Share Buyback, Cancellation, and Trust Agreement, Continued Operating Loss
Disposal of 9,771,173 treasury shares (exchange for equity in other companies), cancellation of remaining 425,327 shares, leaving zero treasury shares. Additionally, a KRW 3 billion trust agreement for share buyback (May 26–Nov 26, 2026, all to be cancelled).
Consolidated revenue KRW 14.9B (down from KRW 20.8B in prior quarter), operating loss KRW 3.2B (vs. KRW 2.6B loss), net loss KRW 1.9B.
Very low debt ratio of 7.45%, ample cash: cash equivalents KRW 14.3B, short-term financial instruments KRW 81.3B.
Credit rating B- (NICE, May 2025) – low level.
New drug EC-18: Phase 2 for oral mucositis completed, FDA EoP2 briefing package ready; preclinical for acute radiation syndrome ongoing; Phase 2 IND for atopic dermatitis approved (Oct 2024).
New business objectives added (AI robotics, hospital consulting, interior design, etc.) but not yet implemented.
New subsidiaries: Medisolv AI, Classy Design, NEKA MEDICAL (medical AI, interior, consulting) – goodwill of KRW 5.96B.
Related party loans: KRW 10.74B to Medfood, fully provisioned; related litigation ongoing.
Pending lawsuits: ICON (USD 3.2M), Yoon (KRW 2.5B), Shinheung Mulson lost first instance (KRW 20M), etc.
Acquisition of equity in other companies via treasury share exchange (Medisolv AI, Classy Design, etc.) – reduction in capital surplus.
R&D expenses KRW 0.69B (4.62% of revenue), continued investment.