Årsrapport31061741Mazars Statsauriseret RevisionspartnerselskabØsterfælled Torv 10, 2. sal2100 København Ø2016-01-012016-12-312015-01-012015-12-312017-06-2729913870Gravity4 Denmark A/SNørregade401165København KDKDanmarkCopenhagenMazars31061741Christian Hjortshøjstatsautoriseret revisorØsterfælled Torv10, 2. sal2100København ØDKDanmark+45 35 26 52 22info@mazars.dk2017-06-27Grant Kenneth AllawayRegnskabsklasse BRevisionspåtegningGrant Kenneth AllawayFarai Alfred MativiGurbaksh ChahalGrant Kenneth AllawaytruetruefalsefalseKøbenhavn2017-06-27MazarsChristian Hjortshøjstatsautoriseret revisor4922538211300057162900084241165000483258119190008412000481622900047845031902000105706944700037274341455000372743414550004191812600041918126000419181260003211129601100075505696840000230001076169867180006329894680001139468771860001143660573120005000005000005848706212100063487062621000922228000922228000163481836460001551857476000149833554100039366705078677466300050786774663000114366057312000571629000571629000000110008410008412000481622900048162290001075602476000-18533-29000797915797915-671756-84241-75599741918500000212127237274345000005848706The supervisory and executive boards have today discussed and approved the annual report of Gravity4 Denmark A/S for the financial year 1 January - 31 December 2016.The annual report is prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the company's financial position at 31 December 2016 and of the results of the company's operations for the financial year 1 January - 31 December 2016.In our opinion, management's review includes a fair review of the matters dealt with in the management's review.Management recommends that the annual report should be approved at the annual general meeting.To the shareholder of Gravity4 Denmark A/SDisclaimer of OpinionWe were engaged to audit the financial statements of Gravity4 Denmark A/S for the financial year 1 January - 31 December 2016, which comprise a summary of significant accounting policies, income statement, balance sheet and notes. The financial statements are prepared under the Danish Financial Statements Act. We do not express any audit opinion on the financial statements. Because of the significance of the matter described in the “Basis-for-Disclaimer-of-Opinion” paragraph, we have not been able to obtain sufficient and appropriate audit evidence to provide a basis for an opinion.Basis for Disclaimer of OpinionWe were unable to obtain sufficient appropriate audit evidence about the valuation of intercompany receivables booked with DKK 7,550,569 as of December 31 2016. As a consequence we do not express any opinion on the valuation of the booked intercompany balance.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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.We are responsible for conducting an audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark and for issuing an auditor's report. However, because of the matter described in the ”Basis for Disclaimer of Opinion” paragraph, we were not able to obtain sufficient and appropriate audit evidence to provide a basis for an audit opinion on the financial statements. As required by the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and additional requirements applicable in Denmark, we are independent of the company, and we have fulfilled our other ethical responsibilities in accordance with these rules and requirements.Statement on management's review As described in the “Basis-for-Disclaimer-of-Opinion” paragraph, we have not been able to obtain sufficient and appropriate audit evidence to provide a basis for an opinion. Therefore we do not provide a statement on management’s review. Straffeloven samt skatte-, afgift- og tilskudslovgivningen Reporting obligations under section 7(2) of the Danish Executive Order on Approved Auditors’ Reports Violation of the Danish Criminal Code and non-compliance with Danish tax legislation. The company has in some months declared a delayed VAT filling, and Management could become liable in this respect. Selskabsretlige eller tilsvarende lovgivning Non-compliance with the Bookkeeping Act The Company has not complied with the Bookkeeping Act and the Board of Directors can be held responsible for this. Lovgivningen om regnskabsaflæggelse, herunder om bogføring og opbevaring af regnskabsmateriale Andre ForholdBusiness activities The company's purpose is sale and distribution of advertising on the Internet and related services. The company is part of Gravity4 Europe A/S, hosting and developing the company's technology. Business review The Company's income statement for the year ended 31 December shows a profit of DKK 3.727.434, and the balance sheet at 31 December 2016 shows equity of DKK 6.348.706. Significant events occurring after end of reporting period No events have occurred after the balance sheet date which could significantly affect the company's financial position.The annual report of Gravity4 Denmark A/S for 2016 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B. The accounting policies applied are consistent with those of last year. The annual report for 2016 is presented in DKKIn pursuance of section 32 of the Danish Financial Statements Act, the company does not disclose its revenue. Gross profit reflects an aggregation of revenue, changes in inventories of finished goods and work in progress and other operating income less raw materials and consumables and other external expenses.Other external expenses include expenses related to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc.Amortisation, depreciation and impairment losses comprise the year's amortisation, depreciation and impairment of intangible assets and property, plant and equipment.Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Net financials include interest income and expenses, financial expenses relating to finance leases, realised and unrealised capital/exchange gains and losses on securities and foreign currency transactions, amortisation of mortgage loans and surcharges and allowances under the advance-payment-of-tax scheme, etc.The company is subject to the Danish rules on compulsory joint taxation of the Group's Danish subsidiaries. Subsidiaries participate in the joint taxation arrangement from the time when they are included in the consolidated financial statements and until the time when they withdraw from the consolidation. Tax for the year, which comprises the current tax charge for the year and changes in the deferred tax charge, including changes arising from changes in tax rates, is recognised in the income statement as regards the portion that relates to entries directly in equity.Development projects, patents and licences Developments projects recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses.Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable is impaired, an impairment loss for that individual asset is recognised. Receivables for which there is no objective indication of individual impairment are reviewed for impairment on a portfolio basis. The portfolios are primarily composed on the basis of debtors' domicile and credit ratings in accordance with the Company's credit risk management policy. The objective indicators used for portfolios are determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received, using the effective interest rate of individual receivables or portfolios of receivables as discount rate.Prepayments comprise costs incurred concerning subsequent financial years.Current tax liabilities and current tax receivables are recognised in the balance sheet as the estimated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and tax paid on account. Deferred tax is measured according to the liability method in respect of temporary differences between the carrying amount of assets and liabilities and their tax base, calculated on the basis of the planned use of the asset and settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax adjustments resulting from changes in tax rates are recognised in the income statement, with the exception of items taken directly to equity.Joint taxation The Company is jointly taxed with Gravity4 Europe A/S. The Danish income tax is allocated between the jointly taxed Danish companies in proportion to their taxable income. The jointly taxed companies are taxed under the advance payment tax scheme. As Collateral for the Group’s facility with the company’s bank, a floating charge was granted over the assets of the Company. The Company also provided a joint and several absolute guarantee as collateral to the Company’s bank regarding the following current accounts with Danske Bank: Gravity4 Europe A/S Gravity4 International ApS Gravity4 Norway AS Gravity4 Finland OY Gravity4 Sweden AB The bank debt at 31 December 2016 is DKK 7,975 thousand. 9 Related parties and ownership Other related parties Gravity4 Denmark A/S' related parties include following: Gravity4 Europe A/S: Nørregade 40, 4., 1165 København K Gravity4 inc.: San Francisco, USA 299138702016-01-012016-12-31299138702016-01-012016-12-311299138702015-01-012015-12-31299138702016-01-012016-12-31e:RetainedEarningsMember299138702015-01-012015-12-31e:RetainedEarningsMember299138702015-12-31299138702016-12-31299138702016-01-012016-12-311299138702016-01-012016-12-312299138702016-01-012016-12-313299138702016-01-012016-12-311299138702016-01-01e:ContributedCapitalMember299138702016-12-31e:ContributedCapitalMember299138702016-01-01e:RetainedEarningsMember299138702016-01-012016-12-31e:RetainedEarningsMember299138702016-12-31e:RetainedEarningsMember299138702016-01-01e:AcquiredPatentsMember299138702016-01-012016-12-31e:AcquiredIntangibleAssetsMember299138702016-12-31e:AcquiredIntangibleAssetsMemberiso4217:DKKxbrli:pure