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2/2019 “Creation of impairment write-off for development works”

By 30 May 2021No Comments

Current report no. 2/2019

Confidential information

“Creation of impairment write-off for development works”

March 15, 2019

The Management Board of CI Games S.A. with its registered office in Warsaw (“Company”) hereby informs that after the test for the impairment of development works concerning the production of “Sniper Ghost Warrior 3” game, in accordance with International Accounting Standard 36, on March 15, 2019 it decided to create an impairment write-off for development works amounting to PLN 12.2 million. The write-off will be taken into account in the individual financial statement for the 2018 and in the consolidated financial statement of the CI Games Group for the year 2018 in the item “Other operating expenses”. This write-off is an accounting operation that does not influence the financial flows or the cash status in the Company.

At first the Company assumed 2.5 million copies as a basis for the determination of the unit cost of “Sniper Ghost Warrior 3” game depreciation. As at December 31, 2018, the number of copies sold amounted to more than 1.3 million. On this basis, the Management Board decided to use as a basis to calculate depreciation starting from 2019, 2 million copies as a new total circulation.

The individual financial statement of the Company and annual consolidated statement of the CI Games group that include the above mentioned write-off are being analyzed by the statutory auditor.

Legal basis: art. 17 (1) as read with 7 (1) of the Regulation of the European Parliament and of the Council (EU) no. 596/2014 of April 16, 2014, concerning market abuse regulation (MAR).

Marek Tymiński – President of the Management Board