Midas AI Faces Designation as Management Item... "Committed to Turning Operating Profit Positive This Year"

[Asia Economy Reporter Hyunseok Yoo] Midas AI announced on the 25th that it has incurred operating losses for four consecutive recent fiscal years based on separate financial statements, resulting in grounds for designation as a management item.

In the internal settlement of last year's performance, Midas AI recorded sales of 8 billion KRW and an operating loss of 3.7 billion KRW. If an operating loss is confirmed in the audit of last year's financial statements, the company may be designated as a management item.

A company official stated, "The current internal financial statements are information prior to the external auditor's audit, and may be partially revised depending on the audit results," adding, "Due to the announcement title, there have been many inquiries from some shareholders about delisting, but this is only the occurrence of grounds for designation as a management item, not grounds for delisting."

Meanwhile, Midas AI is strengthening its existing business and promoting new businesses such as medical device-related business and marijuana business to improve profitability this year.

A company official said, "We will do our best to improve profitability by promoting various new businesses to achieve operating profit," adding, "Financial soundness has improved as the liquidity ratio increased and cash liquidity improved due to the major shareholder's participation in the capital increase."

Last year, Midas AI significantly reduced its debt ratio, which reached 1300% in 2019, to 14% through capital expansion via paid-in capital increase and convertible bond conversion. In the first quarter of this year, the company plans to repay the remaining borrowings and establish a debt-free management system.