Beyond Frames Entertainment recently announced that a new virtual reality game based on the Teenage Mutant Ninja Turtles ("TMNT") intellectual property is in development at their subsidiary Cortopia Studios. The title is estimated to generate 350-700 million SEK in gross sales recognized between fiscal years mid-2026 to FY 2029, provided that the game is launched in accordance with the current time plan. The estimate is for gross consumer revenues of the base game and does not include any potential downloadable content or other premium add-ons. Beyond Frames reports sales before distribution and platform costs, license fees, and project funding recoupments.

This estimation of gross sales has been calculated from internal proprietary research, user testing, studies conducted by independent parties, and comparisons to other VR games based on high-grossing intellectual properties. The TMNT franchise has exploded in popularity in recent years. In 2022, an action game based on the franchise sold over 1 million units in the first week of release, and in 2023, the franchise sold over 1 billion USD in brand-related media and merchandise at retail.

"Several major IPs brought to VR have proven that making the right game for the fans can net strong results. According to our data, there is an abundance of TMNT enthusiasts who already own VR headsets or are considering purchasing VR headsets. As fans of the IP ourselves, we believe the game we're developing will be an evergreen product that will serve fans of the franchise, VR enthusiasts, and Beyond Frames stakeholders for years to come," says Ace St, Germain, CEO of Beyond Frames Entertainment.

As mentioned in previous communication, game development is funded through a combination of the company's existing cash holding, forecasted revenues from other games, and a $2.5 million USD project funding agreement with a major distributor. The project funding with the distributor is paid on milestone deliveries scheduled until H1 2026 and makes up for the total bridge financing needed for the game's development. However, a significant portion of these milestone payments occur at the end of the project. Furthermore, Beyond Frames has introduced more volatility into its internal cash flow forecast calculations for its catalog of titles. This adjustment is due to several market factors, including the opening of the Meta Quest store to allow games in early access to be discovered alongside games in full release on the main store, announced by Meta earlier in 2024 and mentioned in Beyond Frames' Q3 financial report. The company is therefore exploring bridge financing to ensure cash flow stability to bring the game to market.