Business Context and Reporting Period
This Form 6-K filing by GRAVITY Co., Ltd. (NasdaqGM: GRVY) covers the month of October 2010. The company is a Korean developer and publisher of online games, with its principal product, Ragnarok Online, commercially offered in 80 markets including Japan, Taiwan, and Thailand.
Key Financial Metrics
This filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. The document focuses exclusively on a specific contingent liability regarding an investment fund.
- Pledged Contribution: JPY 90 million (outstanding portion as of the filing date).
- Investment Vehicle: Online Game Revolution Fund No. 1.
Material Changes
The primary material update concerns the Company's obligation to contribute capital to the Online Game Revolution Fund No. 1. Previously, the Company was required to pay the outstanding JPY 90 million upon 30 days' prior written notice by the General Partner, Entertainment Farm, Inc. In August 2010, the General Partner notified the Company in writing of its intention not to issue a call for this outstanding capital contribution. This follows communications since April 2009 indicating the Fund was unlikely to make additional investments.
Guidance, Outlook, and Risks
The filing contains no financial guidance or operational outlook. It includes standard forward-looking statements disclaiming any duty to update information based on new events. The primary risk addressed is the potential call for capital contributions to the Fund, which has been mitigated by the General Partner's notification that no such call will be issued at this time.
Investor Verification Checklist
- Confirm the status of the JPY 90 million pledged contribution to Online Game Revolution Fund No. 1.
- Verify the written notification from Entertainment Farm, Inc. regarding the decision not to call for capital.
- Review the original disclosure on page 84 of the Form 20-F for the year ended December 31, 2009, for full context on the investment obligations.