TERA SCIENCE: Severe financial risks persist with auditor's disclaimer, listing eligibility review, massive deficit

External auditor (Korea Data) issued a disclaimer of opinion on 2025 financial statements due to scope limitation on opening balances and internal control deficiencies
Listing eligibility review triggered in 2024 due to change in largest shareholder and embezzlement/breach of trust allegations; stock trading suspended
Consolidated Q1 2026 revenue KRW 3.75bn (flat YoY), operating loss KRW 1.75bn, net loss KRW 2.01bn (improved from net loss KRW 5.48bn in prior year period)
Consolidated accumulated deficit KRW 68.2bn; equity capital significantly eroded (total equity KRW 2.29bn vs share capital KRW 10.64bn)
Short-term borrowings KRW 12.2bn, exchangeable bonds KRW 0.61bn; total financial liabilities KRW 14.32bn; interest expense KRW 1.67bn (surged from KRW 0.37bn in prior period)
Allowance for doubtful accounts ratio 63.2% on trade and other receivables; allowances set on KRW 22.9bn out of total KRW 36.3bn
All four subsidiaries are in negative equity (HGM, Socket Gaming, Sinan Lithium, JKS Partners), worsening consolidated financial position
Material weaknesses in internal controls over investment/loan transactions and corporate seal usage
12 pending lawsuits as plaintiff; disposal of Dahborlink shares in progress
No dividends; no treasury stock buyback or cancellation
Credit rating B- (Korea Data, May 2025)

ADVERTISEMENT (250px+)