Årsrapport35382879ALBJERG, Statsautoriseret RevisionspartnerselskabRingager, 4C, 2. th.2605, Brøndby2023-01-012023-12-312024-01-012024-12-3137597287Copyright Agent A/SPilestræde101112KøbenhavnALBJERG, Statsautoriseret Revisionspartnerselskab35382879Anders Salomonsenstatsautoriseret revisormne40143Ringager4C, 2. th.2605BrøndbyDanmark38284284info@albjerg.dk2025-05-20Christoffer Leif FeilbergRegnskabsklasse BRevisionspåtegningCaseWare fra Revisorgruppen DanmarkkapitalejerneBrøndby2025-05-20København2025-05-20Grundlag for konklusionKonklusion134731154360168130182511478880024033402448496-1948476-1287712825394234951034105684152-2957187-13537785-2957187-13537785-2957187-1353778552673836876200069100452673837567204822401105148224011051496338510624264625053102581156250531560773883027711597127397480635332843707796824045787165727971016462921098371975209186826341213983834290372204426090212057279444541085595902419112861011235998175152327932862662438170376133777400300000010401781100376132362243060001372205140972326383111062411637335924721341677514012509747342903722044260912500587144201753613271938751563371747501301825114788800182712022312691004127133165146112229982174459335267383691004-6910043084667524538371119795210351930147182240963385109633851096338510Visual Rights Group bv.Belgium10000Visual Rights Group ltd.United Kingdom1000062505378962426462426423622430794445761111132612733334212057279444511217199146666411217199146666459024197732045-1793860-182962641085595902419123599811477493-2957187-1353778511217199146666417900911829626112861011235998Today, the Board of Directors and the Managing Director have approved the annual report of Copyright Agent A/S for the financial year 2024. The annual report has been prepared in accordance with the Danish Financial Statements Act. We consider the chosen accounting policy to be appropriate, and in our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January – 31 December 2024. Further, in our opinion, the Management's review gives a true and fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the Annual General Meeting. Christoffer Leif FeilbergMorten Kenneth ElkHenrik Otto Charles Sommerlund EggertHenrik Richard Hasselbalch BuschPoul Broeng OddershedeJesper Genter LohmannCasper BlomWe have audited the financial statements of Copyright Agent A/S for the financial year 1 January - 31 December 2024, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes, for the Company. The financial statements are prepared under the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024, and of the results of the Company's operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. Basis for conclusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the 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 our report. We are independent of the Company 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 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. 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 judgment and maintain professional skepticism throughout the audit. We also: 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. 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 Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. 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 Company’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 Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. 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. Statement on Management’s Review Management is responsible for Management’s Review. Our opinion on the financial statements does not cover Management’s Review, 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 Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that Management’s Review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of Management’s Review. Description of key activities of the company Like previous years, the company's activity has consisted of operating within Intellectual Property Rights as a Service. The company has made it its core business to protect and secure copyright on digital assets, such as images and texts across national borders, time zones and usage situations. The company, as the only one on the market, handles the entire value chain and delivers a two-way solution that includes: handling, monitoring and identifying possible copyright infringements; education, information and clarification of cases, including the removal of content published in violation of copyright; ensuring correct compensation for unlawful use. The company's customers include the largest image agencies and rights holders, primarily in Northern Europe. With its IPRaaS solution, Copyright Agent can deliver transparency across a global internet. The company can identify where millions of customers' images have been published, and whether this has been done in accordance with the licenses and agreements that the rights holders themselves have entered into regarding the use of their IP rights. The company is headquartered in Copenhagen, from where it operates all its activities. The company is established based on a "Glo cal" model; where the entire core business has a global base, while education in the markets and the specific case management in the event of a copyright infringement are always localized. Significant changes in the company's activities and financial matters There have been no significant changes in activities and financial matters. The gross profit for the year totals DKK 13.473.115 against DKK 4.360.168 last year. Income or loss from ordinary activities after tax totals DKK -2.957.187 against DKK -13.537.785 last year. The development is due to growth in the company's activity, which has resulted in an increase in revenue that is higher than the increase in production costs. In addition, the company has been better at cutting costs during the financial year, without this having affected the company's operations. The year's development and result are in line with expectations, as the company is in a growth phase. IIn December, the company acquired Visual Rights Group, a leading copyright enforcement player in the Benelux region with offices in Belgium, the UK, the US, and France. The acquisition was completed through a combination of shares and cash payment. At the time of writing, significant progress has already been made integrating the organization, customers, and processes, enabling the overall company to approach the market from a strengthened position. Management considers the acquisition a success. Treasury shares The enterprise’s holding of treasury shares is 9.673 shares at DKK 0,04 each, corresponding to 0,02 % of the contributed capital. During the year, the enterprise acquired 9.673 treasury shares at DKK 0,04 each. The purchase price amounts to DKK 3.769. The purchase of treasury shares occurred in connection with the wishes of small shareholders. Events occurring after the end of the financial year No events have occurred that could significantly affect the company's financial position. Completed development projects and development projects under construction include costs for developing a system for identifying copyright infringements. The system has been put into use and can be used worldwide with minor adjustments. The system is being developed continuously. Capitalized costs are amortized over 5 years. Management has high expectations for the use of the system, and the system has functioned as planned after commissioning, and management has not identified any indication of impairment in relation to the carrying amount. 7. Charges and security For bank loans, DKK 8.987, the company has provided security in company assets representing a nominal value of DKK 5.000. This security comprises the assets below, stating the carrying amounts: DKK in thousands Trade receivables 15.971 Other plants, operating assets, and fixtures and furniture 82 Intangible fixed assets 5.267 8. Contingencies Contingent liabilities DKK in thousands Total contingent liabilities 2.552 The annual report for Copyright Agent A/S has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class B enterprises. Furthermore, the company has decided to comply with certain rules applying to reporting class C enterprises. The accounting policies are unchanged from last year, and the annual report is presented in DKK. Gross profit The company's net revenue is generated from the sale of services to a wide range of image agencies within the field of copyright protection and related services. The enterprise will be applying IFRS 15 as its basis of interpretation for the recognition of revenue. The company considers itself an agent for the copyright holder when collecting amounts for the unlawful use of images and therefore recognizes gross amounts collected less the rights holders' share of the amounts collected as revenue. Revenue from services is recognized over time. The fee is essentially success-based and revenue is only recognized to the extent that it is considered highly probable that a significant amount of revenue will not be reversed in a subsequent period. Accounting judgments and estimates when recognizing revenue It is management's assessment that until the time a case is finalized and a claim is ready to be made, there is so much uncertainty about whether an amount can be collected from the person who has used the image that there is no basis for recognizing revenue before this time. A significant portion of the company's revenue has not been paid in at the time of presentation of the annual accounts. The company has recognized this portion of revenue based on a model. The model takes into account, among other things: management's assessment of both operational and legal process risk in connection with the collection of the company's claims, expected losses due to the payer's inability to pay, the age of the claims and other less significant factors. Management points out that the recognized revenue from claims that have not been paid at the time of financial reporting therefore constitutes a significant accounting estimate. Cost of sales includes costs for the purchase of auxiliary materials and services used to achieve the company's net revenue. Other external expenses comprise expenses incurred for distribution, sales, advertising, administration, premises, loss on receivables etc. Staff costs Staff costs include salaries and wages, including holiday allowances, pensions, and other social security costs, etc., for staff members. Depreciation, amortisation, and writedown for impairment Depreciation, amortisation, and writedown for impairment comprise depreciation on, amortisation of, and writedown for impairment of intangible and tangible assets, respectively. Financial income and expenses Financial income and expenses are recognised in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, financial expenses from financial leasing, realised and unrealised capital gains and losses relating to securities, debt and transactions in foreign currency, amortisation of financial assets and liabilities as well as surcharges and reimbursements under the advance tax scheme, etc. Results from investments in group enterprises Dividend from investments in group enterprises is recognised in the financial year in which the dividend is declared. If the dividend received exceeds the proportionate share of the year's result, this is considered an indication of impairment, which entails a requirement to prepare an impairment test. Tax on net profit or loss for the year Tax for the year comprises the current income tax for the year and changes in deferred tax and is recognised in the income statement with the share attributable to the net profit or loss for the year and directly in equity with the share attributable to entries directly in equity. Intangible assets Development projects, patents, and licences Development costs and internally generated rights are recognised in the income statement as costs in the acquisition year. Patents and licenses are measured at cost less accrued amortisation. Patents are amortised on a straightline basis over the remaining patent period and licenses are amortised over the contract period, however, for a maximum of 5 years. Profit and loss from the sale of development projects, patents, and licenses are measured as the difference between the sales price less sales costs and the carrying amount at the time of sale. Profit or loss are recognised in the income statement as other operating income or other operating expenses, respectively. Accounting judgments and estimates when recognizing intangible assets The value of the recognized development projects depends on the company's ability to continue to develop the system that the company uses in its operations, as well as attracting new customers who will be able to generate higher revenue to return on the total investment. Reference is made to the description in note 2. Property, plant, and equipment Property, plant, and equipment are measured at cost less accrued depreciation and write-down for impairment. The depreciable amount is cost less any expected residual value after the end of the useful life of the asset. The amortisation period and the residual value are determined at the acquisition date and reassessed annually. If the residual value exceeds the carrying amount, the depreciation is discontinued. The cost comprises acquisition cost and costs directly associated with the acquisition until the time when the asset is ready for use. Depreciation is done on a straight-line basis according to an assessment of the expected useful life and the residual value of the individual assets: Other fixtures and fittings, tools and equipment Useful life 3 years Residual value 0-20 % Minor assets with an expected useful life of less than 1 year are recognised as costs in the income statement in the year of acquisition. Profit or loss derived from the disposal of property, land, and equipment is measured as the difference between the sales price less selling costs and the carrying amount at the date of disposal. Profit or loss is recognised in the income statement as other operating income or other operating expenses. Leases The enterprise will be applying IAS 17 as its base of interpretation for recognition of classification and recognition of leases. At their initial recognition in the statement of financial position, leases concerning property, plant, and equipment where the company holds all essential risks and advantages associated with the proprietary right (finance lease) are measured either at fair value of the asset being leased or at the present value of the future lease payments, whichever value is lower. When calculating the present value, the discount rate used is the internal rate of return of the lease or, alternatively, the borrowing rate of the enterprise. Hereafter, assets held under a finance lease are treated in the same way as other similar property, plant, and equipment. The capitalised residual lease commitment is recognised in the statement of financial position as a liability other than provisions, and the interest part of the lease is recognised in the income statement for the term of the contract. All other leases are regarded as operating leases. Payments in connection with operating leases and other lease agreements are recognised in the income statement for the term of the contract. The company's total liabilities concerning operating leases and lease agreements are recognised under contingencies, etc. Investments in group enterprises Investments in group enterprises are recognised and measured at cost. If the recoverable amount is lower than the cost price, it shall be written down for impairment to this lower value. Deposits Deposits are measured at amortised cost and represent lease deposits, etc. Impairment loss relating to non-current assets The carrying amount of both intangible and tangible fixed assets as well as equity investments in group enterprises are subject to annual impairment tests in order to disclose any indications of impairment beyond those expressed by amortisation and depreciation respectively. If indications of impairment are disclosed, impairment tests are carried out for each individual asset or group of assets, respectively. Writedown for impairment is done to the recoverable amount if this value is lower than the carrying amount. The recoverable amount is the higher value of value in use and selling price less expected selling cost. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the asset group and expected net cash flows from the sale of the asset or the asset group after the end of their useful life. Previously recognised impairment losses are reversed when conditions for impairment no longer exist. Impairment relating to goodwill is not reversed. Receivables Receivables are measured at amortised cost, which usually corresponds to nominal value. Prepayments Prepaymentsrecognised under assets comprise incurred costs concerning the following financial year. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand. Equity Reserve for development costs The reserve for development costs comprises recognised development costs less related deferred tax liabilities. The reserve cannot be used as dividends or for covering losses. The reserve is reduced or dissolved if the recognised development costs are amortised or abandoned. This is done by direct transfer to the distributable reserves of the equity. Liabilities other than provisions Financial liabilities other than provisions related to borrowings are recognised at the received proceeds less transaction costs incurred. In subsequent periods, the financial liabilities are recognised at amortised cost, corresponding to the capitalised value when using the effective interest rate. The difference between the proceeds and the nominal value is recognised in the income statement during the term of the loan. 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