Intangible assets and goodwill

12 Months Ended

Dec. 31, 2025

21. Intangible assets and goodwill

A. Reconciliation of carrying amount

Details of intangible assets as of December 31, 2025 and 2024 are as follows:

Schedule of intangible assets
		December 31, 2025
		Book value		Accumulated amortization			Accumulated impairment			Carrying amount
		(In thousands of Korean won)
Software	₩		273,500		(214,667	)		-			58,833
Brand			5,388,000		(1,234,750	)		-			4,153,250
Crypto assets			13,823,661		-			(2,692,396	)		11,131,265
Contents IP			2,113,318		(278,570	)		-			1,834,748
Goodwill			190,807,972		-			(130,190,941	)		60,617,031
Total	₩		212,406,452		(1,727,987	)		(132,883,337	)		77,795,128

		December 31, 2024
		Book value		Accumulated amortization			Carrying amount
		(In thousands of Korean won)
Software	₩		487,309		(376,372	)		110,937
Brand			5,388,000		(965,350	)		4,422,650
Goodwill			3,267,730		-			3,267,730
Total	₩		9,143,039		(1,341,722	)		7,801,317

Details of the changes in intangible assets for the years ended December 31, 2025, 2024 and 2023 are as follows:


		2025
		Software			Brand			Goodwill			Crypto assets			Contents IP			Total
		(In thousands of Korean won)
Beginning balance	₩		110,937			4,422,650			3,267,730			-			-			7,801,317
Changes in scope of consolidation			-						191,659,072			-			2,113,319			193,772,391
Acquisition			-			-			-			13,823,661			-			13,823,661
Amortization			(52,104	)		(269,400	)		-			-			(278,571	)		(600,075	)
Impairment			-			-			(129,071,743	)		(2,897,921	)		-			(131,969,664	)
Other (*)			-			-			(5,238,028	)		205,525			-			(5,032,503	)
Ending balance	₩		58,833			4,153,250			60,617,031			11,131,265			1,834,748			77,795,128

(*)	Other includes effects of changes in foreign currency exchange rates and others.

		2024
		Software			Brand			Goodwill		Total
		(In thousands of Korean Won)
Beginning balance	₩		197,547			4,692,050			3,267,730		8,157,327
Amortization			(86,610	)		(269,400	)		-		(356,010	)
Ending balance	₩		110,937			4,422,650			3,267,730		7,801,317

		2023
		Software			Brand			Goodwill		Total
		(In thousands of Korean Won)
Beginning balance	₩		290,947			4,961,450			3,267,730		8,520,127
Amortization			(93,400	)		(269,400	)		-		(362,800	)
Ending balance	₩		197,547			4,692,050			3,267,730		8,157,327

B.	Amortization

The classification of amortization in the statements of comprehensive income for the years ended December 31, 2025, 2024 and 2023 are as follows:

2025

2024

2023

(In thousands of Korean won)

Selling, general and administrative expenses

₩

600,074

356,010

362,800

C.	Details of crypto assets

The Company adopted a digital asset treasury strategy centered on holding Bitcoin(“BTC”) as a reserve asset and holds the acquired BTC to pursue a Bitcoin-centric treasury strategy for treasury diversification, inflation hedging, and general corporate purpose. The Company has recognized it as intangible assets based on its fair value at the time of acquisition.

Details of the changes in crypto assets in quantity for the year ended December 31, 2025 are as follows:

2025

Beginning
Balance

Acquisition

Disposal

Ending
Balance

Bitcoin(Quantity)

The Company acquired Bitcoin using proceeds obtained from the issuance of convertible notes to Anson Investments Master Fund LP and Anson East Master Fund LP. Pursuant to the terms of such convertible note agreements, all BTC held by the Company has been pledged as collateral to secure its obligations thereunder.

Details of the changes in crypto assets for the year ended December 31, 2025 are as follows:

		2025
		Beginning Balance		Acquisition		Impairment			Other		Ending Balance
		(In thousands of Korean Won)
Bitcoin	₩		-		13,823,661		(2,897,921	)		205,525		11,131,265

The price of the crypto assets held by the Company fluctuated between a high of USD $126,110 and a low of USD $80,843 from the acquisition date to the end of the current period. As a result of the decline in the market price of Bitcoin for the year ended December 31, 2025, the Company recognized an impairment loss of USD $2,057,588 in the consolidated statements of operations.

Although the fair value of these crypto assets has fluctuated significantly after the reporting date, the impact of such significant fluctuations on the financial statements cannot be predicted as of the date of preparation. Accordingly, the Company’s financial statements do not include any potential adjustments that may arise from such uncertainties.

D.	Goodwill

Details of goodwill allocation for cash generating units (“CGU”s) operated by management for the year ended December 31, 2025 is as follows:


		2025
		Ending Balance (Before impairment)		Impairment			Ending Balance (After impairment)
		(In thousands of Korean won)
Play F&B Co., Ltd.	₩		3,267,730		-			3,267,730
K Enter Holdings			168,379,183		(126,619,936	)		41,759,247
The Lamp			7,188,900		-			7,188,900
Bidangil			3,322,966		(1,504,472	)		1,818,494
Apeitda			3,558,388		(1,852,687	)		1,705,701
Anseilen			2,303,422		-			2,303,422
Solaire			2,787,383		(213,846	)		2,573,537
Total	₩		190,807,972		(130,190,941	)		60,617,031

E.	Impairment assessment on CGU

The Company performs impairment test for goodwill annually and identifies each subsidiary as cash-generating units (“CGU”). Value in use is calculated using the estimated cash flow based on 5-year business plan approved by management. The estimated revenue and operating expenditures on the Company’s products used in the forecast was determined considering external sources and the Company’s experience. Management estimated the future cash flows based on its past performance and forecasts on consumer inflation rate. The key assumptions used in the estimation of value in use for seven CGUs include revenue and operating expenditures for the forecast period, growth rates for subsequent years (“terminal growth rate”), and discount rate. Terminal growth rate and the discount rate used in the estimation of value in use are as follows:

Schedule of impairment assessment
	2025
	Discount rate			Terminal growth rate				Carrying amount		Recoverable amount
	(In thousands of Korean won)
Play F&B Co., Ltd.		9.6	%		1.0	%	₩		8,846,956		9,664,293
K Enter Holdings		11.1	%		1.0	%			171,674,366		45,054,431
The Lamp		11.1	%		1.0	%			7,496,511		10,873,435
Bidangil		11.1	%		1.0	%			4,210,862		2,706,389
Apeitda		11.1	%		1.0	%			3,804,173		1,951,487
Anseilen		11.1	%		1.0	%			1,600,604		1,812,626
Solaire		11.1	%		1.0	%			4,668,736		4,454,890

The discount rate was calculated using the weighted average cost of equity capital and debt and the beta of equity capital was calculated as the average of ten Korean listed companies in the same industry and the Company. Cost of debt was calculated using the yield rate of non-guaranteed corporate bond considering the Company’s credit rating and debt ratio was determined using the average of the debt ratios of the ten Korean listed companies in the same industry and the Company. The Company calculates the value in use of CGU using post-tax cash flows and a post-tax discount rate.

As a result of the impairment test, the carrying amount of goodwill for the seven CGUs including K Enter Holding exceeded the recoverable amount by Korean Won 129,071,743 thousand, and the excess was recognized as an impairment loss in other expenses in the consolidated statements of comprehensive income.

The value in use determined for this CGU is sensitive to the discount rate and terminal growth rate used in the discounted cash flow model. The impact of a 0.5% fluctuation in discount rates and terminal growth rates on the value in use as of December 31, 2025 are as follows:

Schedule of terminal growth rate
December 31, 2025	0.5% Increase			0.5% Decrease
Discount rate		(-) 7.9	%		8.7	%
Terminal growth rate		5.0	%		(-) 4.5	%