Business Context and Reporting Period
This Form 6-K filing by GRAVITY Co., Ltd. covers the month of April 2011. The company is a Korean developer and publisher of online games, with its principal product being Ragnarok Online, which is commercially offered in 79 markets including Japan, Taiwan, and Thailand. The filing primarily serves to provide the consolidated financial statements for the year ended December 31, 2010, prepared in accordance with Korean GAAP (K-GAAP).
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It confirms that the 2010 K-GAAP consolidated financial statements, which include the accounts of the Company and its subsidiary Barunson Interactive Corp. (renamed Gravity Games Corp. in March 2011), have been audited by Samil PricewaterhouseCoopers. These statements are attached as Exhibit 99.1. The filing notes that quarterly results submitted on Form 6-K are prepared in conformity with U.S. GAAP, but the specific figures for the 2010 fiscal year are not detailed in the cover letter text.
Material Changes
- Acquisition and Consolidation: The 2010 consolidated financial statements include Barunson Interactive Corp., in which the Company acquired a controlling financial interest in October 2010.
- Subsidiary Renaming: Barunson Interactive Corp. changed its name to Gravity Games Corp. in March 2011.
- Accounting Standards: The filing distinguishes between the attached K-GAAP statements and the upcoming U.S. GAAP statements to be filed on Form 20-F.
Guidance, Outlook, and Risks
The filing contains standard forward-looking statements regarding future performance, noting that such statements are subject to risks and uncertainties. The Company expects to file its annual report on Form 20-F, including U.S. GAAP financial statements for the years ended December 31, 2010 and 2009, as soon as practicable. No specific financial guidance, management commentary on future projections, or detailed risk factors beyond the standard safe-harbor disclaimer are provided in this text.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific numerical values of the 2010 K-GAAP consolidated financial statements.
- Monitor the upcoming Form 20-F filing for U.S. GAAP reconciled financial data for fiscal years 2010 and 2009.
- Verify the impact of the October 2010 acquisition of Barunson Interactive Corp. on consolidated revenue and expenses.
- Confirm the operational status and performance of the newly renamed Gravity Games Corp.