Solid Clouds hf announces the Full-year 2022 Financial Results

Solid Clouds hf. (First North Iceland: SOLID), the developer of multiplayer online video games, announced today the results for the year 2022

Key Figures
All figures in ISK m. Comparative figures from last year are in parentheses.
 
- Operating loss before depreciation & financial income & expenses -32.5 (-17.8)
- Net loss for the year 50.8 (34.1)
- Total assets 1,298.2 (1,336.6)
- Equity ratio 96.8% (97.1%) 
- Game revenue 11.1 (14.4)

“The Solid team has made great progress in developing our new game Starborne Frontiers”, says Stefán Gunnarsson, the CEO. “The Company passed a key milestone in February this year, 2023, when the game was soft-launched and made available in the Apple and Google mobile stores. A vibrant community is already forming around the game and initial reception from players has been very positive. Numbers regarding retention and conversion are in line with our expectations at Solid Clouds. When Starborne Frontiers has reached the required Key Performance Indicators (KPIs) threshold, marketing efforts will be scaled up. The next major milestone will be the full global launch.”

The Financial Statements of Solid Clouds for the full year of 2022 were approved by the Company’s Board of Directors and the CEO at a board meeting on 31 March 2022. The statements cover the period from 1 January to 31 December 2022 and were prepared according to International Financial Reporting Standards (IFRS). The statements have been audited by the Company’s auditors, Deloitte ehf.

Full-year 2022 Financial Highlights
Solid Clouds increased further its focus on the development (R&D) of Starborne Frontiers in 2022 in preparation for the soft launch that began in February 2023. Most of Solid Clouds’ expenses arise from R&D spending, which is capitalized and amortized over its expected lifespan. Such capitalized cost amounted to ISK 350.9 m during 2022, an increase of 22.6% from 2021.

The Icelandic state provides tax credits to stimulate research and development. R&D tax credits for the operating year 2022, paid in November, are expected to reach ISK 128.6 m, an increase of 21% from the year 2021.
Revenues from the Company’s first release, Sovereign Space, amounted to ISK 11.1 m, a drop of 22.4% compared with 2021. This is because Solid Clouds is currently focusing its resources on the development of its next game, Starborne Frontiers.

Operating loss before income tax amounted to ISK 94.1.5 m, an increase of 50.3% compared to a loss of ISK 62.6 m in 2021.

Financial Liquidity
As of 31 December 2022, Solid Clouds had cash on hand of ISK 310.1 m. The Company expects to receive about ISK 128.6 m in R&D tax credits in the beginning of November this year, subject to approval by the Icelandic Center for Research (Rannís) and the Icelandic Tax Authority (RSK). The Company anticipates that R&D tax credits for the operational year 2023 to be paid in November 2024 will be comparable to the payment this year.

Solid Clouds Financial Statements are available on the Company’s website: https://www.solidclouds.com/investors/docs

Recent Business Highlights
In 2022, the Solid Clouds development team achieved important objectives. The Company passed a major milestone in mid-2022, when Starborne Frontiers entered closed testing in Asia and Oceania. Such a test is conducted with real users in a live environment with all the necessary infrastructure in place. This testing phase produced valuable user feedback and engagement data that was used to improve the game in preparation for its soft launch.

Another key development milestone was reached in February 2023 when the game was soft-launched and made available in Apple’s and Google’s app stores. This is the start of Starborne Frontiers’ soft launch process. User feedback, engagement and monetization data gained during the soft launch period will be used to iterate, fine-tune and add more content to the game. 

The Russo-Ukraine war and Covid-19 did not impact Solid Clouds materially in 2022.
 
Investor Relations:
Stefán Þór Björnsson
[e-mail]
 
Source: Solid Clouds

For further information please contact

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Investor Relations:
Stefán Þór Björnsson
[e-mail]

Certified Advisor:
Arion bank, Erlendur Magnús Hjartarson
[e-mail]

Attachments

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Solid Clouds Hf Financial Statements 2022

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