Thumbage: Q1 2026 Loss Narrows but Capital Reduction and Rights Issue Dilute Shareholders

Consolidated Q1 2026 revenue KRW 1.01B, operating loss KRW 0.98B, net loss KRW 1.09B (improved from KRW 2.21B loss in Q1 2025)
Accumulated deficit KRW 94.3B, total equity KRW 11.8B, debt ratio 9.94% (sound)
Apr 2026: 10:1 stock consolidation to cover deficits and rights offering of ~KRW 12.5B for operating funds (rights issue after shareholder allocation)
Post-consolidation shares: 13.9M; post-rights: ~23.7M shares expected (dilutive)
Basic EPS (consolidated) -KRW 8 (vs -KRW 16 in prior year)
No dividends or share buybacks
Core games (Boxing Star, Gods Raid, Dekaron M) revenue declining; R&D expense KRW 0.68B (66.8% of revenue)
Subsidiary ChampionStudio has negative equity