Business Context and Reporting Period
This Form 6-K filing by GRAVITY Co., Ltd. (NasdaqGM: GRVY) is dated July 18, 2013. The report discloses a change in the registrant's certifying accountant. Gravity is a foreign private issuer based in Seoul, Korea, and files annual reports on Form 20-F.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report is strictly informational regarding the resignation of the independent auditor and does not contain financial performance data.
Material Changes
The primary material change reported is the resignation of Samil PricewaterhouseCoopers ("PwC") as the Company's independent registered public accounting firm, effective July 11, 2013. The resignation was necessitated by a conflict of interest arising from PwC's engagement as a non-audit service provider for Sprint Corporation. As of July 11, 2013, Sprint became Gravity's sister company under the common parent, SoftBank Corporation.
Outlook, Risks, and Management Commentary
- Audit History: PwC's audit reports for fiscal years ended December 31, 2011, and December 31, 2012, contained no adverse opinions, disclaimers, or qualifications. There were no disagreements between the Company and PwC regarding accounting principles, practices, or audit scope during these periods.
- Next Steps: Gravity plans to begin interviewing and selecting a replacement independent registered public accounting firm for the fiscal year ended December 31, 2013, as soon as possible.
- Future Disclosure: The Company will file a subsequent Form 6-K once the appointment of the new auditor is complete.
Investor Verification Checklist
- Verify the identity of the new independent registered public accounting firm once announced in a future filing.
- Confirm that the transition of auditors does not impact the timing or scope of the upcoming fiscal year 2013 audit.
- Review the attached letter from PwC (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the lack of disagreements.