Dutch independent publisher Playlogic has reported a significant net loss for the year ended December 31, 2009.
Despite a 23 per cent increase in annual revenues to $11.1 million (£7.5m) on the back of the launch of Fairytale Fights for PS3 and Xbox 360, the firm suffered a net loss of $20.3 million (£13.7m), compared to a loss of $9.5 million (£6.4m) the previous year.
The company said that the loss included a one time impairment charge of $4.75 million (£3.2m) in 2009.
“Compared to prior years, Playlogic has spent more on advertising and marketing of its titles. In addition research and development expenses increased in connection with the final push for the development of Fairytale Fights,” it added.
Playlogic said that it reached an agreement with a number of its shareholders and debt holders whereby $21 million (£14.2m) in debt on the company’s balance sheet was restructured, allowing it to avoid share dilution.
But according to an SEC filing spotted by Gamasutra, Playlogic remains "behind on payments” to some of its vendors and legal proceedings have commenced in some cases. The filing states that "a significant part of [Playlogic’s] accounts payable balance is overdue".
Playlogic also said that it’s working on a number of new projects that are financially sound for the time being.