Nexters Continues to Exhibit Substantial Development in Q3


LIMASSOL, Cyprus, Nov. 17, 2021 (GLOBE NEWSWIRE) — Nexters Inc. (NASDAQ: GDEV), a global sport growth firm which strives to introduce the enjoyment of core gaming experiences to informal gamers, in the present day introduced its unaudited monetary and operational outcomes for the third quarter of 2021.

Third Quarter 2021 Highlights

Monetary:

  • File excessive quarterly revenues of $115 million, rising 77% year-over-year
  • Non-cash non-recurring itemizing expense of $125 million prompted internet loss within the third quarter of 2021 which amounted to $104 million vs. $11 million within the respective interval of 2020
  • Adjusted Web Revenue within the quantity of $8 million in Q3 2021 vs. an Adjusted Web Lack of $11 million within the respective interval of 2020
  • Сash movement generated from working actions of $51 million, rising 59% year-over-year
  • Our money and money equivalents totaled $105 million as of September 30, 2021

Operational:

  • Q3 2021 bookings of $151 million, rising 29% year-over-year
  • Bookings from Asia practically doubled year-over-year, now constituting 26% of complete bookings
  • Bookings from Desktop platforms grew 55% year-over-year, now constituting 30% of complete bookings, taking platform commissions all the way down to 27% of revenues in Q3 2021, declining 1 p.p. year-over-year
  • Month-to-month paying customers of 371 thousand in Q3 2021, rising 30% year-over-year
  • Common Bookings per Paying Person of $128, broadly secure in comparison with $132 in Q3 2020
  • Commercial gross sales of $9 million, greater than doubling year-over-year, now constituting 6% of complete bookings

Merchandise & M&A:

  • Chibi Island, a brand new informal journey sport formally launched on iOS and Android with complete set up base approaching 1.5 million.
  • Throne Rush, a technique sport, launched on Internet
  • Hero Wars cell model not too long ago celebrated its 5th anniversary, with the title’s lifetime bookings surpassing a milestone of $1 billion
  • Nexters launched Increase program as one of many M&A initiatives to supply impartial builders with experience and funds wanted to launch their video games and construct profitable worldwide companies.

Quote by CEO and Co-founder, Andrey Fadeev:

“The third quarter has been fairly important for Nexters as inside this era we reached two milestones which is able to affect our additional long-term growth and development.

In accordance with our natural development technique, we see informal video games as a possibility to considerably develop into a bigger viewers of informal gamers. We’ve been fairly profitable with informal titles on social; and now, with the traction we have now on cell with Hero Wars, our plan is to make use of all our information, expertise and finest practices to ship profitable informal video games on cell platforms. Chibi Island, a brand new informal journey sport which was formally launched in July this 12 months, is the primary title of that style with extra to comply with within the coming months.

On the non-organic aspect of our development technique, in September we launched the Increase program to assist the indie sport growth scene. Whereas our broader mergers and acquisitions technique encompasses gaming corporations and studios of assorted measurement, this program concentrating on the smaller indie market is our first formally introduced initiative. Increase will give attention to gifted groups with progressive video games and is meant to assist them construct a profitable worldwide enterprise on a world scale due to Nexters’ experience in varied genres and on varied platforms that we have now gathered inside our years of development.

So moreover optimistic monetary metrics, we set strategic vectors within the third quarter, the results of which is able to, we consider, positively contribute to Nexters’ long-term efficiency.”

Third quarter 2021 monetary efficiency

US$ million Q3
2021
Q3
2020
Change
(%)
9M
2021
9M
2020
Change
(%)
Income 115 65 77% 312 187 67%
Platform commissions (31) (18) 72% (85) (54) 57%
Recreation operation price (5) (4) 25% (13) (11) 18%
Promoting and advertising and marketing bills (64) (53) 21% (219) (126) 74%
G&A bills (6) (0.3) n.m. (14) (1) n.m.
Share itemizing expense* (125) n.m. (125) n.m.
Web loss (104) (11) n.m. (135) (7) n.m.
Adjusted Web Earnings/Loss 8 (11) n.m. (20) (7) n.m.
             
Money flows generated from working actions 51 32 59% 62 79 -22%

* Non-cash non-recurring expense by nature.

Within the third quarter of 2021 our income elevated by $50 million (or 77%) year-over-year and amounted to $115 million, pushed primarily by a rise in bookings within the quantity of $34 million (or 29%) year-over-year to $151 million.

Platform commissions elevated by 72% within the third quarter of 2021 in contrast with the identical interval in 2020, pushed primarily by the rise in revenues.

Recreation operation prices elevated by $1 million in third quarter 2021 vs. the identical interval within the prior 12 months to achieve $5 million as a consequence of a rise within the scale of the Group’s operations.

Promoting and advertising and marketing bills within the third quarter of 2021 elevated by $11 million, or 21% year-over-year, and amounted to $64 million. The rise was as a consequence of development of the investments into the acquisition of extra gamers within the third quarter of 2021 vs. the identical interval in prior 12 months. Our promoting and advertising and marketing bills got here again to the normalized stage within the third quarter of 2021, driving the full 30% decrease as in comparison with the height ranges of the second quarter of 2021, in step with our preliminary plan.

Normal and administrative bills (hereinafter known as “G&A bills”) elevated by $6 million within the third quarter 2021 vs. third quarter 2020. The rise was primarily pushed by a rise in personnel and different bills ensuing from: (i) recurring and non-recurring bills related to itemizing on NASDAQ; (ii) consolidation of the Russian subsidiaries because the starting of the 2021 and (iii) the rise within the scale of the Group’s operations.

Excluding the non-recurring bills associated to our enterprise mixture with Kismet Acquisition One Corp, G&A bills in Q3 2021 would have elevated by roughly $4 million over the low quantity recorded within the comparative interval of the prior 12 months, pushed by a rise in personnel and different bills ensuing from: (i) recurring bills related to itemizing on NASDAQ; (ii) consolidation of the Russian subsidiaries because the starting of the 2021 and (iii) the rise within the scale of the Group’s operations.

Share itemizing expense is a non-cash non-recurring expense, which is decided as the surplus of the truthful worth of the fairness devices issued by the Firm over the truthful worth of the recognized internet property contributed by Kismet Acquisition One Corp in its enterprise mixture with Nexters (please discuss with Be aware 11 of the Interim Condensed Consolidated Monetary Statements for the three and 9 months ended September 30, 2021 and September 30, 2020 for additional particulars concerning the share itemizing expense).

Web loss within the third quarter of 2021 amounted to $104 million vs. $11 million within the respective interval of 2020. The online loss within the third quarter of 2021 originated predominantly from the non-cash non-recurring share itemizing expense within the quantity of $125 million.

Now we have achieved an Adjusted Web Revenue within the quantity of $8 million within the third quarter of 2021, a rise of $19 million vs. an Adjusted Web Lack of $11 million within the respective interval of 2020. This important enhance was primarily pushed by the rise in revenues partially offset by the rise in promoting and advertising and marketing bills, platform commissions and G&A bills.

Money flows generated from working actions amounted to $51 million within the third quarter of 2021 vs. $32 million in the identical interval of 2020, up 59% demonstrating the elevated effectivity and money era capability of our enterprise within the third quarter of 2021. Our money flows generated from working actions additionally considerably improved compared to the instantly previous quarter, when this parameter was damaging.

Third quarter 2021 operational efficiency

  Q3 2021 Q3 2020 Change 9M 2021 9M 2020 Change
Bookings ($ million) 151 117 29% 418* 325 29%
share of promoting 6% 3% 3p.p. 5% 3% 2p.p.
MPU (thousand) 371 286 30% 361 285 27%
ABPPU ($) 128 132 (3)% 122 122 0%
Whole FTE (on the finish of the interval) 661 376 76% 661 376 76%

* Right here and elsewhere on this press launch the bookings for the 9 months ended September 30, 2021 have been restated to account for the correction of an immaterial error in respect of taxes (please discuss with Be aware 4 of the Interim Condensed Consolidated Monetary Statements for the three and 9 months ended September 30, 2021 and September 30, 2020 for additional particulars).

The share of commercial gross sales as share of complete bookings roughly doubled within the third quarter of 2021 to six% in comparison with 3% within the third quarter of 2020.

Our substantial investments in advertising and marketing in 2021 resulted in a considerable enhance in MPUs, which reached 371 thousand within the third quarter of 2021 vs. 286 thousand within the respective interval of 2020, a development of 30%. Within the third quarter of 2021 we have now noticed development in bookings throughout all key platforms and geographies, with particularly sturdy efficiency within the Desktop model of our video games and in Asia, rising 55% and 95% respectively year-over-year.

Within the third quarter of 2021 ABPPU remained comparatively secure at $128 compared to $132 within the respective interval of 2020 as we originated a considerable variety of new paying customers in 2021, who are likely to have decrease ABPPUs originally of their lifespans, accompanied by the truth that the share of the paying customers positioned within the geographies the place the customers are likely to spend much less in on-line gaming elevated in our variety of complete MPUs.

The substantial enhance in MPUs accompanied by a comparatively secure stage of ABPPU resulted in quarterly bookings of $151 million within the third quarter of 2021, which grew 29% year-over-year from $117 million within the third quarter of 2020.

Cut up of bookings by platform Q3 2021 Q3 2020 Change
(%)
9M 2021 9M 2020 Change
(%)
Cell 70%   75%   20%   68%   77%   14%  
Desktop 30%   25%   55%   32%   23%   79%  

The Desktop variations of our video games allow us to entry a wider viewers and develop our addressable market. Moreover, bookings generated on this platform are topic to a decrease fee, taking the platform commissions all the way down to 27% of revenues within the third quarter of 2021, declining 1 p.p year-over-year. Within the cell platforms, development was predominantly pushed by iOS, the place we proceed to see engaging person acquisition prices.

Cut up of bookings by geography Q3 2021 Q3 2020 Change
(%)
9M 2021 9M 2020 Change
(%)
US 30%   37%   5%   32%   39%   6%  
Europe 21%   23%   19%   22%   23%   23%  
Asia 26%   17%   95%   24%   15%   104%  
FSU 13%   15%   11%   13%   15%   10%  
Different 10%   8%   67%   9%   8%   46%  

Geographically, the strongest development of bookings of 95% year-over-year was demonstrated in Asia, with Japan and South Korea being the important thing drivers.

Within the second half of 2021 we remained on observe with our new sport releases. In July 2021 we launched Chibi Island on iOS and Android. As of thirtieth September 2021, this new informal journey sport gathered ca. 1.4 million downloads on iOS and Android. Each month it engages 280 thousand gamers on common and generates between $200 to $300 thousand of bookings. Throne Rush, a fantasy technique and one of many Firm’s earliest video games, has been launched on the Internet platform in October 2021 with a view in direction of an extra diversification of platforms and a discount of commissions. Moreover, we’re in preparations to soft-launch yet another informal sport within the coming weeks. The brand new releases are in step with the corporate’s product technique that, moreover additional scaling within the mid-core market, has a robust give attention to style diversification. Hero Wars, the Firm’s largest sport, proceeds to develop – its cell model has not too long ago celebrated its fifth anniversary, with the title’s lifetime bookings surpassing a milestone of $1 billion.

In the direction of the top of September, Nexters launched the Increase program – an M&A initiative for gifted groups internationally with a give attention to Russian-speaking builders in Jap European nations. This system will present choose builders with know-how to unlock the individuals’ full potential and is designed to assist them obtain worldwide success in addition to investments that vary between roughly $500,000 and $2.5 million per undertaking in alternate for an fairness share within the studio. Since its launch the Increase group has reviewed dozens of initiatives and is continuous to ascertain connections throughout the indie neighborhood, in addition to having began negotiations with just a few potential targets. Nexters Increase is the primary public step within the Firm’s broader mergers and acquisitions technique to develop Nexters as a consolidator. This program ought to diversify the Firm’s product portfolio and convey new development alternatives within the coming years.

Q3 and 9M 2021 convention name and webcast

Nexters will host a convention name and webcast to debate its outcomes at 10:00 a.m. U.S. Jap Time (5:00 p.m. Moscow time, 3:00 p.m. London time) the identical day.

To take part within the convention name, please use the next particulars:
Normal Worldwide: +44 (0) 2071 928000
UK (toll free): 08003767922
UK (native): 08445718892
USA (toll free): 18669661396
USA (native): 16315107495
Russian Federation (toll free): 81080023575011
Russian Federation (native): 4952499849
   
Convention ID: 1467608
   
Webcast: https://edge.media-server.com/mmc/p/i9c4n6nv

About Nexters

Nexters is a global sport growth firm which strives to introduce the enjoyment of core gaming experiences to informal gamers. Because of such hit video games like Hero Wars, Throne Rush, and others the corporate reached over 200 million installs worldwide and have become one of many prime 5 impartial cell sport corporations in Europe. Headquartered in Cyprus, Nexters is constructed upon a group of 600+ impressed gaming professionals. Please discover extra details about Nexters at: https://nexters.com and comply with Nexters on LinkedIn and Twitter.

Contacts:

Investor Relations
Roman Safiyulin | Chief Company Improvement Officer
r.safiyulin@nexters.com

Media
Andrey Akimov | Chief Communications Officer
aa@nexters.com

Cautionary assertion concerning forward-looking statements

Sure statements on this press launch might represent “forward-looking statements” for functions of the federal securities legal guidelines. Such statements are primarily based on present expectations which can be topic to dangers and uncertainties. As well as, any statements that discuss with projections, forecasts or different characterizations of future occasions or circumstances, together with any underlying assumptions, are forward-looking statements.

The forward-looking statements contained on this press launch are primarily based on the Firm’s present expectations and beliefs regarding future developments and their potential results on the Firm. There could be no assurance that future developments affecting the Firm can be those who the Firm has anticipated. Ahead-looking statements contain numerous dangers, uncertainties (a few of that are the Firm’s management) or different assumptions. You must fastidiously take into account the dangers and uncertainties described within the “Threat Elements” part of the registration assertion on Type F-1 filed by the Firm on September 22, 2021 and different paperwork filed by the Firm infrequently with the Securities and Trade Fee. Ought to a number of of those dangers or uncertainties materialize, or ought to any of the Firm’s assumptions show incorrect, precise outcomes might differ in materials respects from these projected in these forward-looking statements. Ahead-looking statements converse solely as of the date they’re made. Readers are cautioned to not put undue reliance on forward-looking statements, and the Firm undertakes no obligation to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as could also be required underneath relevant securities legal guidelines.

Presentation of Non-GAAP Monetary Measures

Along with the outcomes supplied in accordance with IFRS all through this press launch, the Firm has supplied the non-IFRS monetary measure “Adjusted Web Earnings/Loss” (the “Non-GAAP Monetary Measure”). The Firm defines Adjusted Web Earnings/Loss as the web earnings/loss as introduced within the Firm’s monetary statements in accordance with IFRS, adjusted to exclude (i) share-based compensation expense, (ii) impairment of non-current property, (iii) any beneficial properties and losses arising as results of enterprise combos (together with the amortization of intangible property acquired within the enterprise combos and transaction prices associated to the enterprise combos) and (iv) sure non-cash or different particular gadgets that we don’t take into account indicative of our ongoing working efficiency. The Firm makes use of this Non-GAAP Monetary Measure for enterprise planning functions and in measuring its efficiency relative to that of its opponents. The Firm believes that this Non-GAAP Monetary Measure is a helpful monetary metric to evaluate its working efficiency from period-to-period by excluding sure gadgets that the Firm believes will not be consultant of its core enterprise. This Non-GAAP Monetary Measure shouldn’t be supposed to switch, and shouldn’t be thought of superior to, the presentation of the Firm’s monetary ends in accordance with IFRS. The usage of the Non-IFRS Monetary Measure phrases might differ from related measures reported by different corporations and will not be similar to different equally titled measures.

Reconciliation of the Web Earnings/Loss to the Adjusted Web Earnings/Loss

(US$ million) Q3
2021
Q3
2020
9M
2021
9M
2020
Web loss (104)   (11)   (135)   (7)  
Add again:        
– Share primarily based compensation expense     1    
– Impairment of non-current property        
– Positive aspects and losses arising as results of enterprise combos* 125     125    
– Different gadgets that we don’t take into account indicative of our ongoing working efficiency** (13)     (10)    
– Tax impact of the reconciling gadgets     (1)    
Adjusted Web Earnings/Loss 8   (11)   (20)   (7)  

* Consists fully of the non-cash non-recurring share itemizing expense.
** Contains non-recurring bills associated to the itemizing on NASDAQ and merger with Kismet Acquisition One Corp that are added again much less the achieve ensuing from change in truthful worth of the warrant obligations.

Nexters Inc.
Interim Condensed Consolidated Monetary Statements
For the three and 9 months ended September 30, 2021 and September 30, 2020

Contents  
   
Impartial Auditor’s Report on Evaluation of Interim Condensed Consolidated Monetary Statements 3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 7
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 8
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  9

Impartial Auditor’s Report on Evaluation of Interim Condensed Consolidated Monetary Statements

Interim Condensed Consolidated Assertion of Monetary Place
As at September 30, 2021 and December 31, 2020*
(in hundreds of US$)

  NOTE September 30,
2021
  December 31,
2020
 
ASSETS      
Non-current property      
Property and gear 14 1,098   171  
Intangible property   145   76  
Goodwill 3 1,473    
Lengthy-term deferred platform fee charges 21 113,185   89,588  
Proper-of-use property 16 1,430   1,044  
Deferred tax asset   7    
Whole non-current property   117,338   90,879  
Present property      
Commerce and different receivables 17 47,669   32,974  
Loans receivable 15   8  
Money and money equivalents   105,453   84,557  
Pay as you go tax   3,213   3,137  
Whole present property   156,335   120,676  
Whole property   273,673   211,555  
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Fairness      
Share capital     27  
Different reserves   163,882   8,289  
Collected deficit   (342,496 ) (110,513 )
Whole fairness   (178,614 ) (102,197 )
Non-current liabilities      
Lease liabilities – non-current 16 541   818  
Lengthy-term deferred income 21 119,398   79,221  
Share warrant obligations 20 18,472    
Whole non-current liabilities   138,411   80,039  
Present liabilities      
Brief-term loans 19   49  
Lease liabilities – present 16 860   293  
Commerce and different payables 18 30,299   17,503  
Tax legal responsibility   620   306  
Deferred income 21 282,097   215,562  
Whole present liabilities   313,876   233,713  
Whole liabilities   452,287   313,752  
Whole liabilities and shareholders’ fairness   273,673   211,555  

The accompanying notes are an integral a part of these interim condensed consolidated monetary statements.

Interim Condensed Consolidated Assertion of Revenue or Loss and Different Complete Earnings
For the three and 9 months ended September 30, 2021 and September 30, 2020*
(in hundreds of US$)

  NOTE 9 months ended
September 30,

  Three months ended
September 30,

 
    2021   2020   2021   2020  
Income 7 311,510   186,535   115,177   64,500  
Prices and bills, excluding depreciation and amortization          
Price of income:          
Platform commissions   (84,707)   (54,196)   (30,717)   (18,422)  
Recreation operation price 8 (12,997)   (11,471)   (4,838)   (4,220)  
Promoting and advertising and marketing bills 9 (219,154)   (126,392)   (63,682)   (53,039)  
Normal and administrative bills 10 (13,695)   (869)   (6,057)   (306)  
Share itemizing expense 11 (125,438)     (125,438)    
Whole prices and bills, excluding depreciation and amortization (455,991)   (192,928)   (230,732)   (75,987)  
Depreciation and amortization   (1,713)   (395)   (645)   (163)  
Loss from operations   (146,194)   (6,788)   (116,200)   (11,650)  
Web finance earnings   11,544   348   12,791   702  
Loss earlier than earnings tax   (134,650)   (6,440)   (103,409)   (10,948)  
Earnings tax expense 12 (845)   (612)   (291)   (223)  
Loss for the interval, internet of tax   (135,495)   (7,052)   (103,700)   (11,171)  
Different complete (loss)/earnings   (392)   3   (142)   1  
Whole complete loss for the interval, internet of tax   (135,887)   (7,049)   (103,842)   (11,170)  
           
Loss per share:          
Primary and diluted loss per share, US$ 6 (0.76)   (0.04)   (0.56)   (0.06)  

These interim condensed consolidated monetary statements had been accredited by administration on November 12, 2021 and signed on its behalf:

Andrey Fadeev Alexander Karavaev  
Chief Government Officer Chief Monetary Officer  

The accompanying notes are an integral a part of these interim condensed consolidated monetary statements.

Interim Condensed Consolidated Assertion of Modifications in Fairness
For the 9 months ended September 30, 2021 and September 30, 2020
(in hundreds of US$ besides variety of shares)

  NOTE Variety of
shares
excellent
Share capital Different reserves Collected
deficit
Whole
             
Steadiness at January 1, 2020   20,000 27   8,106   (56,702 ) (48,569 )
Loss for the interval       (7,052 ) (7,052 )
Different complete earnings       3   3  
Whole complete loss for the interval       (7,049 ) (7,049 )
Share-based funds 25   36   (538 ) (502 )
Distribution and dividends 13     (17,910 ) (17,910 )
Whole transactions with shareholders     36   (18,448 ) (18,412 )
Steadiness at September 30, 2020   20,000 27   8,142   (82,199 ) (74,030 )
             
Steadiness at December 31, 2020, as beforehand reported   20,000 27   8,289   (111,070 ) (102,754 )
Impression of correction 4     557   557  
Steadiness at January 1, 2021   20,000 27   8,289   (110,513 ) (102,197 )
Loss for the interval       (135,495 ) (135,495 )
Different complete loss     (390 ) (2 ) (392 )
Whole complete loss for the interval     (390 ) (135,497 ) (135,887 )
Fairness contribution from shareholders 3 (27 ) 119,680     119,653  
Issuance of shares upon the Transaction 3 196,503,101        
Share-based funds 11/25   125,534   (486 ) 125,048  
Share warrant obligations 20   (32,109 )   (32,109 )
Distribution and dividends 3/13   (57,122 ) (96,000 ) (153,122 )
Whole transactions with shareholders   196,503,101 (27 ) 155,983   (96,486 ) 59,470  
Steadiness at September 30, 2021   196,523,101   163,882   (342,496 ) (178,614 )

The accompanying notes are an integral a part of these interim condensed consolidated monetary statements.

Interim Condensed Consolidated Assertion of Money Flows
For the three and 9 months ended September 30, 2021 and September 30, 2020
(in hundreds of US$)

  Be aware 9 months ended September 30,
  Three months ended September 30,
 
    2021   2020   2021   2020  
Working actions          
Loss for the interval, internet of tax (135,495 ) (7,052 ) (103,700 ) (11,171 )
Changes for:          
Depreciation and amortization 1,713   395   645   163  
Share-based funds expense 11/25 126,349   36   125,644   12  
Web finance prices/(earnings) excluding financial institution expenses 1,875   (458 ) 747   (731 )
Change in truthful worth of share warrant obligations 20 (13,637 )   (13,637 )  
Earnings tax expense 12 845   612   291   223  
    (18,350 ) (6,467 ) 9,990   (11,504 )
Modifications in working capital:        
Enhance in deferred platform commissions 21 (23,597 ) (40,686 ) (7,932 ) (14,736 )
Enhance in deferred income 21 106,712   138,816   34,990   52,976  
(Enhance)/lower in commerce and different receivables (15,261 ) (16,182 ) 16,341   (1,505 )
Enhance/(lower) in commerce and different payables 12,480   3,941   (2,241 ) 7,476  
    80,334   85,889   41,158   44,211  
Earnings tax paid   (135 ) (290 ) (105 ) (290 )
Web money flows generated from working actions 61,849   79,132   51,043   32,417  
           
Investing actions          
Acquisition of intangible property (145 )   (55 )  
Acquisition of property and gear 14 (710 ) (139 ) (261 ) (90 )
Acquisition of subsidiary internet of money acquired 3 (1,240 )      
Proceeds from reimbursement of loans 15 8   521   282   342  
Web money flows (utilized in)/from investing actions (2,087 ) 382   (34 ) 252  
           
Financing actions          
Funds of lease liabilities 16 (1,367 ) (246 ) (427 ) (13 )
Curiosity on lease 16 (54 ) (18 ) (4 ) (9 )
Compensation of borrowings 19 (49 ) (3,978 )    
Dividends paid and distribution to shareholders 3/13 (155,684 ) (17,853 ) (105,150 ) (9,666 )
Money acquired within the Transaction 3 119,659     119,659    
Web money flows from/(utilized in) financing actions (37,495 ) (22,095 ) 14,078   (9,688 )
           
Web enhance in money and money equivalents for the interval 22,267   57,419   65,087   22,981  
Money and money equivalents originally of the interval 84,557   17,565   40,898   52,499  
Impact of adjustments in alternate charges on money held (1,371 ) 925   (532 ) 429  
Money and money equivalents on the finish of the interval 105,453   75,909   105,453   75,909  

The accompanying notes are an integral a part of these interim condensed consolidated monetary statements.

1. Reporting entity

Nexters Inc. (the “Firm”) is a enterprise firm included underneath the legal guidelines of the British Virgin Islands on January 27, 2021, which was shaped for the only real objective of effectuating the Transaction contemplated by the Enterprise Mixture Settlement (see Be aware 3), which was consummated on August 26, 2021.

Previous to the Transaction, the Firm had no materials property and didn’t conduct any materials actions apart from these incidental to its formation and the issues contemplated by the Enterprise Mixture Settlement, such because the making of sure required securities regulation filings.

The mailing deal with of Nexters Inc.’s principal government workplace is 55, Griva Digeni, 3101, Limassol, Cyprus.

Nexters Inc., is the direct mother or father of Nexters International Ltd (the “Subsidiary”), which was included in Cyprus on November 2, 2009 as a non-public restricted legal responsibility firm underneath the Cyprus Corporations Legislation, Cap. 113. The Subsidiary’s registered workplace is at Faneromenis 107, 6031, Larnaca, Cyprus.

The principal actions of the Firm and its subsidiaries (the “Group”) are the event and publishing of on-line video games for cell, internet and social platforms. The Group additionally derives income from promoting providers. Details about the Firm’s essential subsidiaries is disclosed in Be aware 23.

The Group has no final controlling social gathering.

2. Foundation of preparation

These interim condensed consolidated monetary statements for the three and 9 months ended September 30, 2021 have been ready in accordance with IAS 34 Interim Monetary Reporting as issued by the Worldwide Accounting Requirements Board (IASB), and needs to be learn at the side of the Subsidiary’s final annual consolidated monetary statements as at and for the 12 months ended December 31, 2020 included within the Type F-4/A for the 12 months ended December 31, 2020 as filed with the Securities and Trade Fee on July 28, 2021. They don’t embrace all the knowledge required for a whole set of economic statements ready in accordance with Worldwide Monetary Reporting Requirements (IFRS) as issued by the IASB. Nevertheless, chosen explanatory notes are included to elucidate occasions and transactions which can be important to an understanding of the adjustments within the Group’s monetary place and efficiency because the annual consolidated monetary statements for the 12 months ended December 31, 2020.

These interim condensed consolidated monetary statements had been licensed for subject by the Group’s Board of Administrators on November 12, 2021.

3. Abstract of great accounting insurance policies 

The accounting insurance policies and strategies of computation utilized within the preparation of those interim condensed consolidated monetary statements are according to these disclosed within the Subsidiary’s annual consolidated monetary statements of the Group for the 12 months ended December 31, 2020 included within the Type F-4/A for the 12 months ended December 31, 2020 as filed with the Securities and Trade Fee on July 28, 2021, aside from the adoption of latest requirements efficient as at January 1, 2021 and described beneath. The Group has not early adopted some other normal, interpretation or modification that has been issued however shouldn’t be but efficient.

4. Particular insurance policies relevant from January 1, 2021 for rate of interest benchmark reform and COVID-19-related hire exemption

Curiosity Fee Benchmark Reform Section 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 grew to become efficient since January 1, 2021.

These Section 2 amendments present sensible reduction from sure necessities in IFRS Requirements. These reliefs relate to modifications of economic devices and lease contracts or hedging relationships triggered by a alternative of a benchmark rate of interest in a contract with a brand new various benchmark price.

The amendments additionally present an exception to make use of a revised low cost price that displays the change in rate of interest when remeasuring a lease legal responsibility due to a lease modification that’s required by rate of interest benchmark reform.

Lastly, the Section 2 amendments present a collection of non permanent exceptions from sure hedge accounting necessities when a change required by rate of interest benchmark reform happens to a hedged merchandise and/or hedging instrument that allow the hedge relationship to be continued with out interruption.

The Worldwide Accounting Requirements Board (IASB) has printed ‘COVID-19-Associated Lease Concessions past June 30, 2021 (Modification to IFRS 16), that extends, by one 12 months, the Might 2020 modification that gives lessees with an exemption from assessing whether or not a COVID-19-related hire concession is a lease modification.

These amendments had no influence on the interim condensed consolidated monetary statements of the Group.

5. Enterprise combos, goodwill and merger transaction

Enterprise combos are accounted for utilizing the acquisition technique. The price of an acquisition is measured as the full of the consideration transferred, measured at acquisition date truthful worth, and the quantity of any non-controlling curiosity within the acquiree. For every enterprise mixture, the acquirer measures the non-controlling curiosity within the acquiree both at truthful worth or on the proportionate share of the acquiree’s identifiable internet property. Acquisition prices incurred, resembling finder’s charges, authorized charges, due diligence charges, and different skilled and consulting charges, are expensed and included in working bills.

The Group measures goodwill because the truthful worth of the consideration transferred together with the acknowledged quantity of any non-controlling curiosity within the acquiree, much less the web acknowledged quantity (typically truthful worth) of the identifiable property acquired and liabilities assumed, all measured as on the acquisition date.

Consideration transferred contains the truthful values of the property transferred, liabilities incurred by the Group to the earlier homeowners of the acquiree, and fairness pursuits issued by the Group. Consideration transferred additionally contains the truthful worth of any contingent consideration and vested share-based fee awards of the acquiree which can be changed within the enterprise mixture.

If management is achieved in phases, the acquirer’s beforehand held fairness curiosity within the acquiree is remeasured to truthful worth as on the acquisition date by means of revenue or loss.

A contingent legal responsibility of the acquiree is acknowledged in a enterprise mixture provided that such a legal responsibility represents a gift obligation and arises from a previous occasion, and its truthful worth could be measured reliably.

Solely elements of non-controlling curiosity constituting a gift possession curiosity that entitles their holder to a proportionate share of the entity’s internet property within the occasion of liquidation are measured at both truthful worth or at present possession devices’ proportionate share of the acquiree’s identifiable internet property. All different elements are measured at their acquisition date truthful worth.

The Group accounts for a change within the possession curiosity of a subsidiary (with out lack of management) as a transaction with homeowners of their capability as homeowners. Subsequently, such transactions don’t give rise to goodwill, nor do they offer rise to a achieve or loss and are accounted for as an fairness transaction.

After preliminary recognition, goodwill is measured at price much less any gathered impairment losses. For the aim of impairment testing, goodwill acquired in a enterprise mixture is, from the acquisition date, allotted to every of the Group’s money producing items which can be anticipated to profit from the synergies of the mix, regardless of whether or not different property or liabilities of the acquiree are assigned to these items.

The place goodwill varieties a part of a cash-generating unit (CGU) and a part of the operation inside that unit is disposed of, the goodwill related to the operation disposed of is included within the carrying quantity of the operation when figuring out the achieve or loss on disposal of the operation. Goodwill disposed of on this circumstance is measured primarily based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. If the Group reorganizes its reporting construction in a approach that adjustments the composition of a number of cash-generating items to which goodwill has been allotted, the goodwill is reallocated to the items affected. The reallocation is carried out utilizing a relative worth method just like that utilized in reference to the disposal of an operation inside a cash-generating unit, until another technique higher displays the goodwill related to the reorganized items.

Acquisition of NX Studio LLC, NX On-line LLC and NHW Ltd

On February 3, 2021, Nexters International Ltd acquired 100% of the voting shares in NX On-line LLC and NX Studio LLC, two Russian sport growth studios, for the full consideration of 1,247 (RUB 93 million), which includes the entire enterprise acquisition. The consideration was absolutely paid in money. The Firm’s administration considers the acquisition of the product growth group as a main enterprise objective of the deal. The acquisition has been accounted for utilizing the acquisition technique. The interim condensed consolidated monetary statements embrace the outcomes of the businesses for the eight-month interval from the acquisition date.

On April 5, 2021, Nexters International Ltd acquired 100% of the voting shares in NHW Ltd, an organization registered in accordance with the legal guidelines of the Republic of Cyprus, for the full consideration of 24 (€20,000), which includes the entire enterprise acquisition. The consideration was absolutely paid in money. The Firm’s administration considers the acquisition of the testing growth group as a main enterprise objective of the deal. The acquisition has been accounted for utilizing the acquisition technique. The interim condensed consolidated monetary statements embrace the outcomes of the corporate for the six-month interval from the acquisition date.

The truthful values of the identifiable property and liabilities of all of the acquired corporations as on the date of acquisition had been:

  Honest worth acknowledged on
acquisition, February 3,2021,
NX Studio LLC
Honest worth acknowledged on
acquisition, February 3, 2021,
NX On-line LLC
Honest worth acknowledged on
acquisition, April 5, 2021,
NHW Ltd
Property      
Property and gear 390   85  
Intangible property 38   14  
Proper-of-use property 1,164   395  
Commerce and different receivables 656   80   15
Different property 91   27  
Money and money equivalents 26   4   1
Pay as you go tax 28    
  2,393   605   16
Liabilities      
Deferred tax legal responsibility (4 ) (16 )
Lease liabilities – present (1,164 ) (395 )
Commerce and different payables (1,415 ) (218 )
Tax legal responsibility   (4 )
  (2,583 ) (633 )
Whole identifiable internet property at truthful worth (190 ) (28 ) 16
Goodwill arising on acquisition 1,274   191   8
Buy consideration transferred 1,084   163   24
Evaluation of money flows on acquisition:    
Web money acquired with the subsidiary   31  
Money paid   (1,271 )
Web money movement in acquisition   (1,240 )

Goodwill acknowledged within the quantity of 1,473 is attributable primarily to the anticipated synergies and was assigned to the entire Group as one Money Producing Unit. Not one of the goodwill is anticipated to be deductible for earnings tax functions. The Firm didn’t acknowledge individually from the acquisition any acquisition associated prices that needs to be expensed within the present interval.

Russian corporations’ property and gear include workplace gear bought inside 2020, so its truthful worth approximates to its carrying quantity.

On the date of the acquisition, the truthful worth of the commerce receivable of Russian corporations approximates to its carrying quantity as a result of truth they’re represented by short-term advances and lease deposit.

The Group measured the acquired lease liabilities utilizing the current worth of the remaining lease funds on the date of acquisition. The appropriate-of-use property had been measured at an quantity equal to the lease liabilities.

The businesses’ commerce and different receivables quantity represents gross contractual quantities for the acquired receivables.

Nexters International Ltd and Russian corporations had been events to a pre-existing relationship with the acquirees, which needs to be accounted for individually from the enterprise mixture. No extra adjustment was made for the quantity by which the contract is favorable or unfavorable from the angle of the acquirer when put next with phrases of present market transactions for a similar or related gadgets, because the transactions comprising pre-existing relationship had been executed available on the market phrases.

From the date of acquisition, NX Studio LLC and NX On-line LLC and NHW Ltd have contributed no income because it was fully intercompany and was eradicated and contributed 624, 210 and 10 respectively to the web revenue earlier than tax from the persevering with operations of the Group.

If the acquisition had taken place originally of the 12 months, internet revenue from persevering with operations for the interval contributed by NX Studio LLC, NX On-line LLC and NHW Ltd would have been 417, 155 and 10.

Nexters International Ltd merger with Kismet Acquisition One Corp

On August 26, 2021 the Firm efficiently consummated the beforehand introduced enterprise mixture with Kismet Acquisition One Corp. (“Kismet”), which was introduced on February 1, 2021. The Firm handled the Transaction as a capital transaction equal to the problem of shares of the Firm in alternate for the web financial property of Kismet. The Transaction didn’t represent a enterprise mixture as outlined underneath IFRS 3 Enterprise Combos, as Kismet is a non-operating entity that doesn’t meet the definition of a enterprise underneath IFRS 3, as on condition that it consisted predominantly of money within the Belief Account.

As on the Closing Date, the next transactions occurred pursuant to the phrases of the Enterprise Mixture Settlement (the “Transaction”):

  • the merger of Kismet into Nexters Inc., with Nexters Inc. surviving the merger and the safety holders of Kismet (apart from safety holders of Kismet who elected to redeem their Kismet extraordinary shares) changing into safety holders of Nexters Inc. (the “Merger”),
  • the acquisition by Nexters Inc. of all of the issued and excellent share capital of Nexters International Ltd. from the holders of Nexters International’s share capital for a mixture of money and Nexters International’s extraordinary shares, such that Nexters International is a direct wholly owned subsidiary of Nexters Inc. (the “Share Acquisition”).

​Previous to the Merger, a complete of 21,811,242 Kismet extraordinary shares had been redeemed for a price of 218,190, leading to a complete of three,188,758 Kismet’s public extraordinary shares remaining issued and excellent as on the time of the Merger.

Below the Enterprise Mixture Settlement, in consideration for the acquisition of Nexters International’s share capital within the Share Acquisition, Nexters Inc.:

  • paid to the shareholders of Nexters International money in an combination quantity of 57,122;
  • issued to the shareholders of Nexters International a complete of 176,584,343 Nexters Inc. extraordinary shares; and
  • will subject to the previous shareholders of Nexters International 20,000,000 Deferred Trade Shares, topic to sure situations being met, as additional described within the part entitled (“Deferred Trade Shares”).​

The money acquired by the Group within the Transaction (submit all transaction associated bills) amounted to 119,654.

On January 31, 2021, Kismet, Nexters Inc. and Kismet Sponsor Restricted, a British Virgin Islands enterprise firm (the “Sponsor”) entered into an amended and restated Ahead Buy Settlement (the “A&R Ahead Buy Settlement”). The A&R Ahead Buy Settlement amended the Ahead Buy Settlement, dated August 5, 2020, between Kismet and the Sponsor by, amongst different issues, growing the Sponsor’s buy dedication thereunder from US$ 20 million to US$ 50 million and changing the Sponsor’s dedication to amass Kismet’s items with a dedication to amass 5,000,000 Nexters Inc. extraordinary shares and 1,000,000 Nexters Inc. public warrants in a non-public placement which occurred after the Merger and previous to the Share Acquisition.

On July 16, 2021, Kismet, Nexters International Ltd and the Sponsor entered into separate subscription agreements (every as amended, restated or supplemented infrequently, a “PIPE Subscription Settlement”) with sure institutional buyers that aren’t “U.S. individuals” as outlined in Regulation S underneath the Securities Act and with whom the Sponsor had prior enterprise relationships (every, a “PIPE Investor”), pursuant to which the PIPE Traders agreed to subscribe for and buy an combination of 5,000,000 Nexters extraordinary shares for a purchase order value of US$ 10.00 per share for an combination dedication of US$ 50 million in a non-public placements outdoors the US in reliance on Regulation S underneath the Securities Act (the “PIPE”). The PIPE was consummated concurrently with the closing of the Transaction.

As at Closing Date, instantly subsequent to the consummation of the Transaction, there have been 196,523,101 Nexters extraordinary shares excellent. Moreover, there have been 20,250,000 Nexters warrants excellent, every of which entitle the holder to buy one Nexters extraordinary share at an train value of US$ 11.50 per share. Moreover, choices to buy 120,000 Nexters extraordinary shares at an train value of US$ 10.00 per share had been held by three of Kismet’s impartial administrators, which choices vested upon the consummation of the Transaction.

The next desk units forth info concerning the shareholdings of Nexters extraordinary shares as on the Closing Date instantly subsequent to the consummation of the Transaction, primarily based on the precise variety of shares held and excellent.

Variety of
Unusual Shares
Share of
Unusual Shares
Kismet’s public shareholders 3,188,758 ​​1.6%
Sponsor 11,750,000 ​​6.0%
Nexters International shareholders ​​176,584,343 ​89.9%
PIPE buyers ​5,000,000 ​​2.5%
Whole ​196,523,101 ​100%

Deferred Trade Shares

An combination of 20,000,000 Nexters Inc. deferred alternate shares had been issued to the previous shareholders of Nexters International as a part of the Transaction. The issuance has been deferred as follows: (i) the issuance of 10,000,000 extraordinary shares, within the combination, is deferred till the quantity weighted common buying and selling value of Nexters Inc. extraordinary shares is US$ 13.50 or higher for any 20 buying and selling days inside a interval of 30 buying and selling days previous to the third anniversary of the Share Acquisition Closing; and (ii) the issuance of a further 10,000,000 extraordinary shares, within the combination, is deferred till the quantity weighted common buying and selling value of Nexters Inc. extraordinary shares is US$ 17.00 or higher for any 20 buying and selling days inside a interval of 30 buying and selling days previous to the third anniversary of the Share Acquisition Closing.

The association is accounted for in accordance with IFRS 2 and regarded in calculation of the share itemizing expense (see Be aware 11).

6. Use of judgements and estimates

In making ready these interim condensed consolidated monetary statements, administration has made judgements and estimates that have an effect on the appliance of accounting insurance policies and the reported quantities of property and liabilities, earnings, and expense. Precise outcomes might differ from these estimates.

The numerous judgements made by administration in making use of the Group’s accounting insurance policies and the important thing sources of estimation uncertainty had been the identical as these described within the Group’s consolidated monetary statements for the 12 months ended December 31, 2020 aside from as described beneath.

Change in estimates and accounting coverage

Lifespans – adjustments in estimate 

Since January 1, 2020 we decide the estimated weighted common taking part in interval of payers by sport on a quarterly foundation, starting on the time of a payer’s first buy within the respective sport and ending on a date when that paying participant is deemed to be not taking part in. To find out when paying gamers are not taking part in a given sport, we analyse the whole inhabitants of payers who made in-game funds within the related intervals and decide whether or not every payer is an lively or inactive participant as on the date of our evaluation. To find out which payers are inactive, we analyse the dates that every payer final logged into that sport. We decide a participant to be inactive as soon as they’ve reached a interval of inactivity for which it’s possible that they won’t return to a selected sport. We use judgment to set a minimal interval of inactivity to tell apart between lively customers and people which can be deemed inactive on the date of analysis which is presently decided as 30 days after final login date for almost all of platforms/video games. Primarily based on the precise expired lifespans and projection for lively gamers, we then undertaking a mean anticipated lifespan time period of the inhabitants. 

We use a statistical estimation mannequin to reach on the common taking part in interval of the paying customers for every platform. As at September 30, 2021 and 2020 participant lifespan for Hero Wars averages 24 and 21 months respectively.

The estimated participant lifespan in our different video games as at September 30, 2021 and 2020 averages 24 months and 38 months respectively.

Had there been no change within the estimated gamers lifespans as at September 30, 2021 as in comparison with September 30, 2020, the income for the 9 months ended September 30, 2021 would have been larger by an quantity of fifty,586 and the revenue earlier than tax for the 9 months ended September 30, 2021 (additionally bearing in mind the results of estimated gamers lifespans on platform commissions) would have been larger by an quantity of 36,438.

Brief-term leases and leases of low-value property – change in accounting coverage

The usual contains two recognition exemptions for lessees – leases of ’low-value’ property (e.g., private computer systems) and short-term leases (i.e., leases with a lease time period of 12 months or much less).

Since January 1, 2021 the Group doesn’t apply the short-term lease recognition exemption to its short-term leases of workplace premises (i.e., these leases which have a lease time period of 12 months or much less from the graduation date and don’t include a purchase order possibility). Lease funds on such short-term leases are acknowledged as a right-of-use asset and a lease legal responsibility on the lease graduation date.

The appropriate-of-use asset is initially measured at price, which includes the preliminary quantity of the lease legal responsibility adjusted for any lease funds made at or earlier than the graduation date, plus any preliminary direct prices incurred and an estimate of prices to dismantle and take away the underlying asset or to revive the underlying asset or the positioning on which it’s positioned, much less any lease incentives obtained.

Immaterial error

Throughout the first quarter of 2021, the Group recognized an omission associated to the calculation of withholding tax in Brazil and Taiwan. In accordance with IAS 8 Accounting Insurance policies, Modifications in Accounting Estimates and Errors, the Group evaluated the materiality of the errors from each a quantitative and qualitative perspective and concluded that the omissions had been immaterial to the Group’s prior interval consolidated monetary statements. Since these revisions weren’t materials to any prior interval interim or annual consolidated monetary statements, no amendments to beforehand filed studies are required, and the comparative knowledge for the 12 months ended December 31, 2020 is corrected in these interim condensed consolidated monetary statements. Consequently, as at and for the 12 months ended December 31, 2020, the correction of the errors resulted in a rise in Income from gross sales of digital items of 463 (Taiwan withholding tax) and a rise in Company earnings tax expense by 844 (Taiwan and Brazil withholding tax) with the respective enhance in Tax liabilities by 289 and the lower of Commerce and different payables by 97 and Commerce and different receivables by 189.

For the 9 months ended September 30, 2020 the correction of the errors resulted in a rise in Income from gross sales of digital items of 253 (Taiwan withholding tax) and a rise in Company earnings tax expense by 612 (Taiwan and Brazil withholding tax) with the respective enhance in Tax liabilities by 216 and reduce in Commerce and different receivables by 210 and the lower of Commerce and different payables by 67.

For the three months ended September 30, 2020 the correction of the errors resulted in a rise in Income from gross sales of digital items of 78 (Taiwan withholding tax) and a rise in Company earnings tax expense by 223 (Taiwan and Brazil withholding tax).

Throughout the third quarter of 2021, the Group recognized an immaterial error associated to the calculation of withholding tax in Japan for the intervals ended on December 31, 2020 and earlier. Efficient October 1, 2015, business-to-consumer (“B2C”) gross sales of electronically equipped providers (“ESS”) supplied to recipients in Japan are topic to Japanese Consumption Tax (“JCT”). Primarily based on the up to date estimation the Group’s tax obligation needs to be decided as 10/110% of Gross Gross sales of the Group in Japan within the reporting interval if Gross Gross sales for 2 years earlier than the reporting interval exceeded 10,000,000 JPY. As such, gross sales beginning 2021 are topic to taxation as the brink of 10,000,000 JPY as per JCT was exceeded within the 12 months 2019. Nevertheless, as at December 31, 2020 it was thought of all of the gross bookings within the jurisdiction needs to be taxed, thus, tax obligation was accrued on these gross sales.

The Administration of the Firm retrospectively corrected the legal responsibility beforehand accrued as at December 31, 2020 within the quantity of 1,999. Since these revisions weren’t materials to any prior interval interim or annual consolidated monetary statements, no restatements to beforehand filed studies are required, and the comparative knowledge for the 12 months ended December 31, 2020 is revised in these interim condensed consolidated monetary statements. Consequently, as at and for the 12 months ended December 31, 2020, the correction of the errors resulted in a rise in Income from gross sales of digital items of 913 and a lower in Platform fee expense by 25 with the respective lower of Commerce and different payables by 1,999, in a rise to Lengthy-term deferred income by 235, Deferred income by 851 and Lengthy-term deferred platform fee charges by 25.

For the 9 months ended September 30, 2020 the correction of the errors resulted in a rise in Income from gross sales of digital items of 429 and a lower in Platform fee expense by 10 with the respective lower of Commerce and different payables by 1,154, in a rise in Lengthy-term deferred income by 117, Deferred income by 608 and Lengthy-term deferred platform fee charges by 10.

Warrants’ valuation

Upon completion of the Transaction on August 26, 2021, every excellent warrant to buy Kismet’s extraordinary shares was transformed right into a warrant to amass one extraordinary share of the Firm, at a value of US$ 11.50 per share. A complete of 20,250,000 Kismet warrants had been transformed into 20,250,000 warrants of the Firm, 13,500,000 of that are public and 6,750,000 of that are non-public.

The Firm accounts for the warrants in its monetary statements as legal responsibility in accordance with IAS 32 – Monetary Devices: Presentation and IFRS 9 – Monetary Devices. The warrants are initially recorded at truthful worth after which revalued at every reporting date till exercised, with any change in truthful worth to be acknowledged within the assertion of revenue or loss and different complete earnings.

The truthful worth of Public Warrants, that are traded in lively market is measured primarily based on the quoted market costs.

Administration exercised judgement in making use of Monte-Carlo simulation for the aim of estimating truthful worth of Non-public Warrants disclosed within the Be aware 20. One of many key inputs considerably impacting the derived truthful worth is the Firm’s share value quote on Nasdaq. Primarily based on administration’s evaluation, the share value quote needs to be used as an enter to the mannequin with none changes. For the important thing assumptions of the mannequin see Be aware 20.

Seasonality

Our enterprise experiences the results of seasonality. We often expertise sure decreases within the effectivity of our advertising and marketing and person acquisition in direction of the top of the 12 months because of competitors for those self same customers from retail promoting campaigns throughout Halloween, Thanksgiving and Christmas. We sometimes profit from the elevated effectivity on this respect throughout the first quarter of every 12 months. To handle seasonality, our technique is to (i) lower the depth of our person acquisition and advertising and marketing campaigns in direction of the top of the 12 months; (ii) solely make the most of these channels and devices that we consider are much less saturated with the competing advertising and marketing campaigns; and (iii) enhance the depth of our person acquisition and advertising and marketing actions within the first quarter of every 12 months. Moreover, we often expertise decreased retention of our customers throughout the summer time months, as gamers are likely to spend much less time in-game in comparison with different seasons.

7. Section reporting

We function by means of one working section with one enterprise exercise: growth and publishing of on-line video games for cell, internet and social platforms, together with Hero Wars, Island Experiment, Throne Rush and different. The monetary info reviewed by our Chief Working Choice Maker, which is our Chief Government Officer and Board of Administrators, is included inside one working section for functions of allocating sources and evaluating monetary efficiency.

We disclose the geographical distribution of our income in Be aware 7. We shouldn’t have the power to trace income deferrals on a by nation foundation. Subsequently, we utilized common deferral price to in-game purchases disaggregated by geography.

8. Loss per share

Primary loss per share quantities are calculated by dividing loss for the 12 months internet of tax attributable to extraordinary fairness holders of the mother or father by the weighted common variety of extraordinary shares excellent throughout the 12 months. 

Diluted loss per share quantities are calculated by dividing the web loss for the 12 months internet of tax attributable to extraordinary fairness holders of the mother or father adjusted for the impact of any potential share train by the weighted common variety of extraordinary shares excellent throughout the 12 months plus the weighted common variety of extraordinary shares that will be issued on conversion of all of the dilutive potential extraordinary shares into extraordinary shares. 

The next displays the earnings and share knowledge utilized in primary and diluted loss per share computations for the three and 9 months ended September 31, 2021 and 2020:

  9 months ended
September 30,

  Three months ended
September 30,

 
  2021   2020   2021   2020  
Loss for the interval internet of tax attributable to extraordinary fairness holders of the mother or father for primary earnings (135,495)   (7,052)   (103,700)   (11,171)  
Weighted common variety of extraordinary shares for primary and diluted earnings per share 179,140,594   176,584,343   184,169,740   176,584,343  
Loss per share:        
Loss attributable to extraordinary fairness holders of the mother or father, US$ (0.76)   (0.04)   (0.56)   (0.06)  

The Firm applies steering on retrospective changes in IAS 33 to replicate the influence of the Transaction described in Be aware 3 on the earnings per share calculation. The variety of shares previous to the Transaction was decided as numerous shares of Nexters International Ltd multiplied by the ratio of the Nexters Inc. shares issued to the Nexters International Ltd shareholders upon the Transaction to the Nexters International Ltd shares previous to the Transaction.

The Firm doesn’t take into account the impact of the warrants bought within the Preliminary Public Providing and personal placement within the calculation of diluted loss per share, since they don’t have a dilutive impact (they aren’t ‘within the cash’). Deferred alternate shares will not be thought of by the Firm in calculation of the essential and diluted earnings per share, because the instrument is neither vested on the reporting date nor would have been vested if the reporting date had been the top of the contingent interval.

9. Income

The next desk summarizes income from contracts with clients for the three and 9 months ended September 30, 2021 and 2020:

  9 months ended September 30, Three months ended September 30,
  2021 2020 2021 2020
In-game purchases 291,758 175,041 106,277 60,614
Promoting 19,752 11,494 8,900 3,886
Whole 311,510 186,535 115,177 64,500

The quantity of 155,954 acknowledged as in-game purchases income throughout the 9 months ended September 30, 2021 (9 months ended September 30, 2020: 56,063) was included within the stability of deferred income as at January 1, 2021 and 2020 respectively (for particulars see Be aware 21).

The next desk set forth income disaggregated primarily based on geographical location of our payers:

Geographic location 9 months ended September 30, Three months ended September 30,
  2021 2020 2021 2020
US 99,127 72,513 35,334 23,863
Europe 68,427 42,850 23,838 15,185
FSU* 40,972 27,980 15,433 9,345
Asia 75,011 28,072 29,945 11,037
Different 27,973 15,120 10,627 5,070
Whole 311,510 186,535 115,177 64,500

*Former Soviet Union nations contains Russia, Ukraine, Georgia, Belorussia, Uzbekistan, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Tajikistan, Latvia, Lithuania and Estonia.

98% of the Group’s complete revenues for the 9 months ended September 30, 2021 was generated by Hero Wars sport title (97% – for the 9 months ended September 30, 2020).

98% of the Group’s complete revenues for the three months ended September 30, 2021 was generated by Hero Wars sport title (98% – for the three months ended September 30, 2020).

10. Recreation operation price

Recreation operation price consists primarily of worker advantages bills compared with prior intervals as a result of acquisition of Russian corporations, which beforehand supplied technical assist providers to the Firm.

The next desk summarizes sport operation price for the three and 9 months ended September 30, 2021 and 2020:

  9 months ended September 30,
  Three months ended September 30,
 
  2021   2020   2021   2020  
Technical assist providers (3,651)   (10,804)   (1,103)   (3,957)  
Worker advantages bills (9,346)   (667)   (3,735)   (263)  
  (12,997)   (11,471)   (4,838)   (4,220)  

Technical assist primarily pertains to upkeep and upgrades of the Group’s software program purposes supplied by a 3rd social gathering.

11. Promoting and advertising and marketing bills

Promoting and advertising and marketing bills consist primarily of bills to draw new customers by means of promoting. The next desk summarizes promoting and advertising and marketing bills for the three and 9 months ended September 30, 2021 and 2020:

  9 months ended September 30, Three months ended September 30,
  2021   2020   2021   2020  
Promoting prices (217,471)   (125,796)   (62,837)   (52,820)  
Worker advantages bills (1,683)   (596)   (845)   (219)  
  (219,154)   (126,392)   (63,682)   (53,039)  

Promoting prices elevated in 2021 compared with the respective intervals of 2020 because the Group’s administration determined to extend the investments into the longer term development of revenues in lieu of the favorable market situations.

12. Normal and administrative bills

The next desk summarizes normal and administrative bills for the three and 9 months ended September 30, 2021 and 2020:

  9 months ended September 30, Three months ended September 30,
  2021   2020   2021   2020  
Worker advantages bills (5,720)   (674)   (3,024)   (224)  
Skilled charges (5,338)   (75)   (1,937)   (39)  
Different working bills (2,637)   (120)   (1,096)   (43)  
  (13,695)   (869)   (6,057)   (306)  

13. Share itemizing expense

In accordance with IFRS 2, the distinction within the truthful worth of the consideration for the acquisition of Kismet over the truthful worth of the identifiable internet property of Kismet will symbolize a service for itemizing of the Firm and be accounted for as a share-based fee expense. The consideration for the acquisition of Kismet was decided utilizing the truthful values of the Firm´s extraordinary shares and private and non-private warrants as at August 27, 2021. The online property of Kismet had a good worth of upon closing of 111,286. The surplus of the truthful worth of the fairness devices issued over the truthful worth of the recognized internet property contributed within the quantity of 125,438, represents a non-recurring non-cash expense in accordance with IFRS 2. It’s acknowledged as Share itemizing expense introduced as a part of the monetary end result throughout the interim condensed consolidated assertion of revenue or loss and different complete earnings.

Particulars of the calculation of the Share itemizing expense are as follows:

  Variety of Shares Quantity  
Kismet’s present public shareholders 3,188,758  
Sponsor 11,750,000  
PIPE buyers 5,000,000  
Whole Nexters Inc. Shares issued to Kismet shareholders 19,938,758  
Market worth per share at August 27, 2021 US$ 10.6684  
Honest worth of shares issued   212,715  
Web property of Kismet at August 27, 2021   111,286  
Impact of accounting for truthful worth of warrants   (24,009)  
Web property of Kismet at August 27, 2021 together with impact of truthful worth of warrants1   87,277  
Distinction – being IFRS 2 cost for itemizing providers   125,438  

14. Taxation

The Group acknowledged earnings tax expense within the quantity of 845 for the 9 months ended September 30, 2021 (9 months ended September 30, 2020: 612). Tax expense acknowledged for the three months ended September 30, 2021 amounted 291 (three months ended September 30, 2020: 223).

In accordance with the Cypriot tax guidelines the businesses shall use their monetary reporting in accordance with IFRS as tax information with sure insignificant exceptions. In consequence, Nexters International Ltd. has no materials non permanent variations between the tax and accounting bases of property and liabilities and consequently no materials deferred tax impact ensuing from such variations. Below sure situations curiosity earnings of 0 (7 for the 9 months ended September 30, 2020) could also be topic to defence contribution on the price of 30%. In such circumstances this curiosity can be exempt from company tax. No curiosity earnings for the three months ended September 30, 2021 and 2020 existed. In sure circumstances, dividends obtained from overseas could also be topic to defence contribution on the price of 17%.

The relevant tax price used for reconciliation is 12.5%. The Group makes use of Cyprus tax price because the relevant price being the most significant price and likewise the home price of tax within the nation during which Nexters International Ltd and Nexters Inc. are tax residents.

(a) Cyprus IP field regime

In 2012, the federal government of Cyprus launched a regime relevant to Mental Property (IP). The provisions of the IP regime permit for an 80% deemed deduction on royalty earnings and capital beneficial properties upon disposal of IP, owned by Cypriot resident corporations (internet of any direct bills and amortization provisions over a 5-year interval). Corporations benefiting from the IP regime might apply its provisions till June 30, 2021, if the IP property both generated earnings or their growth was accomplished as at June 30, 2016. The efficient tax price on eligible IP earnings might be as little as 2.5%. In case a loss arises as an alternative of revenue, the quantity of loss that may be set off is proscribed to twenty%. The respective tax loss could be carried ahead and utilized for the interval of 5 years. Ending of the IP Field regime on June 30, 2021 doesn’t have an effect on the quantities of present or deferred earnings taxes acknowledged at September 30, 2021. Nevertheless, this alteration elevated the Group’s efficient tax price accordingly.

(b) Reconciliation of efficient tax price

The reconciliation of the efficient tax price to a statutory tax price is introduced in a desk beneath:

  9 months ended September 30,
  Three months ended September 30,
 
  2021   2020   2021   2020  
Loss earlier than earnings tax (134,650)   (6,440)   (103,409)   (10,948)  
Tax calculated on the relevant tax charges 16,831   805   13,010   1,372  
Impact of various tax charges in different nations 55   9   107   13  
Tax impact of bills not deductible for tax functions and non-taxable earnings (13,857)   420   (14,087)   158  
Tax impact of deductions underneath particular tax regimes (3,353)   (1,251)     (1,264)  
Tax impact of tax losses introduced ahead 267   17   942   (279)  
Abroad tax in extra of credit score declare used throughout the interval (788)   (612)   (263)   (223)  
Earnings tax expense (845)   (612)   (291)   (223)  

(c) Uncertainty over the earnings tax therapy and unrecognized deferred tax asset

Ranging from January 1, 2019 Nexters International Ltd. has modified its tax reporting ideas, judgements and estimates in just a few areas together with, amongst others, income recognition for in-game purchases and software program growth prices, which resulted in a considerable quantity of revenues associated to in-game purchases made by Firm’s shoppers in 2019 being deferred to 2020 and past (see Notes 4 and 21 for particulars). Consequently, the Firm has booked a considerable tax loss in 2019 and in 2021 thus far versus reasonable income recorded within the prior intervals and in 2020.

These new ideas and estimates in respect of the tax information haven’t but been assessed or accredited by the tax authorities, due to this fact we have now no assurance as as to whether they are going to be accepted by the related tax authorities. There additionally could be no assurance that the accounting therapy of sure transactions underneath IFRS as accepted by the Firm like share-based funds, oblique taxes and so forth. is not going to be challenged by the related tax authorities. The Firm has not acknowledged any tax expense in respect of those uncertainties because it believes that its tax information are in compliance with the present legal guidelines and laws and that its accruals for tax liabilities are adequate and sufficient for all open tax years primarily based on its evaluation of many components, together with interpretations of tax regulation and prior expertise.

Abroad tax in extra of credit score claims used throughout the 12 months represents withholding earnings tax expenses imposed in respect of the Group’s bookings in sure jurisdictions the place the Group’s clients are positioned.

As at September 30, 2021 the Group didn’t acknowledge a deferred tax asset of 764 ensuing from the tax losses comprised of reported in 2019 due to the uncertainties described above in addition to tax losses incurred in 2020 and throughout the 9 months ended September 30, 2021 (December 31, 2020 – 1,031). Tax losses for which no deferred tax asset was acknowledged expire in 2025.

15. Dividends

The next dividends had been declared and paid by Nexters International Ltd previous to the Transaction:

  9 months ended
September 30,

  Three months ended
September 30,

 
  2021   2020   2021   2020  
Dividends unpaid as at January 1, (July 1) 2,592   88   2,042    
Dividends declared for the 9 months ended September 30, per share US$ 4,800 (2020: 896) 96,000   17,910   46,000   9,848  
Dividends paid (98,562)   (17,853)   (48,028)   (9,666)  
Impact of international alternate charges (30)   212   (14)   175  
Dividends unpaid as at September 30   357     357  

The Cypriot regulation requires corporations established underneath the legal guidelines of Cyprus to pay dividends out of accessible distributable income. Earnings within the authorized sense are construed on ideas completely different from IFRS. Administration of the subsidiary decided the quantity of the distributable income of the subsidiary as on the dates of dividends declaration in accordance with the relevant regulation, guaranteeing the provision of funds for masking all potential and contingent liabilities and making an allowance for that deferred income, showing on the stability sheet as a legal responsibility don’t represent legal responsibility within the authorized sense however they’re in essence a postponement within the recognition of income.

16. Property and gear

Throughout the 9 months ended September 30, 2021, the Group acquired property and gear with a price of 710 (9 months ended September 30, 2020: 139). Property and gear with a price of 475 was acquired within the means of acquisition of subsidiaries. No property had been disposed of by the Group throughout the 9 months ended September 30, 2021 and 2020.

17. Loans receivable

On October 1, 2018, the Firm entered right into a mortgage settlement with its shareholder Boris Gertsovsky, for the full quantity of € 240,000 (US$ 278,000) with an annual rate of interest of two%. In December 2019 €85,000 (US$ 95,000) had been repaid. The mortgage was absolutely repaid on April 23, 2020.

On July 30, 2019, the Firm entered right into a mortgage settlement with its shareholder, Boris Gertsovsky, for the full quantity of €300,000 (US$ 327,000). The mortgage was supplied interest-free and was absolutely repaid on July 24, 2020.

On October 30, 2019, the Firm entered right into a mortgage settlement with its shareholder Boris Gertsovsky, for the full quantity of €10,000 (US$ 11,000). The mortgage was supplied curiosity free with excellent stability of 8 as at December 31, 2020 and was absolutely repaid on February 12, 2021.

The publicity of the Group to credit score threat is reported in Be aware 24 to those interim condensed consolidated monetary statements.

18. Lease

The quantities acknowledged within the interim condensed consolidated assertion of revenue or loss and different complete earnings apart from depreciation in relation to leases are introduced within the desk beneath:

  Proper-of-use property   Lease liabilities  
Steadiness at January 1, 2021 1,044   1,111  
Additions 1,712   1,712  
Depreciation (1,326)    
Curiosity expense   54  
Funds   (1,421)  
Impact of international alternate charges  —   (55)  
Steadiness at September 30, 2021 1,430   1,401  
     
Lease liabilities – present   860  
Lease liabilities – non-current   541  
     
     
  Proper-of-use property   Lease liabilities  
Steadiness at January 1, 2020 71   70  
Additions 1,236   1,236  
Depreciation (176)    
Curiosity expense   18  
Funds   (264)  
Impact of international alternate charges  —   96  
Steadiness at September 30, 2020 1,131   1,156  
     
Lease liabilities – present   382  
Lease liabilities – non-current   774  
  9 months ended September 30, Three months ended September 30,
  2021 2020 2021 2020
Expense referring to low-value leases 16 6 8 1
Curiosity expense on lease liabilities 54 18 4 9
  70 24 12 10

On June 1, 2019 the Group entered into a brand new lease settlement for workplace areas with a brand new proprietor. The lease runs for 2 years, with an possibility of renewal after that date topic to the adjustment of the lease funds to the market situations. On Might 5, 2021 the brand new lease settlement was concluded for a similar workplace areas. The lease settlement was concluded for 2 years, with an possibility of renewal after that date topic to the adjustment of the lease funds to the market situations. Because the market situations on the lease expiration date can’t be reliably estimated as on the graduation date administration determined to not account for the lease renewal possibility whereas figuring out the quantity of right-of-use property and lease liabilities.

On March 24, 2020 the Group entered into a brand new lease settlement over workplace areas with a brand new proprietor. The lease runs for five years, with an possibility of acquiring a reduction whereas paying in lumpsum for the entire 12 months. Because the Group already makes such funds and obtained the low cost for the primary 12 months, administration determined to account for this feature whereas figuring out the quantity of right-of-use property and lease liabilities for the primary 12 months of the lease.

On February 3, 2021 Nexters International Ltd acquired two Russian sport growth studios which had a number of lease agreements for various flooring of the workplace constructing in Moscow. As these contracts had been entered into close to the identical time with the identical counterparty, the contracts are mixed as a single contract. The Firm determines the graduation date as February 3, 2021, which is taken into account to be acquisition date.

The Group measures the lease legal responsibility at present worth of the remaining lease funds as if the acquired lease had been a brand new lease on the acquisition date. The Group measures the right-of-use asset on the similar quantity because the lease legal responsibility.

Whole money outflow for leases acknowledged within the interim condensed consolidated assertion of money flows is introduced beneath:

  9 months ended September 30, Three months ended September 30,
  2021 2020 2021 2020
Сash outflow for leases 1,367 246 427 13
Money outflow for short-term and low-value leases 4
Whole money outflow for leases 1,367 250 427 13

All lease obligations are denominated in € and RUB. The speed of three% every year was used because the incremental borrowing price for the workplaces in Cyprus and seven.5% for the workplace in Moscow.

19. Commerce and different receivables as restated

  September 30, 2021 December 31, 2020 As beforehand reported,
December 31, 2020
Commerce receivables 43,856 30,720 30,909
Deposits and prepayments 2,819 2,045 2,045
Different receivables 994 209 209
Whole 47,669 32,974 33,163

The Group doesn’t maintain any collateral over the buying and selling receivables balances.

The truthful values of commerce and different receivables approximate their carrying quantities as introduced above. Commerce receivables stability as at September 30, 2021 elevated considerably compared with that of December 31, 2020 as a consequence of total enhance in Group’s working exercise.

The publicity of the Group to credit score threat and impairment losses in relation to commerce and different receivables is reported in Be aware 24 to those interim condensed consolidated monetary statements.

The quantity of anticipated credit score losses (“ECL”) in respect of commerce and different receivables as at September 30, 2021 and December 31, 2020 shouldn’t be important.

20. Commerce and different payables as restated

  September 30,
2021
December 31,
2020
As beforehand reported,
December 31, 2020
Commerce payables 19,353 9,793 9,793
Provision for oblique taxes 5,871 1,754 3,850
Dividends payable 2,592 2,592
Accrued salaries, bonuses, trip pay and associated taxes 4,299 866 2,050
Accrued skilled providers 266 1,184
Different payables 510 1,314 1,314
Whole 30,299 17,503 19,599

Commerce payables stability as at September 30, 2021 elevated compared with that of December 31, 2020 as a result of elevated promoting expense to draw new customers in 2021.

The publicity of the Group to liquidity threat in relation to monetary devices is reported in Be aware 24.

21. Loans and borrowings

On August 1, 2018, Stream Analysis S. L. entered right into a mortgage settlement with Empathy Worldwide S. A., for the full quantity of €40,000 (US$ 47,000). The mortgage was additional assigned on October 30, 2018 to Boris Gertsovsky (as transferee). The mortgage was supplied curiosity free with a stability of 49 as at December 31, 2020 and was absolutely repaid in April 2021.

22. Share warrant obligations

Upon completion of the Transaction on August 26, 2021, every excellent warrant to buy Kismet’s extraordinary shares was transformed right into a warrant to amass one extraordinary share of the Firm, at a value of US$ 11.50 per share. A complete of 20,250,000 Kismet warrants had been transformed into 20,250,000 warrants of the Firm, 13,500,000 of that are public and 6,750,000 of that are non-public.

As disclosed in Be aware 4, the truthful worth of Public Warrants, that are traded in lively market is measured primarily based on the quoted market costs.

  August 27,
2021
September 30,
2021
Warrant value (US$)2 0.93 0.84

The truthful worth of Non-public Warrants is measured utilizing Monte-Carlo simulation technique together with Deferred Trade Shares due to their potential dilution impact.

Key assumptions of the mannequin:

  August 27, 2021 September 30, 2021
Threat free price ahead USD in a single day index swap (OIS) charges (curve 42) ahead USD in a single day index swap (OIS) charges (curve 42)
Volatility ahead implied volatility charges primarily based on volatilities of publicly traded friends ahead implied volatility charges primarily based on volatilities of publicly traded friends
Beginning share value 10.67 6.64
Anticipated warrant life (years) 5.0 4.9

The Firm has acknowledged the next warrant obligations:

  Public Warrants   Non-public Warrants   Whole  
Steadiness at August 27, 2021 12,606   19,503   32,109  
Honest worth adjustment (1,266)   (12,371)   (13,637)  
Steadiness at September 30, 2021 11,340   7,132   18,472  

The change in truthful worth of share warrant obligation is disclosed as part of Web finance earnings within the interim condensed assertion of revenue or loss and different complete earnings.

23. Deferred income and deferred platform fee charges

As at September 30, 2021, deferred income is anticipated to be acknowledged over a time period of calculated common taking part in interval of the paying customers (for particulars see Be aware 4).

Deferred income is related to the portion of in-game purchases income that’s acknowledged over time.

The textual content beneath summarizes the change in deferred income and platform fee charges for the 9 months ended September 30, 2021 and 2020.

Primarily based on the estimations described in Be aware 4, the Group’s income acknowledged throughout the interval of 9 months ended September 30, 2021 is 215,536 (9 months ended September 30, 2020 – 113,642) and deferred the quantity of 322,248 (September 30, 2020 – 252,458).

The Group’s platform fee acknowledged throughout the interval of 9 months ended September 30, 2021 is 63,641 (9 months ended September 30, 2020 – 35,757) and deferred the quantity of 87,238 (September 30, 2020 – 76,443).

The rise within the quantities of deferred income and platform fee as at September 30, 2021 in comparison with December 31, 2020 is usually as a consequence of a rise within the in-game purchases (for particulars see Be aware 7) and within the lifespans (for particulars see Be aware 4).

24. Associated social gathering transactions

The desk presenting the knowledge concerning the shareholdings of Nexters Inc.’s extraordinary shares as at September 30, 2021 is disclosed in Be aware 3.

As at September 30, 2021 the Firm’s key shareholders are Andrey Fadeev and Boris Gertsovsky, every proudly owning 20.3%, Dmitrii Bukhman and Igor Bukhman, every proudly owning 18.9% and Ivan Tavrin proudly owning 5.9% of the issued shares.

The transactions and balances with associated events are as follows:

(i) Administrators’ remuneration

The remuneration of Administrators and different members of key administration was as follows:

  9 months ended September 30, Three months ended September 30,
  2021 2020 2021 2020
Administrators’ remuneration 618 251 234 89
Different members of key administration’s remuneration 1,819 161 728 58
-short-term worker advantages 908 161 522 58
-share-based funds 911 206
  2,437 412 962 147

(ii) Loans to shareholders

  September 30, 2021 December 31, 2020
Mortgage to Boris Gertsovsky 8
  8

(iii) Loans from shareholders

  September 30, 2021 December 31, 2020
Brief-term mortgage from Boris Gertsovsky 49
  49

25. Listing of subsidiaries

Upon the closing of the transaction disclosed within the Be aware 3, Nexters Inc. grew to become the direct mother or father of, and conducts its enterprise by means of Nexters International Ltd, a developer of cell, internet, and social video games.

Set out beneath is a listing of subsidiaries of the Group.

Title Possession Curiosity Possession Curiosity
     
  September 30, 2021
%
December 31, 2020
%
Topland Administration Ltd 100
Stream Analysis S.L. 100 100
NX On-line LLC 100
NX Studio LLC 100
NHW Ltd 100
Nexters International Ltd 100
Synergame Investments Ltd 100

Topland Administration Ltd

Topland Administration Ltd was included within the British Virgin Islands on December 7, 2010. The registered workplace of the corporate is at Vistra Company Providers Centre, Wickhams Cay II, Street City, Tortola, British Virgin Islands. The corporate has been liquidated on February 19, 2021.

Stream Analysis S.L.

Stream Analysis S.L. was included in Barcelona, Spain, on November 10, 2017. The registered workplace of the corporate is at CL Fontanella 4, Orihuela Alicante, 03189 Spain. The corporate’s principal actions are inventive design of on-line video games.

NX Studio LLC

NX Studio LLC was included in Moscow, the Russian Federation on July 7, 2015. The registered workplace of the corporate is Zemlyanoy lane, 50A Constructing 2, 109028, Moscow. The corporate’s principal actions are sport growth. NX Studio LLC was renamed to Nexters Studio LLC in June of 2021.

NX On-line LLC

NX On-line LLC was included in Moscow, the Russian Federation on January 29, 2020. The registered workplace of the corporate is Zemlyanoy lane, 50A Constructing 2, 109028, Moscow. The corporate’s principal actions are technical assist for the net gaming. NX On-line LLC was renamed to Nexters On-line LLC in June of 2021.

NHW Ltd

NHW Ltd was included in Larnaca, Republic of Cyprus on March 9, 2020. The registered workplace of the corporate is Faneromenis, 107, P.C. 6031, Larnaca, Cyprus. The corporate’s principal actions are publication and testing of program purposes.

Nexters International Ltd

Nexters International Ltd was included in Larnaca, Republic of Cyprus on November 2, 2009. The registered workplace of the Firm is at Faneromenis 107, 6031, Larnaca, Cyprus. The corporate’s principal actions are sport growth.

Synergame Investments Ltd

Synergame Funding Ltd was included in Limassol, Republic of Cyprus on September 1, 2021. The registered workplace of the corporate is Griva Digeni, 55, P.C. 3101, Limassol, Cyprus. The corporate’s principal exercise is to supply impartial builders with experience and funds wanted to launch their video games and construct profitable worldwide companies.

26. Monetary devices – truthful values and threat administration

A. Accounting classifications

The next desk exhibits the carrying quantities of economic property and monetary liabilities as at September 30, 2021 and December 31, 2020. For all of the Group’s monetary property and monetary liabilities their carrying quantities are affordable approximations of their truthful values.

The comparative knowledge for the 12 months ended December 31, 2020 was corrected in these interim condensed consolidated monetary statements as acknowledged in Be aware 4.

Monetary property as restated are as follows:

    September 30, December 31 As beforehand reported,
2021 2020 December 31, 2020
Monetary property at amortized price        
Commerce receivables   43,856 30,720 30,909
Money and money equivalents   105,453 84,557 84,557
Loans receivable   8 8
Whole   149,309 115,285 115,474

Monetary liabilities as restated are as follows:

    September 30, December 31, As beforehand reported,
2021 2020 December 31, 2020
Monetary liabilities not measured at truthful worth        
Loans from shareholders   49 49
Lease liabilities   1,401 1,111 1,111
Commerce and different payables   30,299 17,503 19,599
Whole   31,700 18,663 20,759
    September 30, December 31, As beforehand reported,
2021 2020 December 31, 2020
Monetary liabilities measured at truthful worth        
Share warrant obligations   18,472
Whole   18,472

B. Monetary threat administration

The Firm’s Board of Administrators has total accountability for the institution and oversight of the Group’s threat administration framework.

The Group’s threat administration insurance policies are established to establish and analyze the dangers confronted by the Group, to set applicable threat limits and controls, and monitor dangers and adherence to limits. Threat administration insurance policies and programs are reviewed frequently to replicate adjustments in market situations and within the Group’s actions.

The Group has publicity to the next threat arising from monetary devices:

(i) Credit score threat

Credit score threat arises when a failure by counterparties to discharge their obligations might scale back the quantity of future money inflows from monetary property available on the reporting date. The Group’s credit score threat arises predominantly from commerce receivables and is concentrated round key platforms, by means of which the Group is distributing on-line video games. As at September 30, 2021 and December 31, 2020 the most important debtor of the Group constituted 30% and 28% of the Group’s Commerce and different receivables and the three largest debtors of the Group constituted 65% and 73% of the Group’s Commerce and different receivable respectively.

Credit score threat associated to commerce receivables is taken into account insignificant, since virtually all gross sales are generated by means of main corporations, with constantly excessive credit score rankings. These distributors pay the Group month-to-month, primarily based on gross sales to the top customers. Funds are made inside 3 months after the sale to the top buyer. The distributors take full accountability for monitoring and accounting of finish buyer gross sales and ship to the Group month-to-month studies that present quantities to be paid. The Group doesn’t have any materials overdue or impaired accounts receivable.

The carrying quantity of economic property represents the utmost credit score publicity. The utmost publicity to credit score threat on the reporting date as restated was:

  September 30, December 31, As beforehand reported,
2021 2020 December 31, 2020
Loans receivables from associated events 8 8
Commerce receivables 43,856 30,720 30,909
Money and money equivalents 105,453 84,557 84,557

Anticipated credit score loss evaluation for company clients as at September 30, 2021 and December 31, 2020

The Group allocates every publicity a credit score threat grade primarily based on knowledge that’s decided to be predictive of the danger of loss (together with however not restricted to exterior rankings, audited monetary statements, administration accounts, and money flows projections) and making use of skilled credit score judgement.

Commerce and different receivables

The ECL allowance in respect of Commerce and different receivables is decided on the premise of the lifetime anticipated credit score losses (“LTECL”). The Group makes use of the credit standing for every of the big debtors the place out there or makes its personal judgement as to the credit score high quality of its debtors primarily based on their most up-to-date monetary reporting or the ranking assigned to their nation of incorporation. After assigning the credit standing to every of the debtors the Group determines the chance of default (“PD”) and loss given default (“LGD”) primarily based on the info printed by the internationally acknowledged ranking businesses. The decided quantities of allowances for ECL for every of the debtors are then adjusted for the forecasted macroeconomic components, which embrace the forecasted unemployment price in every of the nations the place the debtors are included and forecasted development price of the worldwide gaming market from publicly out there sources. ECL in respect of Commerce and different receivables is insignificant as at September 30, 2021 and December 31, 2020.

Money and money equivalents

The money and money equivalents are held with monetary establishments, that are rated B- to A primarily based on Fitch’s rankings.

Impairment on money and money equivalents has been measured on a 12-month anticipated loss foundation and displays the brief maturities of the exposures. The Group considers that its money and money equivalents have low credit score threat primarily based on the exterior credit score rankings of the counterparties. Subsequently, no impairment allowance was acknowledged as at September 30, 2021 and December 31, 2020.

(ii) Liquidity threat

Liquidity threat is the danger that the Group will encounter issue in assembly the obligations related to its monetary liabilities which can be settled by delivering money or one other monetary asset. The Group’s goal when managing liquidity is to make sure, so far as potential, that it’s going to have adequate liquidity to satisfy its liabilities when they’re due, underneath each regular and pressured situations with out incurring unacceptable losses or risking injury to the Group’s repute.

The Group screens the extent of anticipated money inflows on commerce and different receivables along with anticipated money outflows on commerce and different payables.

The next are the contractual maturities of economic liabilities on the reporting date. The quantities are gross and undiscounted and embrace contractual curiosity funds and exclude the influence of netting agreements.

September 30, 2021 Carrying
quantities
Contractual
money flows
3 months or
much less
Between 3-12
months
Between 1-5
years
Non-derivative monetary liabilities          
Obligations underneath finance leases 1,401 1,336 419 343 574
Commerce and different payables 30,299 30,299 30,299
  31,700 31,635 30,718 343 574
December 31, 2020  Carrying quantities as beforehand reported Carrying
quantities
Contractual
money flows
3 months or
much less
Between 3-12
months
Between 1-5
years
Non-derivative monetary liabilities            
Obligations underneath leases 1,111 1,111 1,167 32 288 847
Commerce and different payables 19,599 17,503 17,503 17,503
Loans from shareholders 49 49 49 49
  20,759 18,663 18,719 17,535 337 847

(iii) Market threat

Market threat is the danger that adjustments in market costs, resembling international alternate charges and/or fairness costs will have an effect on the Group’s earnings or the worth of its holdings of economic devices.

The target of market threat administration is to handle and management market threat exposures inside acceptable parameters, whereas optimizing the return.

(iv) Forex threat

Forex threat is the danger that the worth of economic devices will fluctuate as a consequence of adjustments in international alternate charges. Forex threat arises when future business transactions and acknowledged property and liabilities are denominated in a forex that’s not the Group’s purposeful forex. The Group is uncovered to international alternate threat arising from varied forex exposures primarily with respect to the Euro and the Russian Ruble. The Group’s administration screens the alternate price fluctuations on a steady foundation and acts accordingly.

The Group’s publicity to international forex threat was as follows:

September 30, 2021 Euro Russian Ruble
     
Property     
Commerce and different receivables 10,701   3,910  
Money and money equivalents 19,114   658  
  29,815   4,568  
Liabilities     
Lease liabilities (862 ) (539 )
Commerce and different payables (2,214 ) (3,041 )
  (3,076 ) (3,580 )
Web publicity 26,739   988  
December 31, 2020 Euro Russian Ruble
     
Property     
Loans receivable 8    
Commerce and different receivables 9,661   2,649  
Money and money equivalents 11,404   741  
  21,073   3,390  
Liabilities     
Lease liabilities (1,111 )  
Commerce and different payables (5,811 ) (3 )
Loans and borrowings (49 )  
  (6,971 ) (3 )
Web publicity 14,102   3,387  

Sensitivity evaluation

A fairly potential 10% strengthening or weakening of the US Greenback in opposition to the next currencies at September 30, 2021 and December 31, 2020 would have elevated (decreased) fairness and revenue or loss by the quantities proven beneath.

This evaluation assumes that every one different variables, specifically rates of interest, stay fixed.

September 30, 2021 Strengthening of
US$ by 10%
Weakening of
US$ by 10%
     
Euro (2,674 ) 2,674
Russian Ruble (99 ) 99
  (2,773 ) 2,773
     
     
     
December 31, 2020 Strengthening of
US$ by 10%
Weakening of
US$ by 10%
     
Euro (1,410 ) 1,410
Russian Ruble (339 ) 339
  (1,749 ) 1,749

27. Share-based funds

Nexters Lengthy-Time period Incentive Plan

In 2016 we adopted a Lengthy-Time period Incentive Plan (“LTIP”). Below this LTIP key workers of the Group and key workers of the Group’s service supplier (“non-employees”) obtained remuneration within the type of share choices, whereby they render providers as consideration for fairness devices. Inside present LTIP a number of tranches of share-based choices for Class A shares and Class B shares had been issued:

Class of shares   Grant Date   No. of choices granted   Vesting
interval
  Vesting situations
Class A   10.01.2016   1,100*   2016-2019   Service situation
Class B   01.01.2019   660*   2019   Service situation
Class B complicated vesting   01.01.2019   1,300*   2027   Service situation, efficiency non-market situation
Advanced conditional upon itemizing   18.11.2020   -**   2021   Service situation, efficiency non-market situation
Whole share choices granted as at September 30, 2021   3,060    
     

* Choices granted discuss with Nexters International Ltd shares

** Choices granted discuss with new entity shares after the proposed transaction and will not be thought of within the quantities within the desk above (max. quantity 100,000 choices)

We recorded share-based funds expense normally and administrative bills and sport operation price of our interim condensed consolidated assertion of revenue or loss and different complete earnings. The desk beneath summarized the share-based funds expense inside three and 9 months ended September 30, 2021 and 2020:

  9 months ended
September 30,
Three months ended
September 30,
  2021 2020 2021 2020
Class B complicated vesting 36 12
Advanced conditional upon itemizing 911 206
Whole recorded bills 911 36 206 12
therein acknowledged:        
inside Recreation operation price 18 6
inside Normal and administrative bills 911 18 206 6

In relation to the share-based fee expense for 9 months ended September 30, 2020 we acknowledged the rise in Different reserves of 36 because it corresponds to the fairness settled portion of the share choices and 538 in liabilities because it corresponds to the dividends safety characteristic of the share choices.

In relation to the share-based fee expense for 9 months ended September 30, 2021 we acknowledged the rise in Different reserves of 96 because it corresponds to the fairness settled portion of the share choices and 815 in liabilities because it corresponds to non-share-based money various and 486 in liabilities because it corresponds to the dividends safety characteristic of the share choices.

Class B complicated vesting (performance-based awards)

Below the present LTIP Class B share choices had been granted to at least one worker and one non-employee on January 1, 2019 with a service situation and a particular performance-based non-market vesting situation (internet earnings thresholds per administration accounts). The contractual time period of the choices is 10 years. We estimate the truthful worth of granted awards utilizing a Monte-Carlo Simulation technique, which takes under consideration assumptions such because the anticipated volatility, the risk-free rate of interest primarily based on the contractual time period of the award and anticipated dividend yield.

The choices had been accounted for within the present 12 months based on a vesting interval and the evaluation of efficiency situations achievement. For the needs of the valuation every efficiency situation threshold is handled as a separate possibility with a separate valuation of the vesting interval. Primarily based on the analysis on the grant date the respective choices which have nil FV and will not be projected as to be reachable we take into account it unlikely that these choices will vest.

The next desk presents truthful worth per one possibility and associated parameters used to estimate the truthful worth of our choices on the grant date:

Analysis date (grant date)   January 1, 2019  
Fairness worth, US$ mln   132  
Anticipated volatility   41.00%  
Dividend yield   6.80%  
Proxy internet earnings indicator   0.041201  
Low cost for Lack of Marketability*   8.40%  
Whole FV for 1,300 complicated choices   1,157.20  

*- utilized to the results of truthful worth estimation

The desk beneath summarizes the bills acknowledged in relation to the above-mentioned choices:

  9 months ended
September 30,
Three months ended
September 30,
  2021 2020 2021 2020
Bills in relation to fulfilled situation 36 12
Whole recorded bills 36 12

Advanced conditional upon itemizing

Below the present LTIP share choices within the entity surviving the proposed Transaction as described in Be aware 3 had been granted to at least one worker on November 18, 2020 with a service situation and a collection of particular performance-based non-market vesting situations associated to the itemizing. The contractual time period of the choices is 2 years. For the reason that settlement comprises a clause that grants an worker the discretion of receiving money consideration or choices we deal with the next settlement as a compound monetary instrument that features each a legal responsibility and an fairness element.

We estimate the truthful worth of money consideration first and estimate the truthful worth of the fairness element consequently. The truthful worth of money consideration is estimated as nominal worth of associated money funds at assumed vesting date. We estimate the truthful worth of granted awards utilizing Black-Scholes-Merton pricing mannequin making an allowance for the phrases and situations on which the choices had been granted and accounted for within the present 12 months.

The next desk presents truthful worth per one possibility and associated assumptions used to estimate the truthful worth of fairness element of our choices on the grant date:

Analysis date (grant date)   November 18,
2020
  November 18,
2020
 
Vesting interval   12m   8m  
Market value, US$   9.91   9.91  
Strike value, US$   10.00   10.00  
Anticipated volatility   34.8%   34.8%  
Dividend yield   0.0%   0.0%  
Threat-free rate of interest   0.11%   0.11%  
Low cost for Lack of Marketability   N/A   N/A  
FV of possibility, US$   1.34   1.11  

The choices had been accounted for in present 12 months based on the vesting interval and the evaluation of efficiency situations achievement. For the needs of the valuation every efficiency situation threshold is handled as a separate possibility with a separate valuation of vesting interval.

The desk beneath summarizes the bills acknowledged in relation to the abovementioned choices:

  9 months ended
September 30,
Three months ended
September 30,
  2021 2020 2021 2020
Bills in relation to fulfilled efficiency situations 911 206
Whole recorded bills 911 206

28. Commitments and contingencies

Taxation

Although we typically will not be chargeable for taxes generated on video games accessed and operated by means of third-party platforms, we’re chargeable for amassing and remitting relevant gross sales, worth added, use or related taxes for income generated on video games accessed and operated on our personal platforms and/or in nations the place the regulation requires the sport publishers to pay such taxes even when video games are made out there for customers by means of third-party platforms. Moreover, an growing variety of U.S. states have thought of or adopted legal guidelines that try and impose tax assortment obligations on out-of-state corporations. That is additionally the case in respect of the European Union, the place worth added taxes or digital providers taxes could also be imposed on corporations making digital gross sales to shoppers throughout the European Union. Moreover, the Supreme Court docket of the US not too long ago dominated in South Dakota v. Wayfair, Inc. et al, or Wayfair, that on-line sellers could be required to gather gross sales and use tax regardless of not having a bodily presence within the state of the shopper. In response to Wayfair, or in any other case, numerous U.S. states have already begun imposing such obligations, and different U.S. states or native governments might undertake, or start to implement, legal guidelines requiring us to calculate, accumulate and remit taxes on gross sales of their jurisdictions. As well as, as taxation of IT industries is quickly growing there’s a threat that varied tax authorities might interpret sure agreements or tax fee preparations in a different way than the Firm (together with identification of the taxpayer and willpower of the tax residency). A profitable assertion by a number of U.S. states or different nations or jurisdictions requiring us to gather taxes the place we presently don’t accomplish that, or to gather extra taxes in a jurisdiction during which we presently accumulate some taxes, might lead to substantial liabilities, together with taxes on previous gross sales, in addition to curiosity and penalties, and will create important administrative burdens for us or in any other case hurt our enterprise.

We consider that these interim condensed consolidated monetary statements replicate our greatest estimate of tax liabilities and unsure tax positions, that are appropriately accounted for and(/or) disclosed in these interim condensed consolidated monetary statements.

Insurance coverage

The Group holds no insurance coverage insurance policies in relation to its operations, or in respect of public legal responsibility or different insurable dangers like dangers related to cybersecurity. There aren’t any important bodily property to insure. Administration has thought of the potential for insurance coverage of assorted dangers however the price of it outweighs the advantages in administration’s view.

Information privateness and safety

We accumulate, course of, retailer, use and share knowledge, a few of which comprises private info, together with the non-public info of our gamers. Our enterprise is due to this fact topic to numerous federal, state, native and international legal guidelines, laws, regulatory codes and pointers governing knowledge privateness, knowledge safety and safety, together with with respect to the gathering, storage, use, processing, transmission, sharing and safety of non-public info. Such legal guidelines, laws, regulatory codes, and pointers could also be inconsistent throughout jurisdictions or battle with different guidelines.

The scope of knowledge privateness and safety laws worldwide continues to evolve, and we consider that the adoption of more and more restrictive laws on this space is probably going inside the US and different jurisdictions. Additional, the European Union, Cyprus, and United Kingdom have adopted complete knowledge safety and safety legal guidelines. The European Union’s Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016 on the safety of pure individuals with regard to the processing of non-public knowledge and on the free motion of such knowledge, and repealing Directive 95/46/EC (Normal Information Safety Regulation), or the GDPR, which grew to become efficient in Might 2018, and the U.Okay. GDPR, every as supplemented by nationwide legal guidelines, (collectively, Relevant Information Safety Legal guidelines) impose strict necessities on controllers and processors of non-public knowledge within the European Financial Space, or EEA, and the UK, together with, for instance, larger requirements for acquiring consent from people to course of their private knowledge, extra sturdy disclosures to people and a strengthened particular person knowledge rights regime, and shortened timelines for knowledge breach notifications. Relevant Information Safety Legal guidelines create new compliance obligations relevant to our enterprise and a few of our gamers, which might require us to self-determine the best way to interpret and implement these obligations, change our enterprise practices and expose us to lawsuits (together with class motion or related consultant lawsuits) by shoppers or shopper organizations for alleged breach of knowledge safety legal guidelines and the danger of great reputational injury. Relevant Information Safety Legal guidelines enhance monetary penalties for noncompliance (together with potential fines of as much as 4% of worldwide annual revenues for the previous monetary 12 months or €20 million, or £17.5 million in the UK, (whichever is larger) for probably the most severe violations).

Any failure or perceived failure by us to adjust to our posted privateness insurance policies, our privacy-related obligations to gamers or different third events, or some other authorized obligations or regulatory necessities referring to privateness, knowledge safety, or info safety might lead to governmental investigations or enforcement actions, litigation, claims (together with class actions), or public statements in opposition to us by shopper advocacy teams or others and will lead to important legal responsibility, trigger our gamers to lose belief in us, and in any other case materially and adversely have an effect on our repute and enterprise.

Cybersecurity

Our info expertise could also be topic to cyber-attacks, viruses, malicious software program, break-ins, theft, pc hacking, worker error or malfeasance or different safety breaches. Hackers and knowledge thieves are more and more refined and function large-scale and complicated automated assaults. Our programs and the info saved on these programs may additionally be susceptible to safety incidents or safety assaults, acts of vandalism or theft, coordinated assaults by activist entities, misplaced or misplaced knowledge, human errors, or different related occasions that would negatively have an effect on our programs and the info saved on these programs, and the info of our enterprise companions. We don’t keep insurance coverage insurance policies masking losses referring to cybersecurity incidents, which can enhance any potential harms that the enterprise might endure from a cyber-attack. We could also be unable to cowl all potential claims stemming from safety breaches, cyberattacks and different kinds of illegal exercise, or any ensuing disruptions from such occasions, and we might endure losses that would have a cloth hostile impact on our enterprise.

Regulatory surroundings

In December 2017, Apple up to date its phrases of service to require publishers of purposes that embrace “loot bins” to reveal the percentages of receiving every kind of merchandise inside every loot field to clients prior to buy. Google equally up to date its phrases of service in Might 2019. Loot bins are a generally used monetization method in free-to-play cell video games during which a participant can purchase a digital loot field, however the participant doesn’t know which digital merchandise(s) she or he will obtain (which can be a typical, uncommon or extraordinarily uncommon merchandise, and could also be a replica of an merchandise the participant already has in his or her stock) till the loot field is opened.

As well as, there are ongoing educational, political and regulatory discussions in the US, Europe, Australia and different jurisdictions concerning whether or not sure sport mechanics, resembling loot bins, needs to be topic to a better stage or completely different kind of regulation than different sport genres or mechanics to guard shoppers, specifically minors and individuals inclined to dependancy, and, if that’s the case, what such regulation ought to embrace. Moreover, after being restricted in Belgium and the Netherlands, the UK Home of Lords has not too long ago issued a report recommending that loot bins be regulated throughout the remit of playing laws and regulation.

In a few of our video games, sure mechanics could also be deemed to be loot bins. New laws by the worldwide jurisdictions, which can differ considerably throughout jurisdictions and with which we could also be required to conform, might require that these sport mechanics be modified or faraway from video games, enhance the prices of working our video games as a consequence of disclosure or different regulatory necessities, influence participant engagement and monetization, or in any other case hurt our enterprise efficiency. It’s tough to foretell how present or new legal guidelines could also be utilized to those or related sport mechanics. If we turn out to be liable underneath these legal guidelines or laws, we might be straight harmed, and we could also be pressured to implement new measures to cut back our publicity to this legal responsibility. This will likely require us to expend substantial sources or to change our video games, which might hurt our enterprise, monetary situation, and outcomes of operations. As well as, the elevated consideration centered upon legal responsibility points due to lawsuits and legislative proposals might hurt our repute or in any other case influence the expansion of our enterprise. Any prices incurred due to this potential legal responsibility might hurt our enterprise, monetary situation or outcomes of operations.

Implications of COVID-19

On March 11, 2020, the World Well being Group declared the Coronavirus COVID-19 outbreak to be a pandemic in recognition of its speedy unfold throughout the globe. Many governments have taken and proceed to take stringent steps to assist include and/or delay the unfold of the virus, together with: requiring self-isolation/ quarantine by these probably affected, implementing social distancing measures, and controlling or closing borders and ”locking-down” cities/areas and even complete nations. These measures slowed down and can seemingly proceed to influence each the Cyprus and world economies. As on the date of issuance of the monetary statements, the Firm shouldn’t be conscious of any particular occasion or circumstance associated to COVID-19 that will require it to replace its estimates or judgments or alter the carrying worth of its property or liabilities. Our liquidity evaluation primarily based on our current efficiency and present estimates exhibits that we have now sufficient sources to finance our operations for the foreseeable future.

29. Occasions after the reporting interval

Grant of choices

On November 16, 2021 the Firm accredited the choice plan for its administrators, officers, workers and contractors in a complete quantity of as much as 9,826,155 choices, every over one share of the Firm with vesting situations and train costs to be decided by the Board of Administrators on the time of grant.

_________________

* Displays a correction to the quantity reported in Nexters International’s (subsidiary) audited consolidated assertion of economic place as at December 31, 2020 as a result of identification of an immaterial error referring to the calculation of withholding taxes. For additional info, see Be aware 4 (Use of judgements and estimates—Immaterial error).
* Displays a correction to the quantity reported in Nexters International’s (subsidiary) audited consolidated assertion of revenue or loss and different complete earnings for the 12 months ended December 31, 2020 as a result of identification of an immaterial error referring to the calculation of withholding taxes. For additional info, see Be aware 4 (Use of judgements and estimates—Immaterial error).

1 Contains the results of i.) US GAAP to IFRS conversion adjustment and ii.) impact of distinction in truthful values between Kismet warrants and Nexters Inc. warrants
2 Quantity-weighted common value as at August 27, 2021 and shutting value as at September 30, 2021, supply: Bloomberg.



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