Tobesoft Faces Continued Delisting Risk and Repeated Audit Disclaimers; Operating Loss Improves
Delisting risk: Disclaimers of opinion on 2025 and 2026 annual audit reports triggered delisting grounds; after improvement period, Korea Exchange's Corporate Review Committee to deliberate by June 4, 2026
Internal accounting controls: Auditor disclaimed opinion on internal control reports (2025, 2024); unable to obtain evidence on control activities and investment/fund transactions
Operating results: Consolidated operating loss of KRW 35 million (improved from KRW 815 million loss in same period last year); revenue KRW 5.8 billion (down 19.5% from KRW 7.3 billion)
Financial health: Debt ratio 43.3%, allowance for doubtful accounts ratio 91.1% (trade receivables 27.3%, loans 100%), net debt KRW 9.7 billion
Litigation risks: 2 lawsuits as defendant (KRW 0.78 billion), 27 lawsuits as plaintiff (KRW 8.75 billion); additionally appealing a judgment requiring payment of KRW 0.45 billion
Dividends and shareholder returns: No dividends in past 3 years; no share buyback or cancellation plans