There is a bio-company called NKMax. Recently,

1.
There is a bio-company called NKMax. Recently, a major shareholder was traded against a mortgage loan, and the stake went from 11% to 0.01%.

As usual with this kind of company, false disclosure and omission of disclosure were frequently made, but the transaction was suspended as it was subject to a listing eligibility review (release review) due to accumulated penalty points.

2.
Yesterday, the audit opinion was rejected, and a reason for the review of the reward and closing was added. The auditor said that one of the reasons for the rejection was "not able to secure sufficient and appropriate audit evidence for the economic substance of the subsidiary."

The subsidiary here seems to be a subsidiary of Nkagen Biotech, which is listed on Nasdaq in the U.S., which is also on the verge of being kicked out of Nasdaq.

3.
There is one thing that stands out.
The company settled with a consolidated operating loss of 60.8 billion won in 2023 and a net loss of 32.8 billion won in the current period, but recognizes more than 100 billion won in profit from the disposal of subsidiaries. If not for this, it would have almost completely eroded capital.

What's funny about this is..
The profit from the disposal of a subsidiary of 101.4 billion is an accounting profit from the so-called 'change of control'.

NKMax classified its U.S. subsidiary as a subsidiary (57% stake) until the third quarter of 2023 but reclassified it as a related company in the fourth quarter. It is because it disposed of part of its stake to make it 46%. It smells from here.

4.
There was not enough data in the notes of the financial statements disclosed by the company, so I calculated it at random.

U.S. subsidiaries must remove the name tag of their subsidiaries and put a new name tag of their affiliates on the books.

The erased subsidiary has a net asset of minus 66.5 billion won. The newly recorded subsidiary's fair value is 35.8 billion won.

Therefore, NKMax is calculated in accounting as having earned 665+358=102.3 billion in profit from the disposal of subsidiaries..
(I just ignored it because the stake actually disposed of was not much)

The company's disposal profit recorded in its financial statements is 101.4 billion won, which is almost the same.

5.
I can guess where the main purpose was to sell the stake and change it to 'subsidiary companies-->relevant companies.' The Board of Supervisors should take a closer look at these companies. Don't just pay attention to the general elections..