xbrli:pureiso4217:DKK380744662021-01-012021-12-31380744662021-01-012021-12-311380744662021-01-012021-12-311380744662021-01-012021-12-312380744662021-01-012021-12-311380744662021-01-012021-12-312380744662021-01-012021-12-313380744662021-01-012021-12-314380744662021-01-012021-12-315380744662021-01-012021-12-31380744662020-01-012020-12-31380744662021-01-012021-12-31fsa:RetainedEarningsMember380744662020-01-012020-12-31fsa:RetainedEarningsMember380744662021-01-012021-12-31fsa:RetainedEarningsMember380744662021-12-31380744662020-12-31380744662021-01-01fsa:ContributedCapitalMember380744662021-01-01fsa:ReserveForDevelopmentExpenditureMember380744662021-01-01fsa:RetainedEarningsMember380744662021-01-01380744662021-12-31fsa:ContributedCapitalMember380744662021-12-31fsa:ReserveForDevelopmentExpenditureMember380744662021-12-31fsa:RetainedEarningsMember380744662021-01-012021-12-31fsa:ContributedCapitalMember380744662021-01-012021-12-31fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusion2022-08-012022-08-01true2020-01-012020-12-3133963556København S23006WeidekampsgadeDeloitte Statsautoriseret RevisionspartnerselskabCopenhagenCopenhagen2300Regnskabsklasse BRevisionspåtegning2021-12-312021-01-011<br /><br />57LergravsvejBLAST ApS38074466339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of BLAST ApS for the financial year 01.01.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.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 DouekLin LeiCEOActing CFOJimmy Fussing NielsenErik Balck SørensenJohan Harald GeddaRené Efraim RechtmanRobert Marc DouekTo the shareholders of BLAST ApSWe have audited the financial statements of BLAST ApS for the financial year 01.01.2021 -
31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and
notes, including a
summary of significant accounting policies. The financial statements are prepared in
accordance with the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021 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 financial statements" section of this auditor’s
report. We are independent of the Entity 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.We refer to Note 1 which describes the assumptions applied by Management in determining that it is appropriate to prepare the financial statements on a going-concern basis. Our opinion has not been modified with respect to this matter.During 2021, the Company has in multiple cases failed to report VAT on time, whereby management can be held responsible. Management is responsible for the preparation of 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 financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the 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 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 financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
As part of an audit 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 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 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 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 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 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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the 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 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 financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.
CopenhagenKim Takata Mückemne10944State Authorised Public AccountantPrimary activitiesBLAST ApS (“BLAST” or “the Company”) is a the global esports and technology company, delivering world class entertainment experiences in person and online. Whether it be 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 Global Offensive tournament where the best teams and brightest stars fight it out for a $2.5m total prize pool. This is broadcast around the world in 100 territories to over 150m households.
BLAST now also works with a number of other gaming publishers to host online and in-person events, including Fortnite, FIFA and Valorant.Development in activities and financesBLAST 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.
These investments are the contributory factor for the Company reporting a loss of DKK 93 million for 2021 compared to a loss of DKK 86 million in 2020.
During 2021, the Company received equity funding of DKK 103 million.
Events after the balance sheet dateIn July 2022, the Company has obtained a loan of 10mEUR, which will contribute to secure that the Company has sufficient cash funds to carry out its planned activities for the remaining part of 2022.
In addition, the Company plans to secure further funding from new investors via a C-series investment to fund the further
development of the Company's business.
50176919251659542941155608397995665762176932172331153549-13713204-7174977111075244794469299702734238399-34758721-83932862185407982738658863432010347822491040-92802856-85596516-92802856-85596516-9280285658019327588227301123960496645604088078475882279001779766063726026300116044097660637119042136512071703613350493000343000720447563685507112452994952103935261006841551083113829033474518258048118508475632791108102338516775221496285262591678047042377936689954321669078851210993673053102400748344313591881744764115365747025341373842733593240074591881736574702427335933053108344313447641153412047375721021472709204145847471677361252563192324907919119001219790317462144556624808525066881691435760298103931549299772878622245345785511349414778365774166907885121099367652361034177651034830012425496-242549601 Going concernBLAST ApS have in 2021 secured significant funding and have made significant investments in the business areas of the Company.
The Company secured an additional DKK 103 million of funding through a B-series investment round in July 2021, as well as a loan of 10mEUR which was secured in July 2022.
The Company plans to secure further funding from new investors via a C-series investment to fund the further development of the Company's business.
On this basis, Management concludes that it is appropriate to adopt the going-concern basis in preparing
the financial statements for 2021.
2 Other operating incomeOther operating income consist of granted COVID-19 compensation amount DKK 1.4 million. Remaining other operating income consist of cost coverage from other group companies with effect from 2021.3 Staff costs2021
DKK2020
DKKWages and salaries11,066,8977,470,575Pension costs366,070198,548Other social security costs21,21084,169Other staff costs432,605191,40011,886,7827,944,692Staff costs classified as assets(811,538)011,075,2447,944,692Average number of full-time employees2318Warrant program
The key elements of the programme are:
- Warrant programme gives the Board of Directors the right to grant warrants, which entitles the warrant holders to subscribe shares at a price of DKK 5.00 per share in BLAST ApS for up to nominal DKK 64,631.49 equal to 6,463,149 shares of DKK 0.01 each of which 4,503,557 warrants have been granted at 31 Dec. 2021.
- The issued warrants vest over a 48-month period. 23184 Impairment losses on financial assetsImpairment losses on financial assets consist of DKK 57 million of impairment for the loan with BLAST UK Ltd. and DKK 1,8 million for impairment of investments in Blast Tech ApS. See note 8 for further explanation.5 Intangible assetsCompleted development projects
DKKGoodwill
DKKDevelopment projects in progress
DKKCost beginning of year11,392,3710558,779Transfers2,165,91733,458,218(2,165,917)Additions007,132,373Cost end of year13,558,28833,458,2185,525,235Amortisation and impairment losses beginning of year(3,804,144)0(558,779)Amortisation for the year(3,952,207)(3,345,822)0Amortisation and impairment losses end of year(7,756,351)(3,345,822)(558,779)Carrying amount end of year5,801,93730,112,3964,966,456Transfer of goodwill relate to the goodwill amount which end 2020 was included in the cost of investments in group enterprises from the acquisition of Blast Tech ApS. In 2021, the activities of Blast Tech ApS have been integrated into the the Blast ApS business, and hence the underlying goodwill amount from the acquisition is from 2021 accounted for as a separate asset; amortised over 10 years.6 Development projectsDevelopment projects in progress relate to the development of the concept and design of the Blast Premier Pro Series and BLAST TV. The Company
has designed in-game advertising; bespoke gaming platforms configured to individual sponsors to architectural
stage drawings. The cost of development projects comprises of costs primarily to external suppliers. The
assumptions related to the measurement and recognition of development projects are based on the future
earnings potential from the globalisation and future expansion of the BLAST Premier in the coming years.
In 2021 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 2021.
7 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKProperty, plant and equipment in progress
DKKCost beginning of year9,190,0630Additions4,014,8862,602,630Cost end of year13,204,9492,602,630Depreciation and impairment losses beginning of year(1,529,426)0Depreciation for the year(2,673,744)0Depreciation and impairment losses end of year(4,203,170)0Carrying amount end of year9,001,7792,602,6308 Financial assetsInvestments in group enterprises
DKKReceivables from group enterprisesDKKCost beginning of year36,512,0710Transfers(33,458,218)127,361,335Cost end of year3,053,853127,361,335Impairment losses for the year(1,863,432)(57,000,000)Impairment losses end of year(1,863,432)(57,000,000)Carrying amount end of year1,190,42170,361,335Some of the activities in the Blast Group is carried out in subsidiaries. These activities are financed by the parent company through equity funding and intercompany loans. At year-end the investments and value of intercompany loans are assessed and tested for potential impairment.
The Company has recognised impairment losses of totally DKK 59 million relating to investments in group enterprises and receivables from group enterprises reflecting the estimated recoverable amounts at 31 December 2021. The Company will be able to reverse the impairment losses recognized in 2021 in future years when the subsidiaries expectedly will begin to materialize profits.
With respect to transfer of DKK 33,458,218 reference is made to note 5.
9 Contingent assetsThe Company has a non-recognised deferred tax asset of DKK 62.7m primarily related to tax losses to
be carried forward. Due to current earnings history the Company has determined that it is not yet appropiate to recognise
the deferred tax asset. 10 Contingent liabilitiesThe Company participates in a Danish joint taxation arrangement in which the Company serves as the
administration company. According to the joint taxation provisions of the Danish Corporation Tax Act,
the Company is therefore liable for income taxes etc. for the joint taxed companies and also for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed
companies.
Commitments under rental agreements until expiry equal TDKK 770.
The Company has received tax credit for 2018 and 2019 with a total amount of DKK 11 million. The Danish tax authorities are claiming that the Company does not meet the requirements for receiving the tax credit for these years. The Company claims that they for these years as well as subsequent years have made considerable investments in concept and design of the BLAST Pro Series, Blast Premier and BLAST TV, which to a large extent involve first-mover technological innovations and thereby the Company is convinced it meet all requirements for receiving tax credits for all years where applications have been made. If needed, the Company will bring the case to the National Tax Court, and hence no provision for a potential repayment of tax credit has been deemed relevant at 31 December 2021.
This annual report has been presented in accordance with the provisions of the Danish Financial Statements
Act governing reporting class B enterprises with addition of a few provisions for reporting class C.The accounting policies applied to these financial statements are consistent with those applied last year.falseConsolidated financial statementsReferring to section 110 of the Danish Financial Statements Act,
no consolidated financial statements have been prepared.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses. RevenueRevenue from sponsorships is recognised in the income statement over the duration of the sponsorships.
Revenue from ticket sales and other revenue from events are recognised in the income statement when the
events take place.
Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts
relating to sales.Other operating incomeOther operating income include government grants received in relation to covid-19 and from 2021 it also include cost coverage from other group companies for services performed on behalf of other group companies.Cost of salesCost of sales comprise direct costs related to prize money, venue and events to achieve the revenue for the year.Other external expensesOther external expenses include expenses relating to the Company’s ordinary activities, including expenses
for IT, marketing costs, etc. Staff costsStaff costs comprise salaries and wages, as well as social security contributions, pension contributions, etc
for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment for the financial
year, calculated on the basis of the residual values and useful lives of the individual assets as well as any
gains and losses from the sale of property, plant and equipment.Other financial incomeOther financial income comprises interest income, including interest income on receivables from group enterprises,
and currency gains.Impairment losses on financial assetsImpairment losses on financial assets comprise 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,
and currency losses.GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from
acquisitions. Goodwill is amortised straight-line over its estimated useful life. The useful life has been set at 10 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Development projectsDevelopment projects comprises the development of the concept and design of BLAST Pro Series, BLAST Premier and BLAST TV.
Development projects on clearly defined and identifiable product and processes, for which the utilisation, adequate resources and a potential future market and development opportunity can be established, 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 equaling the costs incurred less deferred tax is taken to equity under Reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects only comprises costs that are directly attributable to the development 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. The amortisation
periods used are 3 years.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.
Property, plant and equipmentOther fixtures and fittings, tools and equipment & leasehold improvements are measured at cost less
accumulated depreciation.
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.Other fixtures and fittings, tools and equipment5-10 yearsEstimated useful lives and residual values are reassessed annually.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.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises bank deposits.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. The item includes accrued revenue share to the teams participating in BLAST Premier.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.2022-08-01Tom Greene