Key Figures
All figures in ISK m. Comparative figures from last year in parentheses.
 
-         Operating loss before depreciation and financial income and expenses -53.0 (-32.5)
-         Net loss for the year -83.1 (-50.8)
-         Total assets 1,217.7 (1,298.2)
-         Equity ratio 96.5% (96.8%)
-         Game revenue 20.5 (11.1)

“Solid Clouds hf is pleased to announce a pivotal development in the production and marketing of our latest title, Starborne Frontiers. Drawing on data from December 2023 to February 2024, we are witnessing an encouraging upward trend in our Return on Advertising Spend (ROAS). This trend suggests a potential surpassing of the 100% mark in 360-day ROAS, a key indicator of Starborne Frontiers' market reception. As a result, we can now expand the marketing efforts for Starborne Frontiers. The entire company is now dedicated to executing a strategy for ongoing increase of ROAS through live operations, alongside further optimization of game and monetization strategies, aiming to achieve around 180% 360-day ROAS at year-end necessary for sustained financial success. The team is proud of Starborne Frontiers and excited about the game's growth in the coming months”, says Stefan Gunnarsson, the CEO of Solid Clouds hf.

The Financial Statements of Solid Clouds hf for the full year of 2023 were approved by the Company’s Board of Directors and the CEO at a board meeting on 27 March 2024. The statements cover the period from 1 January to 31 December 2023 and were prepared according to International Financial Reporting Standards (IFRS). The statements have been audited by the Company’s auditors, Deloitte ehf.

Full-year 2023 Financial Highlights
Most of Solid Clouds’ hf expenses arise from R&D spending which is capitalized and then amortized over its expected lifespan. Capitalized costs amounted to ISK 360.7 m during 2023, an increase of 2.8% from 2022.

Game revenue amounted to ISK 20.5 m, an increase of 83.7% compared with the full year of 2022. This is because Solid Clouds hf has started to generate revenue from Starborne Frontiers in its early soft launch period.

Operating loss before income tax amounted to ISK 138.6 m, compared to a loss of ISK 94.1 m in 2022. 

Financial Liquidity
As of 31 December 2023, Solid Clouds hf had cash on hand of ISK 44.0 m. The Company expects to receive about ISK 132.7 m in R&D tax credits at the beginning of November this year, subject to approval by Rannís and RSK. It also projects the R&D tax credits for the 2024 fiscal year, expected in November 2025, to match or exceed this year's amount.

In February 2024, Solid Clouds hf secured ISK 295.2 million in funding through share issuance, attracting capital from a diverse group including institutional investors, founders, board members, existing shareholders, and newcomers. This was accomplished by issuing 147.6 million new shares, priced at ISK 2 each.

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

Recent Business Highlights
In 2023, the Solid Clouds hf development team achieved important objectives. The Company reached a major milestone in February 2023 when Starborne Frontiers was soft-launched and made available in Apple's and Google's app stores. This was the start of Frontiers' soft launch process. In October of 2023, the last remaining major game systems that complete the scope of the game for full-scale launch, such as the Abyss, were added to Starborne Frontiers. User feedback, engagement and monetization data gained during the soft launch period have been used to iterate, fine-tune, and add more content to the game.
 
Source: Solid Clouds hf