Debt Ratio 11,212%·Near Capital Impairment, Error Correction Reveals Understated Derivatives of 7.7 Billion Won

Error correction: Understatement of derivative liabilities (put options) for related party NBV by 7,739 million won in 2023 and 7,160 million won in 2022, with additional losses of 578 million and 1,260 million won respectively
Going concern uncertainty: Current liabilities of 64,243 million won exceed current assets of 40,390 million won by 23,853 million won; requires financing plans
Financial health: Debt ratio 11,212.8% (previous year 5,421.6%), total equity 599 million won (previous year 1,266 million) – effectively capital impairment
Net loss for the period 5,879 million won (previous year 15,756 million), accumulated deficit 43,626 million won
Key audit matter: Appropriateness of revenue recognition, related internal controls and progress rate verification performed
Predecessor auditor did not agree with prior period error correction, disclosed in emphasis of matter and other matters