French developer Don’t Nod has said that it is hard at work to secure more cash after an auditor’s report suggested the company could run out of money by November.
In a statement to Game Developer, the company said that it is “actively working on several levers to extend its cash runway and strengthen its financial position”. Don’t Nod also confirmed that Tencent had opted not to invest any further money in the company, but said that the Chinese giant is still a “long-term shareholder” in the company.
Don’t Add added that it is actively looking for financial support to fund the in-development Project P14, and that it intended to “optimise its cost base”.
“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,” a Don’t Nod rep said. “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.
“Don’t Nod is focused on extending its cash horizon through a combination of financing initiatives, disciplined cash management and an optimised operating structure, while continuing to adapt its cost base to market conditions.”
The spokesperson concluded: “At this stage, we have no further comment to add beyond the information already disclosed in the company’s latest financial report.”
At the start of June, Don’t Nod’s auditors warned that the company could run out of money by November, adding that management had been trying to find more funding for “several months”.
