GRAVITY Co., Ltd. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K was filed on June 5, 2006, by GRAVITY Co., Ltd., a Korean online game developer and publisher. The company's principal product is Ragnarok Online, which is commercially available in 21 markets including Japan, Taiwan, and Thailand.
Key Financial Metrics
The filing discloses a specific transaction regarding asset liquidation but does not provide comprehensive financial statements for the period.
- Asset Sale Proceeds: Korean Won 9.5 billion.
- Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide clear values for these metrics.
Material Changes
The company announced the sale of its building and underlying land located at 619-4, Shinsa-Dong, Gangnam-Gu, Seoul, to Yahoh Communication, Inc. for Korean Won 9.5 billion. This transaction represents a strategic shift to convert fixed assets into current assets to address rapidly changing circumstances.
Outlook, Management Commentary, and Risks
Management Commentary: The proceeds from the sale are intended to be utilized effectively for online game development and publishing.
Risks and Contingencies: The filing includes standard forward-looking statement disclaimers. Identified risks include:
- Ability to diversify revenue.
- Timely collection of license fees and royalty payments from overseas licensees.
- Success in acquiring, developing, and launching commercially successful online games.
- Competitive pressures in the industry.
- Technological developments and employee retention.
- Global economic and political conditions.
Investor Verification Checklist
- Verify the closing status and final net proceeds of the building sale to Yahoh Communication, Inc.
- Confirm the specific allocation of the Korean Won 9.5 billion proceeds in subsequent financial reports.
- Review the impact of this asset conversion on the company's balance sheet liquidity ratios.
- Monitor the status of Ragnarok Online revenue in the 21 active markets.