33039468 2025-01-01 2025-12-31 33039468 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_1 33039468 2025-01-01 2025-12-31 memberOfBoardIdentifier_executive_board_2 33039468 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_1 33039468 2025-01-01 2025-12-31 memberOfBoardIdentifier_board_of_director_2 33039468 2025-01-01 2025-12-31 1 33039468 2023-01-01 2023-12-31 33039468 2022-01-01 2022-12-31 33039468 2021-01-01 2021-12-31 33039468 2023-12-31 33039468 2022-12-31 33039468 2021-12-31 33039468 2024-01-01 2024-12-31 33039468 2025-12-31 33039468 2024-12-31 33039468 2025-01-01 fsa:ContributedCapitalMember 33039468 2025-01-01 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33039468 2025-01-01 fsa:ReserveForDevelopmentExpenditureMember 33039468 2025-01-01 fsa:RetainedEarningsMember 33039468 2025-01-01 33039468 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 33039468 2025-01-01 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33039468 2025-01-01 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 33039468 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 33039468 2025-12-31 fsa:ContributedCapitalMember 33039468 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 33039468 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 33039468 2025-12-31 fsa:RetainedEarningsMember 33039468 2025-01-01 fsa:CompletedDevelopmentProjectsMember 33039468 2025-01-01 2025-12-31 fsa:CompletedDevelopmentProjectsMember 33039468 2025-12-31 fsa:CompletedDevelopmentProjectsMember 33039468 2025-01-01 fsa:FixturesFittingsToolsAndEquipmentMember 33039468 2025-01-01 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 33039468 2025-12-31 fsa:FixturesFittingsToolsAndEquipmentMember 33039468 2025-01-01 fsa:InvestmentsInGroupEnterprisesMember 33039468 2024-01-01 fsa:InvestmentsInGroupEnterprisesMember 33039468 2025-01-01 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 33039468 2024-01-01 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 33039468 2025-12-31 fsa:InvestmentsInGroupEnterprisesMember 33039468 2024-12-31 fsa:InvestmentsInGroupEnterprisesMember 33039468 2025-01-01 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 33039468 2025-12-31 relatedEntityIdentifier_sub_1 fsa:SubsidiaryMember 33039468 2025-01-01 fsa:DepositsLongtermInvestmentsAndReceivablesMember 33039468 2025-01-01 fsa:OtherReceivablesMember 33039468 2025-01-01 2025-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 33039468 2025-01-01 2025-12-31 fsa:OtherReceivablesMember 33039468 2025-12-31 fsa:DepositsLongtermInvestmentsAndReceivablesMember 33039468 2025-12-31 fsa:OtherReceivablesMember 33039468 2025-12-31 fsa:LongtermPayablesToGroupEnterprisesMember 33039468 2024-12-31 fsa:LongtermPayablesToGroupEnterprisesMember 33039468 2025-12-31 fsa:ShorttermPayablesToGroupEnterprisesMember 33039468 2024-12-31 fsa:ShorttermPayablesToGroupEnterprisesMember 33039468 2025-12-31 fsa:OtherLongtermPayablesMember 33039468 2024-12-31 fsa:OtherLongtermPayablesMember 33039468 2025-12-31 fsa:OtherShorttermPayablesMember 33039468 2024-12-31 fsa:OtherShorttermPayablesMember iso4217:DKK pure xbrli:pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2025-01-01 2024-01-01 2025-12-31 2024-12-31 Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning 1 true 2026-06-11 Erik Daniel Lögdberg The Executive Board and Board of Directors have today considered and adopted the Annual Report of Shape Games ApS for the financial year 1 January - 31 December 2025. 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 financial position at 31 December 2025 of the Company and of the results of the Company operations for 2025. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General Meeting. Copenhagen 2026-06-11 Erik Daniel Lögdberg David Richard Kenyon Erik Daniel Lögdberg David Richard Kenyon Chairman To the shareholder of Shape Games ApS Opinion We have audited the Financial Statements of Shape Games ApS for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The Financial Statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2025 and of the results of the Company’s operations for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act. Basis for Opinion 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 judgement and maintain professional scepticism 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.Plan and perform the audit of the Financial Statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. 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. 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, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Report on other legal and regulatory requirementsThe Company have not documented yearly review of beneficial owners according to the Danish Company Act §58a(4). Management may incur liability in this respect. Copenhagen 2026-06-11 Forvis Mazars Statsautoriseret Revisionspartnerselskab 31061741 Monica Häckert Raavig State Authorised Public Accountant mne48484 Shape Games ApS Njalsgade 23C, 1. th 2300 Copenhagen 33039468 Copenhagen 2100 Copenhagen Seen over a 5-year period, the development of the Company is described by the following financial highlights:For definitions of ratios, see under accounting policies. 84292000 62918000 48947000 13653000 20478000 18215000 1320000 1532000 -20000 11694000 7308000 14106000 95079000 71297000 49158000 25000 0 0 39000 385000 44911000 33203000 25680000 65 81 78 63 47 0.504 0.326 0.144 0.287 0.371 0.163 0.336 0.472 0.466 0.522 -5.675 0.605 0.299 0.248 0.517 Key activitiesIn 2025, the Company continued its core activities within the development and sale of mobile applications, delivered both on a consultancy basis and through direct sales. These activities remained supported by related operational and strategic initiatives.Development in the yearFor 2025, the Company reports a loss of DKK -47,218,437 and as of 31 December 2025, equity amounts to DKK -15,288,030. The financial performance fell short of expectations, driven by a continued decline in revenues combined with substantial investments in enhancing and expanding the Company’s product portfolio.The past year and follow-up on development expectations from last yearThe Company entered 2025 with an expectation of achieving a negative EBITDA of 5m DKK for 2025. These expectations were not met. Revenues were significantly lower than anticipated, as several existing customers scaled back their investments while new customers postponed planned onboarding and product investments into 2025. Although operational cost reductions partially compensated for the revenue shortfall, the overall performance remained below target.From a going concern perspective, the Company remains dependent on financial support from its parent company to fund day to day operations, given the continued high level of investment in the platform.The Company holds development assets of DKKm 45, which are critical to increasing future revenues through deeper engagement with existing customers, onboarding of new customers, and further integration opportunities with the parent company and its customer base. These development assets remain central to strengthening and scaling the Company’s platform. Management still anticipates that all customers of the parent company will operate on this platform by the end of 2026. Achievement of this milestone is expected to improve profitability over the coming years as platform revenues grow and cost levels normalize.Operating risksManagement has assessed that no single operational risk is considered significant to the Company’s ability to continue its activities.Foreign exchange risksThe Company’s international activities expose earnings, cash flows, and equity to fluctuations in foreign exchange and interest rates. The Company does not hedge these risks, including the USD 3,000,000 note receivable from Wagr Inc., which remains unhedged.Targets and expectations for the year aheadFor 2026, the Company expects a positive EBITDA of approximately DKKm 3, a improvement compared with the negative EBITDA of DKKm 12 recorded in 2025. The outlook is based on several assumptions, including stable customer activity and normal competitive dynamics. Given recent performance, management views the forecasts with increased caution.Research and developmentAs of 31 December 2025, the Company had no significant research activities.Consistent with strategic priorities, the Company continues to focus on development of its product portfolio to deliver added value to both customers and end users.During 2025, the Company secured new customer contracts, and management expects similar commercial activity throughout 2026. This will maintain a high level of development activity, including new projects and continued capitalization of development costs, although capitalization levels are expected to be lower than in 2025.Development projects relate to the development of software products. It is expected that the software will be sold in new markets and to new customers in addition to the existing customers of the Parent/owner company.Environmental, social and corporate governanceThe Group has no policies for human rights, climate impact, environment, social and staff matters as well as anti-corruption because the management has assessed that the related risks are limited, due to the size, nature of the business and simplicity of the Group.Corporate social responsibility, including human rights and anti-corruption, is an integral part of the Danish labor market and Danish corporate culture and is well-established in the Group. This is reflected in the Group's trade with both Danish and foreign customers and suppliers.In the future, the Group will strive to prepare policies describing risks and actions regarding corporate social responsibility to a larger extent.Intellectual capital resourcesThe Group is dependent on attracting and retaining employees who can continue the development of the Group’s operations.Knowledge resources that may be of particular importance for the Group’s future operations relate to being at the front edge of a wide range of services as well as having and maintaining a good image as an innovative, effective, dependable as well as a flexible Group with a good working environment.Uncertainty relating to recognition and measurementThere has been no uncertainty regarding recognition and measurement in the Annual Report.Unusual eventsThe financial position at 31 December 2025 of the Company and the results of the activities and cash flows of the Company for the financial year for 2025 have not been affected by any unusual events.Subsequent eventsNo events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 37143426 55036116 48576907 57243764 35950402 28782033 -47383883 -30989681 -1440688 6406 3402866 3283924 5830076 2614085 -51251781 -30313436 -4033344 -7082495 -47218437 -23230941 44946462 51408114 44946462 51408114 24091 32987 24091 32987 322619 1763504 835713 815789 6076555 16338399 7234887 18917692 52205440 70358793 9654626 9390456 22272 0 10038838 10928016 0 0 52000 0 409984 359608 20177720 20678080 21568789 4119116 41746509 24797196 93951949 95155989 736850 736850 300308 1108785 35058240 40098329 -51383428 -10013557 -15288030 31930407 0 4033344 0 4033344 100889799 48790303 2406838 2320962 103296637 51111265 0 11619 2494888 1386470 0 1715022 3448454 4967862 5943342 8080973 109239979 59192238 93951949 95155989 736850 1108785 40098329 -10013557 31930407 0 957496 0 -957496 0 0 0 -28014569 0 -28014569 0 0 22974480 5040089 28014569 0 149019 0 -47367456 -47218437 736850 300308 35058240 -51383428 -15288030 The Company’s current liabilities at this date exceed its current assets. As a result of this, Kambi Group Plc has issued a support letter with a commitment to provide sufficient financial support necessary to continue operations for at least 12 months from 31 December 2025.There is no concern regarding the parent company’s ability or willingness to provide this support.Although the Company is currently unprofitable, management believes that the Company will become profitable in the longer term as both new customers and the parent company’s customers are onboarded to the Company’s scalable platform. This platform strategy is expected to increase revenues and reduce costs over time, supporting the Company’s return to profitability.Furthermore, the parent company generated approximately EUR 19 million in operating profit in 2025, demonstrating strong financial performance at Group level and further reinforcing its ability to provide ongoing financial support. 47854966 56486383 673403 687285 48538 70096 48576907 57243764 65 81 Remuneration to the Executive Board has not been disclosed in accordance with section 98 B(3) of the Danish Financial Statements Act.Other staff expenses is presented as external expense. 35916114 28685477 34288 96556 35950402 28782033 2935445 1745991 386656 627749 2507975 240345 5830076 2614085 -4033344 -6539777 0 -542718 -4033344 -7082495 149019 6406 -47367456 -23237347 106363482 29454462 135817944 54955368 35916114 90871482 44946462 3 yearsIntangible fixed assets relate to the development of software products / platform. The intangible fixed assets of DKKm 45 are more than the value of the company’s equity of DKKm -15 as per 31 December 2025.The software products/platform are already in used by customers. It is expected that the software will be sold in new markets and to new customers in addition to the existing customers of the Parent/owner company. Prior to the start of the projects, the company has investigated the need for the software with customers, and a license agreement has already been made with customers.The value of the development projects has been tested with an impairment test, and it was determined that there was no impairment to the value of the development projects as of 31 December 2025.It is expected that the company will continue to invest in the development of its software products (platform) in the coming year, although the value of the asset is expected to decrease as amortization is expected to outpace investments in 2026. The development projects (platform) are depreciated over 3 years. The company believes that the platform will provide revenues for a longer period as the platform will receive new features.The company is dependent on its development assets of DKKm 45 to increase revenues in the coming years with existing customers, new customers and to create further integration and synergies with the parent company and its customers. The development assets are crucial to creating and continue to improve its scalable platform. We anticipate that all the parent company’s customers to be on this platform by end 2026 which should lead to profitability in the coming years, as platform revenues should increase and costs should subside.The company has no significant research activities as per 31 December 2025. 1279443 25392 1304835 1246456 34288 1280744 24091 3-5 years 654719 654719 632408 0 22311 654719 1108785 2707110 -957496 0 0 64425 149019 364608 0 1669156 0 358202 300308 1108785 322619 1763504 Positive differences arising on initial measurement of subsidiaries at net asset value0551,543Investments in subsidiaries are specified as follows:EUR 2.800Other receivables consists of a note receivable with a present value of DKK 16,074,295 (Face value of USD 3,000,000)The note receivable of USD 3,000,000 is due in 2 tranches:USD 1,500,000 due in December 2026,USD 1,500,000 due in December 2027.Transfers for the year of DKK 9,997,740 reflect the movement of the USD 1,500,000 December 2026 to ‘Other receivables’ under current assets. Shape Games Riga SIA Riga, Latvia 1.00 815789 16338399 0 -1683156 19924 1419052 0 -9997740 835713 6076555 835713 6076555 Short term part of other receivables under fixed assets9,997,74010,892,266Other receivables41,09835,75010,038,83810,928,016 Prepayments comprise prepaid expenses concerning insurance premiums and software etc. Deferred tax liabilities at 1 January4,033,34410,573,121Amounts recognised in the income statement for the year-4,033,344-6,539,777Deferred tax liabilities at 31 December04,033,344Intangible assets3,408,24011,309,785Property, plant and equipment-66,284-58,741Tax loss carry-forward-10,176,289-7,217,700Transferred to deferred tax assets6,834,333004,033,344Deferred tax assetCalculated tax assets6,834,3330Write down to assessed value6,834,3330Carrying amount00The company has an unrecognized deferred tax asset amounting to DKK 6,834,333. The deferred tax asset has not been recognized due to uncertainty regarding the Company's ability to utilize it. Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.The debt falls due for payment as specified below:Payables to group enterprises100,889,79950,505,325Other payables5,855,2927,288,824 0 0 100889799 48790303 100889799 48790303 0 1715022 0 0 2406838 2320962 2406838 2320962 3448454 4967862 Rental and lease obligationsLease obligations under operating leases. Total future lease payments:Within 1 year1,027,8851,021,6781,027,8851,021,678Other financial obligationsThe company does not have any other financial obligations. Controlling interestKambi Group PlcParent Company, 100%TransactionsDuring the year, the Company has carried out the following transactions with group entities:Sale of services to group companies: DKK 1,746,822Purchase of services to group companies: DKK 7,240,735Interest paid to group companies: DKK 2,935,445Loans from group of companies DKK 47,025,108The Company has receivables and debt with other group companies. The balances are disclosed separately in the balance sheet. Consolidated Financial StatementsThe Company is included in the Group Annual Report of the Parent Company::Kambi Group PlcAvenue 77, A4, Triq in-Negozju, Zone 3, CentralBusiness District, BirkirkaraCBD 3010Malta No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The Annual Report of Shape Games ApS for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.The accounting policies applied remain unchanged from last year.The Financial Statements for 2025 are presented in DKK.The accounting policies applied are consistent with those of last year. For comparability purposes, the comparative figures for 2024 have been reclassified. The reclassification primarily relate to the presentation of staff costs and other external expenses. The reclassification have not affected the profit/loss for the year or equity. With reference to section 112 of the Danish Financial Statements Act and to the consolidated financial statements for 2025 of Kambi Group Plc, the Company has not prepared consolidated financial statements. With reference to section 86(4) of the Danish Financial Statements Act and to the cash flow statement included in the consolidated financial statements of Kambi Group Plc, the Company has not prepared a cash flow statement. Recognition and measurementRevenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. All leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term. Translation policiesTransactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement; however, see the section on hedge accounting. RevenueRevenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company.Services are recognised at the rate of completion of the service to which the contract relates by using the percentage-of-completion method, which means that revenue equals the selling price of the service completed for the year. This method is applied when total revenues and expenses in respect of the service and the stage of completion at the balance sheet date can be measured reliably, and it is probable that the economic benefits, including payments, will flow to the Company. The stage of completion is determined on the basis of the ratio between the expenses incurred and the total expected expenses of the service.Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. Direct expensesDirect expenses primarily include operating expenses for the year. Other external expensesOther external expenses comprise expenses for premises, sales as well as office expenses, etc. Gross profitWith reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, work on own account recognised in assets, direct expenses and other external expenses. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. Amortisation, depreciation and impairment lossesAmortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Income from investments in subsidiariesThe item “Income from investments in subsidiaries” in the income statement includes the proportionate share of the profit for the year. Financial income and expenses comprise interest, financial expenses in respect of finance leases, realised and unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra payments and repayment under the on-account taxation scheme. Tax on profit/loss for the yearTax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity.Any changes in deferred tax due to changes to tax rates are recognised in the income statement. Intangible fixed assetsDevelopment projectsCosts of development projects comprise salaries, amortisation and other expenses directly or indirectly attributable to the Company’s development activities.Development projects that are clearly defined and identifiable and in respect of which technical feasibility, sufficient resources and a potential future market or development opportunity in the enterprise can be demonstrated, and where it is the intention to manufacture, market or use the project, are recognised as intangible assets. This applies if sufficient certainty exists that the value in use of future earnings can cover cost of sales, distribution and administrative expenses involved as well as the development costs.Development projects that do not meet the criteria for recognition in the balance sheet are recognised as expenses in the income statement as incurred.Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a lower recoverable amount. An amount corresponding to the recognised development costs is allocated to the equity item 'Reserve for development costs'. The reserve comprises only development costs recognised in financial years beginning on or after 1 January 2016. The reserve is reduced by amortisation of and impairment losses on the development projects on a continuing basis.As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period of the expected economic benefit from the development work. The amortisation period is 3 year. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses.Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipment3-5 years Leasehold improvements3-5 years The fixed assets’ residual values are determined at nil.Depreciation period and residual value are reassessed annually. Impairment of fixed assetsThe carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation.If so, the asset is written down to its lower recoverable amount. Investments in subsidiariesInvestments in subsidiaries are recognised and measured under the equity method.The item “Investments in subsidiaries” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises.The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries.Subsidiaries with a negative net asset value are recognised at DKK 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. Other fixed asset investments consist of deposits and receivables. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts.Cash at bank and in handCash at bank and in hand only includes cash located in liquid bank accounts. PrepaymentsPrepayments comprise prepaid expenses concerning rent, insurance premiums and subscriptions etc. DividendDividend distribution proposed by Management for the year is disclosed as a separate equity item. Deferred tax assets and liabilitiesDeferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax receivables and liabilitiesCurrent tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year adjusted for tax on taxable incomes for prior years. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously. Debts are measured at amortised cost, substantially corresponding to nominal value. Financial HighlightsExplanation of financial ratiosReturn on assetsProfit/loss of primary operations x 100 / Total assets at year endSolvency ratioEquity at year end x 100 / Total assets at year endReturn on equityNet profit for the year x 100 / Average equity