KOSDAQ-listed JK Synapse has activated a liquidity securing plan to resolve financial uncertainty.
JK Synapse said on Apr. 1 that, regarding the liquidity risk pointed out in the audit report for the 2025 fiscal year, it has confirmed a liquidity improvement effect of 50.54 billion won to date through capital expansion and debt maturity extensions in the first quarter of this year.
As of the end of last year, current liabilities exceeded current assets by 56.872 billion won. As a result, uncertainty had been raised about its ability to continue as a going concern.
To secure liquidity, the company raised a total of 8.51 billion won in cash through a paid-in capital increase of 1 billion won and the issuance of convertible bonds worth 7.51 billion won. It also reduced current liabilities by incorporating 4.48 billion won of debt into capital through debt-for-equity swaps and the exercise of conversion rights. In addition, it extended the maturities of 37.55 billion won in borrowings from major financial institutions, converting short-term liabilities into noncurrent liabilities.
The company also plans to resolve the remaining excess of current liabilities of about 6.3 billion won through asset sales. It signed agreements to sell subsidiary Sonid Ritech equity for 4 billion won and to sell 4 billion won worth of convertible bonds it held for 4.4 billion won. Once the sale procedures are completed, an additional 8.4 billion won in cash is expected to flow in. The convertible bonds include a condition for full conversion in the future, so additional capital expansion effects are also expected.
Accordingly, JK Synapse will secure a total of 58.94 billion won in liquidity. It is expected to have financial capacity exceeding the excess pointed out in the audit report by about 2.1 billion won.
A JK Synapse official said, "This year, we will focus the entire company's capabilities on a genuine turnaround to operating profit."