Note 5 – Acquisition Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations
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(a) |
Reflects an adjustment to reflect ₩45.0 million of transaction costs incurred by K Wave that are not included in the historical financial statements of K Wave and Hansol. |
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(b) |
The following table summarizes the estimated fair values of Hansol’s identifiable intangible assets and their estimated useful lives including the amortization for the periods presented calculated on a straight-line basis (in thousands). |
| Schedule of estimated fair values |
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Estimated
Fair Value |
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Estimated Useful
Life (years) |
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Amortization Expense -
Year Ended
December 31,
2025 |
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| Customer relationships |
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₩ |
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2,457,000 |
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9.8 |
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₩ |
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250,714 |
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| Backlog |
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2,884,000 |
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5 |
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576,800 |
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| Technology |
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4,716,000 |
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7 |
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673,714 |
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| Brand |
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1,643,000 |
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Indefinite |
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- |
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| Total |
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₩ |
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1,501,228 |
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(c) |
Reflects the amortization expense allocated to the non-controlling interest. |
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(d) |
Reflects the pro forma tax expense on the amortization of the intangible assets based on the 22% corporate income tax rate. |
| (e) | Reflects the interest expense recognized on the bank loan as described in (F) above, giving effect to the business combination as if it had occurred
on January 1, 2025. |
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| (c) | Reflects the loss on the disposal of Bitcoin. |
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