XOAS:5PG ESEF Annual Report
5TH PLANET GAMES (XOAS:5PG)
ESEF Annual Report
2022-05-26
For: 2022-03-31
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Added on
September 23, 2026
5th Planet Games A/S - Interim report, Q1 2022 Page 1
Copenhagen, 20 May 2022
INTERIM REPORT 1
st
Quarter 2022
Three months ended 31 March 2022
CEO-letter: Q1 2022
On reflecting on these Q1 results, my overall feelings are positive and optimistic, for largely the same
reasons that I expressed in my letter accompanying the 2021 annual results a little earlier this year.
In reviewing our financial results for Q1, I note the following:
• Revenue improved DKK 2.2m to DKK 2.9m in Q1 2022 from DKK 0.7m in Q1 2021 (continued
operations)
• EBITDA improved DKK 2.8m to DKK -0.7m in Q1 2022 from DKK -3.5m in Q1 2021 (continued
operations)
• Cashflow positive by DKK 1,7m in Q1 2022 against DKK -6.4m in Q1 2021 (total operations)
• Loss for Q1 2022 total DKK 26.1m due to the calculated change in fair value of derivative financials
instruments by DKK -25.6m
The final point above concerns a technical accounting requirement, but it should not serve as a distraction
from the fact that our overall financial position shows marked signs of improvement. This issue is only
temporary and will end when Investment Tranche 4 has been executed September 2023.
Before Your Eyes, the first title from last years investment agreement with Skybound Game Studios
continues to exceed expectations in terms of sales and the fist distribution agreement had been entered
between Skybound Games Studios and Netflix. We expect that Skybound will enter into more distribution
agreements in the future
From a corporate development perspective, the listing of 5
th
Planet Games stock on the US OTC markets
was a major achievement that we announced on February 10
th
this year, and that listing will get increasing
focus and attention in the coming months.
Finally, and perhaps the most important and transformative element of our progress is the pipeline of new
games that we are putting together; the games cover a variety of genres, but they are all aimed at global
audiences and have been developed in conjunction with some of the very best development studios in the
world; we look forward to sharing further details in due course.
So, rather like I stated earlier in the year, my positive outlook comes from the work that myself, the board
and the management team have done in starting 2022 with costs at an all-time low, a strong cash position,
profitable products in the market and some truly exciting opportunities ahead of us!
Yours sincerely,
Mark Stanger, Interim CEO, 5th Planet Games A/S
5th Planet Games A/S - Interim report, Q1 2022 Page 2
OUTLOOK for 2022
Based on the result in Q1 2022, the financial guidance for 2022 remain the same as as announced in the
annual report for 2021, a revenue at a level of DKK 10-20m and EBITDA at a level of DKK -5-1m.
Key figures and financial performance
Revenue for Q1 2022 amounted to DKK 2.9m, a 309% increase from DKK 0,7m in Q1 2021 (continued
operations).
Gross profit for Q1 2022 amounted to DKK 2.8m, a 533% increase from DKK 0.5m in Q1 2021 (continued
operations).
Costs for Q1 2022 decreased by DKK 0.6m (continued operations).
• Development expenses in Q1 2022 amounted to DKK 0.6m a decrease from DKK 1.2m in Q1 2021
(continued operations).
• Other expenses were in Q1 2022 on same level as in Q1 2021 (continued operations).
EBITDA before special items was a loss of DKK 0.5m in Q1 2022 against a loss of DKK 3.5m in Q1 2021
(continued operations). The increase was mainly driven by increase in revenue.
Financial income was an income of DKK 0.2m, covering financial income from exchange rate adjustments
and financial expenses to cash accounts in bank.
Financial expenses were a cost of DKK 25.7m covering an interest expense of DKK 0.1 and calculated
change in loss from derivative financials instruments of DKK 25.6m. The amount DKK 25.6m is the fair
Q1 Q1 FY
DKK ´000 2022 2021 2021
*Revenue 2,914 713 4,809
*Gross profit 2,859 452 4,688
*Loss before special items (EBITDA) -462 -3,512 -9,465
*Operating profit/loss (EBIT) -727 -3,512 -15,066
*Net Financials exclusive change in derivative instruments
211 403 656
Change in derivative financials instruments, fair value -25,630 0 7,729
Loss from discontinued operations 0 -3,542 -9,651
Net loss for the year -26,146 -6,415 -16,254
Total assets 21,169 21,840 28,359
Investments other equipment 0 0 0
Capitalized and expenses costs development 571 1,180 3,998
Equity -2,011 15,953 23,461
*Figures for Q1 2021 and FY2021 are only for continued operations.
5th Planet Games A/S - Interim report, Q1 2022 Page 3
calculated value change of Tranche 2-4 from the investment agreement with Skybound Games Studios. For
further explanation please see note 4.
Loss before tax amounted to DKK 26.1m in Q1 2022 an increase from DKK -3.1m in Q1 2021 (continued
operations).
Cash flows from operating activities.
Cash flows from operating activities was positive with DKK 1.7 in Q1 2022 against an outflow of DKK 6.5m in
Q1 2021.
Cash position as of 30 June 2022 amounted to DKK 15.3m against DKK 17.1m as of 31 March 2021.
The Group’s equity as of 31 March 2022 amounted DKK -2.0m. The reason for the negative equity as of 31
March 2022 is that the calculated value of the derivative financials instruments amounts DKK -17.9m as of
31 March 2022.
Events occurring after the balance sheet date.
On 26 April 2022 the company’s equity was increased following trance 2 in the investment agreement with
Skybound Games Studios inc. was completed with a gross proceeds of NOK 22m. (DKK 16.9m).
Following the above-mentioned capital increase and an actual calculation of the fair value of the derivative
financials instruments the equity at the time of this report is higher than the share capital and the company
is no longer in a situation with capital loss.
5th Planet Games A/S - Interim report, Q1 2022 Page 4
5th Planet Games at a glance
• An international, publicly traded games development company
founded in 2011.
• A company that creates, develops and publishes games on
globally basis.
• Strong portfolio of titles available across all platforms.
• Truly passionate about games and committed to making and
publishing titles that will engage and bring genuine joy to people for years.
• Enters into strategic partnerships with global IP holders for
increased visibility, awareness and games performance.
• Focused on games of the highest quality and a publishing function managed by an experienced
executive team from Europe and the USA
E-mail:
Phone: + 44 7833690674
CVR no.: 3359 71 42
5th Planet Games A/S - Interim report, Q1 2022 Page 5
Statement by the Board of Directors and the Executive Board
Executive Board
Board of Directors
5th Planet Games A/S - Interim report, Q1 2022 Page 6
Independent Auditorsʼ review report
The Board of Directors’ and the Management’s responsibility for the interim consolidated financial statements
Auditors’ responsibility
Conclusion
MNE-nr 35423 MNE-nr. 47837
5th Planet Games A/S - Interim report, Q1 2022 Page 7
Consolidated statement of comprehensive income
DKK´000 Note Q1 2022 Q1 2021 FY 2021
Revenue 2 2,914 713 4,809
Costs of sales 55 261 121
Gross Profit 2,859 452 4,688
Research and development costs 571 1,180 3,998
Marketing expenses 0 0 0
Other expenses 2,750 2,784 10,155
Loss before special items, deprecation and amortisation (EBITDA) -462 -3,512 -9,465
Special items 0 0 5,262
Depreciation and amortisation 265 0 339
Operating loss (EBIT) -727 -3,512 -15,066
Financial income 235 433 8,483
Financial expenses 25,654 30 98
Loss before tax -26,146 -3,109 -6,681
Tax on loss for the year 0 -236
-78
Loss for the year from continuing operations -26,146 -2,873 -6,603
Loss for the year from discontinued operations 0 -3,542 -9,651
Loss for the year -26,146 -6,415 -16,254
Other comprehensive income 0 0 0
Comprehensive income -26,146 -6,415 -16,254
Distribution of comprehensive income:
Parent company´s shareholders -26,146 -6,415 -16,254
Non-controlling interests 0 0
Total -26,146 -6,415 -16,254
Basic earnings per share:
From Continued operations (DKK) 3 -0.204 -0.027 0.058
From discontinued operations (DKK) 3 0.000 -0.033 0.069
Total DKK) -0.204 -0.060 0.127
Diluted earnings per share:
From Continued operations (DKK) 3 -0.204 -0.027 0.058
From discontinued operations (DKK) 3 0.000 -0.033 0.069
Total DKK) -0.204 -0.060 0.127
5th Planet Games A/S - Interim report, Q1 2022 Page 8
Consolidated balance sheet
DKK´000 Note 31.03.2022 31.03.2021 31.12.2021
Non-current assets
Acquired rights 1,549 0 1,814
Completed development projects 0 0 0
Plant and equipment 0 78 0
Right-of-use assets 0 670 0
Income tax receivables 824 0
Total non-current assets 1,549 1,572 1,814
Current Assets:
Trade receivables 3,847 908 1,924
Income tax receivable 54 2,196 52
Other receivables 60 57 2,911
Accrual expenses 322 0 322
Derivative financials instruments 0 0 7,729
Cash 15,337 17,107 13,607
Total current assets 19,620 20,268 26,545
Total assets 21,169 21,840 28,359
EQUITY AND LIABILITIES
DKK´000 Note 31.03.2022 31.03.2021 31.12.2021
Equity:
Share capital 6,400 5,316 6,400
Reserves 0 0
Retained earnings -8,411 10,637 17,061
Total Equity -2,011 15,953 23,461
Non-current liabilities
Lease liabilities 0 462 0
Other payables 372 930 930
Total non-current liabilities 372 1,392 930
Current liabilities
Lease liabilities 0 260 0
Received prepayments 97 0 0
Accrual income 572 0 572
Derivative financials instruments 4 17,901 0 0
Trade payables 2,637 1,689 1,746
Other payables 1,601 2,546 1,650
Total current liabilities 22,808 4,495 3,968
Total Liabilities 23,180 5,887 4,898
Total equity and liabilities 21,169 21,840 28,359
5th Planet Games A/S - Interim report, Q1 2022 Page 9
Consolidated statement of changes in equity
Other
DKK´000 reserves
Equity as at 01.01.2022 6,400 0 0 17,061 23,461
Net Loss -26,146 -26,146
Other comprehensive income 0 0 0
Comprehensive income 0 0 0 -26,146 -26,146
Capital increase 0
Costs related to capital increase 0
Share-based payments 674 674
Transfer of reserves 0
Transactions with owners 0 0 0 674 674
Equity as at 31.03.2022 6,400 0 0 -8,411 -2,011
Equity as at 01.01.2021 5,316 0 0 15,573 20,889
Net Loss -6,415 -6,415
Other comprehensive income 0 0 0
Comprehensive income 0 0 0 -6,415 -6,415
Capital increases 0
Costs related to capital increase 0
Share-based payment 0 1,479 1,479
Transfer of reserves 0
Transactions with owners 0 0 0 1,479 1,479
Equity as at 31.03.2021 5,316 0 0 10,637 15,953
Total
equity
Share
capital
Share
premium
Retained
earnings
Reserves
5th Planet Games A/S - Interim report, Q1 2022 Page 10
Consolidated cash flow statement
DKK´000 Note 31.03.2022 31.03.2021 FY 2021
Loss before tax -26,146 -7,231 -16,332
Depreciation, amortisation and impairment losses 265 80 5,364
Share-based payments 674 1,479 4,360
Financial income, reversed -238 -433 -8,484
Financial expenses, reversed 25,654 43 135
Change in working capital 1,545 -385 -4,523
Operating cash flow 1,754 -6,447 -19,480
Financial income, received 0 0 0
Financial expenses, paid -24 -43 -135
Income tax received 0 -8 2,222
Cash flow generated from operations 1,730 -6,498 -17,393
Purchase of equipment 0 0 0
Sale of right of use assests 0 0 544
Purchase of IP rights 0 0 -6,895
Cash flow from investing activities 0 0 -6,351
Proceeds from cash capital increase 0 0 7,573
Purchase of IP rights financed by issue of warrants 0 0 6,895
Lease liabilities, repayment 0 -61 -783
Cash flow from financing activities 0 -61 13,685
Total cash flow for the period 1,730 -6,559 -10,059
Cash, beginning of period 13,607 23,666 23,666
Net foreign exchange difference 0 0 0
Cash, end of period 15,337 17,107 13,607
5th Planet Games A/S - Interim report, Q1 2022 Page 11
1. Basis of preparation
The interim report has been prepared in accordance with IAS 34 Interim financial reporting, as adopted by
the EU, and additional Danish interim reporting requirements for listed companies.
The interim report does not include all the information and disclosures required in the annual consolidated
financial statements and should be read in conjunction with the Group’s annual consolidated financial
statements as at 31 December 2021.
The accounting policies adopted in the preparation of the interim report are consistent with those followed
in the preparation of the Group’s annual consolidated financial statements for the year ended 31
December 2021.
Significant accounting estimates and judgments
The most significant accounting estimates and judgments in the interim consolidated financial statements
remain unchanged compared to those used in Annual Report 2021. The principles and key assumptions are
described in the Annual Report 2021 in note 2.
2. Revenue
3. Earnings per share
DKK´000 Q1 2022 Q1 2021 FY 2021
Sales of games and advertising for mobile devices 427 242 1,205
License income 2,497 471 3,589
Other revenue 0 0 15
Total 2,924 713 4,809
DKK´000 Q1 2022 Q1 2021 FY 2021 Q1 2022 Q1 2021 FY 2021
Net loss for the period -26,146 -2,873 -6,603 0 -3,542 -7,797
Average number of shares (in thousands) 127,996 106,318 113,148 127,996 106,318 113,148
Average number of treasury shares 0 0 0 0 0 0
Average number of shares in circulation 127,996 106,318 113,148 127,996 106,318 113,148
Diluted average number of shares in circulation 127,996 106,318 113,148 127,996 106,318 113,148
Earnings per share of DKK 0,05 each (in DKK) -0.204 -0.027 -0.058 0.000 -0.033 -0.069
Diluted earnings per share of DKK 0,05 each (in DKK) -0.204 -0.027 -0.058 0.000 -0.033 -0.069
Discontinued operations
Continued operations
5th Planet Games A/S - Interim report, Q1 2022 Page 12
4. Derivative financial instruments
On 7 September 2021, the parent company of the group entered into an investment agreement with
Skybound Games Studios (the investor). The investor receives right to subscribe mandatorily and
investment shares and warrants (collectively “rights”) which can be exercised on different dates depending
on the tranches. Each right can be exercised for one share (i.e., 1:1 conversion ratio) and the number of
shares that will be issued are fixed for all these tranches. Upon settlement, the fixed exercise amount in
Norwegian kroner (NOK) is settled by the investor by paying its US dollar (USD) equivalent. The functional
and presentation currency of the parent company and the Group is Danish kroner (DKK). Hence, although
the exercise amount is fixed in NOK, the equivalent amount in DKK is variable depending on the prevailing
exchange rate between DKK and USD at settlement date. This variable amount does not qualify the
definition of equity instrument and therefore, these rights are classified as derivative financial assets /
liabilities.
The liabilities amount DKK 17.9 per 31 March 2022 is variable with the development in exchange rate in
NOK/DKK and the company’s share price. The amount is the calculated fair value that the company would
have received less if the company’s share price and exchange rate NOK/DKK as per 31 March 2022 had
been used in the agreement for the investment Tranches 2-4.
Per 31 December 2021 the amount was an asset of DKK 7.7m. The costs incurred in Q1 2022 therefore is a
expenses or DKK 25.6m.
Capital resources
As mentioned below under events occurred after the balance sheet date, the company has resolved a
capital increase of DKK 16.9m the 26 April 2022. According to most recent budgets and plans the existing
capital resources are sufficient to continue the operation until June 30
th
, 2023.
Events occurring after the balance sheet date
On 26 April 2022 the Equity was increased following trance 2 in the investment agreement with Skybound
Games Studios inc. was completed with a gross proceeds of NOK 22m. (DKK 16.9m).
Following the above-mentioned capital increase and a lower share price in the period from 31 March 2022
until 13 May 2022 the company´s share capital has been positive.
Following the increase in the share price on 16 May 2022, the company is at the time of this report in a
situation with capital loss, only as it pertains to the fair value of the derivative financial instruments. The
capital loss does not affect the groups capital recourses, cash position or future outflow of cash. This
situation is only temporary and will end when Investment Tranche 4 has been executed September 2023.
5th Planet Games A/S - Interim report, Q1 2022 Page 13
Contingent liabilities
Based on management’s assessment the group is not involved in any lawsuits, arbitration cases or other
matters which could have a material impact on the group’s financial position or results of operations.
Acquired IP rights / co-productions rights.
As a part of the investment agreement with Skybound Games Studios the company has entered into two
co-production agreements with a total co-funding obligation for the company on USD 5.5m.
As part of the investment agreement, 5th Planet Games has provided certain representations and
warranties to Skybound Games. Should Skybound Games suffer a loss due to certain specific warranties not
being true, accurate and not misleading, Skybound Games will, at its own discretion, have the option of
being indemnified from its loss by exercising up to 2,200,000 warrants (depending on the loss), each
warrant entitling Skybound Games to subscribe for 1 share of nominal DKK 0.05 at par value (the
“Indemnification Warrants”). The potential loss from this warranty is estimated to be unsignificant.