Avanquest - 2016 Financial Report

SUMMARIZED SIX-MONTH CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2015 2 Appendix to the summarized six-month consolidated financial statements

NOTE 3

ADDITIONAL INFORMATION PERTAINING TO BALANCE SHEET ASSETS

Note 3.1 GOODWILL AND OTHER NON-CURRENT ASSETS

The cash-generating units (CGUs) utilized in late December 2015 are unchanged compared to June 30, 2015. The review of the results of the six-month period which make up the CGUs and the examination of the expected outlooks did not result in any detection of an indication of impairment of value as

of December 31, 2015. Consequently, no new impairment test for goodwill has been implemented, and the assumptions which make it possible to conclude the absence of impairment of goodwill and the capitalized development costs are unchanged in comparison with those which appear in the appendix to the consolidated financial statements as of June 30, 2015.

The changes in net goodwill have the following result:

Net goodwill as of 12/31/2015

Net goodwill as of 6/30/2015

Movements of the fiscal year

Exchange-rate differential

Depreciation

(in thousands of euros) Digital Printing CGU

4,761

- - -

132

- - -

4,893

BtoC CGU

-

-

-

TOTAL

4,761

132

4,893

Changes in development expenses are represented below:

NCV capitalized R&D projects as of 12/31/2015

NBV capitalized – R&D projects as of 6/30/2015

Capitalization of the fiscal period

Exchange-rate differential

Depreciation of the fiscal period

(in thousands of euros)

Digital Printing CGU

2,283 4,481 6,764

249 467 716

- - -

(747)

1,785 2,993 4,778

BtoC CGU

(1,955) (2,702)

TOTAL

Note 3.2 TRADE RECEIVABLES

12/31/2015

6/30/2015

Increase 11,334 11,334

(in thousands of euros)

Trade receivables

4,753 4,753

16,087 16,087

TOTAL

Trade receivables increased by €11,334 thousand, of which €10,589 thousand are attributable to the Avanquest Software Publishing Ltd. subsidiary. The subsidiary actually had very good sales at the end of the year, with the Minecraft Story Mode game: 40% of the sales over the six-month period took place in the month of December.

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2015/2016 SIX-MONTH FINANCIAL REPORT -