RIGHTBRIDGE VENTURES GROUP YEAR END REPORT 2023

THE RESTRUCTURING OF THE PORTFOLIO IS NOW COMPLETED – RIGHTBRIDGE IS POISED FOR NEW OPPORTUNITIES

GROUP RESULTS
Twelve months january – december 2023

REVENUE. The group's net sales amounted to 6,802 TSEK (8,445), a decrease of 19% compared to the corresponding period last year.

EBITDA. The group's EBITDA for the period amounted to –14,579 TSEK (-23,598 TSEK). The adjusted EBITDA amounted to –9,205 (-12,219 TSEK) excluding EBITDA losses for Tricked and one-off items.

RESULTS. The group's net result for the period amounted to -58,254 TSEK (-67,680 TSEK), an improvement of 14%. Earnings per share* were -0.36 SEK (-1.58 SEK).

Fourth quarter 2024

REVENUE. The group's net sales amounted to 1,029 TSEK (2,980 TSEK), a decrease of 65% compared to the corresponding period of the previous year.

EBITDA. The group's EBITDA for the period amounted to –2,858 TSEK (-17,225 TSEK). The adjusted EBITDA amounted to –1,858 TSEK (-5,846 TSEK) excluding one-time items.

RESULTS. The group's net result for the period amounted to -22,160 TSEK (-72,025 TSEK). Earnings per share* were -0.14 SEK (-0.49 SEK).

*Earnings per share: the result is divided by the average number of shares for the period. The total number of shares in the company as of December 31, 2023, amounts to 162,116,244. The average number of shares for the fourth quarter of 2023 was 161,446,178. The average number of shares for 2023 was 161,894,513.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

February 2: Outcome of the rights issue.

February 7: Rightbridge signs a licensing agreement for the world-famous non-violence foundation about Knot OK.

February 16: Rightbridge's portfolio company 1337 signs an agreement with Adventure Box to promote the growth of the Kogama platform.

February 22: Rightbridge and Adventure Box enter into a strategic partnership to develop Crazy Frog.

CEO's Letter

Dear shareholders,

It has been an intense and transformative period since October 2023 when I took over the role as CEO of Rightbridge Ventures. The fourth quarter, and also the beginning of the year, have been characterized by a major transition. In a short time, we have taken significant steps in the creation of the future Rightbridge. An investment company that owns and manages growth companies within gaming, digital media, and IP rights.

We have quickly taken several important steps to realize this ambition. At the same time, powerful actions have been taken to reduce exposure to unprofitable assets, which is clearly reflected in the report for the fourth quarter. A thorough review of our holdings has been conducted. Where values of assets that no longer reflect their true potential have been consistently written down.

We have not only revised and renewed our business strategy, but we have also implemented critical actions to optimize our portfolio and create a strong foundation for growth.

We are now ready to take the next step, which briefly means a focus on building an ecosystem with clear synergies between a number of assets. Our ecosystem today consists of the IP rights around the phenomenon Crazy Frog, tech/Web 3, and the consulting part where, among other things, the educational concept with Knot OK is included.

We now have a clear strategy going forward and an established change plan, which includes three exciting projects. One is Crazy Frog with over 8 billion views on YouTube, which is an IP well-suited for all forms of online games. Another is several substantial discussions with actors within gaming for collaborations. The third is Knot OK (based on the world-famous revolver where the barrel is a knot), which is still in the concept stage, but the interest in the project is very positive. We are in full swing in developing Knot OK into a marketable product.

We have also invested in the Adventure Box platform with half a million monthly users. There we see clear synergies with both 1337 and Crazy Frog. We are here in a development stage where we expect to be able to present exciting projects during the spring.

We have created a platform where innovation and value creation are at the center. The focus is on securing further funding to accelerate our growth ambitions and create a solid foundation for growth.

With a solid foundation, a passionate team, and exciting projects ahead, we look forward to building the new Rightbridge Ventures. Together we will shape the future of the company and with good conditions to deliver a good return to our shareholders.

Claes Kalborg

CEO

Rightbridge Ventures Group

GROUP RESULTS

The Group's revenues for the fourth quarter amounted to 1,029 TSEK (2,980 TSEK). The majority of the decrease in revenue is attributable to fewer companies in the group.

External costs (64%) and personnel costs (36%) during Q4 2023 amounted to 3,877 TSEK (17,742 TSEK). The reduction is due to a decreased cost base for the group as a result of divestitures of unprofitable assets.

EBITDA for the period amounted to -2,858 TSEK (-17,225 TSEK) and adjusted EBITDA amounted to -1,858 TSEK (-5,846 TSEK). EBITDA for the full year amounts to -14,579 TSEK (-23,598 TSEK), where Tricked contributed a negative EBITDA of 2,633 TSEK for the first 2 months of the year.

The net result for Q4 2023 amounted to -22,160 TSEK (-72,025 TSEK), which is attributable to write-downs of assets.

Group Balance Sheet

As shown in the Group's balance sheet as of December 31, 2023, the liabilities exceed the assets by 10,960 TSEK, which constitutes reported negative equity at the group level. Short-term liabilities are significantly higher than current assets. Other indications of significant uncertainty regarding continued operations include the size of net loans.

The negative equity at the group level is a result of an adjustment of the booked value of the wholly-owned subsidiary Icandy Digital ("ICD"), whose operations are conducted in Singapore. The booked value of ICD amounted to 31,000 TKR at the beginning of 2023. After the end of the quarter, the local auditors of ICD have reviewed the underlying asset ESPL, which is owned by ICD to 17%, and concluded that the future cash flows generated by the asset are not satisfactory to justify the valuation of 31,000 TSEK, upon which the asset has been written down to 0 TSEK. This adjustment is made in ICD's annual report for the fiscal year 2021, which has a significant effect on Rightbridge's value of ICD. The adjustment has been booked against equity as a correction of errors from previous years and together with currency adjustments, the adjustment amounts to 45,000 TSEK resulting in negative equity at the group level.

During the first quarter of 2024, Rightbridge has conducted a rights issue of 9,721 TSEK to strengthen the balance sheet as a result of the write-downs and divestments made during 2023. The company has carried out a thorough review of the business during Q4 and divested non-satisfactory assets as well as written down previous valuations. The equity of the parent company is positive as of the end of 2023.

The Board assesses and evaluates the conditions for continued operations and closely monitors the financing and liquidity on an ongoing basis. The Board believes that there are good conditions to carry out a new share issue and/or loan financing. Thereby, the Board considers it can manage the debts as they fall due and ensure a sufficient capital base. The year-end report and group accounts for 2023 have been prepared on the assumption that operations will continue.

Since the appointment of the new board and management in the fall of 2023, the company has conducted a thorough review of the business and divested assets that do not align with the new strategy or written down assets whose potential future cash flows are no longer considered achievable. As a result of this, significant write-downs have been made which have had a significant impact on the group's financial position.

LIQUIDITY AND CASH FLOW GROUP

Fourth Quarter 2023

The cash flow from operating activities amounted to -1,000 TSEK (-3,582 TSEK). Cash flow from investing activities amounted to -22 TSEK (-11 TSEK). Cash flow from financing activities amounted to 1,500 TSEK (2,840 TSEK).

The net cash flow for the period amounted to 477 TSEK (-753 TSEK). Cash balance amounted to 902 TSEK (3,068 TSEK) at the end of the period.

Cash as of December 31, 2023, amounts to 902 TSEK. After the end of the quarter, the company completed a rights issue of 9,721 TSEK to strengthen the cash and balance sheet in order to continue investing in new assets and manage the debt. The Board is continuously evaluating additional financing solutions and is positive about being able to raise additional capital to continue financing operations during 2024.

LIQUIDITY AND CASH FLOW GROUP

January – December 2023

The cash flow from operating activities amounted to –10,714 TSEK (-13,180 TSEK). The cash flow from investing activities amounted to -30 TSEK (-441 TSEK). The cash flow from financing activities amounted to 8,728 TSEK (15,039 TSEK).

The net cash flow for the period amounted to –2,016 TSEK (1,459 TSEK). Liquid assets at the end of the period amounted to 902 TSEK (3,068 TSEK).

PARENT COMPANY'S RESULTS

The parent company's revenues for the fourth quarter amounted to 0 TSEK (0 TSEK). EBITDA for the quarter amounted to –298 TSEK (-317 TSEK) The result for the period amounted to -69,884 TSEK (-102,903 TSEK).

LIQUIDITY AND CASH FLOW PARENT COMPANY

Fourth Quarter 2023

The cash flow from operating activities amounted to -362 TSEK (2,097 TSEK). The cash flow from investing activities amounted to -1,146 TSEK (0 TSEK) which is related to shareholder loans to subsidiaries. The cash flow from financing activities amounted to 1,674 TSEK (-162 TSEK). The cash flow for the period amounted to 166 TSEK (1,935 TSEK). Liquid assets at the end of the period amounted to 362 TSEK (2,000 TSEK).

January – December 2023

The cash flow from operating activities amounted to -2,705 TSEK (-3,292 TSEK). The cash flow from investing activities amounted to -6,107 TSEK (-1,234 TSEK) which is related to shareholder loans to subsidiaries. The cash flow from financing activities amounted to 7,174 TSEK (5,534 TSEK).

The net cash flow for the period amounted to -1,638 TSEK (1,008 TSEK). Liquid assets at the end of the period amounted to 362 TSEK (2,000 TSEK).

For more information, please contact:

Claes Kalborg, CEO

Phone: +46 73 444 55 07

Email: claes.kalborg@rightbridge.se

Mads Jorgensen, Chairman of the Board

Phone: +45 28 97 15 75

Email: mvj@bluehorizoninvestment.com

DISCLOSURE

This information is such that RightBridge Ventures Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above contact person, on 2024-02-29 at 8.32 am