KOSDAQ-listed JK Synapse said on the 18th that its scale expanded significantly in the third quarter (July–September) thanks to the consolidation of subsidiary Selector.
On a consolidation basis, JK Synapse's third-quarter revenue this year was 20 billion won, up 65% from a year earlier. The company said the scale grew sharply thanks to revenue contributions from Selector, which was consolidated this year.
Operating loss for the same period was 2.3 billion won, with the deficit narrowing by 10%. Net loss was 3.5 billion won, a sharp improvement from 13.3 billion won a year earlier. The company said net loss decreased significantly because bond interest fell and the impairment loss that occurred last year did not occur this year.
The company is also speeding up improvements to its financial structure. In October, it completed a 10-to-1 capital reduction without consideration by consolidating 10 common shares into 1, cutting accumulated deficits by about 33.2 billion won. As of the end of the third quarter before the reduction, accumulated deficits were about 82.7 billion won, but after completion of the reduction they are expected to drop sharply to 49.5 billion won.
The company said this is intended to erase traces of the previous management and clarify the performance of the new management. Through the recent capital reduction without consideration, total equity as of the end of the third quarter improved to about 15 times the capital stock, accelerating the overhaul of the financial structure.
In addition, the company plans to use funds secured through asset monetization, including the sale of commercial real estate, holdings of equity, and resale of convertible bonds, to repay high-interest borrowing fund early and further reduce the liability ratio.
According to the quarterly report, capital was also strengthened by a total of 18.4 billion won, including a 8.4 billion won paid-in capital increase and 10 billion won from convertible bond conversions. Shareholders' equity increased by 4.6 billion won to 56.1 billion won from 51.5 billion won at the end of 2024. The company also signed a contract to sell 10.1 billion won of treasury bonds, securing cash liquidity.
JK Synapse is also seeking to improve its image by changing its corporate name. The new name, JK Synapse, is inspired by "synapse," the junction between nerve cells, and signifies the intention to organically connect each business area to create synergy and lay the foundation for sustainable growth.
A JK Synapse official said, "This quarter, with Selector's revenue reflected, we are at the starting line of normalizing operations and are in the midst of a turnaround through companywide restructuring and management rationalization," adding, "Through the recent capital reduction, we offset accumulated deficits and kicked off full-fledged financial-structure improvements, and in the long term we will secure financial stability to attract external investment and improve creditworthiness, ultimately maximizing shareholder value."