The Board of Artifex Mundi S.A. with its registered office in Zabrze (the "Company"), informs that on January 31, 2018, it verified the model of implementation of the Issuer's game projects. br> Referring to current report 46/2017 published on December 29, 2017, as a result of the completed impairment testing of three free-to-play game projects: Bladebound, Nightmares from the Deep®: A Hidden Object Adventure and Kate Malone : Hidden Object Detective, carried out as part of work on the Company's annual financial statements, the Management Board decided to make a revaluation write-down in the amount of PLN 5.10 million. The amount of the write-off consists of 69.2 percent. activated costs of games related to the implementation of only two projects: Nightmares from the Deep®: A Hidden Object Adventure and Kate Malone: Hidden Object Detective. br> The Management Board of the Company informs that the decision to write off the activated costs of projects Nightmares from the Deep® : A Hidden Object Adventure and Kate Malone: Hidden Object Detective is caused by lower than originally assumed key performance indicators of both projects and the resulting risk of failure to achieve the expected financial effects of their commercialization. The Management Board of the Company also assesses that both projects have market potential, the monetization of which may have a material impact on the Company's financial results. The Management Board informs that the implementation of projects will be continued. Br> The Management Board of the Company informs that in its opinion the potential of the Bladebound project allows to assume that the income from the commercialization of the game that can be achieved during the economic usefulness of the project, set for 36 months from project's hard-launch, can significantly exceed the value of activated costs of this game. In connection with the above, the Management Board of the Company acknowledges that there are no grounds for updating the value of activated costs of the Bladebound project. Br> At the same time, striving for optimal use of the Company's resources, including its human capital and focus on the most promising projects in the free-to segment -play, the Management Board of the Company decided to suspend the implementation of the Spellblade: Match-3 Puzzle RPG project and, as a consequence, to make a revaluation write-down in the amount of PLN 0.80 million, constituting 80.6 percent. activated costs of this game. In the opinion of the Management Board, the project has market potential, but its releasewill require further significant work under the project. In the opinion of the Management Board, possible resumption of the project may take place at the earliest in 2019. br> The Management Board of the Company informs that the write-downs of game projects, about which the Company informed in this report and in the current report 46/2017 published on December 29, 2017, will affect reduction of the unit and consolidated gross financial result for 2017 by PLN 9.95 million br>
Source: company website, investor relations, current and periodic reports.