Subject: New framework for Project Sirius, decision concerning partial reversal of the impairment allowance for 2022, and writeoff of part of the development expenditures incurred in Q1 2023
Legal basis: Art. 17 section 1 of MAR – inside information
In reference to current report no. 8/2023 of 20 March 2023, the Management Board of CD PROJEKT S.A. with a registered seat in Warsaw (“The Company”) hereby announces the conclusion of work on defining a new framework for Project Sirius, which is carried out by The Molasses Flood (“The Project”).
Defining a new framework of the Project will have the following effect on the Company’s accounts:
(a) partial reversal – in the amount of 21.5 million PLN – of the impairment allowance on development expenditures related to the Project in 2022, which originally amounted to 33.4 million PLN and burdened the financial result of the Company and its Group in 2022, will be recognized;
(b) part of the development expenditures related to the Project in the first quarter of 2023 will be written off – in the amount of 2.7 million PLN.
The changes listed in sec. (a) and (b) above will be reflected in the financial statement of the CD PROJEKT Group for the first quarter of 2023, and will affect the financial result for that period.
Partial reversal of the impairment allowance for 2022 and partial writeoff of the development expenditures incurred in the first quarter of 2023 is the result of the decision to continue the Project in the reformulated framework based on a material part of the already developed elements of the game by the Molasses Flood.
Disclaimer: This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.