17-2026 5th Planet Games A/S - Annual Report for 2025

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5th Planet Games A/S

Approved on general meeting 22nd April 2026

5th Planet Games A/S - Gothersgade 11, 1123 Copenhagen, Denmark - CVR No.: 3359 7142

Chairman of the meeting

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Index

Management review

• 5th Planet Games A/S At-A-Glance

• CEO Letter

• Outlook & Business Development

• Game Releases

• Financial Review

• Key Figures and Financial Performance

• Risk Management in Practice

• Corporate Social Responsibility

  • Remuneration Report

• Board of Directors and Executive Management

• Shareholder Information

  • Statement by The Board of Directors and the Executive Management...

Independent Auditors' ReportFinancial Statements

3

4

5

6

7

10

11

13

15

16

18

20

21

• Income Statement and statement of other comprehensive income 26

• Balance Sheet 27

• Statement of Changes in Equity 28

• Cash Flow Statement 29

Notes to the Financial Statements 30

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

Docusign Envelope ID: CF17925A-E2D4-49CF-904D-BB9AC4ECC27F

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

5th Planet Games A/S is an international, publicly traded company founded in 2011 focused on the financing and publishing of video games, but with interests now extending into TV and Film production.

We are a small, lean company that is backed by a highly driven executive team from Europe and the USA, each of whom have decades of experience in video game and entertainment creation, publishing, and distribution.

5th Planet Games A/S creates strategic partnerships with global IP holders to create unique opportunities for game content creation by our outstanding development partners worldwide and secures co-publishing and/or co-financing status in games across all platforms.

With a strong and growing portfolio of titles and, since 2021, a partnership with Skybound Entertainment, 5th Planet Games A/S now has access to proven IP including The Walking Dead and Invincible. The increasing strength of the portfolio has also enabled 5th Planet Games A/S to increase the range and scope of its business activities. This has grown to include (i) the licensing of self-developed games, (ii) sales of games on online platforms, (iii) sales of physical games and associated merchandise to wholesale distribution channels, and (iv) co-funding games with Skybound LLC for acquired royalty rights in the performance of those properties.

September 2023 saw 5th Planet Games A/S grow its business interests further still with its co-investment in Sagafilm ehf a successful and well-established film and TV production company based in Reykjavik, Iceland.

3

Due to a high-quality back catalogue of games and an exciting release schedule ahead, 5th Planet Games A/S has many more exciting opportunities still to come!

3

It's with a sense of both relief and anticipation that we close the books on 2025; relief that we close a challenging year, not just for 5th Planet Games A/S, but for the entire global games industry and anticipation as I could not be more excited about the opportunities that lie directly ahead of us, and which we have been working towards for a long time.

The 2025 accounts speak to the challenges that we faced, however due to the fair value attributed to our investments in the upcoming new games in the Invincible and The Walking Dead franchises we were still able to achieve a modest pre-tax profit on the year.

It was September 2024 that we announced our investment in the new Invincible game, which we now know as the tag-fighter Invincible VS; since that time we (and a huge global audience) have been eagerly awaiting the release of the game, and I've taken great effort in recent weeks to keep everyone updated with our progress as we countdown towards the release on April 30th.

One of the key waypoints ahead of the Invincible VS release was the launch, just a few weeks ago, of Season 4 of the Invincible TV show on Amazon Prime Video, a launch that received an amazing reaction from fans and critics alike, as well as a 100% perfect score on Rotten Tomatoes, the popular American review-aggregation website. It was a very encouraging sign.

Looking slightly further ahead in 2026, we will see the release of the new game in The Walking Dead universe, a game that we signed a co-financing deal for in the Autumn of 2024.

After such a tumultuous period, the video games market (and players) are seeking a degree of certainty when making their buying decisions, and that's why co-financing games based on established, proven, global IP is so important.

In addition to the vital work with Skybound LLC and these pillar entertainment brands, the 5th Planet Team have been busy too; we increased our Physical distribution capability in 2025 with new agreements with BigBen Interactive (Dec 2025) and Glomerk SA (Mar 2025) extending our reach into the Benelux and Eastern Europe regions. Physical distribution forms a key part of our plan for 2026 as the market has responded incredibly well to the Physical variants of Invincible VS and especially the Collectors Edition, created in a great partnership with our fellow Danes at Scanavo.

I am grateful for the continued support and truly excited about what lies ahead of us. Mark

Mark Stanger - CEO

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

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ANNUAL REPORT 2025

5th Planet Games At-A-Glance CEO Letter

Outlook & Business Development

Game Releases Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

Outlook for 2026

2026 is a pivotal year for the business and one in which we expect to see considerable growth; this growth will be increasingly driven by high profile, proven, global entertainment brands, Invincible and The Walking Dead as 5th Planet Games A/S is a co-financing partner in new video games for both franchises.

5th Planet Games A/S will not only have a significant interest in the overall global publishing activity of the new Invincible and The Walking Dead video games but will also have a further interest in the physical distribution of the games and associated merchandise because of new distribution partnership agreements made in 2025.

We continue to actively maintain our back catalogue and are looking at new distribution opportunities for that catalogue.

Key risks to the outlook include potential delays in game development and release dates, changes in consumer preferences and increased competition from similar games can affect management estimates.

A combination of all the above results in guidance for the year of achieving a revenue position of 28-32m DKK, and EBITDA for the year within the range of 20-23m DKK.

We fully expect to see further significant growth in revenue and profit in 2026 driven by the new games and will provide further guidance on that in due course.

Business Development

Our partnership with Skybound LLC remains strategically significant for 5th Planet Games A/S, as it provides access to a portfolio of globally recognized intellectual property, supports the development of higher-quality game titles, and enables co-financing structures that reduce upfront capital requirements while enhancing long-term revenue potential, as well as the ability to commercialize physical products under global licenses obtained by Skybound LLC, supported by existing wholesaler relationships previously established by 5th Planet Games A/S. The Company seeks to balance the risk created by the dependency arising from this partnership by exploring additional indepedent licensing and monetization opportunities

Restatement of prior periods

During the year, management restated the beginning balance of fiscal year 2024 related to

(i) the recognition of a derivative liability, (ii) the classification and measurement of certain financial assets, (iii) the calculation of earnings per share, (iiii) the classification of a receivable with a related party and (iiiii) the classification of restricted cash. These restatements have been recognized retrospectively in accordance with IAS 8, and comparative figures have been restated accordingly. The impact of the restatement is presented in Note 1 to the financial statements, including the effects on profit or loss, financial position, and equity. Management has assessed that the restatements do not impact the underlying operating performance or cash flows of the Company.

Platforms:

PS5, NSW2

GOODNIGHT UNIVERSE

Developer: Release Date:

Nice Dream December 2025

Platforms:

PS5, XBX

FROSTPUNK 2 WHITEOUT EDITION

Developer: Release Date:

11Bit Studios November 2025

The financial results of 2025 bear testimony to how challenging the year was for 5th Planet Games A/S, and equally they demonstrate the 'transitional' nature of the year.

For the year ending December 31st 2025 we can announce a small pre-tax profit DKK 4.6m, this is largely the result of financial income and specifically the 'fair value' attributed to our recent investments in the upcoming video games in the Invincible and The Walking Dead universes.

Our revenue projections for the year were significantly impacted by the late release of Goodnight Universe and the resulting impact on Digital Revenues, and on Physical distribution we saw some titles slip out of the year e.g. Litle Nightmares III or removed completely from our catalogue e.g. Cuphead and the PlayStation variants of Stray; our back catalogue of mobile and online games performed according to the original budget.

On a much more positive note, and with direct relevance to 2026, we saw a considerable increase in the fair value attributed to our recent investment in the new Invincible and The Walking Dead games under the accounting standards for this type of asset; this has been the most significant factor in delivering a Financial Income for the year of 13.6m DKK and also increased our assets to the level of 87.3m DKK.

With the new Invincible and The Walking Dead games both scheduled for release in 2026 and 5th Planet Games A/S involved and taking benefit from publishing across all channels globally (Digital and Physical distribution channels), the company is uniquely positioned for significant growth; this growth is reflected in our guidance for the year.

Despite the difficult market, we were able to continue to expand our physical distribution capability and concluded new distribution agreements with BigBen Interactive (Benelux) in December 2025 and Glomerk SA (Poland) in March 2025.

Additional Warrants and Other Significant Items

Milestone Warrants

Skybound Games has the right to subscribe for 12.724.314 warrants, each warrant entitling Skybound Games to subscribe for one share of nominal DKK 0.05 at an exercise price of NOK 0.90, total NOK 11,451,883 when certain milestones are met (the "Milestone warrants"):

• 13.6% of the Milestone Warrants upon 5th Planet Games A/S having a market value of USD 75,000,000 or more.

• 13.6% of the Milestone Warrants upon 5th Planet Games A/S having a market value of USD 100,000,000 or more.

• 13.6% of the Milestone Warrants upon 5th Planet Games A/S having a market value of USD 125,000,000 or more.

Indemnification Warrants

As part of the investment agreement, 5th Planet Games A/S has provided certain representations and warranties to Skybound Games. Should Skybound Games suffer a loss due to certain specific warranties not being true, not being accurate, and/or being misleading, Skybound Games will, at its own discretion, have the option of being indemnified from its loss by exercising up to 2,200,000 warrants (depending on the loss), each warrant entitling Skybound Games to subscribe for 1 share of nominal DKK 0.05 at par value (the "Indemnification Warrants").

Since 5th Planet Games A/S believes the representations and warranties made to Skybound Games were true, accurate and not misleading, and no evidence to the contrary has been identified, the indemnification warrants have not been recognized in the financial statements. For further information see note 12 - Derivative Liabilities - Milestone Warrant.

The financial results of 2025 bear testimony to how challenging the year was for 5th Planet Games A/S, and equally they demonstrate the 'transitional' nature of the year.

To summarize the high-level results here, we achieved (all DKK)

• Revenue 3.6m (2024; 12.6m)

• EBIT -4.6m (2024; 2.5m)

• Net Profit (pre tax) +4.6m (2024; 3.5m)

The decrease in revenue from 12.6m DKK to 3.6m DKK was caused by royalty income from new digital releases was below projection, our physical distribution of games was impacted by certain delays and a number of titles performed poorly in the tough market conditions; on a more positive note we saw consistent sales on our physical back catalogue, particular for mass-market titles such as 'Stray' and our mobile back catalogue performed to expectation and benefits from ongoing active management.

There was a slight decrease of 0.3m DKK in general and administrative costs to 6.9m DKK reflecting a continuous focus on cost control measures.

The shift from a 2.5m DKK EBIT gain in 2024 to a 4.6m DKK loss in the current period was primarily driven by a decrease in revenue.

Net financials were negatively impacted by the USD / DKK exchange rate on our unrealized currency exposure 1.8m DKK and positively affected by a fair value adjustment on co-publishing games with 11.0m DKK.

The positive fair value adjustment resulted in a Net profit before tax 4.6m DKK, compared to 2024 which had a Net profit of 3.5m DKK.

Other financial considerations in the report include the recognition of a deferred tax liability in the 2025 accounts 6.0m DKK, which also affects total liability increase from 83.0m DKK in 2024 to 89.9m DKK in 2025.

Other financial assets increased from 63.4m DKK to 76m DKK because of the positive fair value adjustment and is the main driver in the increase of total assets from DKK 83.0m DKK to DKK 89.9m.

Cash flow is negative with 1.3m DKK, mainly caused by investments in co-publishing games

2.1m DKK and negative operating cash flow 0.7m DKK.

Key risks affecting the 2025 results include the uncertainty of fair value measurements, and the performance of co-publishing investments. For more information see note 11a. Management continuously monitors these risks and will update guidance if material changes occur.

Whilst these results are quite different from the guidance we offered at the start of 2025, revenue did not increase at the previously expected c70% rate and EBITDA did not land in the 0.5M to 2M DKK range, they broadly align with the updated guidance provided later in the year.

The results for the year are affected by the restatement of prior periods identified during 2025. Comparative figures for 2024 have been restated accordingly. Reference is made to Note 1 to the financial statements, which provides a detailed description of the nature of the restatements.

DKK '000

IFRS 2025

*1 Figures for 2021 are only for continued operations.

*2 Please refer to definition and calculation for key figures and key ratios from the Danish Finance Society "Recommendations & Financial Ratios" published 2025.

*3 Comparative figures for the years 2023-2021 could not be determined due to lack of sufficient underlying data. Accordingly, no restatement has been made for these years. Management considers that the impact on key financial metrics cannot be reliably quantified.

Risk management is a high priority at 5th Planet Games A/S. The Board of Directors and the management monitor the company's risk factors closely to minimize risk exposure. This ensures quick reaction time if conditions change. A risk assessment is made prior to every major decision.

Risks and uncertainties

The most important risks facing 5th Planet Games A/S are related to market/commercial risk and development risk. However, where the conventional game development is associated with large risks due to long development periods with substantial associated costs and a high risk of failure, 5th Planet Games A/S is focused on developing and utilizing modular code bases in order to reduce the development time and risk of failure significantly.

• Financial risk

  The games market is volatile and despite all the due diligence undertaken by 5th Planet Games A/S and its publishing partners, the performance of any individual game cannot be guaranteed. This is main financial risk that 5th Planet Games A/S faces. For further information see note 11a.

• Product development risk

  Product development is a creative process and regularly subject to delays, which invariably means additional costs. Whilst 5th Planet Games A/S looks to mitigate this risk, by increasingly working with experienced development teams, the risk remains of delays and additional expense.

• Foreign currency risk

  5th Planet Games' revenue, costs and cash position is for a significant part related to USD and a significant change in the DKK/USD exchange rate could result in loss related hereto. The financial impact from currency fluctuations can be significant since management is not hedging the currency risk, but the company has accounts in foreign currency which reduces the risk.

• Disputes

  The company may from time to time be involved in disputes, including disputes regarding intellectual property rights, all with ensuing risks and costs, which could have a material adverse effect on 5th Planet Games' business, financial condition, and results of operations. For further information see note 15. Contingent liabilities.

• Partnership risk

  In the short term, 5th Planet Games A/S is heavily reliant on Skybound LLC as a source of new games; whilst in general terms this is a positive thing it also carries a certain risk; in order to mitigate this risk 5th Planet Games A/S continues to proactively manage its own catalogue of titles and maintains a business development function to find new games, new financing and new publishing opportunities

• Geopolitical risk

The Business operates in a global environment and is exposed to geopolitical risks and macroeconomic uncertainties, including evolving trade policies, sanctions, and restrictions on cross-border digital commerce. While the Business's products and co-production arrangements are primarily nonphysical and therefore have limited direct exposure to disruptions in physical supply chains, the Business remains subject to indirect risks, including potential limitations on platform access, payment processing, user reach, and monetization in certain jurisdictions. Management has considered these risks in the preparation of the financial statements, including in the development of cash flow forecasts and key assumptions used in impairment assessments and

fair value measurements, such as revenue projections, discount rates, and scenario analyses. Further details on how these uncertainties are reflected in Level 3 fair value measurements are disclosed in Note 11.

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

Docusign Envelope ID: CF17925A-E2D4-49CF-904D-BB9AC4ECC27F

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice

Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

The Board of Directors serves as a qualified and experienced partner for the management team. The Board of Directors is responsible for providing strategic direction for the business, identifying key industry insights and trends. The Board also brings important and diverse business and financial skills, as well as many years of management experience.

Climate and environmental impact

5th Planet Games A/S products and co-produced products are mostly nonphysical. We aim to minimize the negative environmental impact caused by our operations. Currently, the most significant environmental impact is caused by the consumption of electricity associated with IT equipment, servers and gaming. Awareness of gaming's oversized environmental impact has grown, prompting major manufacturers to promise reductions in environmental footprint over the next two decades. 5th Planet Games A/S recognizes that companies need to strike a balance between innovation and sustainability to maintain their financial performance.

We continue to be mindful of our obligations and use best efforts to reduce our environmental impact. The simplification of our corporate entity structure, move to the predominant holding of online meetings, and entry into physical distribution game sales without incurring a net, new incremental warehousing footprint are evidence of our goal to grow responsibly with respect to our environment. Going forward, we will make an 'environmental review' part of our formal board meetings on a regular basis and make public the conclusions of this review. We also have plans to 'benchmark' our performance in this area with other companies operating in the same sector as part of our growing participation in the Danish Video Games industry.

For 2025, we have continued to closely monitor and regularly review our performance in relation to our stated environmental objectives; key developments in this regard have included, the further reduction of in-person meetings and associated air travel, previously company meetings were held on a monthly basis and were conducted in-person, now we have moved to quarterly in-person meetings with all other meetings conducted online. Regarding our physical distribution, we actively review legislation relating to the use of certain plastics and the management of waste materials, this involves close coordination with manufacturing and distribution partners based in the Nordic region and more widely across Europe.

5th Planet Games A/S business model

Our business model incorporates our policies on sustainability and is based on multiple pillars, these include;

• Actively managing and maintaining our back catalogue of Mobile and Online games

• Co-financing new games developed for all current global games platforms including Sony PlayStation, Microsoft Xbox, Nintendo Switch.

• The physical and digital distribution of video games and associated merchandise including limited editions and collectors editions.

• Strategic investments in companies that are 'sector adjacent' to 5th Planets core business for example TV and Film production.

• The board of directors strives to operate the business in a manner that supports our broader corporate social responsibilities that are detailed here

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

Docusign Envelope ID: CF17925A-E2D4-49CF-904D-BB9AC4ECC27F

ANNUAL REPORT 2025

5th Planet Games At-A-Glance

CEO Letter

Outlook & Business Development Game Releases

Financial Review

Risk Management in Practice

Corporate Social Responsibility

Board of Directors and Executive Management Shareholder Information

Independent Auditors' Report Financial Statements

Notes to the Financial Statements

Social responsibility

As a globally operating company, 5th Planet Games A/S values diversity and treats all employees equally. All staff members are treated fairly and equally regardless of their ethnic origin, nationality, political views, gender, sexual orientation, disability, family situation or age. 5th Planet Games A/S adheres to the principle of equal opportunity. We expect all 5th Planet Games A/S employees to treat each other, all our subcontractors, service providers and other partners fairly and equally. 5th Planet Games A/S aims to develop the company in a sustainable manner and to achieve shared benefits for the company, the shareholders and employees alike. All employees are entitled to good management and a chance to grow as professionals.

Currently, 5th Planet Games A/S makes every reasonable effort to maintain and optimize the wellbeing of its employees and contractors. We invest time and energy to ensure that our employees and contractors are valued, respected and motivated in their work. As there are very few employees in the company, no concrete measures have been taken, but we monitor our efforts closely by one-to-one conversations with our employees and support and encourage work life balance and career goals.

Going forward, we will extend this duty of care to include all customers, suppliers and service providers to the company, and make every reasonable effort to maintain the highest professional and ethical standards.

For 2025, we introduced a new initiative designed to continue to develop and improve our performance in relation to our staff and external business partners; we now regularly meet with HR teams at key partners, e.g. Skybound Entertainment to discuss initiatives relating to staff retention; during 2025 these have included subjects such as staff performance appraisals and the benchmarking of staff remuneration.

Human rights

5th Planet Games A/S is committed to respecting human rights across all our business activities. We make every reasonable effort to ensure our workplace is safe, inclusive, and free from discrimination or harassment. We do not tolerate forced or child labor in our operations or in our supply chain. We are committed to fostering a culture of respect, conducting due diligence to identify potential risks, and providing a safe, confidential avenue for employees to report concerns. This statement is overseen by The Board of Directors and reviewed annually. We have continued to review and can confirm compliance throughout 2025.

Anti-corruption and bribery

At 5th Planet Games A/S, we are committed to conducting our business honestly, fairly, and with integrity. We have a zero-tolerance approach to bribery and corruption. We prohibit our employees and business partners from offering, promising, giving, requesting, or accepting any bribe or improper advantage to secure business or gain a commercial advantage. We comply with all applicable anti-bribery and anti-corruption laws. We have continued to review and can confirm compliance throughout 2025 and in 2026, we plan to continue our actions.

Data policy

At 5th Planet Games A/S, we are committed to protecting the privacy and security of our customers, employees, and partners. We collect only the data necessary to provide our services and process it lawfully. We implement appropriate technical measures to secure personal information against unauthorized access or breaches. We do not sell personal data, and we only share information with trusted partners necessary for our business operations. Individuals have the right to access, correct, or request deletion of their data at any time. In 2025, we aligned on a high-level approach to data governance and ethics which is summarized below.

‌Summary of Our Approach to Data Governance and Data Ethics

• Transparency: We are open about how we collect, use, and store data, ensuring all processing complies with applicable laws, e.g., GDPR.

• Data Minimization: We only collect the data we need and do not retain it longer than necessary.

• Security: We utilize industry-standard encryption for data at rest and in transit. Access to

  personal data is restricted to authorized staff only.

• Continuous Improvement: We review our data protection practices annually to keep pace with evolving digital threats and regulations.

• Data Ethics: in holding the company to the principles and practices outlined above, and through regular review of our performance in this area we maintain our commitment to ethical data management.

Corporate governance report

5th Planet Games' Board of Directors and Management continually work with corporate governance principles to ensure that the management structure and control systems are appropriate and satisfactory. 5th Planet Games A/S 2025 statutory report on corporate governance, cf. the Danish Financial Statements Act, Section 107b, is available on 5th Planet Games A/S website at https:// www.5thplanetgames.com/investors/documents/.The Company complies with 23 of the 40 Danish recommendations on corporate governance https://corporategovernance.dk/

Remuneration Report

On 30th April 2026 the remuneration policy was approved at the Company's general meeting with the required majority https://www.5thplanetgames.com/investors/documents/

Remuneration - Board of Directors

The remuneration of members of the Board of Directors is, due to the current size and structure of the company, comprised of direct payments and warrants

Remuneration - Executive Management

The remuneration of the Executive Management teams is following the recommendation by the Chairman of the Board of Directors. The current remuneration program for the Executive Management team is a monetary remuneration.

*Chairman of the Board

1. As of 22/1 2021 Henrik Nielsen retired as CEO from 5th Planet Games A/S. The remuneration until January 2021 is included in the above table whereas the severance payment 1.965 TDKK (Fixed base fee 213 TDKK and Share based Payments 982 TDKK) is not included.

2. As of 7/9 2021 Caspar Rose retired as CEO from 5th Planet Games A/S. The remuneration until September 2021 is included in the above table, whereas the severance payment 337 TDKK (Fixed base fee 150 TDKK and Share based Payments 187 TDKK) is not included.

Jon Goldman (m) (1965)

Chairman of the Board

Position:

Chairman of the Board Skybound Group

Educational background:

Harvard University Kyoto University

UCLA Anderson School of Management

Competencies:

Financial strategy Capital Markets

Current Directorships:

none

Member of the boards of: Skybound Games Studios and Group companies

LiveLike Free Range

WAVEXR, INC. FLAVOURWORKS

Shares in 5th Planet Games A/S:

135,000 shares

Warrants in 5th Planet Games A/S:

1. warrants

   Independent Board Member:

   No

   Election Term:

2. year

Board member since:

7 September 2021

Henrik Nielsen (m) (1967)

Board Member

Position:

CEO of HNI Trading ApS

Educational background:

M.Sc. in Marketing and Strategy from the Copenhagen Business School

Competencies:

Strategy and Finance

Current Directorships:

HNI TRADING ApS

Shares in 5th Planet Games A/S:

4,844.262 shares

Warrants in 5th Planet Games A/S:

30,633,100 warrants

Independent Board Member:

Yes

Election Term:

1 year

Board member since:

27 November 2019

David Alpert (m) (1975)

Board Member

Position:

CEO of Skybound Group

Educational background:

Havard University

New York University Law School

Competencies:

Digital Entertainment Strategic Partnerships Company Management

Current Directorships: Skybound Games Studios and certain of its subsidiaries

Member of the boards of: Skybound Games Studios and Group companies

Sagafilm ehf.

Shares in 5th Planet Games A/S:

135,000 shares

Warrants in 5th Planet Games A/S:

0 warrants

Independent Board Member:

No

Election Term:

1 year

Board member since:

7 September 2021

Søren Kokbøl Jensen (m) (1966)

Board Member

Position:

CEO of ECLIPSE HOLDING ApS

CEO ZenRide ApS

Educational background:

N/A

Competencies: Entrepreneurship Digital Media Business strategy

Current Directorships: ECLIPSE HOLDING ApS

Member of the boards of:

None

Shares in 5th Planet Games A/S:

0 shares

Warrants in 5th Planet Games A/S:

240,000 warrants

Independent Board Member:

Yes

Election Term:

1 year

Board member since:

27 April 2021

Mark Stanger (m) (1967)

CEO

Employed since September 2021 Educational background:

Economics and Business - Wyggeston and Queen Elizabeth College, Leicester.

Chairman of the board of:

n/a

Member of the boards of: Skybound Games UK Limited Skybound Games Europe BV Sagafilm Ehf.

Shares in 5th Planet Games A/S:

490,536 shares

Warrants in 5th Planet Games A/S:

0 warrants

An investment in 5th Planet Games A/S is an investment in games - a market in continuous strong growth.

5th Planet Games A/S shares

The official share price as of 31 December 2025 was NOK 0,806 with a market capitalization of NOK 216,313k (DKK 136,695k). Total turnover of shares in 2025 was 32 million with a total transaction value of NOK 27,9m.

MASTER DATA

Stock Exchange: EURONEXT EXPAND SOLO

Sector: Communication

ISIN Code: DK00609455467

Symbol: 5PG

LEI Code: 213800MC2SGVSIBN7J53

Share capital DKK: 13,418,930

Denomination: DK 0.05

No. of Shares: 268,378,600

Negotiable instruments: Yes

Voting restrictions: No

Share Capital

The nominal share capital of 5th Planet Games A/S as of 31 December 2025 was DKK 13,418,930, consisting of 268,378,600 shares of DKK 0.05 each. 5th Planet Games A/S has only one share class. The Board of Directors and the Executive Management regularly assess whether the share capital and share structures are aligned with the interests of the shareholders and the company.

Shareholding structure

5th Planet Games A/S shareholders are primarily residents of Denmark, Iceland, Norway, and the United States of America. As of 31 December 2025, only Skybound Game Studios Inc. holds with their 151,786,111 shares (56,6%) more than 5% of the share capital or the votes.

As of 31 December 2025, members of the Board of Directors and members of management and their related parties held 5,604,798 shares (nominal value DKK 280,240), corresponding to 2,09% of the share capital and a market value of DKK 2,9m.

Annual general meeting

The Annual General Meeting will be held on 30th April 2026 at noon at Gothersgade 11, 1123 København K.

Dividend and allocation of profit

The Board of Directors recommends to the annual general meeting that no dividend be declared in respect of the 2025 financial year. The Board of Directors recommends to the shareholders that the loss for the year of DKK 1,4m to be transferred to retained earnings.

Investor queries

Any questions or comments from shareholders, analysts, and other stakeholders should be addressed to CEO Mark Stanger via the investor e-mail: ir@5thplanetgames.com

The Board

The Board of Directors appoints its own chairman and vice chairman. The present 5th Planet Games' Board of Directors consists of four members headed by Jon Goldman as chairman. The present members of the Board of Directors are presented on page 16.

Going forward, two of the Members of the Board of Directors are independent of the company.

At the general meeting on the 23rd April 2026 it was decided that the Board of Directors shall receive a fixed remuneration of DKK 50,000 for all board members for the year 2025 and for 2026. Furthermore, it was decided, that the Board of Directors in the future may be granted warrants, exercisable at market value in the Company in combination with the above mentioned fixed remuneration.

Without any time, limitation (AOA 2.4 - milestone warrants Skybound LLC), the Board of Directors is authorized to increase the company's share capital in one issue without preemptive rights for the existing shareholders of the company with DKK 636,215.7 against issue of 12,724,314 shares to an exercise price of NOK 0.90 against cash payment if certain milestones have been achieved.

Without any time limitation (AOA 2.5 - indemnification warrants Skybound LLC), the Board of Directors is authorized to increase the company's share capital in one issue without pre emptive rights for the existing shareholders of the company with DKK 110,000 against issue of 2,200,000 shares to an exercise price of DKK 0.05

Until 1 July 2026 (AOA 2.6 - Warrants for employed etc.), the Board of Directors is authorized to increase the company's share capital in one or more issues without pre-emptive rights for the existing shareholders of the company by up to a total nominal amount of DKK 1,131,050.25 against cash.

The Board of Directors and the Executive Management have today considered and approved the annual report of 5th Planet Games A/S for the financial year 1 January 2025 - 31 December 2025.

The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. Furthermore, the annual report has been prepared in accordance with the additional Danish disclosure requirements for annual reports of listed companies.

In our opinion, the accounting policies applied are appropriate, thus ensuring that the financial statements and the financial statements provide a fair presentation of the company's assets, liabilities, and financial position as of 31 December 2025 and of the results of the company's operations and cash flows for the financial year 1 January 2025 -31 December 2025.

We believe that the management review contains a true and fair review of the development and performance of the company's business activities and financial situation, the earnings for the year and the financial position of the company, together with a description of the principal risks and uncertainties that the company face.

The annual report is submitted for adoption by the general meeting. Copenhagen, 8th April 2026

Executive Management

Mark Stanger

Board of Directors:

Søren Kokbøl Jensen

Henrik Nielsen

Jon Goldman Chairman

David Albert

Qualified opinion

We have audited the financial statements of 5th Planet Games A/S for the financial year 1 January - 31 December 2025 comprising the Income statement and statement of other comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and notes, including accounting policies. The financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.

In our opinion, except for the possible effects of the matter described in the "Basis for qualified opinion" section of our report, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Company's operations and cash flows for the financial year 1 January - 31 December 2025 in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.

Our opinion is consistent with our long-form audit report to the Board of Directors.

Audited financial statements

5th Planet Games A/S' financial statements for the financial year 1 January - 31 December 2025 comprise the Income statement and statement of other comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and notes, including summary of material accounting policy information, for the Company (the financial statements). The financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act.

Basis for qualified opinion

Previously the Company had recognised an asset relating to co-publishing games as "Development projects in progress" measured at cost. Management has concluded that the co-publishing games does not meet the recognition criteria of an intangible asset under development in accordance with IAS 38. Instead, the co-publishing games should have been classified as a financial asset measured at fair value through profit or loss.

Management has restated comparative figures at 31 December 2024 to DKK 42,127 thousand, with a corresponding adjustment to opening equity of DKK 8,340 thousand, in accordance with IFRS.

At 31 December 2025, the co-publishing games are recognised as Other financial assets in the balance sheet at DKK 54,864 thousand with a corresponding fair value adjustment of DKK 13,643 thousand recognised as financial income for 2025.

Management has determined the fair value of these co-publishing games based on assumptions regarding the future performance of co-published games that have not yet been released to the market. As described in note 11a to the financial statements, these valuations are subject to significant estimation uncertainty, which are highly sensitive and depend on key assumptions, including the amount and timing of projected future cash flows and discount rate assumptions. Changes in these assumptions could have a material impact on the fair value of the financial assets. The co-publishing games are not yet finalised, which increases the uncertainty and complexity of the valuation. An analysis showing the sensitivity of the valuation of these assets to changes in key assumptions has been provided.

Management have however not been able to provide evidence supporting the assumptions applied in determining the fair value and we have therefore not been able by other means to obtain sufficient and appropriate audit evidence to support the valuation of the co-publishing games at 1 January 2024, 31 December 2024 and 31 December 2025.

Accordingly, we have not been able to determine whether changes to results for the years 2024 and 2025, financial assets and opening balance including restated figures were necessary.

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Independence

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 declare, to the best of our knowledge and belief, that we have not provided any prohibited non-audit services, as referred to in Article 5(1) of the Regulation (EU) 537/2014 and that we remained independent in conducting the audit.

We were appointed auditors of 5th planet games A/S for the first time on 20 June 2025 for the financial year 2025.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Except for the matter described in the "Basis for qualified opinion" section, we have determined that there are no other key audit matters to communicate in our report.

Statement on Management's Review

Management is responsible for the Management's review.

Our opinion on the financial statements does not cover the 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 the Management's review and, in doing so, consider whether the 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 the Management's review provides the information required by relevant law and regulations.

As described in the section "Basis for qualified opinion", the Company has restated comparative figures due to an identified error in the recognition and measurement of financial assets. Management has corrected the figures for 2024 and 2025 in the highlights and key figures section of the Management's review, but figures for earlier years have not been adjusted accordingly. Except for this matter, and based on the work performed, it is our opinion that the Management's review is in accordance with the financial statements and has been prepared in accordance relevant law and regulations.

Management's responsibility for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act and for such internal control that 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 unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance as to 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 may 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.

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.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current

period and therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determined that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on compliance with the ESEF Regulation

As part of our audit of the Financial Statements of the Company, we performed procedures to express an opinion on whether the annual report for the financial year 1 January to 31 December 2025 with the file name "213800MC2SGVSIBN7J53-2025-12-31-1-en" is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format.

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes the preparing of the annual report in XHTML format.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The procedures consist of testing whether the annual report is prepared in XHTML format.

In our opinion, the annual report of the Company for the financial year 1 January to 31 December 2025 with the file name "213800MC2SGVSIBN7J53-2025-12-31-1-en" is prepared, in all material respects, in compliance with the ESEF Regulation

Copenhagen, April 8, 2026

KPMG

Statsautoriseret Revisionspartnerselskab CVR no. 25 57 81 98

Simon Vinberg Andersen

State Authorised Public Accountant mne35458

EQUITY AND LIABILITIES

5th Planet Games A/S is a limited liability company domiciled in Denmark. The financial statements for 2025 have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU and additional Danish disclosure requirements.

Danish kroner (DKK) is the company's presentation currency and the functional currency of the company. The financial statements are presented in Danish kroner (DKK) rounded off to the nearest DKK 1,000.

Implementation of new and revised standards and interpretations

Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2025 reporting periods and have not been early adopted by 5th planet Games A/S.

New or amended IFRS Accounting Standards and interpretations issued by the IASB that have not yet become effective are generally not adopted until they become effective and endorsed by the EU.

5th Planet Games' assessment of the impact of these new standards and amendments is that only IFRS 18 will be applicable for 5th Planet Games A/S. IFRS18 will be adopted when it is mandatory from 1 January 2027.

IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027)

IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027. The new accounting standard introduces the following key new requirements.

• Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly-defined operating profit subtotal. Entities net profit will not change.

• Management-defined performance measures (MPMs) are disclosed in a single note in the financial statements.

• Enhanced guidance is provided on how to group information in the financial statements In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting operating cash flows under the indirect method.

The company is still in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the company's statement of profit or loss, the statement of cash flows and the additional disclosures required for MPMs. The company

is also assessing the impact on how information is grouped in the financial statements, including for items currently labelled as 'other'

Correction of errors

Classification of Receivables

In our balance, 31. January 2024, an amount of other receivables DKK 748k from our German subsidiary was previously presented as trade receivables but has been reclassified to other receivables to better reflect its nature. This reclassification has no impact on profit or loss, equity, or cash flows.

Classification of restricted cash

In our balance, 1. January 2024, an amount of restricted cash DKK 250k was previously presented as cash and cash equivalents but has been reclassified to restricted cash to better reflect its nature. This reclassification has no impact on profit or loss, equity, or cash flows.

Correction of Error - Derivative Financial Liability

Historically, the Company did not recognize the milestone warrants issued in 2021 as a derivative financial liability. As a result, the warrants were not measured at fair value through profit or loss and were omitted from the statement of financial position. Upon reassessment, management has determined that the milestone warrants meet the definition of a derivative financial liability under IFRS 9, as the instruments include contingent settlement features and do not meet the fixed-for-fixed criterion under IAS 32, the warrants are settled in NOK (foreign currency) and not DKK (functional currency). Accordingly, the warrants should be classified as financial liabilities measured at fair value through profit or loss (FVTPL).

As a result, the Company has retrospectively recognized the derivative liability in the 2025 financial statements, and comparative figures have been restated accordingly, including the opening balance as of 1 January 2024, in accordance with IAS 8. In the opening balance as of January 2024 an amount of DKK 2949k has been restated to derivative financial instrument liability. It was not previously recognised in the balance statement and have therefore affected retained earnings.

Correction of Error - Financial Assets

Historically from 2022, 5th Planet Games A/S has recognized investments in games co-published with Skybound LLC as intangible assets under "development projects." The investments have therefore been recognized incorrectly at cost with deduction of amortization and impairment. Upon reassessment, management has determined that these investments meet the definition of financial assets under IAS 32 and IFRS 9 and should be classified as financial assets measured at fair value through profit or loss (FVTPL). As a result, the company has retrospectively restated the relevant investments in the 2025 financial statements, comparative figures have been restated accordingly and the beginning balance 1. January 2024.

Impact of correction of errors

31. December 2024 DKK'000

As previously reported

Adjustments As restated

Impact of correction of errors

1. January 2024 DKK'000

As previously reported

Adjustments As restated

Correction of Error - Earnings per Share

Historically, the Business did not apply a consistent or appropriate methodology in the calculation of earnings per share ("EPS"), including diluted EPS, and as a result, EPS was

incorrectly calculated in prior periods. Upon reassessment, management determined that the prior calculations did not comply with the requirements of IAS 33 Earnings per Share, particularly with respect to the treatment of dilutive instruments.

Management has corrected the methodology and applied the treasury stock method for the calculation of diluted EPS in accordance with IAS 33. In addition, the impact of the correction of error on EPS also reflects the effects of previously identified errors that resulted in the restatement of the statement of profit or loss. See discussion in Correction of Classification - Financial Assets. Accordingly, EPS has been recalculated using the corrected profit or loss attributable to ordinary shareholders.

As a result, the Business has retrospectively restated EPS for the year ended December 31, 2024. Comparative figures have been restated accordingly in the 2025 financial statements. This correction does not impact total equity or cash flows; however, it reflects both (i) the correction in EPS calculation methodology and (ii) the restated results of operations.

Group internal merger

In 2024 there was a group internal merger between 5th Planet Games A/S as the continuing company and 5th Planet Games Development ApS as the dissolving entity. 5th Planet Games A/S was the continuing company, while 5th Planet Games A/S Development ApS was dissolved without liquidation by transferring its assets and liabilities as a whole to 5th Planet Games A/S. As the merger were an internal group merger between 5th Planet Games A/S and its only material subsidiary, the group was considered dissolved and therefore no consolidated financial statement were prepared for 2024

The merger was completed with the group method and had accounting effect from 1 January 2024. Consistently, comparative figures of 5th Planet Games A/S were adjusted to reflect the financial statement as if the 5th Planet Games A/S and 5th Planet Games Development ApS were one company since acquisition. Prior to the merger, 5th Planet Games A/S prepared its stand-alone financial statement in accordance with the Danish Financial Statement act. As 5th Planet Games A/S subsequently was going to prepare the Financial Statement after IFRS, it was considered a first-time adoption of IFRS in 2024. IFRS 1 paragraph D17 were used whereby the comparative figures from consolidated financial statement was adopted.

No new shares were issued as part of the merger.

Principal accounting policies set out below have been consistently applied in the preparation of the financial statements for all the years presented.

Earnings per share

Basic earnings per share are calculated as the net result for the period that accrues to the company´s shares divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share are calculated as the net result for the period that accrues to the company´s shares divided by the weighted average number of ordinary shares out-standing adjusted by the dilutive effect of potential shares.

Segment reporting

Management has determined that the Company has one operating segment for financial reporting purposes. This conclusion is based on the internal reporting reviewed by the Chief Operating Decision Maker (CODM), being the CEO and the Board of Directors, who are responsible for allocating resources and assessing performance.

Although the Company generates revenues from multiple lines of business (including mobile games, distribution, and licensing/royalties), these activities are managed and assessed on a consolidated basis rather than as separate operating segments. While management monitors revenue and certain direct costs by line of business for operational purposes, the Company does not allocate all costs, assets, or liabilities by individual business line in its internal reporting to the CODM. Accordingly, these activities do not meet the definition of separate operating segments under IFRS 8.

The single operating segment is reported in a manner consistent with the internal management structure of the Company and the financial information regularly reviewed by the CODM. Operating profit (loss) is the primary measure used by management to evaluate performance and allocate resources.

Segment revenue of geographic locations has been based on the geographic location of customers and is disclosed in Note 4 Revenue.

Foreign currency translation

On initial recognition, transactions in currencies other than the functional currency of the company are recognized at the exchange rate applicable at the transaction date. Receivables, payables, and other monetary items denominated in foreign currency not settled at the balance sheet date are translated using the exchange rate applicable at the balance sheet date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment and the balance sheet date, respectively, are recognized in the income statement as financial income or financial expenses. Non-monetary assets purchased in foreign currency and measured based on historical cost are translated at the exchange rate applicable at the transaction date.

Tax

Tax for the year, consisting of current tax and changes in deferred tax, is recognized in the income statement at the portion attributable to tax on the profit or loss for the year, and directly in equity or in other comprehensive income at the portion attributable to amounts recognized directly in equity or in other comprehensive income, respectively.

Current tax payables and receivables are recognized in the balance sheet as tax computed on the basis of the taxable income for the year and taxes paid or refunded.

Current tax for the year is computed based on the tax rules and tax rates applicable at the balance sheet date.

Deferred tax is recognized using the balance sheet liability method on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities, except for deferred tax on temporary differences due to either initial recognition of good-will or initial recognition of a transaction that is not a business combination, and where the temporary difference ascertained at the time of initial recognition does not affect either the tax result or the taxable income. The deferred tax is calculated based on the planned use of the individual asset or settlement of the individual liability.

Deferred tax is measured by applying the tax rules and tax rates expected to be applicable when the deferred tax is expected to crystallize as current tax. Any change in deferred tax as a result of changes in tax rules or rates is recognized in the income statement unless the deferred tax is attributable to transactions that have previously been recognized directly in equity or in other comprehensive income. In the latter case, the change is recognized directly in equity or in other comprehensive income, respectively.

Deferred tax assets, including the tax base of tax losses allowed for carry forward, are recognized in the balance sheet at the expected realizable value, either through offsetting against deferred tax liabilities or as a net tax asset for offsetting against future positive taxable incomes to the extent that there is convincing evidence that sufficient taxable profit will be available against which the unused tax losses can be utilized. An assessment is made at each balance sheet date of whether it is probable that sufficient taxable income will be generated in future to enable utilization of the deferred tax asset. Deferred tax assets and liabilities are offset only if certain criteria are met.

Statement of comprehensive income

Revenue

Revenue from the sale of games and in-app purchases is recognized in the income statement when control is transferred to the purchaser which is when the purchaser is able to download the games or use the in-app purchases. For sales of games and inapp purchases where control is transferred through third parties (platform distribution partners), 5th Planet Games A/S is the primary contractual party for the users and are

responsible for establishing the selling prices. Sales of games and in-app purchases are consequently recognized as 5th Planet Games A/S being the principal, where the full sales prices are recognized as revenue, while costs for the third party are recognized under cost of sales.

Revenue from license and royalties occurs from Co-development arrangements where 5th Planets Games A/S are entitled to part of the sale which the Co-developer receives through the sales and distribution of the games. 5th Planet Games A/S recognized the license and royalties at a point in time (a) when control is transferred to the customer, which is when the purchaser is able to download the games or use the in-app purchases. or (b) the enjoyment of those rights is being realized by the customer. Payment terms for the above revenue streams generally range from immediate settlement to 30 days or on a quarterly basis upon royalty reporting.

Revenue from physical distribution occurs when delivery has taken place, which is considered the time when risk has passed to the purchaser before the balance sheet date, and if the revenue can be determined reliably and is expected to be received. Payment terms for physical distribution are generally 45 days from the date of shipment. Discounts and returns are only applicable to physical distribution (P) and are accounted for as reductions of revenue as estimated at the time of sale based on historical return rates when incurred, as they are recorded consistently with the original sale transaction.

For all revenue streams, revenue is measured net of value-added tax ("VAT") and other similar taxes. VAT is applied only on domestic sales within Denmark and is recorded as a liability in the statement of financial position. For sales within the European Union, the reverse charge mechanism applies, and for sales outside the European Union, VAT is applied at a rate of 0%.

Accordingly, revenue is recognized at the transaction price, net of discounts, returns, and VAT, if any.

Research and development costs

Research and development costs comprise external research and development costs.

General and administrative expenses

Other external expenses comprise expenses relating to administrative staff including wages and other employee cost, costs of premises, bad debts, and other administrative expenses.

Financial income and financial expences

Financial income and financial expences consists of interest income, interest expenses and bank charges as well as realized and unrealized gains and losses on transactions in foreign currency.

Share-based payments

Share-based payments of the company were equity-settled warrants granted to employees, for which an option pricing model was used to estimate the fair value at grant date. That fair value was charged as an expense in the statement of profit or loss over the period that the employee becomes unconditionally entitled to the options (vesting period), with a corresponding increase in equity. Equity is also increased by the proceeds received, as and when employees choose to exercise their options.

The estimate of the grant date fair value of each option issued is based on a Black & Scholes model, taking into account the terms and conditions on which the share options were granted.

Balance sheet

Financial assets

5th Planet Games A/S financial assets are other financial assets, other receivables, trade receivables, prepaid expenses and cash.

Classification and recognition

5th Planet Games A/S classifies its financial assets as either financial assets measured at amortized cost or financial assets measured at fair value through profit or loss (FVTPL). Classification is determined in accordance with IFRS 9 based on:

• the Company's business model for managing the financial assets; and

• whether the contractual cash flows represent solely payments of principal and interest (SPPI) on the principal amount outstanding.

  All purchases and sales of financial assets are recognized on the trade date, being the date on which the Company becomes a party to the contractual provisions of the instrument.

  For financial assets measured at amortized cost, transaction costs that are directly attributable to the acquisition are included in the initial carrying amount. For financial assets measured at FVTPL, transaction costs are recognized immediately in profit or loss.

  Financial assets are derecognized when:

• the contractual rights to the cash flows from the financial asset expire; or

• the Company transfers the financial asset and substantially all the risks and rewards of ownership; or

• the Company neither transfers nor retains substantially all the risks and rewards but no longer retains control of the asset.

  Financial assets measured at fair value through profit or loss

  In this category 5th Planet Games A/S classifies other financial assets, other financial assets measured at FVTPL, relates to co-publishing games and equity investments.

  The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists and subsequently remeasured at fair value at the end of each reporting period.

  Fair value measurement

  Fair values are categorized into different levels in a fair value hierarchy based on the degree to which the inputs to the measurement are observable and the significance of the inputs to the fair value measurement in its entirety:

  When measuring the fair value of an asset, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: Inputs for the asset or liability that are not based on observable market data(unobserved inputs)

  If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

  The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change occurred.

  Further information about the assumptions made in measuring fair values is included in the following notes: Note 11: Other Financial Assets

  Financial assets measured at amortized cost

  This category includes non-current and current other receivables, trade receivables and cash. They are measured are measured at amortized cost if the assets meet the following conditions: (a) they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows, and (b) the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

  After initial recognition, these are measured at amortized cost using the effective interest method. An impairment loss is recognized when the carrying amount of the asset exceeds its recoverable amount. Discounting is omitted where the effect of discounting is immaterial.

  Financial assets measured at amortized cost are subject to impairment using the expected credit loss model. The Company applies the simplified approach for receivables, recognizing

  lifetime expected credit losses from initial recognition. Based on this assessment, no material expected credit losses have been recognized.

  Credit risk is a risk that counterparty couldn't perform the payment obligations. The company's credit risk consists of trade receivables and the company controls the risk already when negotiating the agreements by evaluating the credit worthiness of the counterparty. Furthermore, the financial department follows constantly the payment behavior of customers. Expected credit loss is evaluated individually for each significant customer by their probability of defaulting. The company hasn't had significant credit losses in the past years

  The carrying amounts of current receivables are expected to substantially equal their fair values and are current assets that are intended to hold for less than 12 months from the end of reporting period.

  Cash consists of deposits in bank accounts.

  Financial Liabilities

  Financial liabilities consist of financial instruments, current other- and trade liabilities. Current financial liabilities comprise bank debt, trade payables, other payables to public authorities, and other liabilities. They are initially recognized at fair value. Transactions costs are only included in the original carrying amount for those not at FVTPL. Subsequently these financial liabilities are measured at amortized cost using the effective interest rate (EIR) or FVTPL method. Interest expenses and foreign exchange gains and losses are recognized in profit or loss.

  A financial liability (or part of the liability) is not derecognized until the liability has ceased to exist, that is, when the obligation identified in a contract has been fulfilled, cancelled or is no longer effective.

  Financial assets measured at amortized cost

  Financial assets measured at amortized cost are subject to impairment using the expected credit loss model. The Company applies the simplified approach for receivables, recognizing lifetime expected credit losses from initial recognition. Based on this assessment, no material expected credit losses have been recognized.

  Derivative Liabilities - Milestone Warrants

  The Company's milestone warrants are classified as derivative financial liabilities measured at fair value through profit or loss, as they do not meet equity classification under IAS 32 due to contingent settlement features as these warrants are settled in NOK (foreign currency) instead of DKK. The fair value of each tranche is determined using the Black-Scholes option pricing model, assuming the relevant milestone is achieved, and subsequently adjusted using probability-weighting based on management's estimate of achieving each milestone over a 10-year horizon. The valuation incorporates both observable inputs (e.g.,

  share price, volatility, risk-free rate) and significant unobservable inputs (probabilities), and is therefore classified as Level 3 (see FN 14) under IFRS 13.

  Financial instruments

  Financial assets and financial liabilities are recognized when the company becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled, or expires.

  All financial assets and liabilities are initially measured at fair value adjusted for transaction costs (where applicable). Financial assets and liabilities, other than those designated and effective as hedging instruments, are classified into the following categories:

• amortised cost

• fair value through profit or loss (FVTPL)

• fair value through other comprehensive income (FVOCI).

Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL) except for derivatives designated as hedging instruments in cash flow hedge relationships. The company only has financial instruments classified as FVTPL. Derivative financial instruments in this category are measured at fair value with gains or losses recognised in profit or loss. All income and expenses recognised in profit or loss are presented within finance costs or finance. The fair values of financial assets and liabilities in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

Capital and reserves

Share Capital

The company's share capital consists of the company's ordinary shares classified as equity. The subscription price of a share received by the company in connection with share issues is credited to the share capital, unless it is provided in the share issue decision that a part of the subscription price is to be recorded in the invested non-restricted equity reserve. Transaction costs directly attributable to the issue of new shares are recorded in equity as a deduction, net of tax, from the proceeds. The company has one share class. The share has no nominal value. All issued shares have been fully paid.

Retained earnings

Retained earnings are earnings accrued over previous financial years that have not been transferred to equity reserves or issued as dividends to owners.