the
term of the borrowing.
Provisions
Provisions are recognized when the Group has a present legal or
constructive obligation as a result of a past event, it is probable
that an outflow of economic resources will be required to settle the
obligation, and the amount can be measured reliably.
Provisions are measured at Management’s best estimate of the
amount required to settle the obligation at the reporting date.
Provisions include, among others, the provision related to the tax
credit matter and employee-related obligations such as frozen
holiday funds.
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.
2. Going concern
During 2025 and the first part of 2026, the Company continued to
operate with a strong focus on cost discipline, cash flow
management and the execution of its turnaround plan. While the
underlying operations improved, the Company’s financial position
remained impacted by legacy debt obligations, including the loan
from HPRY Ventures falling due in May 2026 and outstanding
debts with EIFO.
On 12 May 2026, the Company completed a change of ownership
whereby CoMade Sthlm AB (“CoMade”) became the new majority
shareholder of Linkfire A/S. In connection with the transaction,
CoMade provided financial support to the Company, including
repayment of the full principal balance of DKK 37.25 million to
HPRY Ventures, which was due in May 2026. In addition, a payment
of DKK 13.7 million was made to EIFO, enabling the Company to
agree on a refinancing of the remaining balance on revised terms.
The amounts paid by CoMade on behalf of the Company are
intended to be converted into equity once the new majority
shareholder reaches 100% ownership following completion of the
squeeze-out process.
These post-balance sheet events have materially strengthened the
Company’s financial position by removing the immediate
refinancing risk related to the HPRY Ventures loan and reducing the
outstanding debt burden. Together with the continued support
from the new majority shareholder, management assesses that the
Company has sufficient liquidity and financial resources to
continue its operations. Management has, on this background,
decided to prepare the financial statements on a going concern
basis.
3. Adoption of new and amended standards
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 replaces IAS 1 Presentation of Financial Statements and
introduces new requirements for presentation and disclosure in the
financial statements. The standard carries forward many of the
existing requirements from IAS 1, while introducing new
requirements relating to the structure of the statement of profit or
loss, disclosures on management-defined performance measures
and improved principles for aggregation and disaggregation.
IFRS 18 will require entities to present specified categories and
defined subtotals in the statement of profit or loss. The standard
also introduces disclosure requirements for management-defined
performance measures in the notes to the financial statements.
IFRS 18 is effective for annual reporting periods beginning on or
after 1 January 2027, with earlier application permitted. The Group
has not early adopted IFRS 18. Management is currently assessing
the impact of the standard, but does not expect the adoption to
have a material impact on recognition or measurement in the
financial statements. The standard is expected to primarily affect
the presentation and disclosure of financial information.
Management expects that the implementation of IFRS 18 only will
have limited impact on the presentation of the profit and loss
statement and the cash flow statement. The company is currently
analysing in more detail how the IFRS 18 will impact the
presentation and how the introduction of the concept of MPMs will
impact the company’s communication and the required
disclosures in the notes.
18 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
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 the Group’s project management process.
In determining the amounts to be capitalized, Management makes
assumptions regarding the expected future economic benefits
from the software platform and the expected period over which
those benefits will be generated.
Capitalized development costs are tested for impairment when
there is an indication of impairment and at least annually for
development projects not yet available for use. The impairment
assessment requires Management to estimate the recoverable
amount of the relevant cash-generating unit, which is based on
expected future cash flows from the software platform.
The impairment test involves significant estimates, including
expected revenue growth, cash flow from operations during the
budget and forecast period, margins, cost development, discount
rate and terminal growth. These assumptions are subject to
estimation uncertainty, and changes in expected future
performance may result in an impairment loss.
As a result of Management’s impairment assessment, Linkfire did
not recognize any impairment loss in 2025 or 2024. At 31
December 2025, the carrying amount of capitalized development
costs was DKK 56,799 thousand (2024: DKK 67,649 thousand). In
2025, DKK 10,252 thousand was capitalized (2024: DKK 11,478
thousand).
For further details on the impairment test and key assumptions
applied, including WACC, cash flows from operations in the
forecast period, discounted value of the forecast period and
discounted terminal value, refer to Note 11.
Determining the lease term of contracts with renewal and
termination options
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.
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 35,906 thousand (2024: 35,504 thousand).
Tax credit
The Group has historically applied for tax credits related to
research and development activities. Recognition of tax credit
receivables requires Management to assess whether the relevant
eligibility criteria are met and whether it is probable that the
amounts will be approved by the tax authorities and received.
Due to the uncertainty related to the ongoing tax credit matter, no
tax credit receivable has been recognized as of 31 December 2025.
Any related repayment obligation or provision is recognized when
Management assesses that the Group has a present obligation and
the amount can be measured reliably.
19 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
5. Revenue
2025
2024
2025
2024
Contract balances (liability)
Revenue
DKK thousand
DKK thousand
Balance at 1 January
7,344
6,008
Subscriptions
27,823
28,994
Recognised from opening balance
(7,344)
(6,008)
Commissions
14,790
17,761
Additions
26,157
30,330
Total
42,613
46,755
Recognised from current year
(20,480)
(22,986)
Balance at 31 December
5,677
7,344
%-split
Subscriptions
65
62
Subscription customers are generally invoiced in advance for the agreed subscription period. Payment is
typically due shortly after invoicing in accordance with the terms agreed in the customer contract.
Amounts invoiced and paid in advance of the related subscription period are recognized as contract
liabilities and recognized as revenue over the remaining contract period as the services are delivered.
Commission revenue is generally invoiced or settled based on reports received from affiliate and partner
arrangements. Payment terms vary by partner agreement, but commission revenue is recognized when the
underlying qualifying transactions, conversions or other monetizable events have been generated and
approved by the partner, and the Group has obtained the right to consideration.
Contract liabilities consist of amounts invoiced and paid by customers in advance of the related
subscription period. Management expects that 100.0% of the transaction price allocated to unsatisfied
contracts as of 31 December 2025 will be recognized as revenue during the next 12 months,
corresponding to DKK 5.7 million.
Commissions
35
38
Total
100
100
In 2025, two customers exceeded 10% of total revenue and accounted for 43%.
In 2024, two customers exceeded 10% of total revenue and accounted for 43%.
20 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
6. Staff Costs
2025
2024
2025
2024
DKK thousand
DKK thousand
Gross salaries
15,090
22,752
Executive Board Remuneration
Other social security costs
274
600
Salaries and bonus
1,584
1,584
Other staff costs
1,806
2,302
Pension and other benefits
54
56
Total
17,170
25,654
Total
1,638
1,640
Management remuneration comprises remuneration to the Company’s Managing Director.
No other employees are included in this category.
Number of employees at year end
27
39
Average numbers of employees during the year
Employment contracts for Executive Board contain terms and conditions that are common
to those of their peers in similar companies, including terms of notice and non-competitive
clauses.
Board of Directors
Salaries
250
500
Total
250
500
21 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
7. Depreciation, amortization and impairment losses
10. Tax for the year
DKK thousand
2025
2024
DKK thousand
2025
2024
Amortization of intangible assets
21,102
18,807
Current tax for the year income
(159)
(334)
Depreciation of property plant and equipment
-
65
Total
(159)
(334)
Depreciation of right-of-use assets
1,054
1,913
Reversal of impairment loss
-
(615)
DKK thousand
2025
2024
Total
22,156
20,170
Tax calculated as 22% of profit/loss before tax
3,052
4,660
Non-capitalised tax assets
(2,811)
(4,594)
Non-deductible expenses
(400)
(400)
For further information on the impairment loss of intangible assets, please refer to note 13 of
the consolidated financial statements.
Effective tax
(159)
(334)
Effective tax rate for the year (%)
-1.1%
-1.6%
8. Financial income
DKK thousand
2025
2024
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 35,906 thousand (2024: 35,504 thousand).
Foreign exchange income, net
211
970
Total
211
970
9. Financial expenses
DKK thousand
2025
2024
Interest expenses
10,518
10,142
Interest on lease liabilities
28
161
Total
10,546
10,303
22 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
11. Intangible assets
DKK thousand
Completed
development
projects
Development
projects in
progress
Total
2025
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 2025, Linkfire expensed DKK 2,936 thousand (2024: 5,104 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.
The impairment test is based on the approved 2026 budget, updated with draft actuals for Q1 2026, and a forecast period covering
2026-2035. The cash flows are discounted using a WACC of 14.3%, and a terminal growth rate of 2.0% has been applied.
The discounted value of cash flows from the budget and forecast period amounts to DKK 80,235 thousand, and the discounted
terminal value amounts to DKK 63,528 thousand, resulting in a total value-in-use of DKK 143,765 thousand.
The main assumptions in the impairment test are revenue growth, cost of sales, staff costs, external expenses and capitalized
development costs. Revenue growth is expected to be driven by the rollout and monetization of Artist Workspaces, expansion
within existing customers, annual contract value increases and increased commission revenue from monetizable traffic.
Cost of sales is expected to remain relatively stable compared to revenue, supported by the infrastructure and server cost
optimizations completed in recent years. Staff costs and external expenses are expected to increase moderately as the Company
returns to a controlled growth phase. Capitalized development costs are expected to decrease as a percentage of revenue over the
forecast period.
As a result of the impairment test performed by Management, no impairment loss has been recognized in 2025.
Cost at 1 January
145,664
-
145,664
Transfers
10,252
(10,252)
-
Additions
-
10,252
10,252
Cost at 31 December
155,916
-
155,916
Amortization and impairment at 1 January
(78,015)
-
(78,015)
Amortization during the year
(21,102)
-
(21,102)
Amortization and impairment at 31 December
(99,117)
-
(99,117)
Carrying amount at 31 December
56,799
-
56,799
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
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
12. Property, plant and equipment
13. Right-of-use assets
DKK thousand
Other fixtures and fittings,
tools and equipment
Leasehold
improvements
Total
DKK thousand
Offices
Vehicles
Equipment
Total
2025
2025
Cost at 1 January
820
-
820
Cost at 1 January
13,777
81
2,128
15,986
Disposals
-
Disposals
-
-
(64)
(64)
Cost at 31 December
820
-
820
Cost at 31 December
13,777
81
2,064
15,922
Depreciation at 1 January
(815)
-
(815)
Depreciation at 1 January
(13,019)
(81)
(1,644)
(14,744)
Depreciation during the year
(5)
-
Depreciation during the year
(710)
-
(343)
(1,053)
Depreciation at 31 December
(820)
-
(820)
Depreciation at 31 December
(13,729)
(81)
(1,987)
(15,797)
Carrying amount at 31 December
-
-
-
Carrying amount at 31 December
48
-
77
125
2024
Cost at 1 January
906
-
906
2024
Disposals
(86)
-
(86)
Cost at 1 January
13,950
81
2,128
16,159
Cost at 31 December
820
-
820
Additions
(173)
-
-
(173)
Depreciation at 1 January
(880)
-
(880)
Cost at 31 December
13,777
81
2,128
15,986
Disposals
-
-
-
Depreciation during the year
65
-
65
Depreciation at 1 January
(11,410)
(81)
(1,340)
(12,831)
Depreciation at 31 December
(815)
-
(815)
Depreciation during the year
(1,609)
-
(304)
(1,913)
Carrying amount at 31 December
5
-
5
Depreciation at 31 December
(13,019)
(81)
(1,644)
(14,744)
Carrying amount at 31 December
758
-
484
1,242
24 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
13. Right-of-use assets (continued)
14. Deposits
Carrying amounts of lease liabilities and movements during the period:
DKK thousand
2025
2024
DKK thousand
2025
2024
At 1 January
1,187
3,333
Cost at 1 January
742
690
Additions
-
73
Disposals
(360)
-
Disposals/Terminations
-
(744)
Additions
-
52
Accrual of interest
28
88
Cost at 31 December
382
742
Payments
(1,009)
(1,214)
Sub-lease Income
(114)
(771)
Exchange rate adjustments
(64)
422
15. Trade Receivables
At 31 December
28
1,187
Non-Current
-
-
DKK thousand
2025
2024
Current
28
1,187
Trade receivables
5,571
5,781
The following amounts have been recognised in the income statement:
Write-downs
(25)
(88)
DKK thousand
2025
2024
Total
5,546
5,693
Depreciation expense of right-of-use assets
1,053
1,913
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 25 thousand (2024: DKK 88
thousand) related mainly to debtors with more than 12 months due.
No realized credit losses were incurred during 2025.
Interest expense on lease liabilities
28
88
Total amount recognised in the income statement
1,081
2,001
The Group had total net outflow for leases of DKK 1,010 thousand (2024: DKK 1,214 thousand).
The Group leases offices, and lease terms are negotiated on an individual basis and contain different
terms and conditions.
The Group has not recognized material expenses relating to short-term leases, low-value asset leases or
variable lease payments. Service components are separated from lease payments where they can be
reliably identified.
25 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
15. Trade Receivables (continued)
17. Share capital
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 2025, the share capital remains equal to previous year and
consists of 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 2025
DKK thousand
2025
Trade receivables
2,550
955
1,378
688
(25)
5,546
31 December 2024
Issued and fully paid shares:
Trade receivables
4,555
822
171
233
(88)
5,693
At 1 January 2024, 114,989,051 shares of DKK 0.01 each
1,150
16. Working capital changes
At 31 December 2024
1,150
DKK thousand
2025
2024
Capital increase
-
Change in receivables and prepayments
(588)
2,017
Share capital at 31 December 2025
1,150
Change in trade payables and other debt etc
(4,269)
(2,849)
Total
(4,857)
(832)
As per 31 December 2025 equity is negative by DKK (31,270) thousand. As
described under Going concern, management expects positive equity to be
re-established through the planned conversion of amounts paid by CoMade
on behalf of the Company into equity.
26 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
18. Loans, Borrowings and Provisions
DKK thousand
2025
2024
Non-current borrowings and provisions
Loans from credit institutions
-
8,178
Loans from other lenders
-
37,575
Provisions
14,674
15,032
Total
14,674
60,785
Current borrowings and provisions
Loans from credit institutions
26,996
17,871
Loans from other lenders
38,773
1,562
Other short-term borrowings
600
3,948
Total
66,369
23,381
At 31 December 2025, certain current borrowings were overdue and had not been settled in accordance with
the original repayment terms. The overdue amounts primarily related to loans from EIFO. The remaining
EIFO balance was subsequently refinanced after the reporting date as part of the transaction with CoMade.
For further details, refer to Note 2.
Loans from credit institutions comprise loans from EIFO. Loans from other lenders comprise the loan from
HPRY Ventures, which is not a financial institution. Other short-term borrowings comprise short-term
financing from other parties.
Non-current provisions include the provision related to the ongoing Tax Credit Scheme case. The Tax Credit
Scheme provision reflects Management’s best estimate of the obligation, including principal amount and
accrued interest up to the repayment date. For more information on the Tax Credit Scheme case, please
refer to the Financial Review section.
27 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
19. Financial risks
Capital Management
The Group manages its capital to ensure that it will be able to continue as a going concern while optimizing 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 whether 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. The
main financial risks are credit risk, foreign currency risk, liquidity risk and interest rate risk.
It is Group policy to operate with a low risk profile so that financial risks only arise from commercial activities and financing
arrangements. 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, timing of payments 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 trade receivables, other receivables and cash held at financial
institutions.
The Group’s credit risk on trade receivables is mitigated by the fact that the customer base is spread across a large number
of customers. A significant part of the Group’s exposure relates to major labels and large partners, which are considered to
have a lower credit risk due to their size, payment history and credit profile.
Credit risk is managed through ongoing monitoring of overdue receivables by Finance and Customer Success. Invoices
more than 30 days overdue are followed up individually. Based on historical experience, the Group has generally been able
to collect close to all overdue balances through individual follow-up and customer dialogue.
The Group considers trade receivables to be in default when they are more than 90 days overdue, unless specific facts and
circumstances indicate otherwise. Receivables are written off when all possible recovery options have been exhausted and
there is no reasonable expectation of recovery. 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 and cash flows.
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 thereby increase the predictability of the financial results. In practice,
Management monitors the development in exchange rates, reviews the currency mix of revenue and costs, and considers
pricing adjustments where relevant for new contracts, renewals and larger customer agreements.
The greatest exposure in foreign currency is to USD. In 2025, 91% of the Group’s revenue was denominated in USD (2024:
93%). As the Group’s functional currency is DKK and a significant part of the cost base, including employee costs, is
denominated in DKK, a weakening of USD against DKK has a negative impact on reported revenue and earnings when USD
revenue is translated into DKK.
During 2025, the USD weakened against the DKK, which negatively impacted the Group’s reported revenue measured in
DKK. The Group has limited natural hedging against this exposure, although part of the Group’s cost base, including certain
hosting, software and supplier costs, is also denominated in USD and therefore partly offsets the effect of USD revenue
fluctuations. The Group does not currently use financial hedging instruments.
Where commercially possible, the Group aims to balance incoming and outgoing payments in the same currency. This is
done by keeping certain USD-denominated supplier costs and payments in USD where they naturally offset USD revenue,
while monitoring whether selected customer contracts should be priced or renewed in EUR or DKK to better match the
Group’s main DKK/EUR cost base. However, currency fluctuations may still cause foreign exchange gains or losses which
the Group cannot predict, and adverse movements in USD and other foreign currencies could have a material adverse effect
on the Group’s business, results of operations and financial position.
28 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
19. Financial risks (continued)
DKK thousand
2025
2024
Sensitivity to a 10% increase/decrease in USD exchange rate
Effect on profit before tax
1,933
2,670
Effect on pre-tax equity
1,933
2,670
Assets
Liabilities
Net assets
DKK thousand
31 Dec 2025
31 Dec 2024
31 Dec 2025
31 Dec 2024
31 Dec 2025
31 Dec 2024
Currency
USD
7,050
12,758
3,599
5,299
3,451
7,459
EUR
380
357
624
227
(244)
130
Other
675
140
30
55
645
85
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group manages liquidity risk through ongoing monitoring of cash balances, short-term cash flow forecasts and expected customer receipts. Management
regularly reviews the Group’s liquidity position, including the timing of operating cash flows, debt service obligations and other committed payments.
At 31 December 2025, the Group’s cash and cash equivalents amounted to DKK 1,653 thousand (2024: DKK 4,021 thousand).
As of 31 December 2025, certain borrowings which were contractually due during 2025 had not been settled at maturity. This means that the Group had not repaid
the relevant borrowings in accordance with the original contractual repayment terms. At the reporting date, Management was in active discussions with the
relevant lenders to renegotiate and refinance the outstanding debt. The borrowings remained recognized as current liabilities at 31 December 2025.
The main implication of the overdue borrowings was that the Group was dependent on successfully completing the refinancing and maintaining support from
lenders and shareholders in order to manage its liquidity position. For this reason, the refinancing process and subsequent owner support were important
elements of Management’s going concern assessment.
After the reporting date, CoMade became the majority shareholder of Linkfire A/S. As part of the transaction, CoMade provided funding which enabled repayment
of the HPRY Ventures loan and repayment of approximately 50% of the outstanding debt to EIFO. The repayment to EIFO enabled a refinancing of the remaining
EIFO balance. Following the transaction, three out of four scheduled EIFO payments were cancelled, and the remaining debt service consists of quarterly
payments.
Based on the completed debt repayments after year-end, the agreed refinancing of the remaining EIFO balance, expected customer receipts and the 2026 cash
flow forecast, Management considers the Group’s liquidity resources to be adequate to meet its obligations as they fall due.
29 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
19. 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
2025
2024
Year ended on 31 December 2025
Financial assets measured at amortized cost
Loans, Borrowings and Provisions
27,596
38,772
14,674
2,386
83,428
Deposits
382
742
Lease liabilities
28
-
28
Trade receivables
5,546
5,693
Trade and other payables
4,898
2,592
-
-
7,490
Other receivables
528
6,678
Total
32,522
41,364
14,674
2,386
90,946
Cash
1,653
4,021
Total
8,109
17,134
Year ended on 31 December 2024
Loans, Borrowings and Provisions
10,753
13,882
57,679
2,320
84,634
Financial liabilities measured at amortized cost
Lease liabilities
297
890
-
-
1,187
Loans and Borrowings
66,369
84,166
Trade and other payables
9,364
465
235
-
10,064
Trade payables
5,001
6,285
Total
20,414
15,237
57,914
2,320
95,885
Other payables
4,847
3,779
Total
76,217
94,230
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 Loans and Borrowings to credit institutions of DKK 14,397 thousand (2024: DKK 13,157 thousand) at 31 December 2025 is
subject to a variable rate of interest based on a 3-month CIBOR plus a premium, whereas DKK 12,614 thousand (2024: DKK 12,110
thousand) has a fixed interest rate of 8%.
The Group’s interest-bearing debt to Other lenders of DKK 38,772 thousand (2024: DKK 37,491) at 31 December 2025 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 and other lenders as per the end of 2025 would result in a yearly increase in interest expenses of DKK 835 thousand (2024:
DKK 834 thousand). A corresponding decrease in market interest rates would have the opposite impact.
30 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
20. Liabilities arising from financing activities
21. Contingent Assets
The Group has an unrecognized deferred tax asset relating to tax losses carried forward. The deferred tax asset amounts to
approximately DKK 35,504 thousand as of 31 December 2025. The deferred tax asset has not been recognized due to
uncertainty regarding the timing and extent to which the Group will be able to utilize the tax losses against future taxable
income.
DKK thousand
Other borrowings
Lease liabilities
Total
2025
Liabilities at 1 January
69,134
1,187
70,321
22. Assets charged and collateral
Loans raised
600
-
600
As security for debt obtained from EIFO, the Company has registered a corporate mortgage amounting to DKK 9,000
thousand.
The corporate mortgage provides security over property, plant and equipment, inventories and intellectual property rights.
The carrying amount of the assets covered by the security amounts to DKK 56,799 thousand as of 31 December 2025.
Repayments
(3,085)
(1,009)
(4,094)
Other
(280)
(150)
(430)
Liabilities at 31 December
66,369
28
66,397
23. Related Parties
2024
Liabilities at 1 January
56,953
3,333
60,286
Shareholders
Registered office
Basis of influence
Loans raised
9,285
73
9,358
Egor Romanyuk
Dubai
28%
Repayments
(1,000)
(1,214)
(2,214)
Faurfelt Invest ApS
Copenhagen
3%
Other
3,896
(1,005)
2,891
Liabilities at 31 December
69,134
1,187
70,321
The Group’s related parties comprise the Company’s shareholders with significant influence, the Board of Directors, the
Executive Board, and entities controlled by these parties.
Following the transaction completed in 2026, CoMade became the majority shareholder of Linkfire A/S.
As of 31 December 2025, there was no ultimate parent company, as no shareholder held the majority of the voting rights at
the balance sheet date.
Transactions with the Board of Directors and Executive Board consist of normal remuneration, including salaries, board fees
and bonus arrangements, as disclosed in note 6.
As of 31 December 2025, outstanding balances with related parties consisted of accrued remuneration and bonus
obligations to the Board of Directors and Executive Board. These balances amount to DKK 778 thousand and are included in
Other Payables. All related party transactions are entered into on market terms.
31 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
24. Events after the Reporting Period
After the reporting date, CoMade Sthlm AB became the new majority shareholder of Linkfire A/S. In connection with the
transaction, CoMade provided financial support to the Company, including repayment of the full principal balance of DKK
37.25 million to HPRY Ventures and a payment of DKK 13.7 million to EIFO, enabling the Company to agree on a refinancing
of the remaining EIFO balance on revised terms. For further details, refer to the Going Concern section in Management’s
Review.
As part of the transaction with CoMade, the outstanding amount relating to the Tax Credit Scheme for FY 2020 and FY 2021
was repaid to the Danish Tax Authorities after the reporting date. The appeal remains ongoing, and the repayment was made
to prevent further interest from accruing during the appeal process. For further details, refer to the Tax Credit Scheme
section in Management’s Review.
No other significant events have occurred after the reporting period.
32 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER 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
33 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Parent company income statement
DKK thousand
Note
2025
2024
Revenue
42,613
46,755
Cost of Sales
(4,842)
(8,921)
Gross Profit
37,771
37,834
Other Income
198
-
External Expenses
(16,025)
(23,386)
Staff Costs
3
(15,013)
(20,048)
Capitalized development costs
3
10,252
11,477
EBITDA
17,183
5,877
Depreciation, amortization and impairment losses
4
(21,102)
(18,257)
EBIT
(3,919)
(12,380)
Financial Income
5
1,136
843
Financial Expenses
6
(10,581)
(10,929)
Profit/(loss) before tax
(13,364)
(22,466)
Tax for the year
7
-
-
Profit/(loss) for the year
(13,364)
(22,466)
34 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Parent company statement of financial position
DKK thousand
Note
2025
2024
DKK thousand
Note
2025
2024
Assets
Assets
Completed development projects
7
56,799
67,649
Trade receivables
5,545
5,693
Total intangible assets
56,799
67,649
Other receivables
626
6,715
Other fixtures and fittings, tools and equipment
-
-
Prepayments
294
80
Total property, plant and equipment
-
-
Total receivables
6,465
12,488
Deposits
382
742
Cash and cash equivalents
1,551
1,058
Total financial assets
382
742
Total current assets
8,016
13,546
Total fixed assets
57,181
68,391
Total assets
65,197
81,937
35 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Parent company statement of financial position
DKK thousand
Note
2025
2024
Equity and liabilities
Share capital
1,150
1,150
Reserve for development costs
56,799
67,649
Retained earnings
(92,051)
(89,536)
Total equity
(34,102)
(20,737)
Loans and Borrowings
10
-
45,753
Provisions
14,674
12,795
Other Payables
2,386
2,237
Total non-current liabilities
17,060
60,785
Loans and Borrowings
10
66,370
23,380
Prepayments from customers
5,677
7,344
Trade payables
5,001
6,258
Payables to group enterprises
2,835
1,701
Other payables
2,356
3,206
Total current liabilities
82,239
41,889
Total liabilities
99,299
102,674
Total equity and liabilities
65,197
81,937
36 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER 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
2025
2024
Equity beginning of period
1,150
10,024
67,649
(99,561)
(20,738)
Equity beginning of period
1,150
-
74,978
(84,423)
(8,295)
Transfer to reserves
-
-
(10,850)
10,850
-
Payment for the right to subscribe
shares
-
10,199
-
-
10,199
Profit/(loss) for the period
(13,364)
(13,364)
Transfer to reserves
-
-
(7,329)
7,329
-
Equity end of period
1,150
10,024
56,799
(102,075)
(34,102)
Transfer to reserves
-
(175)
-
-
(175)
Profit/(loss) for the period
(22,466)
(22,466)
Equity end of period
1,150
10,024
67,649
(99,560)
(20,737)
In 2024, the Company entered into a warrant agreement under which the counterparty paid a fixed amount for the right to subscribe for a
fixed number of shares during a 36-month exercise period.
37 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER 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
Intangible assets
8
Property, plant and equipment
9
Financial assets
10
Loans, Borrowings and Provisions
11
Contingent Assets
12
Assets charged and collateral
13
Other Obligations
14
Subsequent events
38 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
1. Accounting policies
The parent company financial statements are prepared in accordance with
the Danish Financial Statements Act.
The accounting policies applied to the parent company financial
statements are consistent with the accounting policies applied to the
consolidated financial statements, except for the accounting treatment of
investments in subsidiaries described below.
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.
2. Going concern
During 2025 and the first part of 2026, the Company continued to operate
with a strong focus on cost discipline, cash flow management and the
execution of its turnaround plan. While the underlying operations
improved, the Company’s financial position remained impacted by legacy
debt obligations, including the loan from HPRY Ventures falling due in May
2026 and outstanding debts with EIFO.
On 12 May 2026, the Company completed a change of ownership whereby
CoMade Sthlm AB (“CoMade”) became the new majority shareholder of
Linkfire A/S. In connection with the transaction, CoMade provided financial
support to the Company, including repayment of the full principal balance
of DKK 37.25 million to HPRY Ventures, which was due in May 2026. In
addition, a payment of DKK 13.7 million was made to EIFO, enabling the
Company to agree on a refinancing of the remaining balance on revised
terms.
The amounts paid by CoMade on behalf of the Company are intended to
be converted into equity once the new majority shareholder reaches 100%
ownership following completion of the squeeze-out process.
These post-balance sheet events have materially strengthened the
Company’s financial position by removing the immediate refinancing risk
related to the HPRY Ventures loan and reducing the outstanding debt
burden. Together with the continued support from the new majority
shareholder, management assesses that the Company has sufficient
liquidity and financial resources to continue its operations. Management
has, on this background, decided to prepare the financial statements on a
going concern basis.
39 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
3. Staff Costs
5. Other financial income
DKK thousand
2025
2024
DKK thousand
2025
2024
Wages and salaries
13,240
17,701
Foreign exchange gains, net
211
843
Other social security costs
83
249
Total
211
843
Other staff costs
1,690
2,098
15,013
20,048
6. Other financial expenses
Average number of employees at balance sheet date
28
DKK thousand
2025
2024
For information about remuneration to Board of Directors and Executive Board please refer to note 6 in the
notes to the consolidated financial statements.
Other interest expenses
(10,553)
(10,141)
Foreign exchange losses and other adjustments, net
-
(751)
Other financial expenses
(28)
(37)
4. Depreciation, amortization and impairment losses
Total
(10,581)
(10,929)
DKK thousand
2025
2024
Depreciation and amortization of intangible assets
21,102
18,807
Reversal of Impairment loss
-
(615)
Depreciation of property plant and equipment
-
65
Total
21,102
18,257
40 / 47 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 5
CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
7. Intangible assets
DKK thousand
Prepaid
Intellectual
Property Rights
Completed
development
projects
Development
projects in
progress
Total
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 Company’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 2025, Linkfire expensed DKK 2,936 thousand (2024: 5,104 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.
The impairment test is based on the approved 2026 budget, updated with draft actuals for Q1 2026, and a
forecast period covering 2026-2035. The cash flows are discounted using a WACC of 14.3%, and a terminal
growth rate of 2.0% has been applied.
The discounted value of cash flows from the budget and forecast period amounts to DKK 80,235 thousand,
and the discounted terminal value amounts to DKK 63,528 thousand, resulting in a total value-in-use of DKK
143,765 thousand.
The main assumptions in the impairment test are revenue growth, cost of sales, staff costs, external
expenses and capitalized development costs. Revenue growth is expected to be driven by the rollout and
monetization of Artist Workspaces, expansion within existing customers, annual contract value increases and
increased commission revenue from monetizable traffic.
Cost of sales is expected to remain relatively stable compared to revenue, supported by the infrastructure and
server cost optimizations completed in recent years. Staff costs and external expenses are expected to
increase moderately as the Company returns to a controlled growth phase. Capitalized development costs are
expected to decrease as a percentage of revenue over the forecast period.
As a result of the impairment test performed by Management, no impairment loss has been recognized in
2025.
2025
Cost at 1 January
-
145,664
-
145,664
Transfers
-
10,252
(10,252)
-
Additions
-
-
10,252
10,252
Cost at 31 December
-
155,916
-
155,916
Amortization and impairment at 1 January
-
(78,015)
-
(78,015)
Amortization during the year
-
(21,102)
-
(21,102)
Amortization and impairment at 31 December
-
(99,117)
-
(99,117)
Carrying amount at 31 December
-
56,799
-
56,799
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8. Property, plant and equipment
9. Financial assets
DKK thousand
Other fixtures and
fittings, tools and
equipment
Total
DKK thousand
Investments in
group enterprises
Deposits
2025
Cost at 1 January
689
689
2025
Cost at 31 December
689
689
Cost at 1 January
1
742
Additions / Disposals
-
(360)
Depreciation at 1 January
(689)
(689)
Cost at 31 December
1
382
Depreciation during the year
-
-
Depreciation at 31 December
(689)
(689)
2024
Carrying amount at 31 December
-
-
Cost at 1 January
1
511
Additions
-
231
Cost at 31 December
1
742
Name
Country
Ownership
Linkfire Inc.
USA
100%
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
10. Loans, Borrowings and Provisions
11. Contingent Assets
DKK thousand
2025
2024
The Company has an unrecognized deferred tax asset relating to tax losses carried forward. The deferred tax asset amounts to
approximately DKK 35,504 thousand as of 31 December 2025. The deferred tax asset has not been recognized due to uncertainty
regarding the timing and extent to which the Company will be able to utilize the tax losses against future taxable income.
Non-current borrowings and provisions
Loans from credit institutions
-
8,178
12. Assets charged and collateral
Loans from other lenders
-
37,575
Provisions
14,674
15,032
As security for debt obtained from EIFO, the Company has registered a corporate mortgage amounting to DKK 9,000 thousand.
The corporate mortgage provides security over property, plant and equipment, inventories and intellectual property rights. The
carrying amount of the assets covered by the security amounts to DKK 56,799 thousand as of 31 December 2025.
Total
14,674
60,785
Current borrowings and provisions
Loans from credit institutions
26,998
17,871
13. Other obligations
Loans from other lenders
38,772
1,562
DKK thousand
2025
2024
Other short-term borrowings
600
3,948
Liabilities under rental or lease agreements until maturity
359
725
Total
66,370
23,381
Total
359
725
At 31 December 2025, certain current borrowings were overdue and had not been settled in accordance with
the original repayment terms. The overdue amounts primarily related to loans from EIFO. The remaining EIFO
balance was subsequently refinanced after the reporting date as part of the transaction with CoMade. For
further details, refer to Note 2.
Loans from credit institutions comprise loans from EIFO. Loans from other lenders comprise the loan from
HPRY Ventures, which is not a financial institution. Other short-term borrowings comprise short-term
financing from other parties.
Non-current provisions include the provision related to the ongoing Tax Credit Scheme case. The Tax Credit
Scheme provision reflects Management’s best estimate of the obligation, including principal amount and
accrued interest up to the repayment date. For more information on the Tax Credit Scheme case, please refer
to the Financial Review section.
Other obligations comprise rental and lease commitments not recognized as lease liabilities. The Company has no other material
off-balance-sheet obligations as of 31 December 2025.
14. Subsequent events
After the reporting date, CoMade Sthlm AB became the new majority shareholder of Linkfire A/S. In connection with the transaction,
CoMade provided financial support to the Company, including repayment of the full principal balance of DKK 37.25 million to HPRY
Ventures and a payment of DKK 13.7 million to EIFO, enabling the Company to agree on a refinancing of the remaining EIFO balance
on revised terms. For further details, refer to the Going Concern section in Management’s Review.
As part of the transaction with CoMade, the outstanding amount relating to the Tax Credit Scheme for FY 2020 and FY 2021 was
repaid to the Danish Tax Authorities after the reporting date. The appeal remains ongoing, and the repayment was made to prevent
further interest from accruing during the appeal process. For further details, refer to the Tax Credit Scheme section in Management’s
Review.
No other significant events have occurred after the reporting period.
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Executive Management
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Independent auditor’s report
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CONTENTS MANAGEMENT’S REVIEW FINANCIAL STATEMENTS OTHER STATEMENTS
Independent auditor’s report
CVR No. 33963556
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