These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

Firefly Studios Limited is a private company limited by shares incorporated in England and Wales (company number 03756547). The registered office is 6th Floor, Manfield House, 1 Southampton Street, London, WC2R 0LR. The business trading address is Thomas House, 84 Eccleston Square, London, SW1V 1PX.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are presented in sterling which is considered to be the functional currency. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Devolver Digital Inc. These consolidated financial statements are available from its registered office, 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808, USA.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised as earned when, and to the extent that, the firm obtains the rights to consideration in exchange for its performance under the "cost plus" agreements with Firefly Holdings Limited.

Revenue from the sale of services is recognised in the month in which services have been provided.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The Company participates in a share-based payment arrangement operated by its ultimate parent company, Devolver Digital, Inc. (incorporated in the USA).

Under this scheme, certain employees of Firefly Studios Limited are granted share options over the equity of Devolver Digital, Inc. The options typically vest over a specified period, subject to service and performance conditions. The most appropriate valuation model for the fair value is deemed to be the price of Devolver Digital, Inc. shares listed on the AIM stock exchange multiplied by the amount expected to vest (based on historic trends and managements assessment of future performance). This fair value is recognised as an expense on a straight-line basis over the vesting period.

On vesting, participants may choose either to receive the shares or to receive a cash payment equal to the market value of the shares. At the vesting date, the fair value is reassessed to equal the share price value and any adjustment is recognised in the income statement.

Where shares are issued, the cost is borne by Devolver Digital, Inc., with the fair value of the option treated as a capital contribution in the equity of the Company. Where a cash settlement is chosen, the obligation is settled directly by Firefly Studios Limited.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The fair value of share options is estimated based on the share value at the time of grant, multiplied by the historic retention rates of staff over similar periods of time multiplied by coefficients representing the estimated vesting condition achievement rate from review of the group forecasts.

The average monthly number of persons (including directors) employed by the company during the year was:

Certain employees of Firefly Studios Limited participate in a Long Term Incentive Plan (LTIP) operated by the Company’s ultimate parent undertaking, Devolver Digital, Inc. Under this scheme, share options are granted over the equity of Devolver Digital, Inc.

The awards typically vest after a fixed period of two or three years, subject to the employee’s continued service, with some awards also subject to market-based performance conditions. On vesting, participants may elect either to acquire the shares or to receive a cash payment equal to the market value of the shares.

Where shares are issued, the cost is borne by Devolver Digital, Inc. directly. Where a cash settlement is chosen, the related expense is borne by Firefly Studios Limited.

As the scheme is operated by the parent company, and in accordance with the disclosure exemptions available under FRS 102 Section 1A, further details of the LTIP are provided in the consolidated financial statements of Devolver Digital, Inc. Copies of these financial statements are available from the registered office at: 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808, USA.

At year end there were 975,037 (2023 - restated: 2,615,368) options outstanding and still to vest.

The expense recognised in the income statement for shared based transactions during the year was £121,873 (2023 - restated: £70,131).

The company has one class of ordinary shares which carry no right to fixed income. Each share carries one voting right.

Capital contributions comprise the value of share options in Devolver Digital, Inc. which were granted and have vested for employees of Firefly Studios Limited.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption available in Paragraph 33.1A of FRS102 whereby it has not disclosed transactions with the parent entity (Firefly Holdings Limited) and any wholly owned fellow subsidiary undertaking within the group.

The immediate parent company is Firefly Holdings Limited.

Firefly Studios Limited has an ultimate holding company of Devolver Digital Inc, a company incorporated in the United States, with registered office 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808, USA. The company does not have a single ultimate controlling party.

This year errors were identified in the historic reporting of share options administered by Devolver Digital, Inc.. As a result, there has been a full review of the vesting terms, a recalculation of the relating attributable fair values, and a restatement of these transactions in the financial statements and accompanying notes.