xbrli:pureiso4217:EUR380744662023-01-012023-12-31cmn:ConsolidatedMember380744662023-01-012023-12-311cmn:ConsolidatedMember380744662023-01-012023-12-31fsa:LiquidationAccountMembercmn:ConsolidatedMember380744662023-01-012023-12-311cmn:ConsolidatedMember380744662023-01-012023-12-311380744662023-01-012023-12-312380744662023-01-012023-12-313380744662023-01-012023-12-314380744662023-01-012023-12-315380744662023-01-012023-12-312cmn:ConsolidatedMember380744662022-01-012022-12-31cmn:ConsolidatedMember380744662023-01-012023-12-31380744662022-01-012022-12-31380744662023-01-012023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662023-01-012023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662023-01-012023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662023-01-012023-12-31fsa:RetainedEarningsMember380744662023-12-31cmn:ConsolidatedMember380744662022-12-31cmn:ConsolidatedMember380744662023-12-31380744662022-12-31380744662023-01-01cmn:ConsolidatedMember380744662022-01-01cmn:ConsolidatedMember380744662023-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662023-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662023-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662023-01-01fsa:ContributedCapitalMember380744662023-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662023-01-01fsa:ReserveForDevelopmentExpenditureMember380744662023-01-01fsa:RetainedEarningsMember380744662023-01-01380744662023-12-31fsa:ContributedCapitalMember380744662023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662023-12-31fsa:ReserveForDevelopmentExpenditureMember380744662023-12-31fsa:RetainedEarningsMember380744662023-01-012023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662023-01-012023-12-31fsa:ContributedCapitalMember380744662023-01-012023-12-31fsa:ReserveForDevelopmentExpenditureMember380744662023-01-012023-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMember380744662023-01-012023-12-31fsa:ShorttermDeferredIncomeMemberGrundlag for konklusionKonklusion2024-06-282024-06-2833963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2022-12-312022-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2023-12-312023-01-01BLAST ApS38074466ÅrsrapportAarhus C80002City Tower, VærkmestergadeCopenhagenCopenhagen11273<br /><br />1Hauser Plads0The Board of Directors and the Executive Board have today considered and approved the annual report of BLAST ApS for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.CopenhagenRobert Marc DouekCEORené Efraim RechtmanJimmy Fussing NielsenErik Balck SørensenJohan Harald GeddaRobert Marc DouekchairmanTo the shareholders of BLAST ApSWe have audited the consolidated financial statements and the parent financial statements of BLAST ApS for the financial year 01.01.2023 - 31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2023 - 31.12.2023 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.AarhusMads FauerskovKasper Pagter Gjerløvmne35428mne50622State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2023
EUR'0002022
EUR'0002021
EUR'000Key figuresRevenue72,56631,63113,470Gross profit/loss15,088(728)(6,396)Operating profit/loss1,385(9,796)(12,809)Net financials(2,529)(1,156)128Profit/loss for the year(2,194)(11,576)(12,701)Balance sheet total44,20526,79722,603Investments in property, plant and equipment1,9493,7342,994Equity4,336(4,892)6,892Cash flows from operating activities1,954(7,898)(8,119)Cash flows from investing activities(2,233)(5,505)(2,391)Cash flows from financing activities9,42212,06514,017RatiosGross margin (%)20.79(2.30)(47.48)Net margin (%)(3.02)(36.60)(94.29)Equity ratio (%)9.81(18.26)30.49As a result of 2022 being the group's first year in accounting class C, there are no other comparative figures in the main and key figures overview.Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueNet margin (%)
:
Profit/loss for the year * 100
RevenueEquity ratio (%)
:Equity * 100
Balance sheet totalPrimary activitiesBLAST ApS (“BLAST” or “the Company”) is a global esports and technology company, delivering world-class entertainment experiences in person and online. Whether it is intimate broadcast studio shows, arena events, digital platforms or top-class multi-platform content, BLAST creates the most exciting, exhilarating and euphoric moments in esports.
BLAST owns BLAST Premier, a worldwide Counter-Strike year-long tournament where the best teams and brightest stars fight it out to be crowned champions. This is broadcast around the world and fully commercialised through media rights, sponsorship, ticketing and other revenue lines. In 2023, BLAST Premier had 12 Member Teams who played in the 7 yearly tournaments alongside additional top-tier teams that emerged through qualification tournaments.
Alongside BLAST Premier, BLAST hosted the BLAST.tv Counter-Strike Major, which saw top teams from around the world competing through a series of regional qualifiers and cumulated in a 4-day final in Paris. The Major was also fully commercialised by BLAST.
In Fortnite, BLAST continued its partnership with EPIC Games and ran the FNCS ecosystem throughout 2023, including three month-long online tournaments and 1 live arena tournament.
Furthermore, BLAST launched BLAST R6, a multi-year partnership with Ubisoft to run the official competitive ecosystem for Rainbow 6 under the BLAST brand. The partnership includes regional qualifiers, arena-based Majors and Six Invitationals. BLAST and Ubisoft jointly commercialise the ecosystem.
BLAST.tv, launched in late 2022, is a consumer-facing platform that allows users to stream live BLAST esports, watch VOD content, interact with other fans and immerse themselves in BLAST events and content. BLAST.tv is a home for our fans and all esports fans to engage with esports in an always-on capacity.
Development in activities and financesBLAST Premier revenue increased, driven by growth in Brand Commercial revenue. Sponsorship, Media Rights and host city payments continued to be key contributors of revenue.
FNCS revenue grew due to increase in the scope and specification of the tournaments.
BLAST.tv Counter-Strike Major and BLAST R6 represented new sources of revenue for the company and were both of significant scale. In both cases, our revenue included Sponsorship, Media Rights, tickets/merchandise and a share of in-game item sales. For BLAST R6, we also received a production fee from Ubisoft.
Cost of Sales growth was attributable to the Company’s growth and the execution of a greater number of tournaments and broadcast hours. Gross Margin improved due to growth in commercialisation value and improved operating efficiency.
Capital expenditure investments were made into our Copenhagen studio and broadcast technology equipment. These investments enabled BLAST to increase production volume and specification. Capital expenditure investments were also made into the continued development of the BLAST.tv consumer platform. We built new streaming capabilities, interactive features and native mobile apps.
Liquidity
In 2023, BLAST secured new equity investment and cancelled shares, netting €11,5 m in incremental new equity. The cash position at the end of 2023 was €18.1m . It is management's assessment that BLAST has sufficient liquidity to continue operations in FY24 and beyond.
Merger of Blast ApS and Blast Tech ApS
Blast ApS have retroactively merged with Blast Tech ApS as of January 1, 2023 with Blast ApS as the receiving entity to concentrate the activity in Blast ApS. For description of the treatment of the merger accounting wise we refer to the accounting policies for business combinations.Profit/loss for the year in relation to expected developmentsOperating profit was positive and net loss narrowed significantly in 2023. Gross profit margin increased significantly, driven primarily by growth in Brand Commercial and Consumer revenue, which came at very low incremental cost. Gross profit from production fees also made a strong contribution, driven by attractive margin profile of productions. Operating costs as % of revenue decreased due to strong cost discipline and operating efficiencies across multiple tournaments. Net loss was €2.2m, compared to expectation of a €5-8m loss, due to higher than expected revenue and stronger operating performance.Uncertainty relating to recognition and measurementThe Company invests in its studio, broadcast equipment and in the development of BLAST.tv. Expenses in the development phase of BLAST.tv are capitalised at cost on initial recognition and are valued on an ongoing basis by management.
Management assesses the expected future value and profitability of our studio operations, broadcast technology and BLAST.tv platform. An impairment loss is recognised if management estimates that the future value or cash flow contribution is less than the value of the capitalised value.
OutlookIn 2024, BLAST will begin a 4-year partnership with EPIC Games covering both Fortnite and Rocket League, a partnership with Riot Games covering Berlin studio broadcasts on League of Legends and Valorant, and will launch tournaments in DOTA 2 by late 2024. BLAST will occupy a strong position in seven of the largest esports ecosystems globally. The increased output, delivered in a more efficient way with increased commercialisation will drive revenue growth and improved profitability.
Overall, BLAST expects to continue strong revenue growth and profitability profile. The increased operating efficiency will result in improved profitability for each ecosystem. Capital Expenditures will be comparable to 2023 as the Company will continue to invest in its studio, production technology and BLAST.tv. BLAST expects a loss in the range of 4-6 m.EUR for the year of 2024.
Globally, esports audience base is forecasted to grow at an annual rate of 8.1% to 2025, reaching 641 million; industry revenue is forecast to grow at an annual rate of 13.4% to 2025, reaching $1.9 billion.
BLAST’s long-term focus is to strategically enter new games and geographic markets where there are commercially viable opportunities to build coherent, exciting and commercial ecosystems. As this grows our output, we remain focused on scaling our operations in a cost-effective and scalable way.
Risks relating to foreign exchange rates and interest rates
BLAST is exposed to risks from movements in exchange and interest rates.
Exchange risk: BLAST’s reporting currency is the EUR and we did not hedge exchange rate risks. In 2023, we had meaningful exposure to DKK and USD. DKK was pegged to EUR. USD revenues exceeded USD costs. For 2024, we expect to have net exposure to DKK, USD, GBP and CAD currencies and will look to mitigate the potential impact of exchange rate movements.
Interest rates risk: interest rate risk primarily results from changes in market interest rates impacting BLAST’s floating-rate interest liabilities, which amounts to approx €3.1 million. The floating rate is determined at CIBOR + fixed spread. Blast does not use any instruments to hedge against changes in interest rates.
Knowledge resourcesThe Company's principal assets in terms of knowledge resources consist of its workforce and accumulated experience in the development and broadcasting of online, studio and arena esports events.
BLAST has in-housed all of its broadcast technology stack, a unique move in the esports industry, and made investments in industry leading technology and equipment that allow for premium, 4K experiences.
In parallel the Company has made significant investment in a competitive esports studio that offers space for live audiences and can accommodate multiple events simultaneously.
Finally BLAST.tv constitutes the go-to, D2C platform in esports, offering a revolutionizing viewing experience to consumers
Environmental performanceManagement believes that environmental and social sustainability is essential to BLAST’s long-term success. The Company is committed to making a difference, and is confident that its actions will help to create a more sustainable future for all.
BLAST fosters a culture of inclusivity, diversity, and respect within the organization, prioritizing the well-being and safety of its employees and supporting work-life balance.
Practices and policies are continually evaluated to identify opportunities for improvement, seeking input from stakeholders and leveraging on their expertise to enhance sustainability efforts.
Research and development activitiesBLAST have made a significant investment into the development of Blast.TV, a platform that will allow users to stream live BLAST Premier matches, interact with other fans and immerse themselves in BLAST events.
Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 72565742316307137247300831583999-872235-732425-680599-53663333228104123687687345621153075682290498825307568229049882530793040521214119576221248915087593-7284531964603643144721092806871064665877718336127427746871867859271513919211240934411805211943170221384838-9796219-6998940-52849481986204675610153847389942727499120299024568721381659-1144041-10952453-844042817336771049549623981833991619948-2193590-115764340-2193590-927441911137290-92744195603429589175356034295891753121512012151205724941589175357249415891753358550840839883536128402107910539170105391700930799093079946394255014787459004549518785467847494184574276619055467847494186091504134332971091115011655958164064902427692891746254010616916648840029740883064088709728514869778912555270910266315543830061129816802405761518154961721821470343860409131811279789690208969020103075241779183885532893329434615141202324952761459420244205496267971604890176638871130490494103649049410360-3977100-3977104286791-4535630797307964521454335840-489230441036-397710-4535630-4892304490490428679110032181788486641036-39771017893957202924863564549049020100537973079395003950002920440292044128677481274532012867748127453200439338043933812867748134767021286774813476702130530614820181305306148201819062867129893791839264512369877215558921873937992945062903885497056748482802697567484828026972699795818212762260018371750956239865706316894643886958530986264442054962679716048901766388711308844128129241282176888441281292412821768-831-1316654-1317485-831-1316654-1317485-82549-82549-82549-82549397710-39771003977100-3977100The translation reserve has been dissolved as all entities in the Group prepare are booked in EUR and hence no currency translation etc. will occur going forward.<br />The translation reserve has been dissolved as all entities in the Group used EUR in their financial statement and hence no currency translation etc. will occur going forward.
Effect of mergers and business combinations is used as Blast ApS' retroactively merged with Blast Tech ApS as
of January 1, 2023 using the modified uniting-of-interests method and shows the net effect of restating the comparative figures back to the date when the entities first formed part of the Group. For further description of the treatment of the merger accounting wise we refer to the accounting policies for business combinations. 2774687188822128000726774504439532-523054819862046756-2727499-1202990930819-2394721-8870148830641954458-7898439-828443-1299222-1949222-424472354515238478-2232513-5505467-278055-13403906113708613220640-2987471-765038-149517-182044128217680-13174850-82549-2081569421832120654029143777-13385041811279789690201 Events after the balance sheet dateNo other events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.1 Events after the balance sheet dateNo other events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.2 Staff costs2023
EUR2022
EURWages and salaries10,193,0296,306,099Pension costs229,180339,113Other social security costs505,859461,25410,928,0687,106,466Average number of full-time employees11986Remunerationof management
2023
EURRemunerationof management
2022
EURTotal amount for management categories506,011399,277506,011399,277Special incentive programmesThe company's general meeting has authorized the Board of Directors to issue warrants for total nom. EUR 7,788.03 corresponding to 7,788,025 shares a nom. EUR 0.001. Warrants can be issued to employees, board members and advisers in the Entity and its subsidiaries.
Warrants give the right to subscribe for common shares in the company against payment of an exercise price determined by the Board of Directors.
As of 31 December 2023, the company has 4,411,941 warrants outstanding, corresponding to a nominal value
of EUR 4,411.94, of which management have received 2,214,283 warrants.
The issued warrants have an expire at 30 June 2025.3 Staff costs2023
EUR2022
EURWages and salaries5,728,1363,062,365Pension costs122,475254,742Other social security costs27,10744,1675,877,7183,361,274Average number of full-time employees5935Remunerationof
Manage- ment
2023
EURRemunerationof Manage- ment
2022
EURTotal amount for management categories57,53424,45257,53424,452Special incentive programmesThe company's general meeting has authorized the Board of Directors to issue warrants for total nom. EUR 7,788.03 corresponding to 7,788,025 shares a nom. EUR 0.001. Warrants can be issued to employees, board members and advisers in the Entity and its subsidiaries.
Warrants give the right to subscribe for common shares in the company against payment of an exercise price determined by the Board of Directors.
As of 31 December 2023, the company has 4,411,941 warrants outstanding, corresponding to a nominal value
of EUR 4,411.94, of which management have received 2,214,283 warrants.
The issued warrants have an expire at 30 June 2025.119865935Remunerationof management
2023
EURRemunerationof management
2022
EURTotal amount for management categories506,011399,277506,011399,277Remunerationof
Manage- ment
2023
EURRemunerationof Manage- ment
2022
EURTotal amount for management categories57,53424,45257,53424,45250601139927757534244523 Depreciation, amortisation and impairment losses2023
EUR2022
EURAmortisation of intangible assets995,255998,102Depreciation on property, plant and equipment1,779,432869,7572,774,6871,867,8594 Depreciation, amortisation and impairment losses2023
EUR2022
EURAmortisation of intangible assets995,255998,102Depreciation on property, plant and equipment1,719,884923,0222,715,1391,921,1244 Tax on profit/loss for the year2023
EUR2022
EURCurrent tax215,55874,240Change in deferred tax887,014(883,064)Adjustment concerning previous years(53,023)1,432,8051,049,549623,981Adjuestment concerning previous years in 2022 are related to received tax credit for 2018 and 2019 with a total amount of EUR 1.433 million. The adjustment have been made as The Danish tax authorities are claiming that the
Company does not meet the requirements for using LL §§8B og 8X, and have stated that the Company are obligated to repay the recieved tax credit.
BLAST has appealed SKATs decision to The Danish Tax Appeals Agency and are currently awaiting ruling.7 Tax on profit/loss for the year2023
EUR2022
EURCurrent tax074,240Change in deferred tax887,097(887,097)Adjustment concerning previous years(53,106)1,432,805833,991619,948Adjuestment concerning previous years in 2022 are related to received tax credit for 2018 and 2019 with a total amount of EUR 1.433 million. The adjustment have been made as The Danish tax authorities are claiming that the Company does not meet the requirements for using LL §§8B og 8X, and have stated that the Company are obligated to repay the recieved tax credit. 5 Proposed distribution of profit/loss2023
EUR2022
EURRetained earnings(2,193,590)(11,576,434)(2,193,590)(11,576,434)8 Proposed distribution of profit and loss2023
EUR2022
EURRetained earnings(9,274,419)1,113,729(9,274,419)1,113,729-2193590-11576434-927441911137296 Intangible assetsCompleted development projects
EURDevelopment projects in progress
EURCost beginning of year6,830,0510Transfers627,996(627,996)Additions78,935749,508Cost end of year7,536,982121,512Amortisation and impairment losses beginning of year(938,298)0Amortisation for the year(995,255)0Amortisation and impairment losses end of year(1,933,553)0Carrying amount end of year5,603,429121,512Completed development projects
EURDevelopment projects in progress
EURCost beginning of year6,830,0510Transfers627,996(627,996)Additions78,935749,508Cost end of year7,536,982121,512Amortisation and impairment losses beginning of year(938,298)0Amortisation for the year(995,255)0Amortisation and impairment losses end of year(1,933,553)0Carrying amount end of year5,603,429121,512<br />9 Intangible assetsCompleted development projects
EURDevelopment projects in progress
EURCost beginning of year6,830,0500Transfers627,996(627,996)Additions78,935749,508Cost end of year7,536,981121,512Amortisation and impairment losses beginning of year(938,297)0Amortisation for the year(995,255)0Amortisation and impairment losses end of year(1,933,552)0Carrying amount end of year5,603,429121,512<br />Completed development projects
EURDevelopment projects in progress
EURCost beginning of year6,830,0500Transfers627,996(627,996)Additions78,935749,508Cost end of year7,536,981121,512Amortisation and impairment losses beginning of year(938,297)0Amortisation for the year(995,255)0Amortisation and impairment losses end of year(1,933,552)0Carrying amount end of year5,603,429121,5127 Development projectsCompleted development projects relate to the development of the design of the Blast Premier and Blast.tv. The Company has for the Blast Premier designed in-game advertising; bespoke gaming platforms configured to indi-vidual sponsors to architectural stage drawings, whereas Blast.tv is an innovative platform for watching BLAST tournaments and additional content and engaging with players and talents. The cost of development projects comprises internal development and third-party support. The assumptions related to the measurement and recognition of development projects are based on cost.
In 2023 the carrying amount of Blast ApS’ development project has only been subject to amortization, since recoverable amount is considered to be at least equal to the carrying value based on the market value of the Company applied in connection with the fund raising carried out in 2023
10 Development projectsA description of development projects is evident from the notes to the consolidated financial statements.8 Property, plant and equipmentOther fixtures and fittings, tools and equipment
EURLeasehold improvements
EURProperty, plant and equipment in progress
EURCost beginning of year5,971,7660930,799Transfers01,165,094(1,165,094)Additions1,311,3350637,887Disposals(560,932)0(403,592)Cost end of year6,722,1691,165,0940Depreciation and impairment losses beginning of year(1,887,778)00Depreciation for the year(1,668,255)(111,177)0Reversal regarding disposals419,37200Depreciation and impairment losses end of year(3,136,661)(111,177)0Carrying amount end of year3,585,5081,053,9170Recognised assets not owned by Entity168,4380011 Property, plant and equipmentOther fixtures and fittings, tools and equipment
EURLeasehold improvements
EURProperty, plant and equipment in progress
EURCost beginning of year5,845,2340930,799Transfers01,165,094(1,165,094)Additions1,265,3160637,887Disposals(560,932)0(403,592)Cost end of year6,549,6181,165,0940Depreciation and impairment losses beginning of year(1,824,155)00Depreciation for the year(1,608,707)(111,177)0Reversal regarding disposals419,37200Depreciation and impairment losses end of year(3,013,490)(111,177)0Carrying amount end of year3,536,1281,053,9170Recognised assets not owned by entity168,438009 Financial assetsDeposits
EURCost beginning of year749,418Additions258,493Disposals(461,127)Cost end of year546,784Carrying amount end of year546,78412 Financial assetsInvestments in group enterprises
EURReceivables from group enterprises
EURDeposits
EURCost beginning of year1,17812,770,214661,905Additions011,782,056256,649Disposals0(18,919,371)(461,127)Cost end of year1,1785,632,899457,427Carrying amount end of year1,1785,632,899457,427A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.In connection with the year's top-line growth, and the budgeted growth in the coming years, management has carried out an impairmenttest of the company's financial assets. This test shows that due to the expected positive cash flows in the coming years, the company does not see any reason to make any impairment in the company's assets. As a result, these have been reversed during the financial year. 10 Deferred tax2023
EUR2022
EURIntangible assets(1,259,487)(504,704)Property, plant and equipment(82,772)(227,016)Receivables1,2450Liabilities other than provisions096,774Tax losses carried forward1,337,0641,518,010Deferred tax(3,950)883,064
Changes during the year2023
EUR2022
EURBeginning of year883,0640Recognised in the income statement(887,014)883,064End of year(3,950)883,064Deferred tax has been recognised in the balance sheet as follows2023
EUR2022
EUR
Deferred tax assets0883,064
Deferred tax liabilities(3,950)0(3,950)883,06413 Deferred tax2023
EUR2022
EURIntangible assets(1,259,487)(456,989)Property, plant and equipment(78,822)(275,672)Receivables1,2450Liabilities other than provisions096,774Tax losses carried forward1,337,0641,522,984Deferred tax0887,097
Changes during the year2023
EUR2022
EURBeginning of year887,0970Recognised in the income statement(887,097)887,097End of year0887,09711 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.14 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.12 Contributed capitalNumberPar value
EURNominal
value
EURRecorded par
value
EURA-shares13,491,7470.0018,13418,134B-shares20,658,0480.0027,73027,730Common shares2,351,6110.003,1613,16136,501,40649,02549,025The Par Value of the above is 0.0013 EUR 13 Non-current liabilities other than provisionsDue within 12
months
2023
EURDue within 12
months
2022
EURDue after
more than 12
months
2023
EURLease liabilities290,648148,1210Payables to owners and management 1,014,658558,99912,867,748Other payables0774,89801,305,3061,482,01812,867,748Payables to owners and management is purely related to shareholder loans and
the non-current liabilities for the company are all due within 5 years.15 Non-current liabilities other than provisionsDue within 12
months
2023
EURDue within 12
months
2022
EURDue after
more than 12
months
2023
EURLease liabilities290,648148,1210Payables to owners and management 1,014,658558,99912,867,748Other payables0774,89801,305,3061,482,01812,867,748Payables to owners and management is purely related to shareholder loans and
the non-current liabilities for the
company are all due within 5 years.14 Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.16 Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.15 Changes in working capital2023
EUR2022
EURIncrease/decrease in receivables(6,817,646)167,432Increase/decrease in trade payables etc.7,097,6532,448,792Other changes061,226280,0072,677,45016 Unrecognised rental and lease commitments2023
EUR2022
EURTotal liabilities under rental or lease agreements until maturity 4,206,0883,077,35017 Unrecognised rental and lease commitments2023
EUR2022
EURTotal liabilities under rental or lease agreements until maturity 3,711,2102,655,94717 Contingent liabilities2023
EUR2022
EURRecourse and non-recourse guarantee commitments282,568283,191Contingent liabilities 282,568283,19118 Contingent liabilities2023
EUR2022
EURRecourse and non-recourse guarantee commitments282,568283,191Contingent liabilities 282,568283,19118 Assets charged and collateral
As security for
all accounts with one of the group's bank connections EUR 284,852 of the group's cash and cash equivalents have been pledged.
Payment guarantees have been provided to the group's suppliers for a total of EUR 282,568.19 Assets charged and collateral
As security for
all accounts with one of the company's bank connections EUR 284,852 of the company's cash and cash equivalents have been pledged.
Payment guarantees have been provided to the company's suppliers for a total of EUR 282,568.19 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.20 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.20 SubsidiariesRegistered inCorporate
formOwnership
%Equity
EURProfit/loss
EURBlast Esport LimitedLondon, EnglandLimited100.00(19,794,958)(7,019,129)Blast ApS has been retroactively merged with Blast Tech ApS as of January 1, 2023 using the modified uniting-of-interests method. For further desription of the treatment of the merger accounting wise we refer to the accounting policies for business combinations. 0-7661290117811785632899127702142010053178939500-750779-7507790220658-22065802 Uncertainty relating to recognition and measurement
The Company invests in its studio, broadcast equipment and in the development of submodules to BLAST.tv. Expenses in the development phase of the submodules to BLAST.tv are capitalized at cost on initial recognition and are valued on an ongoing basis by management.
Management assesses the expected future value and profitability of our studio operations, broadcast technology and BLAST.tv platform. An impairment loss is recognized if management estimates that the future value or cash flow contribution is less than the value of the capitalized value.
5 Other financial income2023
EUR2022
EURFinancial income from group enterprises783,529692,238Other interest income231,85529,199Exchange rate adjustments017,5571,015,384738,9946 Other financial expenses2023
EUR2022
EUROther interest expenses1,474,1961,079,002Exchange rate adjustments922,035251,064Other financial expenses60,64151,5932,456,8721,381,659<br />2023
EUR2022
EUROther interest expenses1,474,1961,079,002Exchange rate adjustments922,035251,064Other financial expenses60,64151,5932,456,8721,381,659This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (medium).Changes in accounting policiesThe Entity has changed its accounting policies with regard to presentation of management fee and recharges.
The change in accounting policies has not led to a decrease or increase in equity, assets or liabilities. Management fee and recharges was previous shown as other external costs but is now presented as other operating expenses.
The comparative figures have been restated following the change in accounting policies.
Apart from the areas mentioned above, the annual report has been presented applying the accounting policies consistent with last year with some reclassifications.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.
Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling, influence are regarded as associates.<br />Basis of consolidationThe 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 uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the acquisition date, with net assets having been calculated at fair value.Business combinationsThe modified uniting-of-interests method is applied to vertical mergers in which the participating entities are subject to the Parent’s control. Under this method, assets and liabilities of the participating entities are recognised at the amounts at which they are recognised in the consolidated financial statements of the parent forming part of the merger. The comparative figures are restated back to the date when the entities first formed part of the Group.RevenueRevenue related to broadcasting and casting of events, including sponsorships etc., are recognised at the time of the events as the delivery obligation is completed. Revenue from other revenue streams such as in-game transactions are recognised when delivery is made to the buyer.
Revenue from the sale of manufactured goods and goods for resale is recognised in the income statement
when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised
in the
income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales
discounts and is measured at fair value of the consideration fixed.Own work capitalisedOwn work capitalised comprises staff costs incurred in the financial year and recognised in
cost for proprietary intangible assets and property, plant and equipment.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities, including transfer pricing payments, management fees and recharges and salary refunds.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for normal inventory
writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s
primary
activities, including transfer pricing payments, management fee and recharges.Other financial incomeOther financial income comprises interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.Impairment losses on financial assetsImpairment losses on financial assets comprises impairment losses on financial assets which are not measured
at fair value on a current basis.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets and depreciation on property, plant and equipment used in the development process are recognised
in
cost based on time spent on each project.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights,
the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation
periods
used are 5 years for Blast.tv and 10 years for the In-Game project.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentPlant and machinery, and other fixtures and fittings, tools and equipment and leasehold improvements are
measured at
cost less accumulated depreciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises
direct
costs of materials, components, subsuppliers and labour costs. For assets held under
finance
leases, cost is the lower of the asset’s fair value and present value of future lease payments.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Useful life
Other fixtures and fittings, tools and equipment3-10 yearsLeasehold improvements9-10 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are measured at cost. Investments are written down to the
lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each
asset.
However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and
temporary
differences arising at the date of acquisition that do not result from a business combination and
that do not have
any effect on profit or loss or on taxable income.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises bank deposits and PLEO cards.Lease liabilitiesLease liabilities relating to assets held under finance leases are recognised in the balance sheet as
liabilities
other than provisions, and, at the time of inception of the lease, measured at the present value of
future lease
payments. Subsequent to initial recognition, lease liabilities are measured at amortised
cost. The difference
between present value and nominal amount of the lease payments is recognised in the
income statement as a
financial expense over the term of the leases.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
2024-06-28Tom Greene