Årsrapport34209936Grant Thornton, Statsautoriseret RevisionspartnerselskabStockholmsgade, 452100, København Ø2022-01-012022-12-312023-01-012023-12-3125692977Scanbox Entertainment Group ApSBoyesgade61822Frederiksberg C2013-12-23FrederiksbergGrant Thornton, Statsautoriseret Revisionspartnerselskab34209936Kristian Randløv Lydolphstatsautoriseret revisormne47843Stockholmsgade452100København ØDanmark+45 33 110 220info@dk.gt.com2024-07-17Jerome Pierre LevyRegnskabsklasse C, mellemstor virksomhedRevisionspåtegningCaseWare fra Revisorgruppen DanmarkanpartshaverneKøbenhavn2024-07-17Frederiksberg C2024-07-17Grundlag for konklusionKonklusion10018500070315000-76000-104000240680001717900000538610004910100000222560004035000-76000-104000002102200012740000012340001120003350001670000565000433900022250001637000344000182520001977000205430001503000-2333000505000-4200031000205850001472000205850001472000209330001274000-34800019800020223700016232800000110640001385900000371900033025000002170200002092120000050005200000500052000000012797600010720300059000160000009400000102000012640000010790001374000127976000107203000218104000210638000127976000107203000161360001624200000127880000000032004000293370002498000000026600000001400001218000441800012000012000058580006590000038498000215850003213800029457000506000044870000043558000260720003213800029457000261662000236710000160114000136660000004700047000470004700000962280007554400012425200010391600028024000283720001242990001039630001242990001039630000100000000010000000003375000033750004050003790000040500037540000337500033750003375000337500033750006408900031975000003584700046011000380003600000318960002588000033100050500000000310009004000121000005060000243120003402700000136958000127993000358150002932200013736300013174700035815000326970002616620002367100001601140001366600002058500014720005556200049804000-38389000-347000037758000478060001980001670004339000220500033617000457680005050000331120004576800061601000528180000300004800001000000244000-574000-61305000-619200002600003375000337500009320000975000032115000-1958000028766000-12273000573000-284250004487000329120005060000448700050600004487000216040001546700000194200012030000052200047200000037000002406800017179000002441000115200000333200001279000043390002225000358000344000433900022250001637000344000592339000502250004068200068324600043001100050998000481009000202237000147560001700014773000897000281200037090001106400035479000122330002982000-4068200040480002454000-212500032900037190002590000259000025380004700025850005000317490003174900031749000317490007545400074344000-264000-1640002102200012740001500009622700075454000127976000107203000Scanbox Group ApSApSDenmark, Copenhagen100Scanbox Entertainment Film A/SA/SDenmark, Copenhagen100Scanbox Entertainment A/SA/SDenmark, Copenhagen100Scanbox Entertainment Sweden AB ABSweden, Göteborg100Sacnbox Entertainment All Rights ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights I ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights II ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights III ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights IV ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights V ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights VI ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights VII ApSApSDenmark, Copenhagen100Scanbox Entertainment Rights VIII ApSApSDenmark, Copenhagen100Scanbox Entertainment Denmark ApSApSDenmark, Copenhagen100Scanbox Entertainment Productions ApSApSDenmark, Copenhagen100Supersonic CPH ApSApSDenmark, Copenhagen100Supersonic Fyn ApSApSDenmark, Copenhagen100Iconic Designs ApSApSDenmark, Copenhagen100Zik Zak Filmworks ehf0Iceland1001600000-100048000170006400016000-50000-500005900016000940009400012640005000029400010200001020000003375000047000530004700053000020002000080000800047000470004700047000097480000974800009748000097480000075544000744340000020933000127400000-264000-16400000150000009622800075544000103916000919200002837200017486000205850001472000-34800019800009748000097480000-932000000800000-249000-164000094000012425200010391600028024000283720005386600049101000-340000-16700043390002226000-233300050500030000-1861000-1441500017837000-22974000-21307000-100000000109600000530000307000015117000030670000-22540000-52340000-26372000012854000Today, the Board of Directors and the Executive Board have approved the annual report of Scanbox Entertainment Group ApS for the financial year 1 January - 31 December 2023. 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 consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2023, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January – 31 December 2023. 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. Þórir Snær SigurjónssonKim William BeichÞórir Snær SigurjónssonJerome Pierre LevyJonathan Peter RotoloWe have audited the consolidated financial statements and the parent company financial statements of Scanbox Entertainment Group ApS for the financial year 1 January to 31 December 2023, which comprise a summary of significant accounting policies, income statement, balance sheet, statement of changes in equity and notes for both the Group the Parent Company, as well as consolidated statement of cash flows. The consolidated financial statements and the parent company financial statements are prepared under the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2023, and of the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2023 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 Consolidated Financial Statements and the Parent Company Financial Statements” section of our 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 company 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 company financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements and the parent company financial statements, Management is responsible for assessing the Group´s and the Parent 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 consolidated financial statements and the parent company financial statements unless Management either intends to liquidate the Group or 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 consolidated financial statements and the parent company 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 company 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 consolidated financial statements and the parent company 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 Group´s and 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 consolidated financial statements and the parent company 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 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 consolidated financial statements and the parent company 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 Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the consolidated financial statements and the parent company financial statements, including the disclosures, and whether the consolidated financial statements and the parent company financial statements represent the underlying transactions and events in a manner that gives a true and fair view. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 consolidated financial statements and the parent company 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 consolidated financial statements and the parent company financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the consolidated financial statements and the parent company 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. 709260007599700066015000882200051670005362000-4004000-2058000-1237000-1653000-19010007579000350600034650002346370002306790002300220006160100052847000430120004500600035484000919730008437100099295000445060007050400038607000-42915000-44911000-3548500010101000-9146000-2423000573000-284250001169200016447000699000Pengestrømme i altPengestrømme i altPengestrømme i altPengestrømme i altPengestrømme i alt17161747.543.939.236.643.2181.58.63.83.6The key figures appearing from the survey have been calculated as follows: Solvency ratio Equity, closing balance x 100 / Total assets, closing balance Return on equity Net profit or loss for the year x 100 / Average equityUncertainties connected with recognition or measurement Rights to distribution of film are amortized on a straight-line basis over a period of 3-8 years from the date of entry into service, which is standard practice for the industry. Considering that there can be difference between the individual film’s performance on the individual types of revenue, the assessment of the average, useful life is thus also subject to estimates. It is Management’s assessment that the amortization period determined reflects the average useful lives of the rights to distribution of films. Development in activities and financial matters The profit after tax amounts to DKK 20.585 thousand, which is satisfied. Our expected increse of 5%-10% in the level of activities was furthermore affected by planned content being moved to 2024 (and some further) and a decrease in available content due to production-restrictions and delayed releases due to Theatrical lockdown. Liquidity and capital resources The Group’s credit facilities consist of a credit-line with Sydbank. Overall, the Group have an overdraft facility for DKK 64.000 thousand through Sydbank and at 31.12.2023 the group has utilized it fully, besides this the parent company will provide credit facility as needed. Vuelta Productions Limited has given a letter of support ontill 30th June 2025. Management believes that the 2024 budget is realistic, despite a theatrical market still struggling to find its way back to pre-covid form, and takes into account the changes in market conditions and that the Group – given the existing overdraft facility – holds the credit facilities necessary to realize the budget drawn up for 2024, and that the possibility of managing payments for certain distribution rights provides liquidity-wise flexibility, allowing for reduction of even major budgetary deviations to the effect that the Group can continue as a going concern. Outlook The Theatrical market is still struggling to gain its momentum back after the pandemic. This has disrupted the marketability and commercial value for certain film genres, which again has influenced our acquisition strategy. Certain audience demographic has not returned to the cinemas in the same numbers as before, and we expect this to be a new case of normal. This situation has changed our investment focus to bigger and more commercial content, which both is still in demand on the Theatrical platform but also more valuable for the ancillary markets, such as pay-tv and home entertainment. The physical DVD/Blu-ray market downfall is almost finalized and both costs and focus have been adjusted accordingly. The change in acquisition strategy will further intensify our investments and focus on local content. Nordic content is still a very cinematic commodity and together with our inhouse production strategy and new colabs with Nordic producers, we will gradually increase our local content profile. It’s a longer process but it will also benefit our pay-tv strength and increase our position for the major streamers and broadcasters. Overall, the adjusted content investment strategy and collaborations with local content creators, combined with now being a fully integrated part of the Vuelta Group, will ensure a much steeper revenue growth and a solid foundation in a changing market. We have staffed up in the areas where we were slightly behind compared to our competitors, specifically in our inhouse production. We feel confident that our growth plans are solid and achievable, and we will already see part of the effect in 2024. Research and development activities There are no research and development activities in the Group, however, we will further intensify our inhouse production development and source feature- and series IP’s that will potentially have a wide and commercial audience. The annual report for Scanbox Entertainment Group ApS has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class C enterprises (medium sized enterprises). The accounting policies are unchanged from last year, and the annual report is presented in DKK. Recognition and measurement in general Income is recognised in the income statement concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs are recognised in the income statement, including depreciations amortisations, write-downs for impairment, provisions, and reversals due to changes in estimated amounts previously recognised in the income statement. Assets are recognised in the statement of financial position when it seems probable that future economic benefits will flow to the group and the value of the asset can be reliably measured. Liabilities are recognised in the statement of financial position when it is seems probable that future economic benefits will flow out of the group and the value of the liability can be reliably measured. Assets and liabilities are measured at cost at the initial recognition. Hereafter, assets and liabilities are measured as described below for each individual accounting item. Upon recognition and measurement, allowances are made for such predictable losses and risks which may arise prior to the presentation of the annual report and concern matters that exist on the reporting date. Foreign currency translation Transactions in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Differences in the rate of exchange arising between the rate at the date of transaction and the rate at the date of payment are recognised in the profit and loss account as an item under net financials. If currency positions are considered to hedge future cash flows, the value adjustments are recognised directly in equity in a fair value reserve. Receivables, payables, and other foreign currency monetary items are translated using the closing rate. The difference between the closing rate and the rate at the time of the occurrence or initial recognition in the latest financial statements of the receivable or payable is recognised in the income statement under financial income and expenses. Group enterprises abroad, associates, and equity investments are considered to be independent entities. The income statements are translated at an average exchange rate for the month, and the balance sheet items are translated at the closing rates. Currency translation differences, arising from the translation of the equity of group enterprises abroad at the beginning of the year to the closing rate and from the translation of income statements from average prices to the closing rate, are recognised directly in equity in the fair value reserve in the Consolidated Financial Statement. This also applies to differences arising from translation of income statements from average exchange rate to closing rate. Gross profit Gross profit comprises the revenue, changes in inventories of finished goods, and work in progress, own work capitalised, other operating income, and external costs. Revenue is recognised in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Revenue is measured at the fair value of the consideration promised exclusive of VAT and taxes and less any discounts relating directly to sales. Risk transition associated with sales to Cinema and Video on Demand takes place in line with the end user's utilization of provided distribution rights. Revenue associated with sales to TV stations is recognized by the delivery of master tapes / files based on contracts concluded. Cost of sales comprises costs concerning goods consumed in the financial year measured at cost, adjusted for ordinary inventory writedowns. Other external expenses comprise expenses regarding administration. Depreciation, amortisation, and write-down for impairment Depreciation, amortisation, and write-down for impairment comprise depreciation on, amortisation of, and write-down 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, 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 After full elimination of intercompany profit or loss less amortised consolidated goodwill, the equity investment in the individual entities are recognised in the income statement of the parent as a proportional share of the entities' post-tax profit or loss. 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. The parent and the Danish group enterprises are subject to Danish rules on compulsory joint taxation of Danish group enterprises. The parent acts as an administration company in relation to the joint taxation. This means that the total Danish income tax payable by the Danish group companies is paid to the tax authorities by the company. The current Danish income tax is allocated among the jointly taxed companies proportional to their respective taxable income (full allocation with reimbursement of tax losses). 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. If the amortisation period or the residual value is changed, the effect on amortisation will, in future, be recognised as a change in the accounting estimates. The cost comprises acquisition cost and costs directly associated with the acquisition until the time when the asset is ready for use. The cost of a total asset is divided into separate components. These components are depreciated separately, the useful lives of each individual components differing, and the individual component representing a material part of the total cost. 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 5 years Residual value 0% 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. Investments in group enterprises Investments in group enterprises are recognised and measured by applying the equity method. The equity method is used as a method of consolidation. Investments in group enterprises are recognised in the statement of financial position at the proportionate share of the enterprise's equity value. This value is calculated in accordance with the parent's accounting policies with deductions or additions of unrealised intercompany gains and losses as well as with additions or deductions of the remaining value of positive or negative goodwill calculated in accordance with the acquisition method. Negative goodwill is recognised in the income statement at the time of acquisition of the equity investment. If the negative goodwill relates to contingent liabilities acquired, negative goodwill is not recognised until the contingent liabilities have been settled or lapsed. Other financial instruments Financial instruments recognised under non-current assets comprise listed bonds and shares measured at fair value on the reporting date. Listed financial instruments are measured at market price. Other unlisted financial instruments are measured at cost. Write-down for impairment is done to the recoverable amount if this value is lower than the carrying amount. Deposits Deposits are measured at amortised cost and represent lease deposits, etc. Receivables Receivables are measured at amortised cost, which usually corresponds to nominal value. The company has chosen to use IAS 39 as a basis for interpretation when recognising impairment of financial assets. Accounts receivable for which there is no objective indication of impairment at the individual level are evaluated at portfolio level for objective indication of impairment. Contract work in progress Contract work in progress is measured at the costs incurred or at net realisable value, if this is lower. Prepayments Prepayments recognised under assets comprise incurred costs concerning the following financial year. Cash and cash equivalents Cash and cash equivalents comprise cash at bank. Equity Reserve for net revaluation according to the equity method The reserve for net revaluation according to the equity method comprises net revaluation of equity investments in subsidiaries, associates and equity interests proportional to cost. The reserve may be eliminated in the event of losses, realisation of equity investments, or changes in the accounting estimates. The reserve cannot be recognised by a negative amount. Income tax and deferred tax As administration company, Scanbox Entertainment Group ApS is liable to the tax authorities for the subsidiaries' corporate income taxes. Current tax liabilities and current tax receivable are recognised in the statement of financial position as calculated tax on the taxable income for the year, adjusted for tax of previous years' taxable income and for tax paid on account. The company is jointly taxed with consolidated Danish companies. The current corporate income tax is distributed between the jointly taxed companies in proportion to their taxable income and with full distribution with reimbursement as to tax losses. The jointly taxed companies are comprised by the Danish tax prepayment scheme. Joint taxation contributions payable and receivable are recognised in the statement of financial position as ”Tax receivables from group enterprises" or "Income tax payable to group enterprises" Deferred tax is measured on the basis of temporary differences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value. Adjustments take place in relation to deferred tax concerning elimination of unrealised intercompany gains and losses. Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised at the value at which they are expected to be realisable, either by settlement against tax of future earnings or by set-off in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value. Provisions Provisions comprise royalty and related costs. Other provisions are recognised and measured as the best estimate of the expenses requried to settle the liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance sheet date are measured at their discounted value. 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. Other liabilities concerning payables to suppliers, group enterprises, and other payables are measured at amortised cost which usually corresponds to the nominal value. Deferred income Payments received concerning future income are recognised under deferred income. 1. Uncertainties concerning recognition and measurement Rights to distribution of film are amortised on a straight-line basis over a period of 3-8 years from the date of entry into service, which is standard practise for the industry. Taking into account that there can be difference between the individual film's performance on the individual types of revenue, the assessment of the average useful is thus also subject to estimates. It is Management's assessment that the amortisation period determined reflects the average useful lives of the rights to distribution of films. 2. Special items Group Parent 2023 2022 2023 2022 Income: Compensation of cost due to COVID-19 0 4.648 0 0 Film tax credits 19.587 9.259 0 0 19.587 13.907 0 0 Special items are recognised in the following items in the financial statements: Gross profit 19.587 13.907 0 0 Profit of special items, net 19.587 13.907 0 0 Group Parent 31/12 2023 31/12 2022 31/12 2023 31/12 2022 15. Deferred tax assets Deferred tax assets 1 January 2023 0 0 0 0 Deferred tax of the net profit or loss for the year 2.498 0 0 0 2.498 0 0 0 22. Charges and security As security for the bank debt, floating charges are issued at DKK 55.000 thousand on unsecured claims, trade receivables and international film distribution rights has been provided. The carrying amount of assets charged is DKK 39.036 thousand at 31 December 2023.(2022: 31.595 thousand) The group has residual liability of DKK 112.790 thousand in relation to film rights that have not yet been delivered at 31 December 2023. The group guarantees and is jointly and severally liable for a joint credit facility of up to DKK 64.000 thousand. 23. Contingencies Contingent assets The group has a total deferred tax asset of net DKK 9.784 thousand, herof DKK 7.285 thousand (2022: 9.163 thousand) impacted by tax losses which, taking into consideration, the uncertainty of the utilisation therefore within a period of 3-5 years has not been capitaled. Contingent liabilities Lease liabilities Operating lease commitments: The group's entities have entered operating leases with an average annual lease payment of DKK 2.784 thousand and remaining term of 6-19 months. The remaining nominal lease commitment totals DKK 2.561 thousand. Joint taxation The company acts as administration company for the group of companies subject to the Danish scheme of joint taxation and is unlimitedly, jointly, and severally liable, along with the other jointly taxed companies, to pay the total corporation tax. The company is unlimitedly, jointly, and severally liable, along with the other jointly taxed companies, for any obligations to withhold tax on interest, royalties, and dividends. The liability relating to obligations in connection with withholding tax on dividends, interest, and royalties represents an estimated maximum of DKK 0. 25. Related parties Only related party transactions not conducted on an arm's length basis are disclosed in the annual report. No such transactions have been conducted in the financial year. Please refer to note 11 list of group enterprises. Remuneration of the Parent Company's Executive Board and the Board of Directors is disclosed i note 3.Intangible assets Licences Internally generated rights are recognised in the income statement as costs in the acquisition year. Licenses are measured at cost less accrued amortisation. Licenses are amortised over the contract period, however, for a maximum of 8 years. Film catalogues are amortised on a straight-line basis over a period of 3-8 years based on an assessment of the rights' estimated economic lives. Profit and loss from the sale of 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. Goodwill Acquired goodwill is measured at cost less accumulated amortisation. Given that it is impossible to make a reliable estimate of the useful life, the amortisation period is set at 10 years. 24. Financial risks Exchange rate risks The breakdown of the company's balance in foreign currency and related hedging transactions at 31 December 2023 comprises (DKK thousand): Currency Payment/maturity Accounts receivable Payables Hedging transaction Net position NOK 0-12 months 2.321 -2.231 0 90 USD Over 12 months 14.838 -14.913 0 -75 15 “Accounts receivable” refers to the fair value of contracts, and “Payables” represents the redemption amount. The company has entered into a currency forward contract to hedge future purchases in Norwegian kroner, totaling 2.321 thousand DKK. The contract specifies that the company will buy Norwegian kroner at an exchange rate of 63.74 on January 31, 2024. Compared to the forward exchange rate on the balance date, the contracts have a positive value of approximately 90 thousand DKK. The currency gain is included in equity. The company has entered into a currency forward contract to hedge future purchases in US dollars, totaling 14.838 thousand DKK. The contract specifies that the company will buy US dollars at an exchange rate of 677.87 on January 31, 2024. Compared to the forward exchange rate on the balance date, the contracts have a negative value of approximately 75 thousand DKK. The currency loss is included in equity. 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