Info: Mindark Annual Report 2015

sawachika

Old Alpha
Joined
Oct 26, 2008
Posts
975
W00t! :yay:

Hot off the press...

http://www.mindark.com/investor-relations/financial-reports/documents/ARSRED_MINDARK2015.pdf

Too bad its only the Swedish version. The English one is reckon to come out in the next couple of days (I think).

Anyone with swedish knowledge care to comment or input first? :laugh:

Update - English Version is out.
http://www.mindark.se/investor-relations/financial-reports/documents/ANNUAL_REPORT_MindArk_2015.pdf

Some Background Info To Read:
https://www.planetcalypsoforum.com/forums/showthread.php?274613-Mindark-Annual-Report-2014
 
Last edited:
lolwut?

Planetpartners

Next Island
Next Island förnyade innehållet under 2015 samt utvecklade en ny marknadsstrategi som ska genomföras under 2016.

Next Island
Next Island renewed content in 2015 and developed a new marketing strategy to be implemented in 2016.​
 
I don't speak Swedish but these numbers are better than last years.

This is a good sign. Sky isn't falling. :)
 
Look like somrene is planen a
introduction to the stock market.

Notering av MindArks aktie
Tidpunkten för notering av MindArk-aktierna har inte fastställts. När det finns ny information
kommer den att publiceras på vår hemsida.
 
Profitability up. Deposits up.

Explosive Projectile IV is not going anywhere.

:D

Edit: Deposits are actually down 6.1% - as pointed out by Snow Leopard. Oops, I read it wrong :D
 
Last edited:
No time to read it all today just looked over it.

Short Term Loans vs Money Liquidity is just dreadful and they didnt even typeout the liquidity...
100 million sek = 12 or so million dollar in unused player funds and it still takes 2.5 month to pay out withdraws...
 
Putting it through Google translate gave this:
Entropia Universe has thus far offered an open form of gambling in which players have been able to do what
they want within the framework of the many game systems.
:tongue2:
 
Last edited:
Profitability up. Deposits up.

Must not be reading the same document or Google translate is not doing great job:

This represents a decrease in net deposits of 6.1%

But yeah, they have profit, which they didn't last year.
 
Heres a google translation :

MindArk PE AB (publ)
Org.nr 556640-4769
1 (38)
Annual Report
and
Consolidated
for
MindArk PE AB (publ)
556640-4769
Fiscal year
2015
MindArk PE AB (publ)
Org.nr 556640-4769
2 (38)
Board and CEO of MindArk PE AB (publ), based in Gothenburg, sheep
hereby present the annual report for fiscal year 2015.
The annual accounts are prepared in Swedish kronor, SEK.
management Report
Information on operations
The company develops and operates Entropia Universe and the Entropia Platform. Entropia Universe is a
three-dimensional virtual universe of planets with different themes and activities. It is one
universe for entertainment, social interaction, investment and trade. Software
provided worldwide and free of charge to anyone with Internet access.
The Entropia Platform is the technology platform that drives the Entropia Universe. The platform is divided
with partners who develop unique game content.
Market and competition
The computer games industry is still one of the fastest growing segments in digital media.
The industry's turnover in 2016 is expected to land at $ 100 billion and the forecast for 2017 is
106 billion USD.
MindArk is the Entropia Universe active in the segment of Massively Multiplayer Online Games
(MMOs). The segment is expected to be worth more than $ 11 billion in 2016 and forecast for 2017
13 billion USD.
MindArk competes with several large global MMO producers. The largest online game
West is Blizzard's World of Warcraft, but there are millions of players in many other games.
The discussion that took place a few years ago that the PC platform was about to fall in
importance has come to naught. PC platform does not grow, but retains an already strong
position.
Several trends suggest that online games will have continued strong growth, as well as games for
mobile devices. The market for mobile games is expected to grow from $ 37 billion, in 2016, to 42
billion, in 2017. For this reason, MindArk has this year developed a new
gaming experience, compet Game, a game that will be available in multiple types of mobile
gaming platforms: Android, iOS and Microsoft mobile but also on the desktop PC. In doing so
opened a new customer group for processing. While this game is free to download (F2P), and
based on the form of payment, IAP - In App Purchase. This was the start of MindArk in
mobile segment.
MindArk want by compet Game broaden its product portfolio and balance growth and risk
between the PC platform and the ever-growing mobile platform.
MindArk PE AB (publ)
Org.nr 556640-4769
3 (38)
Mindarks differentiation
Factors that differentiate MindArk and the Entropia Universe from the competition is mainly the game
virtual economy with micro-transactions and own currency, the PED, having a fixed value against the USD,
and the opportunity for participants to both deposit and withdraw real money in a secure manner.
An additional differentiation is Planet Partner model, that is, to let other MindArk
Companies build their own planets in the Entropia Universe and MindArk share the revenue with
Planet Partners.
MindArk has more than ten years of experience in developing and operating technology for the virtual economy
interactive 3D Internet environment. Today MindArk offers secure micro-transactions for many concurrent
participants who interact with each other online via PC. With Entropia Platform MindArk a
leading position in the world.
MindArk and its subsidiaries
MindArk is the parent company of a group with two subsidiaries. Parent and two
subsidiaries, Entropia Universe and Planet Calypso AB AB in Gothenburg. Since January 1
2015 all operations from the parent company.
Planet Calypso AB drove and developed Planet Calypso, the first planet in the Entropia Universe.
Both the operation and development is now the parent company
The subsidiary Entropia Universe AB did previously much of the support and operation of
Entropia Universe. From May 2012, the company primarily for marketing purposes.
Coworker
MindArk and the Group during the year had an average of 34 employees including three women.
The company's CEO is since May 2014 Klas Moreau. Other senior officials
the company's Magnus Eriksson (vice president), Mats Kling (IT manager), David Simmonds
(Business Development Manager), Sven Sandberg (Marketing), Ms Krogh (CFO) and
Bernt Wåhlin (Human Resources).
The share
Its shares are unlisted and the total number of shares is 143,293,750 pieces. Ownership:
Shareholder Number of shares Voting rights
Jan Welter Timkrans 48,967,000 34.2%
C-G Bothén AB 25,600,000 17.9%
Other roughly 900 68,726,750 47.9%
Total 143 293 750 100%
MindArk PE AB (publ)
Org.nr 556640-4769
4 (38)
Important events during the year
MindArk continued in 2015 to invest in the development and marketing of the Entropia Universe.
In parallel, the company has developed compet Game, a brand new game for mobile phone, tablet and
PC.
Growth
The number of players who downloaded the game client for the Entropia Universe and tested game increased
by 13% in 2015 compared with 2014. During the same period, economic activity
in Entropia Universe grew by over 10%.
Changes in the Group
In January 2015 it was decided to Planet Calypso Planet Calypso and the Forum will continue in
Parent company. This means that all activities MindArk Group is now run by MindArk PE AB.
Improvements in the technology platform
MindArk has for years invested substantial resources in improving the infrastructure of the platform
Entropia Universe, including the server park in Amsterdam renewed. Games client has also
adapted to effectively manage Windows 8 and Windows 10th
Citizenship and House System
The system for Citizenship includes a house system. The first building blocks
house system was released in 2015 on the planet Calypso. The response from Calypso holders
land rights was very positive. All plots were quickly mobilized. The system for Citizenship
will be made available to all planets in the Entropia Universe partners.
Stage three of djurtämjningssystemet
The third stage of djurtämjningssystemet was implemented in the first version update
2015. The development of the system continues during in 2016.
Mission Galactica
Entropia Universe has thus far offered an open form of gambling in which players have been able to do what
they want within the framework of the many game systems.
Some players, however, prefer linear mission based game elements. In June 2015 launched
MindArk therefore Mission Galactica, a chain of assignments covering all of the Entropia Universe.
beginner experience
Efforts to improve the beginner's experience continued during the year. In particular, a system
with supervisors launched on the planet Calypso, tutors are experienced users who guides
new players into the Entropia Universe.
Chat channel, for beginners is another tool that contributes to smoother introduction of their new
player.
MindArk PE AB (publ)
Org.nr 556640-4769
5 (38)
planet partners
Planet Arcadia
The team behind Planet Arkadia worked in 2015 to produce new content, strengthen
relationship with existing players and with marketing. The planet grew in terms of both number
active users, deposits and consumption.
ROCKtropia
Team ROCKtropia focused in 2015 on improving the content for new entrants as well as the
marketing. Even ROCKtropia grew during the year.
Planet Cyrene
Planet Cyrene's team focused on content for new participants in 2015. The marketing
went on the backburner. The number of players increased slightly.
Planet Toulan
Planet Toulan is still in beta phase.
Next Island
Next Island renewed contents in 2015 and developed a new marketing strategy that will
implemented during in 2016.
Change in accounting principle for revenue
The Company previously recognized as income users' deposits and reduced revenue related to
users made withdrawals of previously deposited funds. VAT Duty has since arisen in
deposits and withdrawals. The company has therefore paid the tax on net deposits. With start
2015-01-01 MindArk change the revenue model and VAT principle and will henceforth bring debt
net deposits and record revenues as users consume their deposits. Then
falls even tax obligations.
The reason for the change in accounting policy for income and VAT, when the company started
was given the wrong answer by the Tax Agency regarding at what point VAT duty falls. In conjunction with
the amendment of the VAT Act, 1 January 2015 drew attention to the company that the Tax Agency
previously applied tax law was not applicable at VAT in each EU country.
This prompted the Swedish Tax Agency to shine through the company's operations more time and come up with new
decisions regarding when VAT liability occurs.
The new principle was that the company has been able to recover prematurely paid
VAT which has resulted in a refund from the Tax to the company at just over 9.4 million.
This effect of change in accounting policy has been recorded directly against equity. repayment
was posted on the company's bank account in April 2016, but strengthened by 2015 balance sheet as a
accrued correction of the previous fiscal year.
Results and equity of the parent company
Net sales in the Parent Company, excluding internal sales amounted to 52.9 million SEK
(Last year SEK 41 million excluding profit sharing to group companies), an increase of 29%.
The figures are not directly comparable as the company, which was mentioned in the above paragraph, basically changed its revenue.
MindArk PE AB (publ)
Org.nr 556640-4769
6 (38)
However, comparison between net inflows in 2015 to 63.3 million for the same PED
figure in 2014 was 71 million PED. If the settlement is made for deposits related to financial
purchases, such as purchases of land rights (Arkadia Underground Deeds and compet Deeds), the figure for the year
In 2015 to 60.4 million PED against the 2014 figure that is 64.4 million PED. This represents a decrease
in net deposits of 6.1%.
The same comparison based on new revenue measure consumption, shows that revenues increased by 10.8
% From 69.6 million PED in 2014 77.1 million PED 2015.
Player debt, ie, unused user agent, declined from 124.2 million to PED
122500000 PED. However, the total debt of SEK when the exchange rate SEK / USD has risen from
7.81 SEK / USD at the end of last year to 8.35 SEK / USD last December 2015. It resulted in the
debt increased by 5.3 million, from 97 million SEK 102.3 million.
Operating expenses amounted to SEK 51.2 million (previous year EUR 39.2 million), which is a
increase of 12 million. Most of the increase is due to increased marketing and increased
purchase of external development services. Operating profit before depreciation amounted to plus 4.3
SEK million (last year: plus 0.5 million SEK unless the loss on disposal of subsidiaries are taken into account).
After financial items, but before appropriations and tax, is the result of plus 4 million
SEK (last year: minus 4.9 million SEK). Equity in the Parent Company at year-end to 30.4
million SEK (last year SEK 20.4 million). The equity has been strengthened considerably depending on the
profit for the year and the adjustment of the equity due to the change in accounting principle
the company's revenue.
Cash flow and financial position of the Parent Company
The operating cash flow amount to SEK plus 5 million. a negative
Cash flow from investing activities of SEK 4.3 million with an increase of
long-term liabilities of SEK 160 thousand have meant that the parent company's cash flow
stayed at plus 900 000 SEK.
Cash and cash equivalents at year end amounted to 4.8 million.
Group in summary
Consolidated revenues amounted to SEK 55.4 million (last year SEK 41.3 million). operational
expenses were SEK 51.1 million (last year: 42 million SEK). The Group reports a profit
after net financial items plus SEK 4 million (last year: minus 5.6 million SEK) before tax.
Consolidated shareholders' equity at December 31, 2015 to 30.4 million SEK (last year 20.4
million).
Cash flow amounted to SEK 0.9 million (last year SEK 1.8 million) and cash and cash equivalents totaled
at year-end to SEK 4.8 million (previous year 3.7 million SEK).
MindArk PE AB (publ)
Org.nr 556640-4769
7 (38)
Listing of Mindarks share
The timing of the listing of MindArk shares have not been established. When there is new information
it will be published on our website.
Annual General Meeting
The Annual General Meeting held June 25, 2015 the company's premises in Gothenburg. Nothing beyond statutory issues
was resolved. Board members Jan Welter Timkrans (Chairman), David Simmonds and
Sven Sandberg was re-elected. The meeting decided that the Board should not have any deputy.
Significant events after year-end
Beta version of compet Game
A first beta version of compet Game was released in May 2016. The initial feedback from testers
is very positive.
Marketing
MindArk is planning to increase marketing as a percentage of sales in 2016. The
applies primarily in the United States is the single largest market for Entropia Universe.
MindArk also continued to market the Entropia Platform against organizations and universities.
The aim is to position the platform as a useful component of projects in Virtual Reality.
Conclusion
MindArk positive result after financial items of just over four million for the full year 2015. The
equity is again above 30 million.
The company looks forward to another year of increased marketing to recruit more users to Entropia
Universe and to launch compet Game.
MindArk PE AB (publ)
Org.nr 556640-4769
8 (38)
Multi-year (thousand)
Group 2015 2014 2013 2012 2011
Net 52 855 40 998 46 797 46 478 45 993
Income from operations 3 688 -5 270 -8 725 -20 790 -7 396
Profit after financial items 4 002 -5 576 -8 941 -20 698 -7 688
Total assets 46 646 32 015 25 719 41 691 51 140
Shareholders' equity 30 401 20 383 15 563 25 093 40 999
Assets 21 850 20 481 12 805 27 136 30 974
Parent 2015 2014 2013 2012 2011
Net 52 893 37 653 43 848 42 003 44 752
Income from operations 3 691 -3 518 -8 718 -29 529 -29 072
Profit after financial items 4 002 -4 912 -8 898 -29 400 -29 288
Net profit 3 056 3 709 -9 371 -27 057 -23 677
Total assets 50 541 34 637 28 689 47 036 59 742
Shareholders' equity 30 401 20 383 16 674 25 844 41 337
Fixed assets 26 730 24 577 18 604 32 306 34 962
For definitions of key figures, see Accounting and valuation principles.
Proposal for profit distribution
The Board proposes that the unappropriated earnings (SEK):
accumulated loss -3,216,445
premium reserve 29,078,708
profit for the year 3,056,021
28918284
appropriated to
carried forward 28,918,284
Group and Parent Company results and financial position are shown in the following income statement and
balance sheets and cash flow statements with accompanying notes.
MindArk PE AB (publ)
Org.nr 556640-4769
9 (38)
Group
Income Statement
Note 2015-01-01
-2015-12-31
2014-01-01
-2014-12-31
Net sales 1 52 855 408 40 998 202
Capitalised work on own account 1 388 300 155 860
Other operating income 2 1 179 457 178 656
55 423 165 41 332 718
Operating expenses
Other external costs, 3, 4 -28 148 969 -18 196 210
Personnel expenses 5 -22 933 049 -23 799 877
Depreciation of tangible and intangible
plant and equipment -652,869 -4,606,663
-51 734 887 -46 602 749
Operating profit 3 688 278 -5 270 031
Income from financial investments
Income from shares in group companies -831,303 6:00 a.m.
Income from other investments 445 487 769 557
Other interest income and similar income 4036 2429
Exchange rate differences 186 877 -125 514
Interest expense and similar items -322 934 -121 612
Profit after financial items 4,001,744 -5,576,474
Tax on profit for the year 7, 8 -945,800 10,396,674
Profit for the year 3 055 944 4 820 200
MindArk PE AB (publ)
Org.nr 556640-4769
10 (38)
Group
Balance sheet
Note 2015-12-31 2014-12-31
Assets
Fixed assets
Intangible assets
Planet Calypso 9 441 010 551 263
Planet Calypso Forum 10 150 737 188 421
Other intangible assets 11 7 800 748 4 293 305
8 392 495 5 032 989
Tangible fixed assets
Equipment and computers 12 1 791 839 1 031 849
Financial assets
Other long-term securities 13 14,188,320 0
Loans MindArkkoncernens profit-sharing fund 134 600 106 000
Deferred tax assets 8 6 985 600 10 398 700
Other long-term receivables 15 4 357 366 3 911 879
11 665 886 14 416 579
Total assets 21 850 220 20 481 417
Current assets
Inventories m 16 m
Finished goods 379 857 323 240
Advances to suppliers 0 7326
379857330566
Receivables
Accounts receivable 3 938 890 3 530 768
Receivables from payment processors 17 2 435 462 1 578 008
Current tax assets 106 302 304 681
Other receivables 18 11 373 990 718 830
Prepaid expenses and accrued income 19 1 772 421 1 335 868
19 627 065 7 468 155
Cash and cash equivalents 4 789 223 3 735 021
Total current assets 24 796 145 11 533 742
Total assets 46 646 365 32 015 159
MindArk PE AB (publ)
Org.nr 556640-4769
11 (38)
Group
Balance sheet
Note 2015-12-31 2014-12-31
Equity and liabilities
equity
Share capital (143,293,750 shares) 1,432,938 1,432,938
Other capital 29 078 708 29 078 708
Other equity including net income -110,369 -10,128,298
Equity attributable to parent company
shareholders 20 30 401 277 20 383 348
Long-term liabilities 21
Other liabilities 797 178 639 553
current liabilities
Trade payables 2 552 092 2 179 138
Other liabilities 5 492 845 2 879 376
Accrued expenses and deferred income 22 7 402 973 5 933 744
15 447 910 10 992 258
Total equity and liabilities 46,646,365 32,015,159
Pledged assets None None
Contingent liabilities 23
Unused user agent 102 323 049 96 990 148
102 323 049 96 990 148
MindArk PE AB (publ)
Org.nr 556640-4769
12 (38)
Group
Cash Flow Analysis
Note 2015-01-01
-2015-12-31
2014-01-01
-2014-12-31
Operating activities
Cash receipts from customers 63 360 077 41 543 433
Payments to suppliers and employees - 59248540-39799738
Interest received 4036 2429
Interest paid - 3267-1992
Repayment of prelim. tax 198379391697
Cash flow from operating activities 4 310 685 2 135 829
investing 24
Investments in intangible assets -2,119,143 -201,880
Investments in tangible fixed assets
Tangible fixed assets sold
-1264922
0
-674884
208865
Investments in other financial assets -216 920 -30 450
Disposal of subsidiary
Increase / decrease in short-term financial investments
0
0
-8586
-260213
Cash flow from investing activities -3,600,985 -967,148
financing activities
Increase in long-term liabilities 157 625 639 553
Cash flow from financing activities 157 625 639 553
Cash flow 867,325 1,808,234
Cash and cash equivalents at beginning of year 3,735,021 2,052,301
Translation difference in cash and cash equivalents 186 877 -125 514
Cash and cash equivalents at end of year 25 4 789 223 3 735 021
MindArk PE AB (publ)
Org.nr 556640-4769
13 (38)
Parent
Income Statement
Note 2015-01-01
-2015-12-31
2014-01-01
-2014-12-31
Net sales 1 52 893 408 37 653 335
Capitalised work on own account 1 388 300 155 860
Other operating income 2 1 173 569 1 878 989
55 455 277 39 688 184
Operating expenses
Other external costs, 3, 4 -28 482 739 -16 835 646
Personnel expenses 5 -22 672 741 -22 382 311
Depreciation of tangible and intangible
plant and equipment -608,448 -3,988,026
-51 763 928 -43 205 983
Operating 26 3 691 349 -3 517 799
Income from financial items
Income from shares in group companies 6:00 a.m. -1,917,856
Income from other investments and loans
as fixed assets 445 487 769 557
Other interest income and similar income 2034 1023
Interest expense and similar items -322 761 -120 388
Exchange rate differences 185 712 -126 607
310,472 -1,394,271
Profit after financial items 4,001,821 -4,912,070
Appropriations 0 -1,777,486
Profit before tax 4 001 821 -6 689 556
Tax on profit for the year 7, 8 -945,800 10,398,700
Profit for the year 3 056 021 3 709 144
MindArk PE AB (publ)
Org.nr 556640-4769
14 (38)
Parent
Balance sheet
Note 2015-12-31 2014-12-31
ASSETS
Fixed assets
Intangible assets
Planet Calypso 9441010 0
Planet Calypso Forum 10150737 0
Other intangible assets 11 7 800 748 4 293 305
8 392 495 4 293 305
Tangible fixed assets
Equipment and computers 12 1 761 707 957 296
Financial assets
Shares in Group companies 27 28 4 910 000 4 910 000
Other long-term securities 13 14,188,320 0
Loans MindArkkoncernens profit-sharing fund 134 600 106 000
Deferred tax assets 8 6 986 600 10 398 700
Other long-term receivables 15 4 357 366 3 911 879
16 575 886 19 326 579
Total assets 26 730 088 24 577 180
Current assets
Inventories m 16 m
Finished goods 379 857 323 240
Advances to suppliers 0 7326
379857330566
Receivables
Accounts receivable 2 853 838 2 445 717
Receivables from payment processors 17 2 435 462 1 578 008
Receivables from group companies 109 118 81 874
Current tax assets 106 302 122 355
Other receivables 18 11 370 334 455 482
Prepaid expenses and accrued income 19 1 772 421 1 335 868
18 647 475 6 019 304
Cash and cash equivalents 4 783 384 3 710 172
Total current assets 23 810 716 10 060 042
TOTAL ASSETS 50 540 804 34 637 222
MindArk PE AB (publ)
Org.nr 556640-4769
15 (38)
Parent
Balance sheet
Note 2015-12-31 2014-12-31
EQUITY AND LIABILITIES
Equity 20
Restricted equity
Share capital (143,293,750 shares) 1,432,938 1,432,938
Statutory reserve 50 000 50 000
1 482 938 1 482 938
Unrestricted equity
Share premium reserve 29 078 708 29 078 708
Profit or loss -3 216 445 -13 887 574
Profit for the year 3 056 021 3 709 144
28 918 284 18 900 278
Total equity 30 401 222 20 383 216
Long-term liabilities 21
Other liabilities 797 178 639 553
current liabilities
Trade payables 2 552 092 1 572 984
Liabilities to affiliated companies 3,984,081 3,521,231
Other liabilities 5 403 258 2 799 720
Accrued expenses and deferred income 22 7 402 973 5 720 518
Total current liabilities 19 342 404 13 614 453
TOTAL EQUITY AND LIABILITIES 50,540,804 34,637,222
Pledged assets None None
Contingent liabilities 23
Unused user agent 102 323 049 96 990 148
102 323 049 96 990 148
MindArk PE AB (publ)
Org.nr 556640-4769
16 (38)
Parent
Cash Flow Analysis
Note 2015-01-01
-2015-12-31
2014-01-01
-2014-12-31
Operating activities
Cash receipts from customers 63 486 034 39 564 415
Payments to suppliers and employees -58 430 483 -37 754 946
Interest received 2034 1023
Interest paid -3,094 -769
Income taxes paid 16 053 -7866
Cash flow from operating
activity 5 070 544 1 801 857
investing 24
Investments in intangible
fixed assets -2,858,827 0
Investments tangible fixed assets -1,264,922 -674,884
Reduction of share capital in subsidiaries 0,411,060
Investments in financial NS
fixed assets
Increase / decrease kortf financial investments
-216920
0
-30,450
-260213
Cash flow from
investing activities -4,340,669 -554,486
financing activities
Increase in long-term liabilities 157 625 639 553
Cash flow from
financing 157 625 639 553
Cash flow 887,500 1,886,924
Cash and cash equivalents at beginning of year 3,710,172 1,949,855
Translation difference in cash and cash equivalents 185 712 -126 607
Cash and cash equivalents at end of year 25 4 783 384 3 710 172
MindArk PE AB (publ)
Org.nr 556640-4769
17 (38)
Additional information
Accounting and valuation principles
general information
The annual accounts are prepared in accordance with the Annual Accounts Act
and BFNAR 2012: 1 Annual report and consolidated (K3).
Receivables are reported at the amounts expected to be received.
Other assets and liabilities are carried at historical cost, unless otherwise stated.
The parent company has previously estimated income and tax basis of net deposits. Fr o m
2015-01-01 replacing the company's revenue model as well as tax policy and will now bring debt
net deposits as liabilities to users. Instead, revenue recorded as
users consume their deposits. Then falls even tax obligations.
The reason for the change in accounting policy for income and VAT, when the company started
was given the wrong answer by the Tax Agency regarding at what point VAT duty falls. In conjunction with
the amendment of the VAT Act, 1 January 2015 drew attention to the company that the Tax Agency
previously applied tax law was not applicable at VAT in each EU country.
This prompted the Swedish Tax Agency to shine through the company's business one more time and come up with
new decision on when VAT liability occurs.
Besides applying the parent company and the Group the same accounting principles unless otherwise
shown below.
revenue Recognition
The income is recognized at the fair value of the company has received or will receive. This means that
the company reports income at nominal value (invoice amount) if the company receives compensation in the
cash immediately upon delivery. Deductions are made for discounts. See also note 1
Net sales.
foreign currencies
When hedging is not applied, are valued monetary assets and liabilities in foreign currency
the closing spot rate. Transactions in foreign currencies are translated at the transaction date
spot rate. Currency hedging is not applied in the annual accounts.
Consolidated
MindArk prepare consolidated accounts. Companies where MindArk holds the majority of votes in
Meeting and companies where MindArk through agreements has a controlling interest
classified as subsidiaries and consolidated in the consolidated financial statements. Information about
Group companies is provided in Note 26 and 27.
Subsidiaries are fully consolidated from the date that control
control is transferred to the Group. They are de-consolidated from the date
MindArk PE AB (publ)
Org.nr 556640-4769
18 (38)
when control ceases.
Consolidated financial statements are prepared using the purchase method. The acquisition date is the date
on which control is obtained. Identifiable assets and liabilities are initially measured
at their fair values ​​at the acquisition date. The minority share of the net assets acquired
measured at fair value. Goodwill is the difference between the acquired
identifiable net assets at the date of acquisition and the cost of including the value of
minority interest, and are initially measured at cost. In the current consolidated
is no goodwill.
Transactions between Group companies are eliminated in full.
Leases
Leases under which the risks and benefits of owning an asset in all
transferred from the lessor to a company in Mindarks group classified
the consolidated financial statements as finance leases. In the current consolidated will not occur
finance leases.
Leases in which the economic benefits and risks associated with the leasing object are
essentially remain with the lessor are classified as operating leases. Payments, including
a first elevated rent under these contracts are recognized as an expense over the lease period.
Employee Benefits
Short-term benefits
Short-term benefits in the group made up of salary, social security contributions, paid holidays, paid
sick leave, health care and bonuses. Short-term benefits are recognized as an expense and a
debt when there is a legal or constructive obligation to pay compensation.
Post-employment benefits
MindArk Group companies present only defined contribution pension plans. IN
defined contribution plans, the company pays fixed fees to another company and has not
no legal or constructive obligation to pay any further even if the other did not
meet the commitment. The Group's income is charged as the employee
pensionable service performed.
Income taxes
Current taxes are measured using tax rates and tax rules that apply on the balance sheet date.
Deferred taxes are measured using tax rates and tax rules enacted before
balance sheet date.
Deferred tax assets relating to loss carryforwards or other future tax
forwards are recognized to the extent that it is probable that the deduction can be offset against
future taxation.
Assets and liabilities are offset only when there is a legally enforceable right to set off.
Current tax, as well as changes in deferred tax, is recognized in the income statement unless the tax is
MindArk PE AB (publ)
Org.nr 556640-4769
19 (38)
attributable to an event or transaction which is recognized directly in equity. In such cases
also recognized the tax effect of equity.
intangible assets
Intangible assets are stated at cost less accumulated
depreciation and impairment losses.
Depreciation is linear over the estimated useful lives. The amortization period for all
intangible assets is five years.
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. IN
Cost includes expenditure that is directly attributable to the acquisition of the asset.
When a component of a fixed asset is replaced, disposed of any remaining part of the
old component to the new component is activated.
Additional expenses related to assets that are not broken down into components are added
cost to the extent the asset's performance increases relative to the value of the asset at the
acquisition. Expenditures for repairs and maintenance are expensed.
Capital gain or capital loss on the disposal of an asset is recognized
as Other operating income or other operating expenses.
Tangible assets are systematically depreciated over the asset's estimated
useful life. When the depreciation amount is determined, taken into account where
case, the asset's residual value. Straight-line depreciation method is used for all types of property,
assets.
The following depreciation periods apply:
Equipment 5 years
Computers 3 - 5 years
Financial instruments
Financial instruments recognized in the balance sheet include securities, receivables
and other receivables, payables and borrowings. The instruments are recognized in
balance sheet when MindArk becomes party to the instrument's contractual terms.
Financial assets are derecognised when the rights to receive cash flows from
the instrument has expired or been transferred and the Group has transferred substantially all the risks and
benefits associated with ownership.
Financial liabilities are derecognised when the obligations have been settled or otherwise
means ceased.
MindArk PE AB (publ)
Org.nr 556640-4769
20 (38)
Trade and other receivables
Receivables are included in current assets, except for maturities greater than
12 months after the balance sheet date which are classified as fixed assets. Receivable are
at the amount expected to be paid after deductions for individually assessed doubtful receivables.
Receivables which are interest free or bear interest which deviates from the market and has
a term exceeding 12 months, reported at a discounted present value and
time value change is recognized as interest income in the income statement.
Other long-term securities
The balance consists mainly of fixed-income assets. Holdings held in the long term.
Assets included in the item are recognized initially at cost. In subsequent
accounting shares are valued at cost assessment of impairment
exists.
Borrowings and payables
Borrowings and payables are recognized initially at cost less
transaction costs. Different to the carrying amount of the sum to be repaid
at maturity, the difference as interest expense over the term of the loan with
using the instrument's effective interest rate. Hereby match at the maturity date
the carrying amount and the amount to be repaid.
Offsetting a financial asset and financial liability
Financial assets and financial liabilities are offset and the net amount of
balance sheet only when the legal right to exist as well as a control with a
the net amount to take place or when a contemporary sale of the asset and settle the liability referred
happen.
Impairment of financial assets
At each reporting date assesses MindArk if there is any indication of impairment in
any of the financial assets. Impairment is recognized if the decline in value is judged
be permanent. Impairment losses are recognized in the income statement item Income from other
securities and receivables which are fixed assets. Impairment testing
individually for individual financial assets that are essential.
inventories
Inventories are valued at the lower of its cost and its net realizable value
at closing. Net realizable value is defined as the goods estimated selling price reduced
selling costs. The chosen valuation method involves obsolescence of stock is
considered.
Cash Flow Analysis
Cash flow statement is prepared using the direct method. The reported cash flow only
transactions that entail payments.
As cash classifies the company, in addition to cash, to the extent it is also
MindArk PE AB (publ)
Org.nr 556640-4769
21 (38)
demand deposits at banks and other credit institutions and current
investments that are denominated in a marketplace and have a maturity of less than three months
acquisition. Restricted cash is not classified as cash equivalents. Changes in
blocked funds are reported in investing activities.
The parent company's accounting and valuation principles
The same accounting and valuation principles applied in the parent company and the Group,
except in the cases listed below.
Appropriations
Changes in untaxed reserves are reported as appropriations in the income statement.
Group contributions are reported from 2014 as appropriations.
Shares and participations in subsidiaries
Shares in subsidiaries are carried at cost less any
impairment. The cost includes the purchase price paid for the shares and the
acquisition costs. Any capital and added to the cost when they left.
Dividends from subsidiaries are recognized as income.
equity
Shareholders' equity is divided into restricted and unrestricted equity, in accordance with the Annual Accounts Act division.
Untaxed reserves
Untaxed reserves are reported gross in the balance sheet, including the deferred
tax liability that is attributable to the reserves.
key Definitions
Net sales
Operating main revenue invoiced costs, side income and revenue adjustments.
Income from operations
Profit after depreciation, amortization and items affecting comparability, but before financial income and
costs.
Profit after financial items
Profit after financial income and expenses and before extraordinary income and expenses.
Total assets
The company's total assets.
equity
The company's net assets, the difference between assets and liabilities.
MindArk PE AB (publ)
Org.nr 556640-4769
22 (38)
notable
Note Estimates and judgments
Group and Parent Company
MindArk makes estimates and assumptions concerning the future. The estimates for
accounting purposes that result from these will, by definition, seldom equal
the actual results. No estimates have had a significant effect on the reported
amounts in the financial statements.
Note 1 Net
Group
In previous years, the company's revenues mainly of the cash supplied by users
Entropia Universe. Revenues recognized in the income statement net of the
users requested repayments. Fr o m 2009-01-01 assigned revenue in Entropia Universe
with Planet Partners.
From and including the current year change MindArk revenue model and will henceforth bring debt
net deposits and record revenues as users consume their deposits.
From the same date takes all the activities of the parent company, which means that even Planet Calypso
revenue is recognized in MindArk PE AB.
2015 2014
Net sales
Gross revenue 52 855 408 60 761 453
Repayments 0 -19,763,251
52 855 408 40 998 202
Net sales by geographic market
Revenues in the EU 28 925 797 19 153 103
Revenues worldwide 23 929 611 21 845 099
52 855 408 40 998 202
Parent
In previous years, the company's revenues mainly of the cash supplied by users
Entropia Universe. Revenues recognized in the income statement net of the
users requested repayments. Fr o m 2009-01-01 assigned revenue in Entropia Universe
with Planet Partners.
From and including the current year change MindArk revenue model and will henceforth bring debt
net deposits and record revenues as users consume their deposits.
From the same date takes all the activities of the parent company, which means that even Planet Calypso
revenue is recognized in MindArk PE AB.
MindArk PE AB (publ)
Org.nr 556640-4769
23 (38)
2015 2014
Net sales
Gross revenue 52 855 408 45 458 493
Repayments 0 -19,763,251
Internal sales within the Group 38 000 11 958 093
52 893 408 37 653 335
Net sales by geographic market
Revenues in the EU 28 963 797 15 807 262
Revenues worldwide 23 929 611 21 846 073
52 893 408 37 653 335
Note 2 Other operating income
Group
2015 2014
Sales Arcadia Underground Deeds 748565 0
Exchange gain from operations 207 022 161 956
Other income 223 870 16 700
1 179 457 178 656
Parent
2015 2014
Sales Arcadia Underground Deeds 748565 0
Exchange gain from operations 201 134 157 562
Internal sales within the Group 0 1,704,732
Other income 223 870 16 695
1 173 569 1 878 989
Note 3 Fees to auditors
Group
Audit assignments involve examination of the annual accounts and the Board
and the Managing Director, other tasks incumbent on the company
auditor, and advice or other assistance prompted by observations from such
review or implementation of such other tasks.
The amount Other services include costs of 152 500 SEK for assistance by reason of
request for review. Of these expenses, the Tax Agency has replaced the company with 79 375 SEK,
found in other income. The subsidiaries are basically dormant and has not been charged with
any audit cost without full audit costs are recorded in the parent company.
MindArk PE AB (publ)
Org.nr 556640-4769
24 (38)
2015 2014
PwC
Audit services 155 300 155 300
Other services 215 000 33 000
370300188300
Parent
Audit assignments involve examination of the annual accounts and the Board
and the Managing Director, other tasks incumbent on the company
auditor, and advice or other assistance prompted by observations from such
review or implementation of such other tasks.
The amount Other services include costs of 152 500 SEK for assistance by reason of
request for review. Of these expenses, the Tax Agency has replaced the company with 79 375 SEK,
found in other income.
2015 2014
PwC
Audit services 155 300 117 300
Other services 215 000 33 000
370300150300
Note 4 Leases
Group and Parent Company
In the consolidated and parent company accounts consist operational leases substantially all
of leased property. Agreement on the lease of the Swedish property is for three years with the possibility of
company to extend for further periods. Current lease expires 2018-09-01 and
company in February 2015 signed on for another three years. Hence no contract costs later than one
years at the balance sheet date. The amount of future lease payments is based on the development of
the consumer price index. Base rent shall be adjusted to the index figure for the month of October during the
period.
Should the index level any subsequent month of October have risen relative to the base number, the additional
starting with the percentage by which the index level changes relative to the base figure. In future,
additional paid in relation to the index changes, the rent change is calculated on the basis of the
percentage change between the base number and the index number for the respective month of October. Outgoing
rent is never lower than the contract specified amount of rent. Rental change is always applied from and including 1
January following the month of October which led to the change.
Future lease payments under non-cancellable leases fall due as
following:
MindArk PE AB (publ)
Org.nr 556640-4769
25 (38)
2015 2014
Within one year 1,703,564 1,205,523
Later than one year but within three years 2,981,237 0
4 684 801 1 205 523
Note 5 Employees and personnel costs
Group
2015 2014
the average number of employees
Women 3 3
Males 33 31
36 34
Salaries and other compensation
Directors and senior executives 4,208,132 4,584,596
Bonuses and similar remuneration to the Board and
Managing Director 0293472
Other employees 12 083 265 12 263 022
16 291 397 17 141 090
Social expenses
Pension costs for Board
Executives 678 386 685 577
Pension costs for other employees 984 769 947 750
Other social security contributions under the law and agreements 4 857 858 4 963 887
6 521 013 6 597 214
Total salaries, remuneration, social costs and
pension costs 22 812 410 23 738 304
March 2015 transferred the remaining employees of Planet Calypso AB of the parent company.
Gender distribution among senior executives
Percentage of women on the board 22% 22%
Percentage of men on the board 78% 78%
Percentage of women among other senior executives 20% 12.5%
Percentage of men among other senior executives 80% 87.5%
MindArk PE AB (publ)
Org.nr 556640-4769
26 (38)
Parent
2015 2014
the average number of employees
Women 3 3
Males 31 27
34 30
Salaries and other compensation
Directors and senior executives 4,208,132 4,198,114
Bonuses and similar remuneration to the Board and
Managing Director 0293472
Other employees 11 890 261 11 272 458
16 098 393 15 764 044
Social expenses
Pension costs for Board
Executives 678 386 643 652
Pension costs for other employees 977 155 909 667
Other social security contributions under the law and agreements 4 796 331 4 646 814
6 451 872 6 200 133
Total salaries, remuneration, social costs and
pension costs 22 550 265 21 964 177
Gender distribution among senior executives
Percentage of men on the board 100% 100%
Percentage of women among other senior executives 20% 17.4%
Percentage of men among other senior executives 80% 82.6%
MindArk PE AB (publ)
Org.nr 556640-4769
27 (38)
Note 6 Income from shares in group companies
Group
Wholly owned subsidiary Ilunova SA de CV was sold last year for £ 1 to Ilunovas CEO
Thorbjorn Bergstrom, since operations in Mexico were closed due to unprofitability.
2015 2014
Results on divestments 0 -831 303
0 -831303
Parent
Wholly owned subsidiary Ilunova SA de CV was sold last year for £ 1 to Ilunovas CEO
Thorbjorn Bergstrom, since operations in Mexico were closed due to unprofitability.
2015 2014
Results on divestments 0 -1,917,856
0 -1,917,856
Note 7 Income tax expense
Group and Parent Company
Group Parent
2015 2014 2015 2014
Current tax 0 -2026 to 0
Deferred taxes -945 800 10 398 700 -945 800 10 398 700
Income tax -945 800 10 396 674 -945 800 10 398 700
Group Parent
2015 2014 2015 2014
Reported profit before tax 4 001 744 -5 576 475 4 001 821 -6 689 556
Tax calculated at the applicable tax rate (22%) -880 384 1 226 825 -880 401 1 471 702
Tax effect of non-deductible expenses -299 620 -59 266 -299 447 -52 072
Tax effect of non-taxable income 4 036 1 632 2034 225
Tax effect of Group recognized in equity - - - -
Tax attributable to prior years' reported earnings - - - -
Adjusted for deferred tax on tax
carryforwards in previous years
-2650187--2,467,300 -
Deferred tax assets on tax loss carryforwards from
earlier years
10 612 619 9 227 484 10 398 700 8 978 845
Reported tax expense -945 800 10 396 674 -945 800 10 398 700
MindArk PE AB (publ)
Org.nr 556640-4769
28 (38)
Note 8 Deferred taxes
Group and Parent Company
Temporary differences exist in cases where assets or liabilities reported and
tax values. No temporary differences in the current accounts. However,
carryforwards resulted in deferred tax assets:
Deferred tax assets
2015 2014
amount amount
Deferred tax assets on unused
carryforwards 6 985 600 10 398 700
Deferred tax assets are recognized
balance sheet 6 985 600 10 398 700
In MindArk's loss carryforwards 31.7 million as a whole have been considered in
calculation of the deferred tax 2015-12-31.
Deferred tax assets
2015 2014
amount amount
Initial cost 10,398,700 0
Additional receivables 0 10,398,700
Adjusted loss from previous years -2,467,300 0
Retiring receivables -945 800 0
Closing accumulated acquisition value 6,985,600 10,398,700
Closing carrying amount 6,985,600 10,398,700
Note 9 Planet Calypso
Group
Planet Calypso sold 2015-01-01 from the subsidiary Planet Calypso AB to the parent company, which
now manages the operation and development of the planet.
2015-12-31 2014-12-31
Opening acquisition value 1 763 210 1 763 210
Purchases 551263 0
Sales / disposals -1,763,210 0
Closing accumulated acquisition value 551,263 1,763,210
Opening depreciation -1,211,947 -924,331
Sales / disposals 1,211,947 0
Depreciation for the year -110 253 -287 616
Closing accumulated depreciation -110,253 -1,211,947
Closing book value 441 010 551 263
MindArk PE AB (publ)
Org.nr 556640-4769
29 (38)
Parent
Planet Calypso 2015-01-01 bought from the subsidiary Planet Calypso AB, which now operates
and development of the planet.
2015-12-31 2014-12-31
Purchases 551263 0
Closing accumulated cost 551 263 0
Depreciation for the year -110 253 0
Closing accumulated depreciation -110,253 0
Closing book value 441 010 0
Note 10 Planet Calypso Forum
Group
Planet Calypso Forum 2015-01-01 was sold by the subsidiary Planet Calypso AB to the Parent Company
in conjunction with the parent company took over operation of Planet Calypso.
2015-12-31 2014-12-31
Opening acquisition value 201 880 0
Purchase / activation 188421201880
Sales / disposals -201 880 0
Closing accumulated cost 188 421 201 880
Opening amortization -13,459 0
Sales / disposals 13 459 0
Depreciation for the year -37 684 -13 459
Closing accumulated amortization -37,684 -13,459
Closing book value 150 737 188 421
MindArk PE AB (publ)
Org.nr 556640-4769
30 (38)
Parent
Planet Calypso Forum 2015-01-01 was sold by the subsidiary Planet Calypso AB to the Parent Company
in conjunction with the parent company took over operation of Planet Calypso.
2015-12-31 2014-12-31
Purchase / activation 188 421 0
Closing accumulated cost 188 421 0
Depreciation for the year -37 684 0
Closing accumulated amortization -37,684 0
Closing book value 150 737 0
Note 11 Other intangible assets
Group and Parent Company
Refers to the acquisition, capitalized costs and capitalized expenses for mobile application
Compet Game, which is expected to be launched in in 2016.
2015-12-31 2014-12-31
Opening cost 4 860 905 4 705 045
Purchase 3 507 443 155 860
Accumulated acquisition values ​​8,368,348 4,860,905
Opening amortization -567 600 -567 600
Closing accumulated depreciation -567,600 -567,600
Closing carrying value 7,800,748 4,293,305
MindArk PE AB (publ)
Org.nr 556640-4769
31 (38)
Note 12 Equipment and computers
Group
Refers to the company's major purchases of computer equipment and other equipment.
2015-12-31 2014-12-31
Opening acquisition value 13 258 891 14 810 544
Purchases 1 264 922 674 884
Sales / disposals 0 -2,226,537
Closing accumulated cost 14,523,813 13,258,891
Opening amortization -12 227 042 -13 480 778
Accumulated depreciation of assets sold 0 2,017,672
Depreciation for the year -504 932 -763 936
Accumulated depreciation -12,731,974 -12,227,042
Closing carrying value 1,791,839 1,031,849
Parent
Refers to the company's major purchases of computer equipment and other equipment.
2015-12-31 2014-12-31
Opening acquisition value 9 413 524 8 738 640
Purchases 1 264 922 674 884
Closing accumulated cost 10 678 446 9 413 524
Opening depreciation -8 456 228 -8 009 854
Depreciation for the year -460 511 -446 374
Accumulated depreciation -8,916,739 -8,456,228
Total carrying value 1 761 707 957 296
Note 13 Other long-term securities
Group and Parent Company
Refers to the rights issue in Rufoid AB.
2015-12-31 2014-12-31
Purchases 188320 0
Closing accumulated cost 188 320 0
Closing book value 188 320 0
MindArk PE AB (publ)
Org.nr 556640-4769
32 (38)
Note 14 Specification other financial investments
Group and Parent Company
Name
The equity
Voting rights
Quantity
shares
book
value
Rufoid AB 556964-5806 14.97% 14.97% 88,188,320
188320
Note 15 Other long-term receivables
Group and Parent Company
Refers promissory under contract.
2015-12-31 2014-12-31
Opening acquisition value 3 911 879 2 882 109
Future receivables from current receivables 0,260,213
Capitalised interest 213 026 164 639
Currency Change 232 461 604 918
Accumulated acquisition values ​​4,357,366 3,911,879
Closing carrying value 4,357,366 3,911,879
Note 16 Inventories
Group and Parent Company
Inventories consist of the Gold Card and Gold Card readers that are used for secure logon to Entropia
Universe. Inventories also consists of profile products are sold through an online shop of the company
website.
Note 17 Receivables from payment service
Group and Parent Company
Under the heading Receivables payment intermediary, the outstanding claims on
payment intermediary company collaborates. The balance includes the payment service
confirmed, but the company at the balance sheet date not yet received payments.
MindArk PE AB (publ)
Org.nr 556640-4769
33 (38)
Note 18 Other receivables
Group
Other items including the outstanding balance on the tax account and a
Security deposit paid Interxion of the company hiring its two data centers.
2015-12-31 2014-12-31
The receivable from the Swedish Tax Agency regarding premature paid tax 9,429,285 0
Other items 1 944 705 718 830
11 373 990 718 830
Parent
Other items including a security deposit paid Interxion of the company
rent its two data centers and tax account per last December.
2015-12-31 2014-12-31
The receivable from the Swedish Tax Agency regarding premature paid tax 9,429,285 0
Other items 1 941 049 455 482
11 370 334 455 482
Note 19 Prepaid expenses and accrued income
Group and Parent Company
2015-12-31 2014-12-31
Prepaid license fees for software 176 996 219 674
Other accrued income 187 347 0
Other prepaid expenses 1,408,078 1,116,194
1 772 421 1 335 868
MindArk PE AB (publ)
Org.nr 556640-4769
34 (38)
Note 20 Change in equity
Group
Number of shares: 143 293 750
Share capital
Other
contributed
capital
other shareholders
equity incl.
net income
Total equity
capital
Balance, January 1 432 938 29 078 708 -10 128 298 20 383 348
Effect of change
accounting principle 9 429 285 9 429 285
Correction of previous
years -2 467 300 -2 467 300
Profit for the year 3 055 944 3 055 944
Amount at year
Output 1 432 938 29 078 708 -110 369 30 401 277
Parent
Number of shares: 143 293 750
Share capital reserve
Share premium reserve
fund
Retained
results
year
results
Balance, January 1 432 938 50 000 29 078 708 -13 887 574 3 709 144
Disposition under Decision
of this year's Annual General Meeting 3 709 144 -3 709 144
Effect of change
accounting policy 9,429,285
Correction of previous
year -2,467,300
Profit for the year 3,056,021
Amount at year
Output 1 432 938 50 000 29 078 708 -3 216 445 3 056 021
The correction in the previous year relates to deferred tax adjustment depending on final decision
Tax Agency.
MindArk PE AB (publ)
Org.nr 556640-4769
35 (38)
Note 21 Non-current liabilities
Group and Parent Company
The long-term debt relates Planet Arkadia's marketing fund. Parts of the compensation
as received from the sale of Arkadia Underground Deeds has been funded with MindArk and will
used for marketing campaigns.
2015-12-31 2014-12-31
Due later than one year but within five years
balance sheet date
Arcadia Marketing Reserve 797178639553
797178639553
Note 22 Accrued expenses and deferred income
Group
As accrued expenses include users, requested but not yet performed,
repayments.
2015-12-31 2014-12-31
Not implemented refunds to users 5 754 541 4 284 077
Other accrued expenses 1 597 415 1 605 305
Deferred revenue 51,017 44,362
7 402 973 5 933 744
Parent
As accrued expenses include users, requested but not yet performed,
repayments.
2015-12-31 2014-12-31
Not implemented refunds to users 5 754 541 4 284 077
Other accrued expenses 1 597 415 1 392 079
Deferred revenue 51,017 44,362
7 402 973 5 720 518
MindArk PE AB (publ)
Org.nr 556640-4769
36 (38)
Note 23 Contingent liabilities
Group and Parent Company
Unused user agents:
Unused User equivalents consist of deposits users who are not used or
withdrawn. Debt at the beginning of fiscal year 124 200 000 PED corresponding to the
that time about 97 million SEK (exchange rate of 0.781 SEK / PED). During the financial year
debt declined by about 1.7 million PED PED to 122.5 million, which corresponds with
the year-end exchange rate of a debt of SEK 102.3 million (exchange rate of 0.835 SEK / PED).
The users of the balance sheet date requested, but not yet implemented the repayments from
Entropia Universe is recognized in the balance sheet under Accrued expenses. reserved
amounts shown in note 22nd
Note 24 Investments in fixed assets
Group and Parent Company
At the start and was transferred intangible assets and Planet Calypso Planet
Calypso Forum of the subsidiary. Planet Calypso AB to the parent company at book value. During
year the parent company acquired tangible assets of 1,264,922 SEK. addition
has 1,388,300 SEK enabled development of compet Game application and further
2,119,143 SEK in external development costs were capitalized. Although it compet Game.
Note 25 Cash and cash equivalents
Group
2015-12-31 2014-12-31
Cash and cash equivalents
Cash and cash equivalents 4 789 223 3 735 021
4 789 223 3 735 021
Parent
2015-12-31 2014-12-31
Cash and cash equivalents
Cash and cash equivalents 4 783 384 3 710 172
4 783 384 3 710 172
MindArk PE AB (publ)
Org.nr 556640-4769
37 (38)
Note 26 Purchases and sales between group companies
Parent
2015 2014
Share of total purchases from other companies in
Group 13.73% 4.84%
Share of total sales made to other
Group companies 0.07% 31.76%
Note 27 Shares in Group Companies
Parent
2015-12-31 2014-12-31
Opening cost 4 910 000 7 238 917
Sales / disposals 0 -1,917,856
Reduction of share capital 0 -411 061
Accumulated acquisition values ​​4,910,000 4,910,000
Closing carrying value 4,910,000 4,910,000
-------------------------------------------------------------------------


page 38/38 was an image that I couldn't copy
 
Must not be reading the same document or Google translate is not doing great job:



But yeah, they have profit, which they didn't last year.

So profitability up, deposits down?

Don't know how I feel about that :scratch2:
 
Must not be reading the same document or Google translate is not doing great job:



But yeah, they have profit, which they didn't last year.


Ah, you are correct. My mistake. Deposits are down 6.1%
 
100 million sek = 12 or so million dollar in unused player funds and it still takes 2.5 month to pay out withdraws...

I believe that's the content of our pedcards, not some pile of money that sits in MA's pocket, so in fact it's quite the opposite - the money that could be requested for withdrawal any moment, not the money MA could pay withdrawals with.

Cash and cash equivalents at year end amounted to 4.8 million.

The withdrawal process can't be shortened, because they certainly couldn't cover the 100 mil SEK with their cash of 4.8 mil, should the need arise.
 
Last edited:
This is interesting to see in writing -

"Entropia Universe has thus far offered an open form of gambling in which players have been able to do what
they want within the framework of the many game systems."


Is this an admission that the game is indeed a casino or does "open form of gambling" mean something different?
 
No time to read it all today just looked over it.

Short Term Loans vs Money Liquidity is just dreadful and they didnt even typeout the liquidity...
100 million sek = 12 or so million dollar in unused player funds and it still takes 2.5 month to pay out withdraws...

Pending withdrawals are up from 4 284 077 to 5 754 541 (+34.3%) - see Note 22.
 
This is interesting to see in writing -

"Entropia Universe has thus far offered an open form of gambling in which players have been able to do what
they want within the framework of the many game systems."


Is this an admission that the game is indeed a casino or does "open form of gambling" mean something different?


Svarog's post below is enlightening. :)
 
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There is no gambling in the original text, "öppen spelform" is "open form of a game", any game - it's google's dirty mind that decided to translate it as gambling instead of gaming.

That explains minority of USA players as well as problems with getting on steam....they just got it wrong :p
 
"Betaversion av ComPet Game
En första betaversion av ComPet Game släpptes i maj 2016. Den första responsen från testarna
är mycket positiv. "

Google translate:
"Beta version of compet Game
A first beta version of compet Game was released in May 2016. The initial feedback from testers
is very positive."

This must be the one of the best example Ive seen of when you should not use "very" :laugh: It makes the sentence become a complete lie instead of an optimistic view.
 
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By the way can anyone explain what "Planet Calypso Forum" Not 10 p.29 (38) is doing in the intangible assets section with the sum of 150 737? :confused:
 
I think this is interesting - but I'm not sure. :confused:

Change in accounting principle for revenue

The Company previously recognized as income users' deposits and reduced revenue related to
users made withdrawals of previously deposited funds. VAT Duty has since arisen in deposits and withdrawals. The company has therefore paid the tax on net deposits. With start 2015-01-01 MindArk change the revenue model and VAT principle and will henceforth bring debt net deposits and record revenues as users consume their deposits. Then falls even tax obligations.

The reason for the change in accounting policy for income and VAT, when the company started was given the wrong answer by the Tax Agency regarding at what point VAT duty falls. In conjunction with the amendment of the VAT Act, 1 January 2015 drew attention to the company that the Tax Agency previously applied tax law was not applicable at VAT in each EU country.

This prompted the Swedish Tax Agency to shine through the company's operations more time and come up with new decisions regarding when VAT liability occurs.

The new principle was that the company has been able to recover prematurely paid VAT which has resulted in a refund from the Tax to the company at just over 9.4 million. This effect of change in accounting policy has been recorded directly against equity. repayment was posted on the company's bank account in April 2016, but strengthened by 2015 balance sheet as a accrued correction of the previous fiscal year.
 
I think this is interesting - but I'm not sure. :confused:

That basically means that we need to reduce the notorious 90% by the size VAT (15%?).
75% sounds about right :yup:

edit: it seems it's 25% in Sweden. Sounds even closer to reality.
 
shouldnt tt return be higher than? as they got money back meaning that we allready paid too much so the tt return should rise...
 
That basically means that we need to reduce the notorious 90% by the size VAT (15%?).
75% sounds about right :yup:

edit: it seems it's 25% in Sweden. Sounds even closer to reality.
They say they're now paying less VAT and you are concluding from this TT return % will drop?
If there's a direct connection shouldn't it rise instead?
 
Really surprised me that deposits are down this year, also that there is profit even though withdrawals are up.

That is if people in thread read the figures correctly.
 
Change in accounting principle for revenue

The Company previously recognized as income users' deposits and reduced revenue related to
users made withdrawals of previously deposited funds. VAT Duty has since arisen in deposits and withdrawals. The company has therefore paid the tax on net deposits. With start 2015-01-01 MindArk change the revenue model and VAT principle and will henceforth bring debt net deposits and record revenues as users consume their deposits. Then falls even tax obligations.

The reason for the change in accounting policy for income and VAT, when the company started was given the wrong answer by the Tax Agency regarding at what point VAT duty falls. In conjunction with the amendment of the VAT Act, 1 January 2015 drew attention to the company that the Tax Agency previously applied tax law was not applicable at VAT in each EU country.

This prompted the Swedish Tax Agency to shine through the company's operations more time and come up with new decisions regarding when VAT liability occurs.

The new principle was that the company has been able to recover prematurely paid VAT which has resulted in a refund from the Tax to the company at just over 9.4 million. This effect of change in accounting policy has been recorded directly against equity. repayment was posted on the company's bank account in April 2016, but strengthened by 2015 balance sheet as a accrued correction of the previous fiscal year.

I think this is interesting - but I'm not sure. :confused:

Its something that caught my eye too.

(I'm guessing that its got something to do with paying for VAT too "early"? Perhaps in the past MA calculated VAT from its net of "deposits - withdrawals" and now they're gonna calculate it accordingly as users spend their deposited peds?)
 
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