Bucket Studio Reports Derivative Losses Amounting to 17.3 Billion KRW

[Asia Economy Reporter Kang Nahum] Bucket Studio disclosed on the 16th that it incurred a derivative product valuation loss of 17.3 billion KRW. This amounts to 8.62% of its equity capital.

The company stated, "This derivative product valuation loss arises because the rights to request a sale before the maturity date of convertible bonds (the issuer's call option) were recognized as separate derivatives at the initial issuance of the convertible bonds and measured at fair value," adding, "The amount occurred due to remeasurement at fair value as of the end of Q1 2022."

It further explained, "This is an accounting valuation loss with no actual cash outflow, calculated by evaluating the convertible bonds at fair value according to Korean International Financial Reporting Standards (K-IFRS)."