Profil:
Huuuge, Inc.Huuuge announces write-down of investment in Bananaz Studios Ltd. of USD 3.5 million
Listed mobile free-to-play games developer Huuuge will reduce the book value of the asset related to its investment in Bananaz Studios Ltd. by USD 3.5 million to zero, the company said in a market filing. The impairment charge will reduce the group's operating results for 2024, but will have no impact on the group's adjusted EBITDA.
It was reported that Huuuge conducted a test for possible impairment of an asset related to its investment in Bananaz Studios Ltd. in the form of a simple contract for future capital.
"The results of this test indicated a loss to the asset's value. Accordingly, the issuer will reduce the carrying value of the asset by USD 3.5 million to zero," the filing stated.
"As a consequence, a corresponding impairment loss will be recognised in the issuer's group consolidated and the issuer's separate financial statements for the year ended December 31, 2024. The impairment loss will decrease the operating results of the Issuer's group but will not impact its operating cash flow or liquidity position," it added.
"The Issuer hereby confirms that the Issuer's group adjusted EBITDA will not be impacted as a result of the above."
Huuuge has also decided to take action to cease further funding of Bananaz Studios Ltd.
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