Business Context and Reporting Period
Company: GRAVITY Co., Ltd.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: April 27, 2012
Business Overview: Gravity is a Korean developer and publisher of online games. Its principal product, Ragnarok Online, is commercially offered in 79 markets including Japan, Taiwan, and Thailand.
Key Financial Metrics
This filing serves as a cover document for the submission of the Company's 2011 KAS-NPE consolidated financial statements (Exhibit 99.1). The text of this specific Form 6-K does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the attached Exhibit 99.1, which covers the years ended December 31, 2011, and 2010.
Accounting Standards:
- Attached statements: Accounting Standards for Non-Public Entities in Korea (KAS-NPE).
- Future filings (Form 20-F): U.S. GAAP.
Material Changes and Subsidiaries
The filing notes a change in consolidated subsidiaries between the two reporting years:
- As of December 31, 2011: NeoCyon, Inc. is the consolidated subsidiary.
- As of December 31, 2010: Gravity Games Corporation was the consolidated subsidiary.
- Other Investments: Remaining subsidiaries are accounted for as equity method investees.
Guidance, Outlook, and Risks
Future Filings: The Company expects to file its consolidated financial statements prepared in accordance with U.S. GAAP on Form 20-F for the fiscal year ended December 31, 2011, as soon as practicable. Quarterly results submitted on Form 6-K are also prepared under U.S. GAAP.
Forward-Looking Statements: The document includes standard disclaimers regarding forward-looking statements (using terms like "expect," "anticipate," "believe"). The Company assumes no duty to update these statements to reflect new events or circumstances.
Risks and Contingencies: No specific risks or contingencies are detailed in the text of this cover letter; investors are directed to review the Form F-1 registration statement and annual Form 20-F reports for detailed risk factors.
Investor Verification Checklist
- Review Exhibit 99.1 for the actual 2011 and 2010 financial data (revenue, net income, cash flow) as these numbers are not in the cover text.
- Verify the upcoming Form 20-F filing for U.S. GAAP reconciled financials.
- Confirm the impact of the subsidiary change (NeoCyon, Inc. vs. Gravity Games Corporation) on consolidated results.
- Check the Form F-1 registration statement for detailed risk factors and business strategy.