xbrli:pureiso4217:EUR380744662022-01-012022-12-31cmn:ConsolidatedMember380744662022-01-012022-12-311cmn:ConsolidatedMember380744662022-01-012022-12-311cmn:ConsolidatedMember380744662022-01-012022-12-311380744662022-01-012022-12-312380744662022-01-012022-12-313380744662022-01-012022-12-314380744662022-01-012022-12-315380744662022-01-012022-12-316380744662022-01-012022-12-312cmn:ConsolidatedMember380744662021-01-012021-12-31cmn:ConsolidatedMember380744662022-01-012022-12-31380744662021-01-012021-12-31380744662022-01-012022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662022-01-012022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662022-01-012022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662022-01-012022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662022-01-012022-12-31fsa:RetainedEarningsMember380744662022-01-012022-12-31fsa:RetainedEarningsMember380744662021-01-012021-12-31fsa:RetainedEarningsMember380744662022-12-31cmn:ConsolidatedMember380744662021-12-31cmn:ConsolidatedMember380744662022-12-31380744662021-12-31380744662022-01-01cmn:ConsolidatedMember380744662021-01-01cmn:ConsolidatedMember380744662022-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662022-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662022-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662022-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember380744662022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember380744662022-01-01fsa:ContributedCapitalMember380744662022-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662022-01-01fsa:ReserveForDevelopmentExpenditureMember380744662022-01-01fsa:RetainedEarningsMember380744662022-01-01380744662022-12-31fsa:ContributedCapitalMember380744662022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember380744662022-12-31fsa:ReserveForDevelopmentExpenditureMember380744662022-12-31fsa:RetainedEarningsMember380744662022-01-012022-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember380744662022-01-012022-12-31fsa:ContributedCapitalMember380744662022-01-012022-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMember380744662022-01-012022-12-31fsa:ShorttermDeferredIncomeMember380744662022-01-012022-12-31fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusion2023-06-302023-06-3033963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2021-12-312021-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2022-12-312022-01-01BLAST ApS38074466ÅrsrapportAarhus C80002City Tower, VærkmestergadeCopenhagenCopenhagen23001<br /><br />57LergravsvejThe Board of Directors and the Executive Board have today considered and approved the annual report of BLAST ApS for the financial year 01.01.2022 - 31.12.2022.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 31.12.2022 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2022 - 31.12.2022.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 DouekCEOJimmy Fussing NielsenErik Balck SørensenJohan Harald GeddaRené Efraim RechtmanRobert Marc DouekMatthew Samuel BrombergTo the shareholders of BLAST ApSWe have audited the consolidated financial statements and the parent financial statements of BLAST ApS for the financial year 01.01.2022 - 31.12.2022, 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 31.12.2022 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2022 - 31.12.2022 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 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 consolidated financial statements and the parent 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.AarhusMads FauerskovKasper Vildrich Jessenmne35428mne42784State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2022
EUR'0002021
EUR'000Key figuresRevenue31,63113,470Gross profit/loss203(5,783)Operating profit/loss(9,796)(12,809)Net financials(1,156)128Profit/loss for the year(11,576)(12,701)Balance sheet total26,79722,603Investments in property, plant and equipment3,7342,994Equity(4,892)6,892Cash flows from operating activities(7,898)(8,119)Cash flows from investing activities(5,505)(2,391)Cash flows from financing activities12,06514,017RatiosGross margin (%)0.64(42.93)Net margin (%)(36.60)(94.29)Equity ratio (%)(18.26)30.49As a result of this 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 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 year-long tournament where the best teams and brightest stars fight it out to be crowned champions. This is broadcast around the world. BLAST Premier has 12 Member Teams who play in the 7 yearly tournaments alongside the best of the rest of the Teams in the world who qualify for BLAST Premier. BLAST Premier is fully commercialized through media rights sales, sponsorship, ticketing and other revenue lines.
Alongside BLAST Premier, BLAST also ran the Fortnite ecosystem throughout 2022. BLAST co-creates the FNCS Fortnite ecosystem alongside Epic. FNCS is the pinnacle of competitive Fortnite, which is considered to be one of, if not the most popular game in the world. BLAST ran three month-long studio events and 1 live arena event for FNCS.
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 Blast Commercial revenue. Sponsorship and Media Rights continued to be key contributors of revenue. Premier signed a new three-year city agreement with Abu Dhabi to host the Premier World Final, covering 2022-2024.
FNCS revenue grew significantly versus 2021. The relationship with Epic significantly expanded in 2022. BLAST co-created three online events and the Raleigh Fortnite Invitational arena event.
Revenue from other tournaments declined. This is due to our strategy to concentrate our activities on ecosystems where we can build meaningful scale.
Cost of Sales growth was attributable to the Company’s growth and the celebration of more arena events as Covid restrictions mostly came to an end. Gross Margin improved, a result of the larger scale achieved in Premier and the accretive contribution of FNCS.
Capital expenditure investments were made into our Copenhagen studio and broadcast technology equipment. These investments enabled BLAST to increase broadcast production volume and production specification. For example, on Fortnite, BLAST delivered 3 studio and 1 live arena productions. For the live arena production, BLAST invested in technology to deliver broadcast streams for 100 simultaneous competing players and at 4K resolution.
Capital expenditure investments were also made into the continued development of the BLAST.tv consumer platform. We built a custom Content Management System, proprietary video streaming stack, user profile system and various Mini-Games.
Liquidity
In 2022, BLAST secured a €10m loan from an entity wholly owned by one of our major shareholders. The cash position at the end of 2022 was €9m. It is management's assessment that BLAST has sufficient liquidity to continue operations in FY23 and beyond.Profit/loss for the year in relation to expected developmentsNet loss narrowed in 2022. Premier’s gross profit margin increased significantly, driven by growth in Brand Commercial and Consumer revenue, which came at very low incremental cost. Co-creations also made a strong contribution, driven by the growth in scale and attractive margin profile of FNCS. Operating costs as % of revenue decreased due to strong cost discipline and operating efficiencies across multiple tournaments.
Profit for the year in the parent company’s income statement is positively affected by 7,661 t.EUR because of an impairment assessment regarding a group entity. The effect is presented on a separate line in the income statement: Impairment losses on financial assets. 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 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.
The management has carried out a DCF-analysis regarding the receivable from group entreprises. Because of the
growth in the group is previous years impairment retracted. The analysis is carried out with future net income numbers. Future net income is based on significant estimates and is thus associated with some uncertainty.OutlookIn 2023 management expects brand commercialization’s strong growth to continue. Early renewals and new partnerships signed in December 2022 support this view.
In combination with strong like-for-like commercial growth, BLAST has also won the contracts to deliver the Rainbow Six global esports ecosystems in partnership with Ubisoft from 2023 onwards and to run the CSGO Major in 2023. Across BLAST Premier/Major (CSGO), FNCS (Fortnite) and BLAST R6 (Rainbow Six), BLAST now occupies a strong position in three 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, revenue will grow at a rate that is comparable to the growth rate seen in 2022. The increased operating efficiency will result in improved gross margin and EBITDA margin. We expect to be near or at EBITDA breakeven for 2023. Capital Expenditures will be comparable to 2022 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 2023.
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 where there are commercially viable opportunities and build coherent, exciting and commercial ecosystems around those games. As this grows our output, we remain focused on scaling our delivery capacity in an efficient 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: the Company’s reporting currency is the EUR and we do not currently hedge exchange rate risks. We have some exposure to costs denominated in DKK but we expect DKK to remain pegged to EUR. The main foreign exchange exposure is to the USD. In 2022, BLAST’s exposure to the USD was fairly balanced as USD income was matched by a similar amount in USD costs. For 2023, we expect that USD revenue will exceed USD costs for 2023 but we don’t expect the impact to be meaningful.
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.
In June 2023, we signed a term sheet with our existing shareholders to invest approximately €11m of new equity capital to support the growth ambitions.31630713134697013158399913366092-732425-109078-536633-109078104121908963421940400280729049882179435392904988217909511312053416094147140358967605203134-5783278-647668-13991398038053549623334264071932640194944715293041265710890383118530-9796219-12808815-5339785-42221624675663411377993433067512029905059581380531220556-10952453-126806602421077-12473502623981207965669870-11576434-127014560-11576434-11576434-127014561854090-12473502018540901854090-124735025891753482719522940957798300667534066753458917535494729229409514473644083988165044336541221209917930799349816930799349816501478720002594584921155973374941817436066190566263749418174360183396551373079911655958766934825218671167378964010616353145040029743508156883064088709709778919272279102667802163006111671632405767571061721824625840604091345499568969020103075241030752468004038475085114600315141202149333641451599856959592679716022602712397346692243385541036410364103641036-3977100-3977100-4535630685125072029246016681-489230468922864103606851250689228641036-397710-45356308635645717926541036011215486016681717926541036-3977101789395720292404088040882920444586082920444586081274532028861171274532028861174393381004264393381004261347670234451511347670234451511482018159948148201815994812989379100667081236907498632589218974292945062786047770938930428026971396929280269713969291821276212261187176223221180943931689464157063383109902415254590267971602260271239734669224338550-2120250-2120250-3977100-397710-1856851888221149571526774503127222-5230548-818587846756634113-1202990-505958-2394721-57107883064-4088-7898439-8118918-1299222-958652-4244723-14518083847819416-5505467-2391044-13403906-1050996213220640302169-7650380-182044-171488013900237-208156-138351206540214017083-133850435071218969020103075241 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.
In June 2023, we signed a term sheet with our existing shareholders to invest approximately €11m of new equity capital to support the growth ambitions.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.
In June 2023, we signed a term sheet with our existing shareholders to invest approximately €11m of new equity capital to support the growth ambitions.2 Other operating incomeOther operating income includes compensation received from the support scheme relating to fixed costs that was established as a result of the outbreak and spread of COVID-19. In 2021, the company received support for a total of EUR 190,986. No support has been received in 2022.3 Other operating incomeOther operating income includes compensation received from the support scheme relating to fixed costs that was established as a result of the outbreak and spread of COVID-19. In 2021, the company received support for a total of EUR 190,896. No support has been received in 2022.3 Staff costs2022
EUR2021
EURWages and salaries6,306,0994,438,321Pension costs339,113131,538Other social security costs461,254314,085Other staff costs931,587612,2898,038,0535,496,233Average number of full-time employees8663Remuneration of management
2022
EURRemuneration
of management
2021
EURTotal amount for management categories399,277304,333399,277304,333Special incentive programmesThe company's general meeting has authorized the Board of Directors to issue warrants for total nom. EUR 5,018.18 corresponding to 5,018,177 shares a nom. EUR 0.001. Warrants can be issued to employees in the Entity.
Warrants give the right to subscribe for C shares in the company against payment of an exercise price determined by the Board of Directors.
As of 31 December 2022, the company has issued 4,960,177 warrants, of which 0 warrants have been used
to subscribe for shares. Thus, 4,960,177 warrants have been issued, corresponding to a nominal value of EUR 4,960.18, which have not yet been exercised. 4 Staff costs2022
EUR2021
EURWages and salaries2,525,4221,530,767Pension costs223,67449,203Other social security costs42,5269,384Other staff costs634,785343,2863,426,4071,932,640Average number of full-time employees3523Remuneration
of
Manage- ment
2022
EURRemuneration
of Manage- ment
2021
EURTotal amount for management categories399,277304,333399,277304,333Special incentive programmesThe company's general meeting has authorized the Board of Directors to issue warrants for total nom. EUR 5,018.18 corresponding to 5,018,177 shares a nom. EUR 0.001. Warrants can be issued to employees in the Entity. Warrants give the right to subscribe for C shares in the company against payment of an exercise price determined by the Board of Directors.
As of 31 December 2022, the company has issued 4,960,177 warrants, of which 0 warrants have been used
to subscribe for shares. Thus, 4,960,177 warrants have been issued, corresponding to a nominal value of EUR 4,960.18, which have not yet been exercised. 86633523Remuneration of management
2022
EURRemuneration
of management
2021
EURTotal amount for management categories399,277304,333399,277304,333Remuneration
of
Manage- ment
2022
EURRemuneration
of Manage- ment
2021
EURTotal amount for management categories399,277304,333399,277304,3333992773043333992773043334 Depreciation, amortisation and impairment losses2022
EUR2021
EURAmortisation of intangible assets998,102980,918Depreciation on property, plant and equipment869,757542,468Profit/loss from sale of intangible assets and property, plant and equipment81,5885,9181,949,4471,529,3045 Depreciation, amortisation and impairment losses2022
EUR2021
EURAmortisation of intangible assets548,395510,411Depreciation on property, plant and equipment726,322380,174Profit/loss from sale of intangible assets and property, plant and equipment(9,007)(202)1,265,710890,3835 Tax on profit/loss for the year2022
EUR2021
EURCurrent tax74,2409,742Change in deferred tax(883,064)4,088Adjustment concerning previous years1,432,8056,966623,98120,796Adjuestment concerning previous years 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.8 Tax on profit/loss for the year2022
EUR2021
EURCurrent tax21,2790Change in deferred tax(887,097)0Adjustment concerning previous years1,432,8050566,9870Adjuestment concerning previous years 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. 6 Proposed distribution of profit/loss2022
EUR2021
EURRetained earnings(11,576,434)(12,701,456)(11,576,434)(12,701,456)9 Proposed distribution of profit and loss2022
EUR2021
EURRetained earnings1,854,090(12,473,502)1,854,090(12,473,502)7 Intangible assetsCompleted development projects
EURDevelopment projects in progress
EURCost beginning of year6,319,423742,639Transfers2,041,861(2,408,083)Additions01,665,444Disposals(1,531,233)0Cost end of year6,830,0510Amortisation and impairment losses beginning of year(1,492,228)(75,105)Transfers20,79975,105Amortisation for the year(998,102)0Reversal regarding disposals1,531,2330Amortisation and impairment losses end of year(938,298)0Carrying amount end of year5,891,7530Completed development projects
EURDevelopment projects in progress
EURCost beginning of year6,319,423742,639Transfers2,041,861(2,408,083)Additions01,665,444Disposals(1,531,233)0Cost end of year6,830,0510Amortisation and impairment losses beginning of year(1,492,228)(75,105)Transfers20,79975,105Amortisation for the year(998,102)0Reversal regarding disposals1,531,2330Amortisation and impairment losses end of year(938,298)0Carrying amount end of year5,891,7530<br />10 Intangible assetsCompleted development projects
EURDevelopment projects in progress
EURCost beginning of year1,822,350742,639Transfers2,041,861(2,408,083)Additions01,665,444Disposals(1,531,233)0Cost end of year2,332,9780Amortisation and impairment losses beginning of year(1,042,520)(75,105)Transfers20,79975,105Amortisation for the year(548,395)0Reversal regarding disposals1,531,2330Amortisation and impairment losses end of year(38,883)0Carrying amount end of year2,294,0950<br />Completed development projects
EURDevelopment projects in progress
EURCost beginning of year1,822,350742,639Transfers2,041,861(2,408,083)Additions01,665,444Disposals(1,531,233)0Cost end of year2,332,9780Amortisation and impairment losses beginning of year(1,042,520)(75,105)Transfers20,79975,105Amortisation for the year(548,395)0Reversal regarding disposals1,531,2330Amortisation and impairment losses end of year(38,883)0Carrying amount end of year2,294,09508 Development projectsCompleted development projects 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 from internal development. 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 2022 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 2022. 11 Development projectsA description of development projects is evident from the notes to the consolidated financial statements.9 Property, plant and equipmentOther fixtures and fittings, tools and equipment
EURProperty, plant and equipment in progress
EURCost beginning of year2,614,551349,816Transfers366,2230Additions3,153,049580,983Disposals(162,057)0Cost end of year5,971,766930,799Depreciation and impairment losses beginning of year(964,108)0Transfers(95,904)0Depreciation for the year(869,757)0Reversal regarding disposals41,9910Depreciation and impairment losses end of year(1,887,778)0Carrying amount end of year4,083,988930,799Recognised assets not owned by Entity370,563012 Property, plant and equipmentOther fixtures and fittings, tools and equipment
EURProperty, plant and equipment in progress
EURCost beginning of year1,774,859349,816Transfers366,2230Additions2,943,285580,983Disposals(59,804)0Cost end of year5,024,563930,799Depreciation and impairment losses beginning of year(564,942)0Transfers(95,904)0Depreciation for the year(726,322)0Reversal regarding disposals16,7270Depreciation and impairment losses end of year(1,370,441)0Carrying amount end of year3,654,122930,799Recognised assets not owned by entity370,563010 Financial assetsDeposits
EURCost beginning of year174,360Additions575,058Cost end of year749,418Carrying amount end of year749,41813 Financial assetsInvestments in group enterprises
EURReceivables from group enterprises
EURDeposits
EURCost beginning of year4,907,53617,118,45966,263Exchange rate adjustments0(397,710)0Additions0692,238595,642Disposals0(4,642,773)0Cost end of year4,907,53612,770,214661,905Impairment losses beginning of year(700,169)(7,661,290)0Reversal of impairment losses700,1697,661,2900Impairment losses end of year000Carrying amount end of year4,907,53612,770,214661,905A 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. 11 Deferred tax2022
EUR2021
EURIntangible assets(504,704)(15,323)Property, plant and equipment(227,016)(219,355)Liabilities other than provisions96,774128,629Tax losses carried forward1,518,010106,049Deferred tax883,0640
Changes during the year2022
EURRecognised in the income statement883,064End of year883,064Deferred tax assetsDeferred tax asset related to the tax losses carried forward has been recognized as it is expected that EUR 4,032,258 of the carried foward tax losses will be used in the joint taxation within 3-5 years.14 Deferred tax2022
EUR2021
EURIntangible assets(456,989)(15,323)Property, plant and equipment(275,672)(219,355)Liabilities other than provisions96,774128,629Tax losses carried forward1,522,984106,049Deferred tax887,0970
Changes during the year2022
EURRecognised in the income statement887,097End of year887,097Deferred tax assetsDeferred tax asset related to the tax losses carried forward has been recognized as it is expected that EUR 4,032,258 of the carried foward tax losses will be used in the joint taxation within 3-5 years.12 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.15 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.13 Contributed capitalNumberPar value
EURNominal
value
EURRecorded par
value
EURA-shares13,491,7470.0018,13418,134B-shares14,687,6220.0019,74119,741Common shares2,351,6110.003,1613,16130,530,98041,03641,036The Par Value of the above is 0.001 EUR14 Non-current liabilities other than provisionsDue within 12
months
2022
EURDue within 12
months
2021
EURDue after
more than 12
months
2022
EURLease liabilities148,121159,948292,044Payables to owners and management 558,999012,745,320Other payables774,8980439,3381,482,018159,94813,476,702Payables to owners and management is purely related to shareholder loans and
the non-current liabilities for the company are all due within 5 years.16 Non-current liabilities other than provisionsDue within 12
months
2022
EURDue within 12
months
2021
EURDue after
more than 12
months
2022
EURLease liabilities148,121159,948292,044Payables to owners and management 558,999012,745,320Other payables774,8980439,3381,482,018159,94813,476,702Payables 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 Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.17 Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.16 Changes in working capital2022
EUR2021
EURIncrease/decrease in receivables167,432(1,877,418)Increase/decrease in trade payables etc.2,448,7924,971,051Other changes61,22633,5892,677,4503,127,22217 Unrecognised rental and lease commitments2022
EUR2021
EURTotal liabilities under rental or lease agreements until maturity 3,077,350103,49518 Unrecognised rental and lease commitments2022
EUR2021
EURTotal liabilities under rental or lease agreements until maturity 2,655,947103,49518 Contingent liabilities2022
EURRecourse and non-recourse guarantee commitments283,191Contingent liabilities 283,19119 Contingent liabilities2022
EURRecourse and non-recourse guarantee commitments283,191Contingent liabilities 283,191The Entity serves as the administration company in a Danish joint
taxation arrangement. According to the joint
taxation provisions of the Danish Corporation Tax Act, the Entity
is therefore liable for income taxes etc. for the
jointly taxed entities, and also for obligations, if any, relating to
the withholding of tax on interest, royalties and
dividends for these entities.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 Tech ApS Copenhagen, DenmarkApS100.00557,922409,515Blast Esport LimitedLondon, EnglandLimited100.00(12,776,956)(5,024,841)700169-700169-766129076612904907536420736712770214945716901858741789395112154849082400667847-66784702 Uncertainty relating to recognition and measurement
The Company invests in its studio, broadcast equipment and in the development of BLAST.tv. Expenses in the development phase of 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.
The management has carried out a DCF-analysis regarding the receivable from group entreprises. Because of the growth in the group is previous years impairment retracted. The analysis is carried out with future net income numbers. Future net income is based on significant estimates and is thus associated with some uncertainty.6 Other financial income2022
EUR2021
EURFinancial income from group enterprises733,178194,401Other interest income29,1990Exchange rate adjustments17,557136,274779,934330,6757 Other financial expenses2022
EUR2021
EUROther interest expenses1,079,003188,473Exchange rate adjustments250,9373,350Other financial expenses50,59128,7331,380,531220,556<br />2022
EUR2021
EUROther interest expenses1,079,003188,473Exchange rate adjustments250,9373,350Other financial expenses50,59128,7331,380,531220,556This 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 own work capitalized.
The change in accounting policies has not led to a decrease or increase in equity, assets or liabilities. Own
work capitalized was previous shown as a deduct of staff cost, but is now presented on a seperate line, as part of
gross profit.
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.Errors in previous yearsLast year, the company's revenue in the Parent income statement was presented as EUR 6.7 million. However, this year we have ensured that there was a error of a total of EUR 6.6 million because costs which should have been recognized in cost of sales were set of in the revenue. The revenue in the comparative figures is changed to EUR 13.3 million.
The same applies to the company's cost of sales, which is shown to be DKK 6.6 million higher than stated in last year's annual report.
The error have no impact on the profit, totalt assets and equity.Changes in accounting estimatesA change has been made to the depreciation period for some of the company's development projects, so that they will in future be depreciated over 5 years and not 3 years as previously. The change has been made based on an assessment of the lifespan of the company's projects. The change means that the year's depreciation has been reduced by t.EUR 26 compared to previous estimates.
A change has been made to the depreciation period for some of the company's development projects, so that they will in future be depreciated over 10 years and not 3 years as the previous accounting policies. The change has been made based on an assessment of the lifespan of the company's projects. The change means that the year's depreciation has been reduced by t.EUR 1,050 compared to previous estimates.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.RevenueRevenue 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.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
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.Income from investments in group enterprisesIncome from investments in group enterprises comprises dividends etc. received from the
individual group enterprises in the financial year.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 5-10 years.
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 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 equipment5-10 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.
2023-06-30Tom Greene