Legal11 bit studios
Current Report No. 24: Analysis of the Situation on One of the Game Projects
11 Dec 20241 pages~1 min full read
11 bit studios S.A. is conducting a strategic review of an unnamed internal game project to determine its future viability or potential termination.
The project currently holds a book value of approximately PLN 48.43 million in capitalized development costs as of September 30, 2024.
A decision to cease development would trigger a financial write-off of the project's total capitalized costs, directly impacting the company's balance sheet and net income.
The scale of the PLN 48.43 million investment indicates that the project under review is a significant title within the developer's current portfolio.
Management has committed to providing a formal update once a final decision regarding the project's continuation is reached.
The Management Board of 11 bit studios S.A. has initiated a comprehensive strategic analysis regarding the status of a specific internal game development project. This evaluation focuses on the viability and future of the title, signaling a potential shift in the company’s production pipeline. The primary objective of this review is to determine whether the project remains a sustainable asset or if the company must proceed with a significant financial impairment.
Financial data as of September 30, 2024, indicates that the book value of the unfinished development work for this project totals approximately PLN 48.43 million. Should the ongoing analysis conclude that the project is no longer viable or requires a total cessation of development, the company anticipates a write-off of these capitalized costs. Such an action would directly impact the firm's balance sheet and reported net income for the relevant fiscal period, though the final valuation of any potential write-off remains subject to a formal asset review.
This disclosure, issued in compliance with market abuse regulations regarding inside information, reflects the current operational landscape for the Warsaw-based developer and publisher as of late 2024. While the specific title under review was not named, the scale of the investment suggests a project of significant scope within the company’s portfolio. Management intends to provide further updates once a definitive decision is reached regarding the project’s continuation or termination.
