Artist Studio: Q1 2026 Revenue Plunges but Operating Loss Narrows; Legal Risks Remain

Consolidated Q1 2026 revenue of KRW 1.26bn, down 42.5% from KRW 2.18bn in the same period last year
Operating loss of KRW 0.42bn, significantly improved from KRW 2.87bn a year ago; net loss of KRW 0.19bn (vs KRW 0.34bn)
Cash and cash equivalents of KRW 11.26bn, zero debt, healthy financial structure; debt ratio 12.2%
High credit risk with allowance for doubtful accounts ratio of 53.5% on trade receivables; total allowance of KRW 5.56bn
Remaining commitment of KRW 10bn to investment funds (5 funds)
Four ongoing lawsuits, including a damage claim of KRW 0.98bn against the company (as defendant)
No dividends; accumulated deficit of KRW 43.54bn; no share buyback or cancellation
No projects in progress as of quarter-end; all 7 projects completed