Aphelion and Lost Records: Bloom and Rage developer Don’t Nod says the company is “actively working on several levers to extend its cash runway and strengthen its financial position” following a recent report from French journalist Gauthier ‘Gautoz’ Andres that the company could be “out of cash” by the end of November.
Andres made these claims following a review of Don’t Nod’s financial disclosures and stated that shareholder Tencent is “unwilling to raise capital or finance any projects.”
Now the studio is responding to Andres’ claims. In a statement sent to Game Developer, a Don’t Nod spokesperson confirmed Tencent’s decision to not inject any more cash into the company and said the company is seeking financial support for “Project P14” and is working to “optimize its cost base.”
These, alongside “the maintenance of strict financial discipline” would be the aforementioned levers Don’t Nod is pulling to shore up its finances. Tencent does remain a “long-term shareholder” of Don’t Nod. They noted that its previous “going concern statement” was issued as a notice required by its “reporting frameworks.”
“As disclosed in our latest financial report, the going concern statement reflects an accounting requirement and standard disclosure for listed companies under applicable reporting frameworks,” the spokesperson stated. “It is based on the information available at the reporting date and does not take into account the potential impact of the various financing and cash preservation initiatives currently being pursued by the company. “
They described the current environment for the video game industry as “very challenging” (something many studios have echoed as they’ve laid off workers and shut down studios in the face of slowing sales), before reiterating Don’t Nod’s funding goals. “Don’t Nod is focused on extending its cash horizon through a combination of financing initiatives, disciplined cash management and an optimized operating structure, while continuing to adapt its cost base to market conditions.”
“At this stage, we have no further comment to add beyond the information already disclosed in the company’s latest financial report. “
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