Audit Opinion Denial and Additional Delisting Reason, Debt Ratio 486% in Capital Impairment

Audit opinion 'disclaimer due to scope limitation' for FY2021, triggering formal delisting reason
Consolidated debt ratio 486.44%, capital impairment (total equity KRW 6.22bn, retained earnings -KRW 10.09bn)
Net loss of KRW 2.51bn (improved from KRW 30.22bn loss in prior year, revenue KRW 45.6bn with operating profit KRW 1.05bn)
Subject to substantive review for delisting due to capital impairment over 50%; management improvement period ended; currently in 'continued listing' status pending KOSDAQ Market Committee decision
Restatement of financial statements for current and prior years (error corrections related to impairment of investments in associates reducing total equity)
Seven pending lawsuits (aggregate claim amount approx. KRW 6.3bn) and contingent liabilities including share purchase obligation for Bit&Wat
Completed third-party allotment rights issue of KRW 10bn on Mar 3, 2022, changing largest shareholder from Apex Investment Fund 1 to Koss Steel
Rehabilitation proceeding petition filed and later withdrawn (2021); corrective order for conversion price adjustment of convertible bonds

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