ITOXI, a domestic game distribution and publishing corporation listed on the Korea Securities Dealers Automated Quotations (KOSDAQ), saw its stock price plummet in after-hours trading following news that it would be unable to submit an audit report by the deadline on the 21st.
As of 5:15 p.m. that day, ITOXI traded at 780 won in after-hours transaction, down 3.5% (28 won) from the closing price of 808 won.
After the regular trading session, ITOXI noted, "Due to delays in submitting audit materials and confirmation procedures by external auditors, the audit work is not expected to be completed by today," and added, "We will announce it as soon as we receive the audit report from the external auditors."
Earlier, on the 14th, ITOXI disclosed that reasons for designation as a management item, formal delisting, and substantive review of listing eligibility arose at the time of internal settlement due to a capital impairment ratio exceeding 50%. If this fact is confirmed in the 2024 audit report to be released, ITOXI may be designated as a management item.
ITOXI's consolidated revenue last year was recorded at 17.7 billion won, a decrease of 18% compared to the previous year. During the same period, it recorded an operating loss of 14.1 billion won and a net loss of 16.7 billion won, significantly increasing from the previous year's losses of 4.4 billion won each.
ITOXI explained the widening losses by stating, "The game market is slowing down, decreasing the operational capacity of small to medium-sized game developers and the momentum for new game launches, along with the recognition of impairment for unlaunched game assets that were planned for publishing, as well as declining sales of protective supplies due to the end of COVID-19 and influenza."
It was also noted that during the first quarter of this year, the company completed the payment of 3 billion won in convertible bonds and 6 billion won in a third-party allotment of paid-in capital, securing a total of 9 billion won in capital. An ITOXI official stated, "We will do our best to improve our financial structure and ensure that reasons for designation as a management item can be lifted at an early stage through performance improvements in connection with the reconstruction of Ukraine."