SKAI Worldwide: Credit Rating Falls to B-, Losses Continue, CB Conversion Risk Highlighted

Credit rating downgraded from BBB- (2022) to B- (2026), speculative grade with default risk.
Consolidated quarterly net loss of KRW 5.6 billion (widened from KRW 3.5 billion YoY), basic EPS -KRW 115.
Revenue increased 57% YoY to KRW 3.2 billion, but still operating at a loss.
Accumulated deficit of KRW 89.7 billion, capital surplus of KRW 89.1 billion, risk of capital erosion.
Total borrowings (including convertible bonds) of KRW 124.8 billion, derivative liabilities of KRW 6.3 billion, cash only KRW 1.1 billion.
Shares increased to 50.8 million via third-party allotment and CB conversion, causing dilution.
38% allowance for doubtful accounts on trade receivables (KRW 1.225 billion fully impaired), high credit risk.
No dividends or share buybacks.

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